1. Building a Growth Strategy Florida Charter School Conference Orlando, FL November 20, 2013Copyright 2013 Charter School Capital, Inc.

2. Welcome.2 Copyright 2013 Charter School Capital, Inc. 3. WHAT WELL COVER Agenda Charter school growth stages Challenges school operators face at each stage Best practices and takeaways from our experienced panelPresentation will be available for download3 Copyright 2013 Charter School Capital, Inc. 4. WHO WE ARE Panelists Jim Horne, Former Commissioner of Education, State of Florida Isis Rosso, Co-founder, Learning Path Academy Michael Strader, President, Charter School Associates Stuart Ellis, CEO, Charter School Capital4 Copyright 2013 Charter School Capital, Inc. 5. Stages of Growth Copyright 2013 Charter School Capital, Inc. 6. STAGES OF GROWTH6 Copyright 2013 Charter School Capital, Inc. 7. STAGES OF GROWTH Strategic approach Start-up Financing Facilities Community involvement Academic accountability Operational support7 Copyright 2013 Charter School Capital, Inc.GrowthSustainability 8. STAGES OF GROWTH Strategic approach Start-up FinancingAny liquidityFacilitiesIn target localeCommunity involvementAwarenessAcademic accountabilityEstablish programOperational support Outside experts8 Copyright 2013 Charter School Capital, Inc.GrowthSustainability 9. STAGES OF GROWTH Strategic approach Start-upGrowthFinancingAny liquidityFlexibility/ scalabilityFacilitiesIn target localeModularCommunity involvementAwarenessFulfill the promiseAcademic accountabilityEstablish programMeasure programOperational support Outside experts9 Copyright 2013 Charter School Capital, Inc.Transitional resourcesSustainability 10. STAGES OF GROWTH Strategic approach Start-upGrowthSustainabilityFinancingAny liquidityFlexibility/ scalabilityCostFacilitiesIn target localeModularCurb appeal/costCommunity involvementAwarenessFulfill the promise Fabric of communityAcademic accountabilityEstablish programMeasure program Continuous improvementOperational support Outside experts10 Copyright 2013 Charter School Capital, Inc.Transitional resourcesIn-house team 11. STAGES OF GROWTH Strategic approach Start-upGrowthSustainabilityFinancingAny liquidityFlexibility/ scalabilityCostFacilitiesIn target localeModularCurb appeal/costCommunity involvementAwarenessFulfill the promise Fabric of communityAcademic accountabilityEstablish programMeasure program Continuous improvementOperational support Outside experts11 Copyright 2013 Charter School Capital, Inc.Transitional resourcesIn-house team 12. STAGES OF GROWTH Finance considerations 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 12 Copyright 2013 Charter School Capital, Inc. 13. The Start-up Phase Copyright 2013 Charter School Capital, Inc. 14. STAGES OF GROWTH Start-up Common Misperceptions This is going to be very hard It takes at least two years to open a school School districts are not friendly14 Copyright 2013 Charter School Capital, Inc. 15. STAGES OF GROWTH Start-up Challenges at transition from Start-up to Growth phases The Challenges Access to funds Understand the process Resources (HR) Other? Gain access to the information you need Recruit staff Acquire the right facility Marshall speak to this series of slides Student enrollment15 Copyright 2013 Charter School Capital, Inc. 16. STAGES OF GROWTH Start-up Best Practices Starting-up can be hard stick with it Do not waver in your belief or mission Build genuine and robust relationship with teachers, leaders, vendors, and the community Pay close attention to the budget Pay even closer attention to student progress data our priority is our students16 Copyright 2013 Charter School Capital, Inc. 17. The Growth Phase Copyright 2013 Charter School Capital, Inc. 18. STAGES OF GROWTH Growth Common Misperceptions After the 3rd year, all will be in place and its smooth sailing! Performance and accountability requirements will be the same Professional and leadership development will be limited. Teachers and principals will be fully trained No need to change routines or systems Will have sufficient funds from operating revenue to support expansion Facility upgrades will be minimal, if at all18 Copyright 2013 Charter School Capital, Inc. 19. STAGES OF GROWTH Growth The Challenges Adjusting to higher expectations and new/changing accountability requirements Advancing levels of student performance Managing growth with limited resources Inefficient or inadequate operating and data systems Annual loss of quality teachers and leaders Ability to recruit and hire new teachers Lack of capital for FFE, marketing, professional development, and curriculum19 Copyright 2013 Charter School Capital, Inc. 20. STAGES OF GROWTH Growth Best Practices Move from entrepreneurial toward standardized policies Build school culture Focus on continuous leadership Focus on teacher training and development New staff hired with position-specific skills and expertise Create professional learning communities (PLCs) and data teams Expand your community vision of learning environment to 24/720 Copyright 2013 Charter School Capital, Inc. 21. The Sustainable Maturity Phase 21 Copyright 2013 Charter School Capital, Inc. Copyright 2013 Charter School Capital, Inc. 22. STAGES OF GROWTH Sustainable maturity Common Misperceptions Prior success is enough to drive enrollment Can maintain existing programs Challenges are easier to meet as you scale and your resources increase22 Copyright 2013 Charter School Capital, Inc. 23. STAGES OF GROWTH Sustainable maturity The Challenges Developing and executing a sustainable strategic plan Anticipate challenges Identify aspiration mission, vision, core values, SWOT Right team to implement strategic vision and plan Reevaluate financing to match your needs Continuous innovation23 Copyright 2013 Charter School Capital, Inc. 24. STAGES OF GROWTH Sustainable maturity Best Practices Define your objectives clearly and communicate them extensively both internally and externally Celebrate your successes and analyze your failures Clearly define management functions and develop individual roles Develop data-driven culture and make sure you retain the passion that got you started Take what you do seriously with out taking yourself too seriously Develop pillars that define what you do Assess performance regularly and use assessment to improve24 Copyright 2013 Charter School Capital, Inc. 25. Recap Copyright 2013 Charter School Capital, Inc. 26. STAGES OF GROWTH Key takeaways 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 kids26 Copyright 2013 Charter School Capital, Inc. 27. http://www.slideshare.net/ CharterSchoolCapital27 Copyright 2013 Charter School Capital, Inc. 28. Questions? Copyright 2013 Charter School Capital, Inc. 29. Thank you. 29 Copyright 2013 Charter School Capital, Inc. Copyright 2013 Charter School Capital, Inc. 30. Stuart Ellis 877-272-1001 sellis@charterschoolcapital.org30 Copyright 2013 Charter School Capital, Inc.