Business Continuity Consulting Break-Even: About $80K/Month

Fixed costs $12.6K/mo Monthly overhead base

Contribution margin 71% Left after variables

Break-even revenue $17.7K/mo Monthly target

Break-even timing Month 10 Launch ramp point

Break-even calculator

Test whether monthly revenue covers direct costs and the fixed cost base for continuity consulting.

Lean Base Full

Monthly revenue Revenue is the monthly sales line that must cover direct costs and overhead. $ Low sales High sales Variable expenses These are direct costs that rise with client work, like commissions, travel, and contractor help. $ Light costs Heavy costs

Money available to cover fixed costs $157,750 $210,333 revenue - $52,583 variable expenses

Margin ratio

75%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead base that contribution margin has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with sales in a business continuity consulting firm?

Cost classification

This model reaches break-even in Month 10, but the math only holds if recurring overhead and client-linked delivery spend are separated. Misclassifying delivery labor or sales-linked fees can make the required revenue look too low.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $5,500 per month in fixed overhead from Month 1 through Month 60.	Spreading rent across client projects and hiding the true monthly hurdle.
Cybersecurity Insurance	Fixed	Include $1,200 per month as baseline operating overhead.	Treating insurance as optional until larger clients require proof of coverage.
Contractor Subject Matter Experts	Variable	Model as 12% of first-year revenue, falling to 8% by the mature year.	Treating all delivery labor as fixed overhead instead of client-linked spend.
Cloud Backup Partner Licenses	Variable	Apply 8% of first-year revenue, declining to 6% as scale improves.	Booking licenses as flat software overhead when usage follows client volume.
Sales Commissions	Variable	Apply 5% of revenue in each forecast year as sales are closed.	Leaving commissions out of contribution margin and overstating break-even speed.
Travel and Onsite Assessment Costs	Variable	Model at 4% of first-year revenue, declining to 2% by the mature year.	Using a flat travel budget when onsite work rises with client projects.
Consultant and Analyst Staffing	Semi-variable	Keep base salaries in overhead, then add capacity as client load rises.	Assuming every added client can be served with the original team.
Professional Development and Certs	Semi-fixed	Start with $900 per month, then step it up when headcount grows.	Holding training flat while consultant count and certification needs increase.

How does break-even change from a lean launch to the base and full delivery models?

Scenario table

Break-even rises as staffing and marketing scale up. Retainers help the margin, but higher payroll and fixed overhead still push the cash hurdle higher, so the signed pipeline has to stay full.

Planning assumptions only; actual break-even will move with the work mix, staffing pace, and cash timing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$705k	$204k	$501k	71%	$0	Needs about $705k a month, so early pipeline must land fast.
Base case	$805k	$234k	$571k	71%	$0	About $805k covers the core team, but only if signed work keeps pace.
Full mature case	$1,841k	$386k	$1,455k	79%	$0	At about $1.84m, the model needs a strong retainer mix and a busy delivery bench.

What pressures break-even first for this continuity consulting firm?

Stress test

Break-even is fragile because fixed overhead is already heavy and the model depends on steady signed work. A 15% revenue miss or a 10% cost overrun quickly turns the month negative.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$805k	$0 gap	Almost no cushion at launch.
Revenue shortfall	Monthly revenue falls 15% below plan.	$805k	$86k gap	Proposal slippage creates a fast monthly loss.
Fixed-cost increase	Fixed overhead rises 10% before revenue is steady.	$885k	$57k gap	Overhead growth pushes the model above plan.
Margin pressure	Variable expense rate climbs from 29% to 34%.	$866k	$40k gap	Contractor rework or travel erodes contribution.
Combined pressure	Revenue falls 15%, variable costs rise to 34%, and fixed costs rise 10%.	$952k	$177k gap	Slow sales plus cost overrun create a wide gap.

What should the founder verify before hiring and adding overhead in this continuity consulting firm?

Founder checklist

Don't add staff or raise marketing until demand, pricing, and delivery all clear the break-even bar. The model hits breakeven in Month 10, but cash bottoms at $610,000 in Month 18, so the first test is whether the pipeline can carry the load before the next hire.

1Pipeline Coverage$10.1K/project

Confirm proposals and retainers can clear about $10,125 per core development project, because that is the price implied by $225 per hour and 45 billable hours.

2Variable Plan29% Y1

Keep cloud backup licenses, contractor subject matter experts, travel, and sales commissions near 29% of Year 1 revenue so contribution margin, the share left after variable costs, stays close to 71%.

3Bench Depth1.0 FTE

Keep a contractor subject matter expert bench ready before selling complex recovery planning, because Year 1 delivery depends on outside specialists alongside a 1.0 FTE senior consultant.

4Core Overhead$12.6K/mo

Make sure the non-payroll fixed base of about $12,550 a month is covered before adding the operations coordinator in Month 13, or office, software, insurance, and compliance costs will drag cash down.

5Cash Floor$610K

Use the Month 18 minimum cash point of $610,000 as the reserve line, not the growth target, so a slow close cycle does not force a bad hire or rushed spend.

6Marketing Gate$45K→$65K

Do not move annual marketing from $45,000 to $65,000 until the sales cycle proves repeatable closes, because spend grows faster than the current CAC improvement from $3,500 to $3,200.