Small music school with teaching rooms

Families enrolling children, adult learners and sometimes schools or childcare centres hiring you for group sessions.

Term fees or per lesson payments from students, with the school keeping a share of what each teacher's lessons earn, plus income from instrument hire and group classes.

• Running a small business and managing staff or contractors
• Marketing to local families
• Teaching or strong music knowledge to hire and guide good teachers

• Employee versus contractor rules for teachers, check with the ATO and Fair Work Ombudsman
• Workers compensation insurance once you hire, through your state scheme
• Working With Children Checks for every teacher, as rules differ by state and territory
• Lease commitments and fit-out costs, which are a big risk if enrolments are slow
• Council planning and noise requirements, check before signing a lease

Startup costs are typically around $8,000 to $40,000, depending on your premises, soundproofing and instruments. These are estimates, and lease commitments and fit-out costs are a big risk if enrolments are slow.

Monthly revenue is typically around $3,000 to $15,000, depending on how many teachers you have, student enrolments and any group classes. Figures vary, so build your own forecast before signing a lease.

Check employee versus contractor rules for teachers with the ATO and Fair Work Ombudsman, plus workers compensation once you hire. Also check Working With Children Checks for every teacher, and council planning and noise requirements before signing a lease.