Preventive Conservation Services Break-Even Analysis: Month 22

Fixed costs $43.5K/mo Year 1 base

Contribution margin 71% After variable spend

Break-even revenue $61.3K/mo Monthly target

Break-even timing Month 22 Model break-even

Break-even calculator

Use this to test whether monthly revenue covers direct costs and the fixed cost base in preventive conservation services.

Lean Base Full

Monthly revenue Revenue sets the cash pool available to cover direct costs and overhead. $ Low volume High volume Variable expenses These are the direct costs that rise with each dollar of revenue. $ Light direct Heavy direct

Money available to cover fixed costs $87,987 $118,083 revenue - $30,096 variable expenses

Margin ratio

75%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin has to cover. $ Tight overhead Heavy overhead

Break-even chart Revenue Total costs

Which preventive conservation service expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if fixed overhead is separated from delivery spend. In the first operating year, rent and insurance sit in the monthly nut, while materials at 8.5% and travel at 12.0% of revenue move with jobs.

Expense	Cost	Break-Even Treatment	Common Mistake
Lab and Office Rent	Fixed	Use $6,500 per month in fixed overhead from Month 1 through Month 60.	Allocating rent to each project and hiding the monthly break-even burden.
Professional Liability Insurance	Fixed	Use $1,200 per month as a recurring fixed charge regardless of job count.	Dropping insurance from break-even because it is not tied to delivery hours.
Utilities and Climate Control	Semi-fixed	Start with the $1,100 monthly base, then step it up when lab capacity or climate-controlled space expands.	Treating climate control as fully variable just because usage rises with activity.
Vehicle Maintenance and Fuel	Semi-variable	Keep the $950 monthly base in overhead and track added trip fuel against field work.	Putting all vehicle spend in fixed overhead and missing travel-heavy project drag.
Archival Materials and Supplies	Variable	Model as 8.5% of first-year revenue, then use the forecast rate for each later year.	Using one flat dollar amount even when project volume changes.
Laboratory and Testing Fees	Variable	Model as 4.5% of first-year revenue because testing rises with conservation work delivered.	Classifying testing as fixed lab overhead instead of job-linked spend.
Field Travel and Lodging	Variable	Model as 12.0% of first-year revenue and update as the mix of on-site work changes.	Averaging local and remote projects into one margin assumption.
Conservation and Support Payroll	Semi-variable	Year 1 payroll is $287,500 annually; keep core roles fixed and add hiring only when utilization supports it.	Treating all payroll as fixed and hiring ahead of billable demand.

How does break-even shift from a lean launch to a base year and a full operating case for preventive conservation services?

Scenario table

As recurring contracts rise from 45% in Year 1 to 65% in Year 5, contribution grows faster than overhead. That shifts the model from a Year 1 loss to a Year 3 cushion and a stronger Year 5 profit.

Planning figures only; actual break-even will move with contract mix, staffing, and travel load.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$41.9k	$12.2k	$43.5k	71.0%	-$13.8k	Below the ~$61k/mo break-even line.
Base operating case	$118.1k	$30.1k	$72.1k	74.5%	$15.8k	Above the ~$97k/mo break-even line.
Full operating case	$214.8k	$48.3k	$102.6k	77.5%	$63.8k	Well above the ~$132k/mo break-even line.

What pushes a preventive conservation service below break-even?

Stress test

Year 1 revenue sits below break-even, so there isn’t much cushion. Fewer museum contracts, travel above 12%, or delayed collections-care staffing will widen the gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$609K	$106K gap	Year 1 revenue still falls short.
Revenue shortfall	Year 1 revenue falls 15%.	$609K	$182K gap	Less contract flow quickly widens the loss.
Fixed-cost pressure	Fixed costs rise 10%.	$671K	$168K gap	Payroll and overhead push the bar higher.
Margin pressure	Variable expenses rise 5 points to 34%.	$656K	$153K gap	Travel and lab cost creep cuts contribution fast.
Combined pressure	Revenue falls 15%, fixed costs rise 10%, and variable expenses rise to 34%.	$721K	$294K gap	Small misses stack into a much larger cash burn.

What should you verify before you lock the lease, hires, vehicle, and equipment?

Founder checklist

Do not lock fixed overhead until signed or late-stage museum work can cover the modeled $561K monthly break-even revenue. Year 1 revenue is $503K and EBITDA is -$165K, so the gap is still real.

1Pipeline cover$561K/mo | 45% mix

Verify signed and late-stage museum work can cover the modeled break-even revenue, with annual service contracts making at least 45% of Year 1 revenue.

2Base load$12.1K/mo

Hold rent, professional liability insurance, software, utilities, admin, and vehicle costs near the modeled $12.1K a month, and test whether travel plus lodging stays inside the 12% budget.

3Rate card71% CM

Price against $185/hr contracts, $215/hr project work, and $250/hr consulting, then keep direct costs near 29% of revenue so billed hours fund overhead.

4Staffing ramp$287.5K payroll

Do not add the business development manager or extra technicians until the 3.5 FTE base and 12.5 billable hours per active customer per month can hold.

5Cash floor$542K floor

Keep cash above the modeled $542K minimum through Month 26, because breakeven lands at Month 22 and payback still runs to 51 months.

6Launch CAC$45K | $2.5K CAC

Use the $45K Year 1 marketing budget only if CAC stays near $2,500, or launch spend will outrun early revenue.