Corporate Concierge Break-Even Analysis: Month 9 Revenue Target

Fixed costs $210.5K Monthly fixed base

Contribution margin 86% After variable costs

Break-even revenue $244.8K Monthly target revenue

Break-even timing Month 9 Model break point

Break-even calculator

Use this calculator to test whether monthly revenue covers variable costs and fixed overhead for a corporate concierge service.

Lean Base Full

Monthly revenue Revenue is the top line that funds variable costs and fixed overhead. $ Early launch Mature scale Variable expenses These are direct costs that rise with sales, like vendor pass-through and commissions. $ Tight costs Higher spend

Money available to cover fixed costs $387,520 $448,000 revenue - $60,480 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead and payroll base break-even must cover. $ Lean team Growth team

Break-even chart Revenue Total costs

Which employee errand service expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if each expense behaves the right way in the model. Fixed overhead sets the monthly hurdle, while variable fees reduce contribution margin on every dollar of revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
CEO	Fixed	Treat the $220,000 annual salary as about $18,333 per month from Month 1 through Month 60.	Removing leadership pay from break-even and overstating early profit.
Head of Sales	Fixed	Treat the $160,000 annual salary as about $13,333 per month because the role is staffed at 1.0 FTE each year.	Tying the full salary to new customer wins instead of base capacity.
Account Managers	Semi-fixed	Model in staffing steps: 2 FTE in Year 1, then 3, 4, 5, and 6 FTE by Year 5 at $95,000 each.	Spreading account management evenly across revenue and missing hiring cliffs.
Corporate Concierges	Semi-fixed	Model as committed service capacity: 8 FTE in Year 1 scaling to 32 FTE by Year 5 at $58,000 each.	Treating all assistant labor as Variable when salaried coverage is committed before demand is proven.
Office lease and utilities	Fixed	Include the $18,000 monthly charge in the break-even hurdle for every month in the model period.	Allocating rent per customer and hiding the true monthly cash burden.
Core software and hosting	Fixed	Include the $14,000 monthly platform charge as fixed operating overhead unless the contract changes.	Assuming hosting falls when sales slow, even though the base platform bill remains.
Vendor pass-through costs	Variable	Deduct 8.0% of revenue in Years 1 and 2, then 7.5% in Year 3 and 7.0% in Years 4 and 5.	Forgetting that vendor fulfillment reduces contribution margin before fixed overhead is covered.
Sales commissions	Variable	Deduct 6.0% of revenue each year before measuring how much is left to cover fixed expenses.	Counting gross revenue as contribution and overstating break-even progress.

How does break-even shift from a lean pilot to a full-service rollout?

Scenario table

Here’s the quick math: variable costs run at 14%, so contribution margin, or what’s left after those costs, is 86%. With $248k of monthly fixed costs, break-even sits near $288k of revenue.

Planning numbers only; actual results will move with client mix, staffing, and sales speed.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean pilot launch	$213k	$30k	$248k	86%	-$65k	Still below the base-case break-even line.
Base case service mix	$288k	$40k	$248k	86%	$0	At break-even, with no cushion.
Full-service rollout	$361k	$51k	$248k	86%	$63k	Clears break-even and creates cushion.

What breaks the break-even plan if sales slow or costs run hot?

Stress test

The plan sits near a $288k monthly break-even point with an 86% contribution margin. A 10% sales miss, a 4-point jump in variable costs, or a 10% fixed-cost increase can push it into the red; combined pressure widens the hole.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$288k/month	$0 gap	No cushion; any miss hurts.
Revenue shortfall	Revenue falls 10% below plan.	$288k/month	$29k gap	Slower contract signing can trigger cash burn.
Fixed-cost pressure	Fixed costs rise 10% above plan.	$317k/month	$29k gap	Overhead or travel above plan pushes breakeven higher.
Margin pressure	Variable costs rise from 14% to 18% of revenue.	$302k/month	$14k gap	Higher contractor pay and same-day requests squeeze margin.
Combined pressure	Revenue is 10% lower, variable costs are 18%, and fixed costs are 10% higher.	$332k/month	$60k gap	Sales slippage plus cost inflation creates the fastest cash drain.

What should you verify before locking the Year 1 marketing and build spend for this corporate concierge service?

Founder checklist

Before you lock the $450K Year 1 marketing budget and build spend, prove employers will buy at $8, $12, and $18 PEPM and that 8 Year 1 concierges can handle the load. The model still dips to about -$1.355M in Month 9, so this is a cash test, not a guess.

1Demand proof$450K

Validate employer willingness to buy before you commit the Year 1 marketing budget, because weak pipeline will push payback out.

2Price mix$8/$12/$18

Test which PEPM tier closes deals, then check that the mix still leaves about 86% after 8% vendor pass-through and 6% sales commissions.

3Add-ons$5K

Confirm clients will pay for add-ons at the $5K package level before you assume 25% attach, since that lift matters to early revenue.

4Capacity ramp8 FTE

Map onboarding, routing, and response times to 8 Year 1 concierges before adding account managers, or service quality will slip before break-even.

5Fixed load$210.5K/mo

Hold the line on the about $210.5K monthly fixed load and bind insurance and compliance before the first errands go live, because overhead comes due even if demand is soft.

6Runway-$1.355M

Keep enough cash for the Month 9 trough, and do not lock the $680K app and back-end build or the $220K office fit-out until remote dispatch proves the launch can stay lean.