building a growth strategy
DESCRIPTION
TRANSCRIPT
Copyright © 2012 Charter School Capital
BUILDING A GROWTH
STRATEGY
2012 FL CHARTER SCHOOL CONFERENCE
NOVEMBER 15 ORLANDO, FL
Copyright © 2012 Charter School Capital
WHO WE ARE
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Dedicated 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
WHAT WE DO
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Provide 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
WHAT CLIENTS SAY
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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
WHAT CLIENTS SAY
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“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
CASH FLOW
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Where 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
CASH FLOW
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Managing 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
CASH FLOW SUCCESS
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Defining success
• Planning • Determining expenses • Expense controls • Financing
Copyright © 2012 Charter School Capital
CASH FLOW SUCCESS
Having the cash you need when you need it. Balanced budget ≠ Cash Flow Success.
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July-Sep Oct-Dec Jan-Mar Apr-May
CF Need CF Actual
Copyright © 2012 Charter School Capital
CASH FLOW SUCCESS
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• Dynamic, continuous, not static
• Communication
• Relationship - work
CF Success
Copyright © 2012 Charter School Capital
ALIGNING PRIORITIES
Board: Direction and oversight
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CFO, CEO, ED: Executing / managing $ process(es)
Principal, Dept. Heads: Define needs of education mission
Mission Plans Goals
Priorities = Expense
Governance
Academic Leaders
Management
Copyright © 2012 Charter School Capital
Who
Board
Mgmt / Leaders
Mgmt / Leaders
Everyone
What
Budget linked to Education Mission
Credit cards Petty Cash
Signing Authority RFP Process
Everything
EXPENSES
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Controls
Policies
Accountability
Priorities
Aligned and Controlled
Copyright © 2012 Charter School Capital
FINANCING
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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
STEPS
Compare Costs: • Evaluate costs
o Teachers get paid with dollars, not interest rates • Your time is VALUABLE!
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Compare Risks: • Access to funding – can you get as much as you need • Increased Costs – are the costs known or estimated • Default risk – what is the risk of default • What is the impact on the business (school)
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Copyright © 2012 Charter School Capital
OPTIONS
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Options for your school
• Loans • Lines of credit • Private loans • Receivable sale
Copyright © 2012 Charter School Capital
NEXT STEPS
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When to pull the trigger
• Decision impact • Short term effect becomes • Long term viability
Copyright © 2012 Charter School Capital
GROWTH STRATEGIES
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Nationally, more than 600,000 students were on charter school waiting lists
• Solidify the Base • Innovate • Differentiate • Market
Copyright © 2012 Charter School Capital
SOLIDIFY THE BASE
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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
INNOVATE
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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
DIFFERENTIATE
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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
MARKET
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If 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
Professional Development
Enrollment Marketing
Enrollment Marketing
Instructional Technologies
Enrollment Marketing
Enrollment Marketing
Operations infrastructure
BYOD
Instructional Technologies
ANNUAL CASH FLOW
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July August September November December January February March April May June October
Standard Operational Expenses
State Payments
Professional Development
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
QUESTIONS? Charter School Capital
Brian Rose: [email protected]
John Helgeson: [email protected]
877.272.1001 charterschoolcapital.org
All information in this presentation is provided for educational and/or informational purposes. It is not intended to provide legal, accounting, or tax advice and should not be relied on for any such purpose. Please consult an attorney, accountant, or financial advisor to answer any financial or legal questions.