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Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
Growth Strategies for
Charter Schools
WebinarFebruary 23, 2016
2Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
WELCOME
Stuart Ellis, President and CEOCharter School Capital
Marshall Emerson III, CEOI CAN SCHOOLS
3Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
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 atwww.slideshare.net/CharterSchoolCapital
Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
Stages of Growth
5Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
# of Students
Start-upSurvival/Establish
GrowthFlexibility/Stability
Sustainable MaturityEfficiency
Time (years)
0 2-3 5-10
100%
Students as a % of mature targets
10-25% 25-90% 90-100%
6Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
CHALLENGES
Reasons for charter school closures
42%
24%
19%
6%5% 4%
FinancialMismanagementAcademicAuthorizer ObstaclesFacilitiesOther
Source: The State of Charter Schools,The Center For Education Reform, December 2011
7Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Strategic approach
Start-up Growth SustainabilityFinancing
Facilities
Community involvementAcademic accountabilityOperational support
8Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Strategic approach
Start-up Growth SustainabilityFinancing Any liquidity
Facilities In target locale
Community involvement
Awareness
Academic accountability
Establish program
Operational support
Outside experts
9Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Strategic approach
Start-up Growth SustainabilityFinancing Any liquidity Flexibility/scalabil
ityFacilities In target locale Modular
Community involvement
Awareness Fulfill the promise
Academic accountability
Establish program Measure program
Operational support
Outside experts Transitionalresources
10Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Strategic approach
Start-up Growth SustainabilityFinancing Any liquidity Flexibility/scalabil
ityCost
Facilities In target locale Modular Curb appeal/cost
Community involvement
Awareness Fulfill the promise Fabric of community
Academic accountability
Establish program Measure program Continuous improvement
Operational support
Outside experts Transitionalresources
In-house team
11Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Strategic approach
Start-up Growth SustainabilityFinancing Any liquidity Flexibility/scalabil
ityCost
Facilities In target locale Modular Curb appeal/cost
Community involvement
Awareness Fulfill the promise Fabric of community
Academic accountability
Establish program Measure program Continuous improvement
Operational support
Outside experts Transitionalresources
In-house team
12Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
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
Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
The Start-up Phase
14Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Start-up
The Challenges
Overcoming the “if you build it they will come” mentality
Finding good leadership and teachers
Securing resources
Finding suitable facilities
Healthy enrollment
Sustaining high performance as network expands; building best practices
15Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
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 reallywell
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
Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
The Growth Phase
17Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
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
18Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
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
19Copyright © 2013 Charter School Capital, Inc.
Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
The Sustainable Maturity Phase
20Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Sustainable maturity
The Challenges
Focus, Engage, Act
Right team on the right bus in the right seats
Not time to simply “cash in”
Challenges may increase as you scale
Recalibration
21Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Sustainable maturity
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
Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
Recap
23Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
STAGES OF GROWTH
Recap
Start-up Growth SustainabilityFinancing Any liquidity Flexibility/scalabil
ityCost
Facilities In target locale Modular Curb appeal/costCommunity involvement
Awareness Fulfill the promise Fabric of community
Academic accountability
Establish program Measure program Continuous improvement
Operational support
Outside experts Transitionalresources
In-house team
24Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
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
Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
Questions?
26Copyright © 2015 Charter School Capital, Inc. All Rights Reserved.
Thank YouPresentation available at: SlideShare.net/CharterSchoolCapital
Stuart Ellis [email protected]
Marshall [email protected]