HALLADAY EDUCATION GROUP

HALLADAY EDUCATION GROUP
4316 Arthur Drive, Delta, BC, Canada V4K 2W8
P: 604.868.0002 | E: info@halladayeducationgroup.com


Thursday, June 21, 2012

How To Start A New Private School


SCHOOL FORMATION 101 

Our team at Halladay Education Group is recognized as the global leader in school formation. Our team has been involved in the development of more than 100 private schools in the USA, Canada, and internationally, and we understand the fundamentals of starting aPlanning successful private school from the ground up. We recognize that starting a private school is a lengthy process. However, there's no need to re-invent the wheel. People like you have started their own school and have been able to do the same thing you are thinking of doing now. Every school you see today started with a bold vision and courage to do what many would have told them was impossible. But it's not. You should find inspiration from these schools.

With proper pre-planning and controls in place over the projects life cycle, founders can be prepared to start the school of their vision, and manage costs and project development efficiently and effectively, establishing the foundation for generations to come.

Here's a guide to moving forward with the development of your new school: 

Step 1: Develop A Vision For Your School
Determine your niche and type of school your local market needs and will support (e.g., K-7, 8-12, day, boarding, single gender, IB, Montessori, University Preparatory). Ask parents and community leaders for their opinions. If possible, hire a consulting firm to perform a market survey to support the process of the development of the school to determine market demand by grade and program elements. You can only start a new school once, and first impression in the marketplace is critical to the school's long-term success.

Step 2: Form Steering Committee
About two years before opening for operation, you should form a small working committee of capable, dedicated cohorts to set in motion the foundational work. Include parents and highly respected community stakeholders with financial, legal, management and building experience to sustain the process. Ask for and get a commitment from each member as this is important work that will demand much of each member's time and energy. It is critical to ensure that each member is on the same page in reference to the vision, both publicly and privately. You always want everyone to be on the same page, and not distracted from your vision or goals.

Step 3: Incorporation & Tax Exemption
File incorporation papers with the appropriate Province or State agency. The lawyer on your Steering Committee should be deal with this. By establishing incorporation, it will limit liability in the case of lawsuits, present a stable image, extend the life of the school beyond the founders, and provide an insurable entity for the school. A 3rd party lawyer should always be consulted. Types of schools include: (1) For-Profit status allows for specific ownership of the resources, profit-making, and liquidation of resources for-profit. The owner has complete control, with the parents taking the role of consumers; (2) Non -Profit status allows for federal and/or state tax-exempt status, solicitation of tax deductible gifts, and solicitation of gifts from foundations. It also helps when enlisting volunteer help from the community. Some non-profits operate as parent cooperatives, with parents of enrolled children making up the majority of the Board. Others have a Board made up of members appointed by the founding members of the initial society; apart from the parent community; (3) Sole Proprietorship requires no incorporation and no systematic representation of procedures and resources. Because of increasing liability of schools, a sole proprietorship carries more risk and should be well insured; and (4) Non-Profit Foundation may be established by a for-profit, under strict legal supervision. The non-profit foundation supports the for-profit to provide fundraising capability.

Apply for tax exemption from appropriate authorities for your non-profit status. Again, your lawyer can handle this application. Submit it as early in the process as you can so that you can begin to solicit tax deductible contributions.

Step 4: Develop Strategic Plan
Develop the strategic plan. This of course will culminate in the subsequent development of the business, financial, and marketing plans. This will be your blue print of how the school is going to operate over its first five years. Always be conservative in your projections. Do not try to do everything in the first five years unless you have been lucky enough to find a donor to fund the program in its entirety. This is your chance to lay out, step-by-step, the process for the sequential development of the school. You will determine the enrollment and financial projections; you will prioritize the staffing, programs, facilities, in a methodical, measurable fashion. Remember the old adage, "Those that fail to plan, plan to fail." You will also keep your Steering Committee on track and focused on the mission of the school.

Step 5: Develop Budget
Develop a five year budget based on the goals of the Strategic Plan. This is a comprehensive review of the projected revenues (AR) and expenses (AP). The financial person(s) on your Steering Committee should take responsibility for developing this important plan. As always project your assumptions conservatively and factor in a contingency should the financial reality change from the projections. You should also map out the school's bookkeeping procedures (e.g., record keeping, check signing, disbursements, petty cash, bank accounts, record keeping, reconciling bank accounts, audit committee), and accounting cycles. It should be noted, that you don't have to use a full-time employer as your school's accountant; it can be more economical to contract out.

Step 6: Fundraise
You will need to plan your development campaign carefully so that you build momentum yet are able to keep pace with actual funding needs. Your strategic plan is important at this stage as it provides potential donors concrete evidence of your vision and where the donor can fit it. Of course, it will also drive your enrollment as parent's see how their child fits in.

Step 7: Choose School Location & Resources
Locate a facility to accommodate the school (purchase or rent) or develop building plans if you will be creating your own facility from the ground up. The Building Committee member(s) should spearhead this assignment. Check requirements of local social and health services, building and zoning, health record keeping, class size, food service, fire code, building code, and teacher-student ratios, etc. You should also take into consideration the learning resources, furniture, computers, etc. needed for start-up. In addition, you will need to begin thinking about the outdoor environment and natural habitat. Rental space for the classroom is frequently obtained from schools, churches, park buildings, community centers, apartment complexes, private school buildings, nursery schools, and estate mansions. When renting, consider the availability of additional space for expansion at the same site. Look closely at tenants with whom you may have to co-exist. Try to obtain a lease with at least one year's notice for cancellation, with opportunity for alteration of the building and some protection against major capital expenses and a long-term arrangement with specified rent levels (three to five years). Review the site, keeping in mind zoning, fire, and health regulations, before finalizing classroom design.

Step 8: Select Key Staff Members
Through a search process select your Head of School and your Business Manager (or sub-contract a local accountant to deal with AP and AR). Conduct your search as widely as possible. Write job descriptions, benefits, and pay scales for your staff and subsequent faculty and administrative positions. You will be looking for self-starters who enjoy building something from scratch. Your Head will drive the enrollment campaign, marketing and promotions, and the initial decisions of classroom-based resources and staffing.

Step 9: Promotions
At this step you need to begin to aggressively market for students. Members of the Steering Committee and Head need to devise a Marketing Plan to promote the new school. This could include: public meetings, newspaper ads and inserts, mail drops, radio, community TV, and coffee sessions. You will also need to design your brochure, communication materials (e.g., business cards, letterhead), web site, and set up a mailing list to keep interested parents and donors in touch with your progress.

Step 10: Open Your Doors
Open the school office and phones, and have the Head of School begin admissions interviews and tours of your facilities. Acquire insurance protection against business interruption, liability, boiler malfunction, building casualties, etc.

Step 11: Select Faculty & Administrative Staff
It is critical to attract capable faculty; in the end it is staff that will make or break the school - reputations can be formed so quickly in a school environment. To attract great staff you need to ensure that they buy into the vision and have a competitive compensation package. Also, you need to develop the Staff Handbook, contracts, and structure for personnel files. While it is still a year from the school opening, line up as many faculty and senior leadership positions as you can. Do not leave this important job until the last minute. Remember these staff members will also be your ambassadors for enrollment and will be in demand.

Step 12: Orient & Train Faculty
Have faculty in place to get school ready for opening. The first year at a new school requires endless meetings and planning sessions for the academic staff. Get your teachers on the job no later than August 1 in order to be prepared for opening day.

Step 13: Opening Day
Welcome your students! Begin your traditions. Explore membership in national, provincial, and state private school associations! Start off with a bang. Have dignitaries there to cut the ribbon, have a family BBQ; make it special.
   
Next Step  
If you are considering starting your own private school and would like more information on our school formation services, please contact Doug Halladay directly by sending an email to info@halladayeducationgroup.com or calling HEG at 1-604-868-0002.
Doug Tie 
To your success, 

Douglas Halladay
President
Halladay Education Group

P.S. Don't forget to go to our secure Online Store to invest in our Strategic Planning or Start-A-School Toolkits.They're affordable and practical.  

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3 comments:

  1. Before starting a private college , i would recommend to read this blog properly as it is giving proper steps in building a successful school.

    ReplyDelete
  2. This blog has very knowledgeable content. It is worth to read. Well this post will help many people especially to those who want to start a new private school.

    ReplyDelete
  3. If you want students in your private school, then it is good to develop your school. So students can feel good when he takes admission in your school and tell other good things about your school.

    ReplyDelete