Cholesterol Test Kit Sales Running Costs: $34,650 Monthly Fixed

Cholesterol Test Kit Sales Running Costs

Running a Cholesterol Test Kit Sales business requires substantial upfront fixed capital and aggressive marketing spend Expect monthly fixed overhead (salaries, software, insurance) around $34,650 in 2026, plus variable costs (inventory, shipping) consuming about 199% of revenue The first year revenue forecast is $501,000, resulting in an EBITDA loss of $211,000 This model forecasts needing a minimum cash buffer of $524,000 by January 2027 to cover the 14 months until the projected break-even date in February 2027 Your focus must defintely be on reducing the $25 Customer Acquisition Cost (CAC) while scaling repeat purchases, which are projected to grow from 150% to 450% by 2030

7 Operational Expenses to Run Cholesterol Test Kit Sales

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Staff Payroll	Fixed Personnel	Total 2026 payroll for 40 FTE averages $25,000 per month.	$25,000	$25,000
2	Inventory Procurement	Variable Cost (COGS)	Inventory procurement costs are defintely projected at 120% of revenue in 2026, requiring careful management of supplier terms and stock levels.	$0	$0
3	Marketing Spend	Fixed Marketing	The annual marketing budget of $150,000 in 2026 translates to $12,500 monthly, aimed at achieving a $25 Customer Acquisition Cost (CAC).	$12,500	$12,500
4	Liability Insurance	Fixed Overhead	Medical supply liability insurance is a budgeted fixed cost of $2,500 per month starting in 2026.	$2,500	$2,500
5	Software Subscriptions	Fixed Overhead	Essential subscription costs for the E-commerce Platform ($1,200) and Warehouse Management Software ($850) total $2,050 monthly.	$2,050	$2,050
6	Shipping/Fulfillment	Variable Cost	Shipping and 3PL fulfillment costs are variable, estimated at 40% of revenue in 2026, decreasing to 30% by 2030 due to scale.	$0	$0
7	Office Overhead	Fixed Overhead	General fixed overhead, covering items like rent for office space and utilities, is budgeted consistently at $3,000 per month.	$3,000	$3,000
Total	Total	All Operating Expenses		$45,050	$45,050

What is the total monthly operating budget required to sustain Cholesterol Test Kit Sales before break-even?

The total monthly operating budget required before reaching break-even for Cholesterol Test Kit Sales is the sum of all fixed overhead necessary to run the platform plus the variable cost associated with every unit sold until revenue catches up. Honestly, without knowing your projected customer acquisition cost or facility lease, we can only define the buckets you must fund; if you're mapping this out, review How Do I Write A Business Plan For Cholesterol Test Kit Sales? for structuring this initial capital requirement. This budget must cover the time it takes to acquire enough recurring customers to cover these costs, which defintely requires runway.

Essential Fixed Monthly Costs

Salaries & Payroll: Costs for core team members managing logistics and marketing.
Software Subscriptions: Monthly fees for the e-commerce platform and accounting tools.
Facility Overhead: Rent or shared office space costs for administrative staff.
Insurance & Legal: Monthly allocation for liability coverage and compliance monitoring.
Marketing Base Spend: Minimum spend required to keep the brand visible online.

Variable Costs Per Sale

Cost of Goods Sold (COGS): Actual purchase price of the cholesterol testing kits.
Customer Acquisition Cost (CAC): Marketing spend required per new purchasing customer.
Fulfillment & Shipping: Costs for picking, packing, and carrier fees per order.
Payment Processing Fees: Percentage taken by credit card processors on gross sales.

Which recurring cost category represents the largest percentage of total monthly spending?

The largest recurring cost for the Cholesterol Test Kit Sales business in the first year will defintely be driven by either customer acquisition marketing or inventory procurement, depending on initial volume targets. Understanding this balance is critical to managing early-stage cash flow, which is why founders must track metrics like those detailed in What 5 KPIs Drive Cholesterol Test Kit Sales Business?

Initial Cash Drain Focus

Inventory procurement (Cost of Goods Sold) is variable and scales with every unit sold.
Marketing spend is the highest fixed recurring drain if customer acquisition is inefficient.
Payroll for core operational staff will be lower initially than variable costs.
If the average order value (AOV) is $75, COGS must stay below 40% to cover fulfillment.

Cost Control Levers

Push subscriptions to lower the effective Customer Acquisition Cost (CAC).
Negotiate better terms for kit production runs over 10,000 units.
Track marketing spend return on investment (ROI) weekly.
Keep fixed payroll costs below $15,000 monthly until revenue stabilizes.

How many months of cash runway are necessary to cover the $524,000 minimum cash need until profitability?

The Cholesterol Test Kit Sales business requires a 14-month cash runway to fully cover the projected $524,000 minimum cash need until it reaches profitability in February 2027. This means you must secure enough capital to sustain an average monthly deficit of approximately $37,429 until that break-even point.

Calculating the Monthly Bridge

Total cash deficit needing coverage until profitability: $524,000.
Time window to cover this deficit: 14 months.
The implied average monthly burn rate you must fund is $37,429.
This runway calculation assumes no unexpected capital expenditures during the period.

Bridging to February 2027

Focus on accelerating customer lifetime value (LTV) to shorten the 14-month gap.
If onboarding takes 14+ days, churn risk rises defintely for new subscribers.
You need to aggressively manage marketing spend to keep Customer Acquisition Cost (CAC) low.
To improve unit economics, review strategies on How Increase Cholesterol Test Kit Sales Profitability? for immediate margin impact.

If revenue targets are missed by 30%, what costs can be immediately reduced to maintain cash flow?

If revenue targets are missed by 30% for the Cholesterol Test Kit Sales business, the immediate focus shifts to cutting the $12,500 monthly marketing spend and scrutinizing variable fulfillment costs, as these offer the quickest lever to preserve runway. Understanding the core drivers is key; for context on what drives sales in this sector, review What 5 KPIs Drive Cholesterol Test Kit Sales Business?

Cut Discretionary Spend Now

Halt the $12,500 monthly marketing budget immediately.
Pause all non-essential paid acquisition channels.
Negotiate payment terms with key suppliers.
Delay purchase of non-critical office equipment.

Staffing Level Review

Review administrative and non-fulfillment headcount first.
Reduce contractor hours not tied to order processing.
If necessary, implement a temporary hiring freeze defintely.
Analyze fulfillment staffing against the new, lower order volume.

Key Takeaways

The business faces a substantial monthly fixed overhead of $34,650 in 2026, covering essential costs like payroll, software, and insurance.
Variable costs represent the largest drain, consuming approximately 199% of revenue due to high inventory procurement (120%) and shipping costs (40%).
To cover the projected 14 months of operation until the February 2027 break-even point, a minimum working capital buffer of $524,000 is required.
While staff payroll is the single largest fixed expense at $25,000 monthly, the primary strategic focus must be on reducing the $25 Customer Acquisition Cost (CAC) to improve margins.

Running Cost 1 : Staff Payroll and Wages

2026 Headcount Budget

Your projected 2026 payroll for 40 full-time equivalents (FTE) averages $25,000 per month. This covers essential roles like the General Manager and Digital Marketing Lead. This fixed personnel expense must be covered before revenue scales significantly.

Payroll Inputs

This $25,000 monthly payroll estimate is based on hiring 40 FTEs across key areas for 2026. These roles include the General Manager, the Digital Marketing Lead, Customer Service Representatives (CSR), and Operations Coordinators. This is a significant fixed cost base to support your planned scale.

Roles: GM, Marketing, CSR, Ops Coordinator
FTE Count: 40 employees
Monthly Cost: $25,000 fixed

Controlling Labor Spend

Managing this $25k monthly payroll requires intense focus on productivity per employee, especially since this is a fixed cost. Avoid unnecessary hiring before revenue justifies it. If onboarding takes 14+ days, churn risk rises defintely due to wasted training investment.

Benchmark fully loaded cost per hire
Cross-train CSR and Ops staff
Automate repetitive marketing tasks

Payroll Leverage Point

To make $25,000 in payroll work, you need high volume per employee. If you hit $150,000 in monthly revenue, your payroll as a percentage of sales is 16.7%. If you miss that revenue target, this fixed cost quickly erodes your margin.

Running Cost 2 : Inventory Procurement (COGS)

COGS Overrun

Your 2026 projection shows inventory procurement costs hitting 120% of revenue. This means for every dollar you bring in, you spend $1.20 just on the test kits themselves. You must lock down supplier agreements now or this model fails fast. That extra 20% eats all your margin.

What Inventory Costs Cover

This cost covers the wholesale price paid for every cholesterol test kit and supply item before it ships. Estimating requires knowing the unit cost from suppliers and the projected sales volume for 2026. Since it exceeds revenue, managing this ratio is your primary focus, not the $25,000 monthly payroll yet. Honestly, this is the biggest lever.

Unit cost per test kit.
Supplier minimum order quantities.
Projected monthly sales volume.

Squeezing Procurement

You can't sustain a 120% cost of goods sold (COGS). Negotiate better terms based on projected scale, even if you order less initially. Avoid holding too much stock; slow-moving inventory ties up cash and risks obsolescence for medical supplies. If you can get COGS down to 70%, you create immediate margin.

Renegotiate unit price tiers.
Reduce initial safety stock levels.
Explore secondary qualified suppliers.

Watch Your Terms

If supplier payment terms are Net 60 (pay 60 days later), you might bridge the cash flow gap temporarily. But if terms are Net 30, you will need significant working capital to cover the $0.20 loss on every sale until revenue catches up. That's a defintely tight spot for a startup.

Running Cost 3 : Online Marketing Spend

Marketing Spend Target

Your 2026 plan allocates $150,000 annually for marketing, which is $12,500 per month. This budget is explicitly tied to acquiring customers at a $25 Customer Acquisition Cost (CAC). Hitting this target means the marketing engine must drive exactly 6,000 new customers over the year to justify the spend. That's a lot of new people, so performance needs to be spot on.

CAC Inputs

This $150,000 covers all paid acquisition channels needed to reach health-conscious adults aged 40 and over. To maintain the $25 CAC, you must track spend versus new customer sign-ups daily. If you spend $15,000 in a month, you need 600 new customers to maintain the target efficiency. If you miss that volume, your CAC will defintely spike.

Track Cost Per Click (CPC) closely.
Test higher Average Order Value (AOV) offers.
Prioritize retention over new acquisition.

Managing CAC

Since inventory costs are projected at 120% of revenue, keeping CAC low is critical for profitability right now. Focus on channel efficiency, not just volume. A common mistake is assuming every customer is one-and-done; subscription uptake changes the long-term math significantly. You need high lifetime value (LTV) to support this spend.

Channel spend must align with LTV.
Focus on conversion rate optimization.
Don't overspend on brand awareness yet.

Volume Required

Your fixed operating costs run about $37,550 per month before marketing. That's payroll, insurance, software, and overhead. You need revenue that covers $37.5k plus the $12,500 marketing budget just to break even on fixed costs. Marketing must drive volume that overcomes the high 120% COGS figure.

Running Cost 4 : Liability Insurance

Liability Cost

Liability coverage for selling medical supplies isn't optional; it's a core fixed expense. For this direct-to-consumer kit business, plan for $2,500 monthly in medical supply liability insurance starting in 2026. This protects against claims related to product failure or user injury from testing supplies. It's a non-negotiable cost of entry.

Cost Inputs

This insurance covers product liability, protecting against lawsuits if a test kit causes harm. The input is a fixed monthly quote, $2,500, which hits the budget in 2026. It sits alongside payroll and software subscriptions as necessary fixed overhead before revenue ramps up.

Covers product failure claims.
Fixed at $2,500/month.
Starts Q1 2026 budget.

Managing Coverage

You can't skimp on this when selling health diagnostics. To manage this, shop quotes yearly and bundle policies if possible. A common mistake is basing coverage on current sales volume rather than potential liability exposure. If you scale fast, you'll need higher limits, so review coverage limits every six months.

Shop quotes yearly.
Bundle coverage if offered.
Review limits every 6 months.

Risk Link

Because you handle FDA-approved devices, underwriters look closely at supplier vetting and quality control processes. If your inventory procurement costs (currently 120% of revenue) cause stockouts, you might face pressure to buy cheaper, unvetted supplies later. That defintely raises your future insurance premiums.

Running Cost 5 : E-commerce and Software

Base Tech Stack Cost

Your foundational technology stack demands a fixed monthly commitment of $2,050. This covers the E-commerce Platform needed for sales and the Warehouse Management Software (WMS) essential for tracking inventory. Missing these payments stops the business cold. We need this cost to calculate true operational runway.

Core Tech Spend Breakdown

This $2,050 monthly expense is non-negotiable for running a D2C operation. The $1,200 E-commerce Platform handles the storefront and secure transactions. The $850 WMS manages stock flow from receipt to shipment. These are fixed costs, meaning they don't change if you sell zero kits or 10,000 kits this month.

E-commerce Platform: $1,200
WMS: $850

Managing Software Costs

Fixed software costs are easiest to manage early on by negotiating annual contracts instead of month-to-month billing. Avoid feature creep; only pay for the tier necessary for your initial 40 FTE staff levels and projected order volume. Scaling up too fast means paying for unused capacity you defintely won't need for months.

Negotiate annual prepaid rates.
Audit feature usage quarterly.
Avoid premium tiers initially.

Software Fixed Load Context

Compared to payroll at $25,000 monthly, this $2,050 software load represents about 8.2% of your largest fixed expense. However, unlike payroll, you can't easily reduce this cost mid-month if revenue suddenly drops below projections.

Running Cost 6 : Shipping and Fulfillment

Fulfillment Cost Shock

Your Shipping and 3PL fulfillment costs start high, pegged at 40% of revenue in 2026. Since your inventory procurement (COGS) is already 120% of revenue, this variable cost pressure is massive. You must achieve scale quickly to hit the projected 30% cost by 2030, or margins will remain extremely thin.

Cost Drivers

This 40% covers picking, packing, and actual postage for every cholesterol kit sold. To model this accurately, you need firm quotes from your chosen Third-Party Logistics (3PL) provider based on expected package dimensions and weight. If you ship 1,000 units next year, you need 1,000 fulfillment transactions budgeted at 40% of that revenue.

Picking and packing labor
Carrier postage fees
Warehouse management software use

Cutting Fulfillment Fees

Reaching that 30% target by 2030 requires aggressive volume negotiation now. Avoid common mistakes like using oversized boxes, which inflates dimensional weight charges. Centralizing inventory near major population hubs helps reduce zone-based shipping premiums. Defintely secure multi-year agreements tied to volume tiers.

Negotiate carrier rates based on projected volume
Optimize packaging size immediately
Avoid peak season surcharges

Margin Pressure Point

Remember, fulfillment is layered on top of 120% COGS. If 40% of revenue goes to shipping, your gross margin is negative before payroll or marketing costs. This means your Average Order Value (AOV) must support significant logistics spend, or you need to shift customers immediately toward higher-margin subscription bundles.

Running Cost 7 : General Office Overhead

Fixed Overhead Budget

Your fixed overhead for office space and utilities is set at $3,000 per month consistently across the 2026 projection. This cost is non-negotiable unless you change your operational footprint. Honestly, for a direct-to-consumer e-commerce startup, this budget seems reasonable for essential administrative needs.

Overhead Components

This $3,000 covers rent for office space and basic utilities needed for administrative staff. To estimate this accurately, you need quotes for square footage or use a standard allocation if staff is remote. It sits alongside payroll ($25k/month) and insurance ($2,500/month) as core fixed commitments.

Rent for office space
Monthly utilities costs
Essential administrative base

Managing Fixed Space

Since this is a fixed cost, reduction depends on footprint size. If you hire 40 FTEs, $3,000 might imply a very lean or shared space setup. Avoid signing long-term leases now; flexibility saves cash if growth slows. A common mistake is over-committing to office size defintely early on.

Prioritize flexible, short-term leases.
Review utility usage monthly.
Negotiate for lower base rent quotes.

Overhead Impact

At $3,000 monthly, this overhead represents about 10% of your total fixed operating expenses when combined with payroll and insurance. If revenue dips, this fixed cost hits contribution margin hard, so watch inventory and marketing spend first.