Small music school with rented teaching rooms

Families who want one place for several instruments, adult learners, and parents wanting after-school lessons near home.

Term or monthly fees, with the school keeping a share of each lesson fee after paying teachers. Extra income can come from group classes, instrument rental and recitals.

• Running a small business and managing a budget
• Recruiting and managing teachers
• Marketing to local families

• Rent and fit-out are the big risks, so check you can cover costs through slow months
• Check with your provincial regulator whether teachers should be employees or contractors, and workers' compensation (WCB/WSIB) rules once you hire
• Commercial general liability insurance and insurance for instruments and contents
• Check police record checks for all staff working with children
• Check municipal business licence, signage and zoning requirements
• Register for GST/HST once you pass the small supplier threshold, and check Quebec rules and French-language requirements if you are there

Startup costs are typically estimated at around $15,000 to $50,000, depending on the unit, fit-out and soundproofing, instruments and marketing. Rent and fit-out are the big risks, so check you can cover costs through slow months.

Monthly revenue is typically estimated at around $3,000 to $15,000, depending on how many teachers and rooms you run and how full your timetable is. Demand can vary through the year, so plan your cash flow.

Check with your provincial regulator whether teachers should be employees or contractors, and WCB or WSIB rules once you hire. Also check police record checks for staff working with children, insurance, municipal licensing, and GST/HST.