Transcript
Page 1: Building a Growth Strategy

Copyright © 2012 Charter School Capital

BUILDING A GROWTH

STRATEGY

2012 FL CHARTER SCHOOL CONFERENCE

NOVEMBER 15 ORLANDO, FL

Page 2: Building a Growth Strategy

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

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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

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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

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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)

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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

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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

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Copyright © 2012 Charter School Capital

CASH FLOW SUCCESS

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Defining success

•  Planning •  Determining expenses •  Expense controls •  Financing

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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

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Copyright © 2012 Charter School Capital

CASH FLOW SUCCESS

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•  Dynamic, continuous, not static

•  Communication

•  Relationship - work

CF Success

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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

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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

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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?

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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

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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

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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

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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

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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

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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

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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

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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.

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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.


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