Taekwondo School Startup Costs: $455K, $45K Rent

This guide separates $45,500 in startup CAPEX from opening-month expenses, payroll runway, and working capital for a US Taekwondo school It uses first operating year planning assumptions, including $4,500 monthly rent, $16,042 monthly wages, and a $940,000 Month 1 minimum cash reserve These are researched planning assumptions, not vendor quotes, and they exclude owner personal living costs and debt service unless added separately

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Startup CAPEX Calculator

This estimates capitalized startup assets only, before runway or operating costs.

Setup cost only This tool covers startup assets only. It excludes inventory, payroll runway, rent deposits, debt service, working capital, loan payments, marketing campaigns, insurance premiums, and other operating expenses.

Calculate Fuding Needs

Startup cost summary

This table shows the main startup assets and excluded cash needed to open and run a taekwondo school.

Highlighted CAPEX$45,500Base planning example

Excluded cash needs$940,000Outside CAPEX total

Funding need$985,500CAPEX + excluded cash needs

Cost Category	Base Estimate	Main Cost Driver	CAPEX Calculator
Facility Buildout and Mats	$15,000	Dojo fit-out, mats, and flooring	Yes
Sparring Gear Inventory	$8,000	Protective gear inventory for classes	Yes
Uniforms Inventory	$6,000	Starter uniforms for new students	Yes
Technology and Front Desk Setup	$10,500	Sound, POS, furniture, and setup	Yes
Signage, Security, and Pre-Opening Materials	$6,000	Signage, security, permits, and launch materials	Yes
Opening Cash Buffer	$940,000	Month 1 cash buffer for payroll and overhead	No

Is the Taekwondo School CAPEX tab ready?

The Taekwondo School Financial Model Template CAPEX tab should show $45,500 setup, opening timing, funding need, and depreciation; review assumptions. Planning tool, not promise.

Key screenshot checks

$45,500 asset setup
$192,500 Year 1 wages
$940,000 month-one cash

Taekwondo School Financial Model capex inputs showing startup and ongoing capital expenditures, customizable equipment, facility and fit-out assumptions to project funding needs and depreciation.

Compare 3 Startup Cost Scenarios

Scenario table

Higher mat area, staffing, gear, and launch spend push startup cash up fast. The source case sits in the middle, with lean and full options framing the decision.

Lean, base, and full launch cost comparison
Scenario	Lean LaunchOwner-led test location	Base LaunchStandard family academy	Full LaunchMulti-class growth site
Launch model	A small-studio or sublease launch with the owner teaching most classes and keeping the schedule tight.	A leased neighborhood academy using the source case as the mid-point for space, staffing, and opening spend.	A larger full-service school with more floor space, broader class coverage, and a bigger opening footprint.
Typical setup	Lower mat coverage, limited uniforms and gear, and a simple front desk setup.	Standard mat area, normal gear inventory, and enough staff for steady daily classes.	Expanded mats, deeper gear stock, stronger signage, and wider staffing coverage.
Cost drivers	Smaller mat area lower rent commitment lean staffing lighter launch marketing smaller gear inventory	Source-case rent core staff coverage standard mats and gear normal marketing admin and payment costs	Larger mat area more instructor coverage higher gear inventory stronger signage heavier marketing
Planning rangeCAPEX only	Below source-case fundingLower funding	Source-case funding bandBase case	Above source-case fundingHigher funding
Best fit	Best for an owner-led test location that wants to prove demand before scaling.	Best for a standard family academy in a leased neighborhood space.	Best for a multi-class growth site built for broader age groups and volume.

Planning note: These scenario ranges are planning assumptions built from the model case, not exact quotes or vendor bids.

How do I fund a Taekwondo school startup plan?

For a Taekwondo School startup, treat funding as four buckets: $45,500 CAPEX, pre-opening expenses, opening-month overhead, and payroll runway. Here’s the quick math: the model uses $22,092 monthly fixed overhead, $192,500 in Year 1 wages, and a $940,000 Month 1 minimum cash need; the first-year occupancy target is 60%, and Month 1 breakeven comes from the model output. Before you borrow or sign guarantees, validate lease terms, class capacity, tuition collection timing, and hiring plans because the output depends on those assumptions.

Funding buckets

$45,500 CAPEX for buildout.
Cover pre-opening expenses early.
Use cash for opening-month overhead.
Protect a payroll runway.

Lender checks

Stress test 60% occupancy.
Match tuition timing to cash.
Align hiring with class ramp.
Verify Month 1 breakeven.

What hidden costs should I plan for before opening a Taekwondo school?

Before opening a Taekwondo School, plan for cash costs that sit outside CAPEX: lease deposit, pre-opening rent, and monthly overhead like $650 utilities, $250 insurance, $180 software, $100 website hosting, $50 permits, and $120 office supplies. Add cleaning payroll and merchant fees, and use first-year payment processing at 25% of revenue plus launch marketing at 50% of revenue; for the earnings side, see How Much Does The Owner Of A Taekwondo School Typically Earn?. Keep Year 1 COGS separate too: 30% for uniforms and gear resale, 20% for belt and certification costs, and a separate $940,000 Month 1 minimum cash reserve.

Fixed cash costs

Lease deposit if required
Pre-opening rent before revenue
Utilities, insurance, software
Hosting, permits, office supplies

Year 1 variable costs

Cleaning payroll and merchant fees
Processing fees at 25% revenue
Launch marketing at 50% revenue
Uniforms and gear at 30% COGS

How much money do I need to open a Taekwondo school?

You need about $985,500 to open the base leased Taekwondo School: $45,500 in CAPEX plus a $940,000 Month 1 minimum cash reserve, before unlisted deposits and personal costs; for growth tracking, see What Is The Most Important Metric To Measure The Growth Of Your Taekwondo School?. Working capital means cash kept available to pay bills before collections fully stabilize.

Base funding need

$45,500 startup CAPEX
$940,000 Month 1 reserve
$985,500 total before extras
$22,092 monthly fixed overhead

Ramp drivers

60% first-year occupancy
20 billable days per month
$135 Little Tigers tuition
$145 youth, $155 adult tuition

Key Takeaways

Rent, deposits, and buildout drive upfront facility cash.
Mats and safety gear protect classes and parents.
Software, POS, and insurance add recurring monthly costs.
Payroll and launch marketing require the largest runway.

Taekwondo School Core Five Startup Costs

Facility Lease and Buildout Startup Expense

Rent and deposit

Your base lease cost starts at $4,500 a month. Keep the first month rent separate from any security deposit, and keep both apart from one-time buildout cash and a small contingency for permits or utility setup.

Buildout scope

Leasehold improvements are tenant-paid upgrades. For a Taekwondo school, quote flooring prep, walls, lighting, HVAC suitability, bathrooms, reception, viewing area, and changing space. Ask for square footage, mat coverage, parking, ceiling height, visibility, and after-school traffic so the site fits class flow, not just rent.

Get the tenant improvement cap in writing.
Separate refundable deposits from buildout spend.
Price permit timing before signing.

Lease risk checks

Watch for unlisted lease deposits, permit delays, utility setup fees, and landlord limits on improvements. One line: cheap rent can still be a bad deal if the landlord only funds part of the buildout or slows approvals.

Budget split

Show the startup budget as monthly rent, one-time buildout, security deposit, first month rent, and contingency. If the lease hides extra deposits or tenant improvement caps, the cash need rises fast, so get every landlord term in writing before you sign.

Mats, Flooring, and Safety Equipment Startup Expense

Training Floor

The core capital spending is $15,000 for dojo mats and flooring. Price it from mat square footage, thickness, seam quality, wall padding, and any floor prep under the mats. Safe flooring is not cosmetic; it supports higher class density, helps with insurance readiness, builds parent confidence, and lowers injury risk.

Starter Safety Gear

Budget $8,000 for sparring gear inventory. This should cover target pads, kicking shields, sparring gear, bags, and belt testing supplies, plus a replacement allowance. Keep optional competition gear out of this number so the safety budget stays clean. The question is units × unit cost, not just a lump sum.

Uniform Stock

Plan $6,000 for uniforms inventory. That is retail stock, not required safety capex, so keep it separate from floor and protection purchases. Estimate it from sizes, colors, and starting unit counts, then set a slow-moving stock limit. If size mix is off, cash sits on shelves instead of helping class openings.

Replacement Reserve

Here’s the quick math: $29,000 covers the required floor, starter safety gear, and opening uniform stock. Add a replacement reserve for mats, seams, padding, and worn gear, because high traffic beats up training assets fast. One clean rule: buy for day one classes, then protect cash by reordering from actual wear, not hope.

Launch Staffing and Marketing Startup Expense

Payroll Load

A Taekwondo school’s biggest launch cash need is staff. Year 1 payroll totals $192,500 across the $70,000 owner and head instructor, $55,000 lead instructor, $30,000 assistant instructor, $30,000 administrative assistant, and $7,500 part-time cleaning staff. The monthly wage load is about $16,042 before taxes and benefits not listed.

Launch Spend

Pre-opening marketing CAPEX is only $4,000: $1,500 for initial marketing materials and $2,500 for signage and branding. This covers the first visible push before classes start, not monthly ad spend. Keep this separate from operating expense so you can track what was sunk before opening versus what must be funded by monthly cash flow.

$1,500 materials
$2,500 signage
Separate from monthly ads

Marketing Burn

Ongoing marketing is budgeted at 50% of Year 1 revenue, so the ad plan scales with sales. That means you need a clear monthly revenue forecast before you set spend caps. One clean rule: keep launch materials one-time, but treat paid marketing as a variable operating cost that can rise or fall with enrollment.

Runway Check

Working capital should cover the $16,042 monthly wage load plus the 50% revenue-based marketing burn until memberships turn cash-positive. Here’s the quick test: launch CAPEX is $4,000, but payroll starts every month. If enrollment ramps slowly, cash gets tight fast, so the runway should be sized before the first class opens.

Compliance, Insurance, and Professional Setup Startup Expense

Coverage

For a Taekwondo school, budget $250 a month for insurance and about $50 for licenses and permits. That usually sits next to general liability, participant accident coverage, and property insurance, with workers’ compensation if you hire staff.

What it covers

This line covers business registration, local permits, waivers, member contracts, accounting setup, and tax registrations. The real inputs are your state, city, landlord rules, insurer terms, and staffing plan. No national license applies here; the cost changes if you serve minors, sell retail inventory, or need additional insured status.

Trim the spend

Keep the first quote tight by matching coverage to your actual class setup. Buy only the endorsements you need, and separate one-time filing work from recurring premiums. If staff are added later, reprice workers’ compensation then, not before.

Before you bind

Those answers change the policy mix and permit list. Confirm these items in writing:

Do you serve minors?
Will you hire employees?
Will you sell retail inventory?
Does landlord want additional insured?

Technology and Front Office Startup Expense

Front Desk Stack

A Taekwondo school’s tech budget starts with $12,500 in one-time setup: $3,000 computer and POS, $3,500 front desk furniture, $4,000 sound and AV, and $2,000 security. Ongoing cost is $180 student management software, $100 website hosting, plus payment fees at 25% of Year 1 revenue.

One-Time Setup

This covers the front office tools that open the school: scheduling, CRM, member management, payment processing, waiver system, phone, Wi-Fi, printer, security camera, and access control if needed. Price it with vendor quotes and split each line into hardware, installation, and setup so the $12,500 stays clean in the buildout budget.

Quote each device separately
Confirm access control needs
Keep setup fees distinct

Monthly Stack

The recurring stack is small but sticky: $180 for student software and $100 for hosting and maintenance, or $3,360 a year before card fees. Payment processing is the swing factor because it scales to 25% of Year 1 revenue, so revenue growth raises both cash in and fee out.

Budget 12 months of SaaS
Track fees as variable cost
Review processor terms early

Budget Split

Keep the model in three buckets: one-time equipment, monthly software, and revenue-based processing. That keeps the front office from hiding runway pressure, and it makes it easier to test whether the school can support the fixed tech load before adding more stations or office gear.