Building a Growth Strategy

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Building a Growth Strategy

  1. 1. BUILDING A GROWTH STRATEGY2012 FL CHARTER SCHOOL CONFERENCE NOVEMBER 15 ORLANDO, FL Copyright © 2012 Charter School Capital
  2. 2. WHO WE AREDedicated to charter schools •  Specialty finance company serving only charter schools •  Began funding charter schools in California in 2007 •  Over $400M of funding provided to date •  Relationships with over 300 charter schools serving 250,000 students •  Expanding nationally Copyright © 2012 Charter School Capital 2
  3. 3. WHAT WE DOProvide charter schools access to funding •  Working and growth capital o  Accelerate attendance-based funding •  Facilities financing o  Expansion and new development •  Resource development o  Matching clients with grant, entitlement and philanthropic funds Copyright © 2012 Charter School Capital 3
  4. 4. WHAT CLIENTS SAY A partner to charter schools •  Deep operational experience •  Commitment to the charter school movement •  Reliable, flexible and cost-effective funding solutions •  Significant industry and investor relationships •  Stellar track record with schools and investors Copyright © 2012 Charter School Capital 4
  5. 5. WHAT CLIENTS SAY “Charter School Capital is a trustworthy and reliable financing resource. They are a true friend and ally to charter schools, our movement and the children we serve.” - Caprice Young VP for Education, The Arnold Foundation (Founding CEO, California Charter School Association) Copyright © 2012 Charter School Capital 5
  6. 6. CASH FLOWWhere are we going today? •  Shared definition of success •  Understand people, process and roles •  Framework to review cash flow options •  High level review of available options Copyright © 2012 Charter School Capital 6
  7. 7. CASH FLOWManaging your cash flow •  Reduce emotions from cash flow decisions •  Less time managing cash flow means more time educating students •  Think of cash flow as a tool •  School size and mission doesn’t impact cash flow management Copyright © 2012 Charter School Capital 7
  8. 8. CASH FLOW SUCCESS Defining success •  Planning •  Determining expenses •  Expense controls •  Financing Copyright © 2012 Charter School Capital 8
  9. 9. CASH FLOW SUCCESS Having the cash you need when you need it. Balanced budget ≠ Cash Flow Success. CF Need CF Actual July-Sep Oct-Dec Jan-Mar Apr-May Copyright © 2012 Charter School Capital 9
  10. 10. CASH FLOW SUCCESS •  Dynamic, continuous, not static CF Success •  Communication •  Relationship - work Copyright © 2012 Charter School Capital 10
  11. 11. ALIGNING PRIORITIES Board: nce Direction and oversight erna Gov Mission Plans CFO, CEO, ED: Management Goals Executing / managing Priorities $ process(es) = Expense Acade mi c L e aders Principal, Dept. Heads: Define needs of education mission Copyright © 2012 Charter School Capital 11
  12. 12. EXPENSESAligned and Controlled What Who Budget linked to Board Education Mission Priorities Credit cards Mgmt / Controls Petty Cash Leaders Signing Authority Mgmt / Policies RFP Process Leaders Accountability Everything Everyone Copyright © 2012 Charter School Capital 12
  13. 13. FINANCING Questions to ask •  What is the cost in dollars? •  What is the risk to the school? •  What is the impact on business? •  What is the access to funds? Copyright © 2012 Charter School Capital 13
  14. 14. STEPS Compare Costs: •  Evaluate costs 1 o  Teachers get paid with dollars, not interest rates •  Your time is VALUABLE! Compare Risks: •  Access to funding – can you get as much as you need 2 •  Increased Costs – are the costs known or estimated •  Default risk – what is the risk of default •  What is the impact on the business (school) Copyright © 2012 Charter School Capital 14
  15. 15. OPTIONS Options for your school •  Loans •  Lines of credit •  Private loans •  Receivable sale Copyright © 2012 Charter School Capital 15
  16. 16. NEXT STEPS When to pull the trigger •  Decision impact •  Short term effect becomes •  Long term viability Copyright © 2012 Charter School Capital 16
  17. 17. GROWTH STRATEGIESNationally, more than 600,000 students were oncharter school waiting lists •  Solidify the Base •  Innovate •  Differentiate •  Market Copyright © 2012 Charter School Capital 17
  18. 18. SOLIDIFY THE BASE Expansion requires a solid foundation and commitment from all stakeholders •  “Package” best practices o  Center of Excellence •  Communication of objectives and timeline •  Hire and train in advance of growth •  Secure partners committed to your vision Copyright © 2012 Charter School Capital 18
  19. 19. INNOVATE Improve ability to scale, replicate program and increase student engagement •  School operations infrastructure •  Instructional technology •  Blended learning and flipped instruction •  One-to-one computing •  Curriculum and “gizmos” •  Professional development and learning communities Copyright © 2012 Charter School Capital 19
  20. 20. DIFFERENTIATE Why should I send my child to your school? •  Who is your competition? •  Generalized vs specialized •  Unique characteristics linked to mission •  Demonstrable results •  Cast the vision Copyright © 2012 Charter School Capital 20
  21. 21. MARKETIf you build it - will they come? •  Who is your “customer”? •  How do you reach them? •  Impact of market cycle •  Test and measure results •  Be consistent and deliver on your promise Copyright © 2012 Charter School Capital 21
  22. 22. ANNUAL CASH FLOW Instructional Professional Technologies Development BYOD Enrollment Enrollment Marketing Marketing Enrollment Professional Enrollment Marketing Development Marketing Instructional Operations Technologies infrastructure State Payments Standard Operational Expenses July August September October November December January February March April May June NOTE: Does not include; 1.  New instructional & administrative staff, and 2.  Expenditures related to facility expansion or construction of a new facility. Copyright © 2012 Charter School Capital 22
  23. 23. QUESTIONS?Charter School CapitalBrian Rose: brose@charterschoolcapital.orgJohn Helgeson: jhelgeson@charterschoolcapital.org877.272.1001 charterschoolcapital.orgAll information in this presentation is provided for educational and/or informational purposes. It is not intended toprovide legal, accounting, or tax advice and should not be relied on for any such purpose. Please consult anattorney, accountant, or financial advisor to answer any financial or legal questions. Copyright © 2012 Charter School Capital

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