growth strategies for charter schools: start-up, expansion, maturity | california charter schools...

California Charter Schools Conference

March 22, 2017

Growth Strategies for Charter

Schools:Start-up, Expansion and

Maturity

WELCOME

Stuart Ellis President and CEOCharter School Capital

Dr. Darlene Chambers SVP for Programs and ServicesNational Charter Schools Institute

Tricia Blum, Head of Consulting ServicesCharter School CapitalFormer executive leader at AEALAS, Inc. and iLEAD Inc.

Laura MudgeExecutive DirectorOlive Grove Charter School

WHAT WE’LL COVER

• Charter school growth stages

• Challenges school operators face at each stage

• Best practices and takeaways

Agenda

Presentation is available to download atCharterSchoolCapital.org/California2017

Stages of Growth

STAGES OF GROWTH

# of Students

Start-upSurvival/Establish

GrowthFlexibility/Stability

Sustainable MaturityEfficiency

Time (years)

0 2-3 5-10

Students as a % of mature targets

10-25% 25-90% 90-100%

CHALLENGES

Reasons for charter school closures

6%5% 4%

FinancialMismanagementAcademicAuthorizer ObstaclesFacilitiesOther

Source: The State of Charter Schools,The Center For Education Reform, December 2011

“While the charter public school movement saw many new schools open last year, 272 charter schools ceased operation. These schools closed for a variety of reasons, including low enrollment, financial concerns, and low academic performance.” – A Closer Look at the Charter School Movement, National Alliance for Public Charter Schools

STAGES OF GROWTH

Strategic approach

Start-up Growth Sustainability

Financing

Facilities

Community involvementAcademic accountabilityOperational support

STAGES OF GROWTH

Strategic approach

Financing Any liquidity

Facilities In target locale

Community involvement

Awareness

Academic accountability

Establish program

Operational support

Outside experts

STAGES OF GROWTH

Strategic approach

Financing Any liquidity Flexibility/scalability

Facilities In target locale Modular

Awareness Fulfill the promise

Establish program Measure program

Operational support

Outside experts Transitional resources

STAGES OF GROWTH

Strategic approach

Facilities In target locale Modular Curb appeal/cost

Awareness Fulfill the promise Fabric of community

Establish program Measure program Continuous improvement

Operational support

In-house team

STAGES OF GROWTH

Strategic approach

Operational support

In-house team

STAGES OF GROWTH

• Different structures of working capital– Receivable sale– Term loan– Line of credit

• Facilities financing options– Lease option– Bond– Traditional bank loan

• Regarding costs of funds, all costs are NOT created equal– Evaluate total $ cost rather than % rate– Consider fixed transactional costs and penalties, in addition to annual rate related

to costs

Finance considerations

The Start-up Phase

STAGES OF GROWTH

Start-up

Common MisperceptionsFounding team to “create” best practices

“If you build it, they will come.”

STAGES OF GROWTH

Start-up

The ChallengesFinding good leadership and teachers

Securing resources

Finding suitable facilities

Healthy enrollment

Sustaining high performance as network expands

STAGES OF GROWTH

Start-up

Best PracticesStudy and meet with schools doing things well

Don’t be a master of everything. Master a few things and do them really well

Build genuine and robust relationship with teachers, leaders, vendors, and external constituents

Pay close attention to the budget

Pay even closer attention to student progress data

Do not waiver in your belief or mission

The Growth Phase

STAGES OF GROWTH

Growth

Common Misperceptions“After the 3rd year, all will be in place and it’s smooth sailing!”

Performance and accountability requirements will be stagnant

Done with professional development

No need to change routines or systems

We’ll have sufficient funds from operating revenue to support expansion

Facility upgrades will be minimal, if at all

STAGES OF GROWTH

GrowthChallenges

Maintaining high expectations and being flexible

Advancing levels of student performance

Managing growth with limited resources

Upgrading systems to support growth

Retaining quality teachers and leaders

Matching capital to operational needs

STAGES OF GROWTH

Growth

Best PracticesContinuous professional development and leadership training

Build on the culture

Focus on individualized instruction and data analysis

Increase visibility in the movement

GROWTH ESTIMATOR

The Sustainable Maturity Phase

STAGES OF GROWTH

Sustainable maturity

Common Misperceptions

The snowball effect

Time to cash in

Challenges decrease as you scale

STAGES OF GROWTH

The Challenges

Focus, Engage, Act

Right team on the right bus in the right seats

Recalibration

STAGES OF GROWTH

Best PracticesBe mindful of the “tipping points”

Strategic enrollment = Stable performance

Develop data-driven culture and retain the passion that got you started

Celebrate your successes and analyze your failures as strategic opportunities

Develop pillars that define what you do – core strategies for your “preferred future”

Assess all management systems regularly and use assessment to improve

STAGES OF GROWTH

Operational support

In-house team

STAGES OF GROWTH

• Stages in charter school lifecycle present very different challenges

• Strategy and focus needs to vary significantly as you grow

• Leverage experts at every stage to allow you to focus on educating kids

• Financial analysis illuminates positive potential impact of growth and scale

Key takeaways

Questions?Presentation available at: CharterSchoolCapital.org/California2017

THANK YOUPresentation available at: CharterSchoolCapital.org/California2017

Stuart Ellissellis@charterschoolcapital.org877-272-1001

Darlene Chambersdchambers@charterinstitute.org

Tricia Blumtblum@charterschoolcapital.org

Laura Mudgelmudge@olivegrovecharter.org

growth strategies for charter schools: start-up, expansion, maturity | california charter schools...

Education

school choice/ charter schools in indianapolis what are...

massachusetts charter public schools

new charter schools

arizona charter schools association

engineering - mastery charter schools

charter schools a quick study. my objectives (besides...

charter schools flyer_final_kh

charter schools in florida

pittsburgh's charter schools

horizon charter schools, auburn learning...

firstline schools - new orleans charter schools

private charter schools 2011

charter schools and charter systems in georgia

public accountability for charter schools · 4public...

idaho charter schools · idaho charter schools this list...

charter schools annual report

charter schools usa

charter schools vs. traditional public schools

twice considered: charter schools and student …charter...

charter school growth strategies: start-up, expansion, and...