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Preventive Conservation Services Break-Even Analysis: Month 22

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This break-even analysis covers a US preventive conservation service over a five-year model period, with first-year break-even revenue near $561K per month It includes fixed and variable expenses, contribution margin, monthly overhead, and launch risk, but excludes tax planning, grant forecasting, and one-time capital purchases unless modeled separately


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.

Money available to cover fixed costs $87,987 $118,083 revenue - $30,096 variable expenses
Margin ratio
75%
Covers fixed costs
Yes
Break-even chart Revenue Total costs
Plan Break-even $0 $0

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.


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