# Training Services Financial Model ## Purpose This document turns the current training thesis into a working financial model for IPC delivery, train-the-trainer activity, and Clark Courses. It is intended to be tight enough for planning and partner conversations, but still evolvable as real pricing, utilization, and instructor constraints become clearer. ## Model Scope This model covers: - IPC certification delivery in Hamilton - train-the-trainer activity - Clark Courses public and private cohort delivery - the Niagara Assembly host-facility fee structure It does not yet model: - fully scaled curriculum licensing economics - online Foundations delivery economics - multi-site training expansion beyond Hamilton ## Core Assumptions The current working assumptions are: - Year 1 average class size: 8 students - Year 2 average class size: 9 students - Year 1 blended revenue per student: CAD 1,100 conservative, CAD 1,200 base, CAD 1,350 optimistic - Year 2 blended revenue per student: CAD 1,150 conservative, CAD 1,300 base, CAD 1,500 optimistic - Year 1 direct instructional cost rate: about 55% - Year 2 direct instructional cost rate: about 52% These assumptions come from the supporting market-sizing memo and should be updated only when real cohort performance provides better data. ## Niagara Assembly Host-Facility Cost Model The current Hamilton host-facility structure is: - `1–2 courses/month`: CAD 1,250 fixed monthly fee plus 12% of contribution margin after direct instructional costs - `3–4 courses/month`: CAD 2,500 fixed monthly fee plus 10% of contribution margin after direct instructional costs - `5+ courses/month`: CAD 4,000 fixed monthly fee plus 8% of contribution margin after direct instructional costs Direct instructional costs should include: - instructor compensation - instructor travel and lodging where required - course-specific consumables and training materials - third-party certification or course-delivery fees tied directly to the class General CLARK overhead should remain outside the revenue-share base. ## Year 1 Scenarios | Metric | Conservative | Base | Optimistic | | --- | --- | --- | --- | | Courses delivered | 14 | 22 | 34 | | Average students per class | 8 | 8 | 9 | | Total student-events | 112 | 176 | 306 | | Gross revenue | CAD 123,200 | CAD 211,200 | CAD 413,100 | | Direct instructional costs | CAD 67,760 | CAD 116,160 | CAD 227,205 | | Contribution after direct costs | CAD 55,440 | CAD 95,040 | CAD 185,895 | | Niagara fixed fee | CAD 8,750 | CAD 23,000 | CAD 33,000 | | Niagara rev-share | CAD 5,544 | CAD 9,504 | CAD 14,872 | | Net CLARK contribution | CAD 41,146 | CAD 62,536 | CAD 138,023 | ## Year 2 Scenarios Year 2 assumes a more meaningful CIT mix and a larger Clark Courses contribution. | Metric | Conservative | Base | Optimistic | | --- | --- | --- | --- | | IPC courses | 18 | 28 | 40 | | CIT courses | 2 | 4 | 6 | | Clark Course modules | 4 | 8 | 14 | | Total courses and modules | 24 | 40 | 60 | | Total student-events | 190 | 330 | 540 | | Gross revenue | CAD 218,500 | CAD 429,000 | CAD 810,000 | | Direct costs | CAD 113,620 | CAD 223,080 | CAD 421,200 | | Contribution after direct costs | CAD 104,880 | CAD 205,920 | CAD 388,800 | | Niagara fixed fee | CAD 27,500 | CAD 40,000 | CAD 48,000 | | Niagara rev-share | CAD 10,488 | CAD 20,592 | CAD 31,104 | | Net CLARK contribution | CAD 66,892 | CAD 145,328 | CAD 309,696 | ## Break-Even View The current break-even floor is practical rather than heroic. - Minimum students per month: about 12 to 16 - Minimum courses per month: about 2 courses of 8 students - Estimated monthly fixed costs to cover: about CAD 8,738 - Base-case break-even revenue: about CAD 17,600 gross monthly Working conclusion: - training services can reach direct operating break-even quickly if CLARK sustains roughly two courses per month - the biggest operational risk is instructor readiness and delivery capacity, not the fee model itself ## Revenue Mix Priorities The current priority order should be: 1. IPC CIS and adjacent early-volume courses 2. CIT and train-the-trainer activity because of higher value and multiplier effects 3. Clark Courses public and private cohorts 4. later curriculum licensing and partner delivery ## Pricing Architecture The current pricing logic should remain simple. - IPC and certification-linked delivery: market-priced against the existing certification ecosystem - Clark Courses public cohorts: accessible but professional pricing, especially at Foundations level - Clark Courses private cohorts: premium delivery priced by cohort or delivery day - later curriculum licensing: annual license plus instructor enablement and update support ## Planning Implications - Year 1 planning should optimize for course fill rate, instructor readiness, and repeatable delivery rather than maximum revenue extraction - Year 2 planning should optimize for mix improvement, especially CIT and Clark Courses - Clark Courses likely carries the strongest long-term margin profile once curriculum-development cost is amortized ## Operating Gates The training-services line should be considered healthy only if: - monthly delivery stays at or above the 2-course break-even floor - instructor coverage is stable enough to avoid cancellation risk - Clark Courses begins contributing revenue rather than remaining purely curricular - Niagara facility economics remain administratively simple ## What Still Needs Validation - final seat pricing by course family - private cohort pricing by delivery day and location - curriculum licensing fee structure - instructor utilization assumptions - conversion rate from Clark Courses into IPC pathways and vice versa ## Current Recommendation Use the Year 1 base case as the default working plan. That means planning around: - about 22 courses delivered in Year 1 - about CAD 211,200 in gross revenue - about CAD 62,536 in net CLARK contribution after direct instructional costs and Niagara facility participation The target is not merely to hit those numbers. The target is to prove a training model that is commercially credible, repeatable, and licensable.