charter school growth strategies: start-up, expansion, and maturity at the 2015 national charter...

Copyright © 2014 Charter School Capital, Inc.

Charter School Growth

Strategies

National Charter Schools Conference

June 23, 2015

WHO WE ARE

• Dr. Darlene Chambers, CEO, Ohio Alliance for Public Charter Schools

• Marshall Emerson, Co-Founder and CEO, I CAN Schools

• Stuart Ellis, President and CEO, Charter School Capital

Panelists

3Copyright © 2014 Charter School Capital, Inc.

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


Stages of Growth


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%


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


STAGES OF GROWTH

Strategic approach

Start-up Growth Sustainability

Financing

Facilities

Community involvement

Academic accountability

Operational support


STAGES OF GROWTH

Strategic approach


Financing Any liquidity

Facilities In target locale


Awareness


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



Cost

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



Cost






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

Marshall speak to this series of slides

The Challenges

Finding 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



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 bust 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


Recap


STAGES OF GROWTH

Recap



Cost






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


Thank YouPresentation available at: SlideShare.net/CharterSchoolCapital

Marshall Emerson, [email protected]

Dr. Darlene Chambers, [email protected]

Stuart Ellis, [email protected]

877-272-1001

charter school growth strategies: start-up, expansion, and maturity at the 2015 national charter...

Education

charter school closures

state of charter schools

liquidity facilities

experts transitional

target locale modular

schools stuart ellis

challenges reasons

costs of funds