TPM Consulting Break-Even Analysis: $107K Monthly Revenue

Fixed costs $68.6K/mo Payroll and overhead

Contribution margin 76% After variable costs

Break-even revenue $90.2K/mo Monthly target

Break-even timing Month 10 Launch ramp

Break-even calculator

Use this to test monthly revenue, variable expenses, and fixed costs against break-even for a TPM consulting model.

Lean Base Full

Monthly revenue Revenue sets the margin pool that covers fixed costs. $ Low volume Scaled demand Variable expenses Use direct costs that rise with delivery and acquisition. $ Lean costs Higher costs

Money available to cover fixed costs $58,500 $77,000 revenue - $18,500 variable expenses

Margin ratio

76%

Covers fixed costs

$10,500 short

Fixed monthly costs This is the monthly cost base the margin must cover. $ Tight overhead Larger team

Break-even chart Revenue Total costs

Which expenses are fixed, variable, or step-driven in a maintenance consulting break-even model?

Cost classification

Break-even gets reliable only when payroll, delivery costs, and overhead sit in the right buckets. In the first year, the model reaches break-even in Month 10, so small margin errors can move that date.

Expense	Cost	Break-Even Treatment	Common Mistake
Consultant payroll	Fixed	Include Managing Partner at $175,000, two Senior Consultants at $135,000 each, Operations Analyst at $85,000, Sales and Marketing Director at $110,000, and Administrative Assistant at $55,000 in first-year monthly fixed burn.	Treating salaried delivery staff as free capacity.
Consultant Travel and Per Diem	Variable	Model at 12% of first-year revenue because onsite client work rises with signed projects and billable activity.	Pricing onsite work like remote work.
Training Materials and Certifications	Variable	Model at 4% of first-year revenue because client materials scale with delivered engagements.	Burying client materials in overhead.
Client Acquisition Commissions	Variable	Deduct 5% of revenue before contribution margin, since payouts move with sales volume.	Ignoring sales payouts in margin.
Software and Data Analytics Usage	Variable	Model at 3% of first-year revenue because usage rises with assessments, client data, and delivery volume.	Treating usage-based tools as fixed subscriptions.
Office Lease	Fixed	Include $4,500 per month in fixed overhead for the planning range from Month 1 through Month 60.	Signing space before recurring revenue.
Professional Liability Insurance	Fixed	Include $1,200 per month as required recurring coverage, separate from delivery margin.	Excluding required coverage.
Marketing Content Production	Semi-fixed	Include $1,500 per month plus the first-year annual marketing budget of $45,000; review spend as pipeline capacity changes.	Spending ahead of signed pipeline.

How do break-even results change across lean, base, and full TPM consulting setups?

Scenario table

Lean stays cash-tight because fixed staffing takes most of the margin, while the base and full cases clear break-even as billable hours, pricing, and mix improve. The main swing factor is fixed cost coverage.

These are planning assumptions built from the model, not guaranteed results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$76.9k	$18.5k	$81.3k	76%	-$22.8k	Still below break-even; Month 10 is the first signal.
Base boutique team	$154.8k	$35.8k	$98.0k	77%	$21.1k	Moves above break-even, but staffing discipline still matters.
Full-service rollout	$260.8k	$57.4k	$138.8k	78%	$64.6k	Clear cushion above break-even; capacity is the main constraint.

What breaks the break-even plan for this TPM consulting business?

Stress test

Base first-year revenue is about $77,000 a month against a break-even need near $107,000, so the plan is tight. Slower plant approvals, more onsite days, and a 10% rise in overhead push losses fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from the first-year plan.	$107,000	$30,000 gap	The first year still needs a faster sales ramp.
Revenue shortfall	Average monthly revenue falls 10% to about $69,000.	$107,000	$29,000 operating loss	Delayed plant approvals or slower audits can hit cash fast.
Fixed-cost pressure	Overhead rises 10%, lifting fixed coverage to about $89,000 a month.	$118,000	$41,000 gap	Office, admin, and compliance costs can outrun sales.
Margin pressure	Variable expenses rise 5 points, cutting contribution margin to 71%.	$115,000	$38,000 gap	More travel and contractor support leave less cash for overhead.
Combined pressure	Revenue falls 10%, variable costs rise 5 points, and overhead rises 10%.	$126,000	$40,000 operating loss	A slow launch with more onsite work breaks the model fast.

What should a TPM consulting founder verify before locking in office space and hiring?

Founder checklist

Do not commit to the office, payroll, or software build until signed proposals can support the roughly $107K monthly break-even target. Keep the cash floor in view too, because the model does not get back to safer footing until Month 9.

1Signed pipeline$107K/mo

Verify signed proposals are close to the break-even run rate before adding office or hiring commitments.

2Fixed load$10.65K/mo

Check that office lease, insurance, CRM, legal, telecom, and content spend stay covered, since this is a service model and stock is not the issue.

3Margin mix76% CM

Confirm the Year 1 cost mix leaves enough contribution margin to carry payroll and overhead after 12% travel, 4% training, 5% commissions, and 3% software.

4Delivery hours80/40/15 hrs

Test whether the team can deliver 80-hour implementation projects, 40-hour diagnostics, and 15-hour retainers before you scale volume or add subcontractors.

5Cash cushion$533K, Month 9

Track cash against the minimum need in Month 9 and delay nonessential capex if the launch spend starts to crowd that reserve.

6Launch demand$45K / $4.5K CAC

Validate that the Year 1 marketing budget and acquisition cost can produce enough qualified manufacturers before you commit to the full launch build.