Calculate Startup Costs for an Online Class Subscription

Operating Runway Requirements

• Covering salaries for core team (tech, content, marketing).
• Monthly hosting and software licensing fees.
• Customer acquisition cost (CAC) burn rate during ramp-up.
• This runway ensures you can survive until revenue stabilizes, defintely.

Wages Are The Biggest Fixed Cost

• Year 1 wages require $312,500, making personnel the primary fixed overhead driver.
• This wage commitment is almost four times the platform development budget.
• You need significant subscription volume just to cover payroll before accounting for other overhead.
• This figure assumes a lean team; scaling content creation will increase this defintely.

Managing the Cash Burn

• If subscriber acquisition costs (CAC) rise, the 22-month runway shortens.
• Every month you delay breakeven adds another $8,300 to the required capital raise.
• Focus intensely on optimizing the subscription price point right now.
• Payroll is a fixed component; look for ways to automate tasks before hiring staff.

Equity vs. Debt Trade-offs

• Equity means selling a piece of the company now.
• Debt requires fixed repayment schedules starting early.
• If you take debt, cash flow must cover principal and interest.
• Founders must assess risk tolerance before committing capital.

Controlling Spend

To manage this development spend effectively, strictly define the MVP scope to avoid feature creep, which kills budgets fast. Avoid custom solutions where off-the-shelf components work initially. Defintely defer non-critical integrations until after launch. Keep the engineering team lean.

• Prioritize essential user flows.
• Use fixed-price contracts if possible.
• Cap engineering hours strictly.

Equipment Cost Breakdown

This $15,000 budget is strictly CAPEX (Capital Expenditure) for physical assets needed before you launch content production. It must be funded before March 2026, likely sitting alongside the $80,000 platform build and initial salary runs. Here’s the quick math on what this buys:

• Cameras for high-def video capture
• Professional lighting kits for studio look
• Quality shotgun and lavalier microphones

Managing Headcount

Controlling this burn rate means strictly defining roles before launch in 2026. If the Lead Engineer role can be fractional initially, you save money and reduce fixed overhead now. Be defintely wary of hiring too many support staff before the platform MVP launches around June 2026. Don't over-hire early.

• Delay non-critical hires.
• Use contractors first.
• Define role scope tightly.

License Breakdown

This recurring cost covers the technology backbone for the subscription platform and daily operations. The calculation is fixed: $2,500 for the proprietary system plus $800 for general tools like spreadsheets or email. This operational expense is locked in regardless of initial subscriber count.

• Specialized Platform: $2,500 per month
• General Office Tools: $800 per month
• Total Fixed Software Burn: $3,300 monthly

Managing Acquisition Cash

Don't blow the $50,000 CAC budget on untested channels. Focus initial spend on high-intent channels where your 25-45 year old professional audience congregates. If you can drive initial signups below a $100 CAC, you'll defintely preserve runway significantly.

• Test small before scaling spend.
• Track Cost Per Lead (CPL) daily.
• High initial CAC drains working capital fast.

Initial Setup Costs

The $3,000 initial filing fee covers establishing the correct legal structure for SkillStream, necessary before accepting subscriber funds. The $1,500 monthly retainer pays for ongoing support, like reviewing new course instructor agreements and ensuring regulatory compliance, which hits your fixed operating expenses early in 2026.

• Entity formation cost: $3,000.
• Monthly retainer: $1,500.
• Covers contracts and compliance.

Reserve Management

Managing this reserve means strictly controlling scope creep on the initial platform development. Delaying non-essential features until after the July 2026 breakeven keeps cash in the bank. Keep content production lean early on. You defintely need tight controls on hiring velocity.

• Tie hiring to subscriber milestones.
• Phase content equipment purchases.
• Negotiate longer payment terms with vendors.