Feng Shui Consulting Service Running Costs: $138K Overhead, 4-Month Breakeven

Feng Shui Consulting Service Running Costs

A Feng Shui Consulting Service requires lean initial overhead, targeting monthly running costs between $13,800 and $14,500 in 2026, excluding variable costs This fixed overhead covers $8,958 in payroll, $3,850 in core fixed expenses like rent and software, and $1,000 for marketing Your financial model shows strong early performance, achieving break-even by April 2026-just four months into operations This rapid profitability is driven by high average revenue per customer (estimated around $8,425 annually) and a manageable Customer Acquisition Cost (CAC) of $150 Total revenue for the first year is projected at $674,000, yielding $296,000 in EBITDA We break down the seven critical recurring expenses you must monitor to maintain this trajectory and ensure you have sufficient working capital

7 Operational Expenses to Run Feng Shui Consulting Service

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Personnel Wages	Fixed	Monthly payroll is $8,958, covering 10 FTE Lead Consultant ($7,083) and 5 FTE Admin Coordinator ($1,875).	$8,958	$8,958
2	Shared Studio Rent	Fixed	Shared Studio Rent is a fixed $2,500 monthly expense, requiring founders to assess if the physical space justifies this cost versus a fully remote model.	$2,500	$2,500
3	Contractor Consultant Fees	Variable	These fees represent 15% of revenue in 2026, acting as a variable cost of goods sold (COGS) that scales directly with consulting volume.	$0	$0
4	Digital Marketing Spend	Fixed	The annual marketing budget starts at $12,000, translating to a fixed $1,000 per month used to acquire new customers at a targeted $150 Customer Acquisition Cost (CAC).	$1,000	$1,000
5	CRM and Software Subscriptions	Fixed	CRM and specialized software licenses (like floor plan tools) are a fixed $350 per month, essential for client management and operational efficiency.	$350	$350
6	Travel and Transportation	Variable	This variable expense is projected at 60% of revenue in 2026, covering site visits and client meetings, which must be tracked closely against billable hours.	$0	$0
7	Insurance and Compliance	Fixed	Professional Insurance ($200) and Accounting/Legal ($400) total $600 monthly, covering liability and necessary regulatory compliance for the consulting practice.	$600	$600
Total	All Operating Expenses	All Operating Expenses		$13,408	$13,408

What is the total monthly running budget needed to operate the Feng Shui Consulting Service sustainably?

You need about $30,100 monthly to keep the Feng Shui Consulting Service running defintely through Year 1, a number that reflects both fixed overhead and costs tied directly to sales volume. Before diving into those running costs, founders often need a clear picture of initial capital needs; you can review that breakdown here: How Much To Start Feng Shui Consulting Service Business? This total budget is split between a fixed base of $13,800 and variable expenses.

Year 1 Fixed Base

Monthly OPEX averages $30,100.
Fixed overhead component is $13,800.
This is your minimum monthly spend.
It covers costs independent of sales.

Variable Cost Structure

Variable costs equal 29% of revenue.
These costs scale with client volume.
They must be managed closely.
Sustainability depends on contribution margin.

What are the largest recurring cost categories and how do they impact contribution margin?

For your Feng Shui Consulting Service, the largest recurring cost is personnel, specifically payroll and contractor fees, which consume 15% of revenue. This cost structure dictates the overall profitability profile, which you can explore further in articles like How Much Does A Feng Shui Consulting Service Owner Make?.

Personnel Costs Drive Variable Spend

Payroll and contractor fees stand at 15% of revenue.
This is the single largest expense bucket.
Manage consultant utilization closely.
If you hire staff, this number grows fast.

Margin Strength from Low COGS

Total variable costs (COGS plus Variable OPEX) equal 29% of revenue.
This leaves a strong 71% contribution margin.
This high margin is typical for service businesses.
Your gross profit per job is defintely high.

How much working capital is required to cover costs until break-even?

The Feng Shui Consulting Service needs $868,000 in cash reserves by February 2026 to cover initial capital expenditures and the operating deficit before reaching profitability. If you're looking at how to manage this runway, check out How Increase Feng Shui Consulting Service Profits?

Covering the Initial Deficit

Minimum cash requirement set at $868,000.
This covers all startup capital expenditures (CapEx).
It also funds the operational burn through early months.
This figure represents the runway needed to reach break-even.

Managing Cash Burn

Founders must secure funding well ahead of February 2026.
If client acquisition is slow, the burn rate will exhaust capital faster.
High initial fixed costs demand rigorous monthly expense tracking.
We need to know exactly when the first revenue hits the bank.

How will we cover fixed costs if billable hours or revenue projections fall short by 25%?

When billable hours or revenue projections for the Feng Shui Consulting Service fall short by 25%, the plan is to immediately implement targeted internal efficiencies to cover fixed costs rather than waiting for market recovery. This means cutting non-essential spending and reallocating high-value labor to cover administrative gaps, which is a crucial step when assessing long-term viability, especially when considering how much a service owner might make, as detailed here: How Much Does A Feng Shui Consulting Service Owner Make?

Immediate Cost Control Measures

Stop all discretionary marketing spend right now.
This action immediately frees up $1,000 monthly.
Task the Lead Consultant with handling Admin Coordinator duties.
This internal shift saves $1,875 in external payroll costs.

Bridging the Shortfall Gap

The combined monthly savings total $2,875.
The Lead Consultant earns $7,083 per month base salary.
This consolidation is a temporary measure until revenue stabilizes.
It's defintely a faster way to manage overhead than layoffs.

Key Takeaways

The Feng Shui Consulting Service is designed for rapid profitability, targeting a lean fixed overhead of $13,800 per month to achieve break-even status within only four months of operation.
The underlying financial model demonstrates robust unit economics, boasting a 71% contribution margin that drives projected Year 1 EBITDA to $296,000 on $674,000 in total revenue.
Personnel costs, totaling $8,958 monthly for 1.5 FTEs, represent the single largest fixed expense that must be actively managed or cross-trained in case of revenue shortfalls.
While fixed costs are manageable, the business requires substantial initial funding, with a minimum projected working capital need of $868,000 in early 2026 to cover startup expenditures and operational burn until April.

Running Cost 1 : Personnel Wages

Payroll Dominates Fixed Costs

Personnel wages are your primary fixed drain in 2026, hitting $8,958 monthly. This cost supports 10 Lead Consultants and 5 Admin Coordinators. Managing this headcount directly dictates your path to profitability against other operational expenses.

Headcount Cost Breakdown

This $8,958 payroll figure is based on 2026 projections for 15 full-time employees (FTE). The bulk, $7,083, funds 10 Lead Consultants. The remaining $1,875 covers 5 Admin Coordinators. You need accurate salary inputs and benefit overhead estimates to lock this number down for forecasting.

10 FTE Lead Consultant cost: $7,083
05 FTE Admin Coordinator cost: $1,875
Total FTE count: 15

Staffing Levers

Since payroll is your largest fixed cost, control hinges on headcount efficiency. Avoid hiring admin staff until revenue growth clearly demands it, perhaps tracking against the $2,500 rent expense. If consultants are underutilized, you risk paying high salaries for low billable hours, which kills margin defintely.

Delay hiring Admin Coordinators.
Monitor consultant utilization rates.
Benchmark consultant salary vs. market rates.

Fixed Cost Risk

If revenue stalls, this $8,958 monthly wage bill creates significant operating leverage against you. You must ensure your revenue model can support 15 salaries before committing to hiring schedules. If onboarding takes 14+ days, churn risk rises.

Running Cost 2 : Shared Studio Rent

Studio Rent Trade-Off

This fixed monthly overhead of $2,500 for the shared studio demands immediate scrutiny. Before committing to this physical footprint, you must clearly define if client-facing needs or operational requirements outweigh the cost savings of a fully remote setup. Honestly, that rent is a significant drag if you aren't using the space daily.

Cost Coverage

This $2,500 covers access to a physical location, which might include utilities or shared amenities. It's a pure fixed cost, meaning it hits your bottom line regardless of revenue, unlike contractor fees which scale at 15% of revenue. To justify it, you need to calculate how many billable hours or client meetings the space directly enables per month.

Fixed at $2,500 monthly.
Compare against $8,958 in wages.
Assess required client foot traffic.

Optimization Tactics

Avoiding the physical space trap is key early on. If client interactions primarily happen virtually or at the client's site, this cost is pure overhead. Negotiate shorter lease terms or look at co-working passes instead of a dedicated studio. If you must have a space, ensure utilization drives revenue above the $2,500 threshold, defintely.

Test with co-working day passes.
Seek month-to-month agreements.
Ensure space drives > $2,500 value.

Overhead Impact

When mapping your break-even point, remember this rent is non-negotiable overhead. If your revenue projections show tight margins, cutting this $2,500 fixed cost immediately improves your runway by nearly 10% compared to your next largest fixed cost, personnel wages. It's the easiest lever to pull if remote work is viable for your consulting practice.

Running Cost 3 : Contractor Consultant Fees

Contractor Cost Scaling

Contractor fees are your variable Cost of Goods Sold (COGS), meaning they scale directly with consulting volume. In 2026, these fees are projected to consume 15% of total revenue. This cost requires tight management because every new job sold immediately pulls 15 cents out of the top line.

Estimating Contractor Spend

These fees pay for specialized expertise when your internal team is fully booked. To budget, multiply your projected 2026 revenue by 0.15. This is a true variable expense, unlike the fixed $8,958 monthly payroll. You need accurate revenue forecasts to control this line item.

Scales directly with client demand.
Use 15% rate for initial modeling.
Impacts gross margin immediately.

Controlling Variable Service Costs

Control this by maximizing the utilization of your 10 FTE Lead Consultants first. If you must hire outside, negotiate fixed project rates instead of hourly when possible. You should defintely audit which tasks are being outsourced; don't pay a high contractor rate for work the 05 FTE Admin Coordinator can handle.

Improve internal utilization rates.
Negotiate volume discounts upfront.
Audit task assignment rigor.

Margin Impact

Since this is a direct cost of service, your Gross Margin hinges on keeping this 15% figure stable. If you rely too heavily on external help for revenue growth, your margin erodes fast. This cost must be tracked against the 60% of revenue projected for Travel and Transportation.

Running Cost 4 : Digital Marketing Spend

Fixed Acquisition Budget

Your initial marketing commitment is fixed at $12,000 annually, which means $1,000 per month goes toward finding new clients. This budget is set to achieve a targeted Customer Acquisition Cost (CAC) of $150 per new Feng Shui client.

Inputs for Monthly Spend

This $1,000 monthly spend is a fixed overhead line item dedicated solely to generating new leads for consulting services. To justify this, you must track the $150 CAC against the actual revenue generated by those new clients. It covers specific digital ads or outreach tools, not personnel wages.

Monthly Budget Allocation: $1,000
Target CAC: $150
Expected New Customers: 6.67 per month

Managing CAC Risk

Since this is a fixed budget, performance hinges entirely on hitting that $150 CAC target. If your actual CAC climbs above $150, you are overspending for the same return, which eats into your operating margin quickly. Watch out for campaigns that look busy but don't convert leads efficiently; that's where money disappears.

Test channels before scaling spend.
Track lead source quality closely.
Ensure sales process is defintely fast.

Acquisition Volume Check

Hitting the $1,000/month spend realistically yields about 6 to 7 new clients monthly, based on the $150 CAC assumption. If your sales pipeline can't absorb 80 new prospects annually, this fixed spend creates idle capacity and inflates your effective acquisition cost per booked job.

Running Cost 5 : CRM and Software Subscriptions

Fixed Software Cost

Your client management stack-CRM and design tools-is a non-negotiable fixed cost of $350 monthly. This spend underpins client tracking and delivering professional floor plan analyses, making it critical infrastructure, not optional overhead for your consulting practice.

Software Stack Cost

This $350 fixed monthly covers essential licenses for client tracking and operational tools like floor plan software. You need to budget this amount every month regardless of consulting volume. It's a baseline operational cost, unlike variable contractor fees which run at 15% of revenue.

Fixed monthly software spend.
Covers CRM and design tools.
Essential for client workflow.

Managing Software Spend

Avoid paying for underused licenses; audit usage quarterly. If you only need basic CRM features early on, defer premium tiers. Don't overbuy specialized tools until client volume demands them. A common mistake founders make is paying for five seats when only two consultants actively use the floor plan application.

Audit software licenses quarterly.
Defer premium tiers initially.
Ensure utilization justifies cost.

Operational Necessity

Underestimating software needs stalls growth; trying to manage 50+ clients via spreadsheets fails fast. While $350 seems small versus $8,958 in payroll, skipping these tools increases administrative drag, hurting consultant billable time and defintely slowing scaling efforts.

Running Cost 6 : Travel and Transportation

Travel Cost Risk

Travel and Transportation expenses are projected to hit 60% of revenue in 2026, making it your biggest variable cost. You defintely need systems to track these site visits against the hours you actually bill clients.

Site Visit Inputs

This 60% covers necessary travel for site visits and client meetings, which are core to delivering the consulting service. You need precise tracking of travel days versus billable consulting days to ensure profitability on each job.

Log all travel mileage or ticket costs.
Compare travel days to total billable days.
Estimate cost based on projected 2026 revenue.

Managing Travel Spend

You can't cut travel if it's required for the service, but you can control density. The risk is consultants treating site visits like standard business operations instead of revenue-generating events.

Bundle client meetings by zip code.
Prioritize virtual consultations first.
Set travel cost caps per project tier.

Margin Breaker

If consultant billable utilization falls below 75%, this 60% variable expense will erode contribution margin rapidly. Travel must be treated as a direct cost of revenue, not an overhead item.

Running Cost 7 : Insurance and Compliance

Fixed Compliance Cost

You must budget exactly $600 monthly for non-negotiable operational safety nets. This covers your Professional Insurance protecting against errors and the necessary accounting/legal oversight required to run a legitimate consulting practice in the US. Compliance isn't optional; it's the floor for operation.

Cost Breakdown

This $600 is pure fixed overhead, hitting your bank account before you see any revenue. The $200 covers Professional Insurance against claims of bad advice, while $400 covers ongoing regulatory filings and basic legal support. This cost is essential to avoid operational shutdown.

Insurance: $200 per month.
Legal/Acct: $400 per month.
Fixed cost: Must be paid monthly.

Optimization Tactics

You can't cut regulatory spend, but you can shop smarter for the legal piece. Check if a bundled service works better than separate hourly lawyers for your initial structure. For insurance, review your policy limits annually; raising your deductible might save 10% to 15% if you feel defintely comfortable with that risk exposure.

Review limits yearly.
Bundle legal services.
Compare insurance deductibles.

Action Priority

If your travel costs run high because of site visits, that variable expense needs tight control. However, ensure your $400 accounting retainer is active before your first billable hour in 2026, or you're operating exposed to immediate regulatory risk.