Whether your school is growing student enrollment, expanding facilities, or implementing new educational programs, we can all agree that a school’s financial wellness is one of the most important aspects of running a successful charter organization. Without sound financial wellness, schools close, regardless of how successful they were at educating students. Get armed with the right knowledge, techniques, and materials to ensure financial success and learn how to avoid the pitfalls that may cause trouble.

1. Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
Top 5 Financial
Mistakes Charter
Schools Make . . .
And How to Avoid
Them
National Charter School
Conference 2018

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
WELCOME OUR PANELISTS
Tricia Blum
Head of Business Services,
Charter School Capital
Margie Montgomery
Founder/Executive Director,
Desert Star Academy
Michael LaRoche
Founder/Executive Director,
SALTech Charter High School
Sharon Thompson
Chairman of the Board,
Wayne Preparatory Academy

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
THE FIVE MISTAKES
Not
recognizing
that charter
schools are
businesses
Being
unprepared
for the
unexpected
Under
estimating the
importance of
finances
Losing sight
of your
mission
Lacking
strong
relationships
w/
stakeholders

4. 4
Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
THE FIVE MISTAKES
Not
recognizing
that charter
schools are
businesses
Being
unprepared
for the
unexpected
Under
estimating the
importance of
finances
Losing sight
of your
mission
Lacking
strong
relationships
w/
stakeholders

5. 5
Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
THE FIVE MISTAKES
Not
recognizing
that charter
schools are
businesses
Being
unprepared
for the
unexpected
Under
estimating the
importance of
finances
Losing sight
of your
mission
Lacking
strong
relationships
w/
stakeholders

6. 6
Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
THE FIVE MISTAKES
Not
recognizing
that charter
schools are
businesses
Being
unprepared
for the
unexpected
Under
estimating the
importance of
finances
Losing sight
of your
mission
Lacking
strong
relationships
w/
stakeholders

7. 7
Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
THE FIVE MISTAKES
Not
recognizing
that charter
schools are
businesses
Being
unprepared
for the
unexpected
Under
estimating the
importance of
finances
Losing sight
of your
mission
Lacking
strong
relationships
w/
stakeholders

8. Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
1. Not Recognizing Your School is
a Business

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT RECOGNIZING
YOUR SCHOOL IS A
BUSINESS
ACTION STEPS
1. You are a superintendent (not a principal)
• Not just curriculum and teachers
• Its endless hard work
• You will be challenged in ways you never
thought possible
MISTAKE1

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT RECOGNIZING
YOUR SCHOOL IS A
BUSINESS
ACTION STEPS
1. You are a superintendent (not a principal)
• Not just curriculum and teachers
• Its endless hard work
• You will be challenged in ways you never
thought possible
2. Know your customer
• All your stakeholders are customers:
o Parents
o Students
o Community
o Authorizer
o Staff
MISTAKE1

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT RECOGNIZING
YOUR SCHOOL IS A
BUSINESS
ACTION STEPS
1. You are a superintendent (not a principal)
• Not just curriculum and teachers
• Its endless hard work
• You will be challenged in ways you never
thought possible
2. Know your customer
• All your stakeholders are customers:
o Parents
o Students
o Community
o Authorizer
o Staff
3. You’re the boss—the buck stops with
you (literally)
• Everything impacts your financials
(especially mistakes)
• You are responsible for it all
• Find a mentor
MISTAKE1

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT RECOGNIZING
YOUR SCHOOL IS A
BUSINESS
ACTION STEPS
1. You are a superintendent (not a principal)
• Not just curriculum and teachers
• Its endless hard work
• You will be challenged in ways you never
thought possible
2. Know your customer
• All your stakeholders are customers:
o Parents
o Students
o Community
o Authorizer
o Staff
3. You’re the boss—the buck stops with
you (literally)
• Everything impacts your financials
(especially mistakes)
• You are responsible for it all
• Find a mentor
SOLUTION: REMEMBER, YOUR SCHOOL
IS A BUSINESS
MISTAKE1

13. Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
2. Being unprepared for the
unexpected

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
BEING
UNPREPARED
FOR THE
UNEXPECTED
ACTION STEPS
1. Beware the lawsuit and bad actors
MISTAKE2

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
BEING
UNPREPARED
FOR THE
UNEXPECTED
ACTION STEPS
1. Beware the lawsuit and bad actors
2. Keep a strong, updated wait list
• Sometimes your enrollment stream
dries up or decreases substantially
o Military bases/large employers,
new schools, bad PR
MISTAKE2

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
BEING
UNPREPARED
FOR THE
UNEXPECTED
ACTION STEPS
1. Beware the lawsuit and bad actors
2. Keep a strong, updated wait list
• Sometimes your enrollment stream
dries up or decreases substantially
o Military bases/large employers,
new schools, bad PR
3. Facilities have tripped up more than
one great charter school
• Landlords aren’t always your friend:
Know and understand your lease and
the numbers behind them
• Start looking for larger or better
facilities now
MISTAKE2

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
BEING
UNPREPARED
FOR THE
UNEXPECTED
ACTION STEPS
1. Beware the lawsuit and bad actors
2. Keep a strong, updated wait list
• Sometimes your enrollment stream
dries up or decreases substantially
o Military bases/large employers,
new schools, bad PR
3. Facilities have tripped up more than
one great charter schools
• Landlords aren’t always your friend:
Know and understand your lease and
the numbers behind them
• Start looking for larger or better
facilities now
4. Beware the tenacity of angry
employees and parents
• Create and maintain good public
perception
o Marketing/PR
MISTAKE2

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
BEING
UNPREPARED
FOR THE
UNEXPECTED
ACTION STEPS
1. Beware the lawsuit and bad actors
2. Keep a strong, updated wait list
• Sometimes your enrollment stream
dries up or decreases substantially
o Military bases/large employers,
new schools, bad PR
3. Facilities have tripped up more than
one great charter schools
• Landlords aren’t always your friend:
Know and understand your lease and
the numbers behind them
• Start looking for larger or better
facilities now
4. Beware the tenacity of angry
employees and parents
• Create and maintain good public
perception
o Marketing/PR
MISTAKE2
SOLUTION: PREPARE FOR THE
UNEXPECTED

19. Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
3. Underestimating the importance
of finances

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
UNDERESTIMATING
THE IMPORTANCE
OF FINANCES
ACTION STEPS
1. Make a plan, work the plan:
• Budget forecast
o Don’t underbudget
o Don’t overspend
*When in doubt do without
• Cash flow
• Budget to actuals
• Contingency plan
MISTAKE2

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
UNDERESTIMATING
THE IMPORTANCE
OF FINANCES
ACTION STEPS
1. Make a plan, work the plan:
• Budget forecast
o Don’t underbudget
o Don’t overspend
*When in doubt do without
• Cash flow
• Budget to actuals
• Contingency plan
2. Beware the dreaded claw-back
• Forecast enrollment realistically
o Nobody will correct you but they
will take your money
MISTAKE3

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
UNDERESTIMATING
THE IMPORTANCE
OF FINANCES
ACTION STEPS
1. Make a plan, work the plan:
• Budget forecast
o Don’t underbudget
o Don’t overspend
*When in doubt do without
• Cash flow
• Budget to actuals
• Contingency plan
2. Beware the claw-back
• Forecast enrollment realistically
o Nobody will correct you but they
will take your money
3. Hire a charter school financial expert
• Internally & externally
MISTAKE3

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
UNDERESTIMATING
THE IMPORTANCE
OF FINANCES
ACTION STEPS
1. Make a plan, work the plan:
• Budget forecast
o Don’t underbudget
o Don’t overspend
*When in doubt do without
• Cash flow
• Budget to actuals
• Contingency plan
2. Beware the claw-back
• Forecast enrollment realistically
o Nobody will correct you but they
will take your money
3. Hire a charter school financial expert
• Internally & externally
MISTAKE3
SOLUTION: UNDERSTAND THAT SUCCESS
REQUIRES MONEY

24. Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
4. Losing sight of of your mission

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
ACTION STEPS
1. Know your end game—it’s your
mission and vision
• Tie all financials and operations back
to your mission or consciously revise
your mission.
4 MISTAKE
LOSING SIGHT OF
YOUR MISSION AND
VISION

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
ACTION STEPS
1. Know your end game—it’s your
mission and vision
• Tie all financials and operations back
to your mission or consciously revise
your mission.
2. Be FAB!
• Be Ferocious About your Boundaries
• Said differently, Trust but verify
o Experts
4 MISTAKE
LOSING SIGHT OF
YOUR MISSION AND
VISION

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
ACTION STEPS
1. Know your end game—it’s your
mission and vision
• Tie all financials and operations back
to your mission or consciously revise
your mission.
2. Be FAB!
• Be Ferocious About your Boundaries
• Said differently, Trust but verify
o Experts
3. Enrollment, enrollment, enrollment
4 MISTAKE
LOSING SIGHT OF
YOUR MISSION AND
VISION

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
LOSING SIGHT OF
YOUR MISSION AND
VISION
ACTION STEPS
1. Know your end game—it’s your
mission and vision
• Tie all financials and operations back
to your goal or consciously make new
goals (redo mission/vision)
2. FAB
• Be ferocious about your boundary
• Said differently, Trust but verify
o Experts
3. Enrollment, enrollment, enrollment
4 MISTAKE
SOLUTION: KEEP YOUR EYE ON
THE ULTIMATE PRIZE: YOUR MISSION

29. Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
5. Not maintaining strong
relationships

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT MAINTAINING
STRONG
RELATIONSHIPS
ACTION STEPS
1. Make authorizers your advocates
• A “fine” relationship with your Authorizer suggests
no relationship with your Authorizer
o Calendar regular contact with staff,
ED/superintendent, Charter Board
o Toot your own horn
o Show up to Authorizer events
4
4 MISTAKE5

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT MAINTAINING
STRONG
RELATIONSHIPS
ACTION STEPS
1. Make authorizers your advocates
• A “fine” relationship with your Authorizer suggests
no relationship with your Authorizer
o Calendar regular contact with staff,
ED/superintendent, Charter Board
o Toot your own horn
o Show up to Authorizer events
2. Your Board of Directors: know your governance
• You report to them — cultivate them
• Lean on them for good and bad—they should be
involved not just aware
• Organized and agendized monthly public
meetings
4
4 MISTAKE5

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT MAINTAINING
STRONG
RELATIONSHIPS
ACTION STEPS
1. Make authorizers your advocates
• A “fine” relationship with your Authorizer suggests
no relationship with your Authorizer
o Calendar regular contact with staff,
ED/superintendent, Charter Board
o Toot your own horn
o Show up to Authorizer events
2. Your Board of Directors: know your governance
• You report to them — cultivate them
• Lean on them for good and bad—they should be
involved not just aware
• Organized and agenda-d monthly public
meetings
3. Experts: find them, pay them, keep the good ones
• Consultants, thought leaders, business partners
4
4 MISTAKE5

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
NOT MAINTAINING
STRONG
RELATIONSHIPS
ACTION STEPS
1. Make authorizers your advocates
• A “fine” relationship with your Authorizer suggests
no relationship with your Authorizer
o Calendar regular contact with staff,
ED/superintendent, Charter Board
o Toot your own horn
o Show up to Authorizer events
2. Your Board of Directors: know your governance
• You report to them — cultivate them
• Lean on them for good and bad—they should be
involved not just aware
• Organized and agenda-d monthly public
meetings
3. Experts: find them, pay them, keep the good ones
• Consultants, thought leaders, business partners
SOLUTION: HAVE FRIENDS IN
ALL THE RIGHT PLACES
4
4 MISTAKE5

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
THE FIVE SOLUTIONS
Remember
your school is
a business
Prepare for
the
unexpected
Understand
that success
requires
money
Keep your
eye on your
mission
Have friends
in all the right
places

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
ADDITIONAL RESOURCES
Educate yourself with
training sessions on
growth, funding,
finance, board
governance, revenue
Find and connect with
great charter school
leaders, attend
conferences, and
build your network.
Surround yourself with
good people, great
leaders, financial and
charter experts.

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Copyright © 2018 Charter School Capital, Inc. All Rights Reserved.
Q & A: THANK YOU FOR ATTENDING
Tricia Blum
tblum@charterschoolcapital.org
Margie Montgomery
mmontgomery629@gmail.com
Michael LaRoche
mlaroche@saltechjax.org
Sharon Thompson
sthompson@wpanc.org
Find this presentation at: www.charterschoolcapital.org/conferences/national-2018