A full class must also support the business
If you want to run a dance school successfully, you need to consider teaching and running the business together. A class involves more than just time in the studio: preparing music, answering messages, setting up the rooms and documenting students’ progress are all part of the work. If you leave this work out of the equation, you mistake a well-attended class for an economically sustainable offering.
An explicitly fictional calculation example: Let’s say a class generates 600 euros in revenue and incurs 240 euros in direct costs for the room and teaching. The contribution margin is then 360 euros. Shared costs still need to be covered from this amount, such as administration and ongoing equipment. Your own teaching work also needs an imputed value, even if you don’t receive an invoice from someone else for it. This simplified example does not account for taxes or the final result.
The key question is what level of attendance your offering needs to be sustainable. So also calculate using an explicitly assumed lower attendance level. This will show you whether a class only works with a full group or can withstand fluctuations. At a dance school with its own premises, you allocate shared room costs across several offerings; as a self-employed dance teacher, you instead factor in things like individual room rentals and travel time. Both models require the same distinction between revenue, expenses and the result available.

