HALLADAY EDUCATION GROUP

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


Monday, October 21, 2013

Private School Consulting - Start, Improve, and Buy / Sell



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Hello,

I wanted to  update you on current HEG projects and our associates travel in your region. Many times we're able to reorganize our travel schedule to meet with other clients while working in your region...and we would welcome the opportunity to assist your organization while on route.

At present, HEG's staff will be working with clients on the following dates and regions:

  1. Riyadh, Saudi Arabia on November 10-17 (routed through Frankfurt, Germany);
  2. Jakarta, Indonesia on November 26 to Dec 1 (routing through Hong Kong); and 
  3. Hong Kong in December    

Please do not hesitate to contact HEG if we can be of service to your organization while in your region over the next three months.

I also wanted to take this opportunity to congratulate one of our clients, The Metropolitan School in Panama  City, Panama, and the ongoing success of their private K-12 school in the third year of operation. HEG was retained to complete a detailed market study and business plan for the development of their school, which had been projected at 400 students in Year 3. However, I almost fell off my chair when their board updated me that their 2013-14 enrolment was 520 students, with 120 on the waiting list. We congratulate their board for understanding their market's need for a balanced IB private prep school and that they followed a deliberate course of action in the development and operation; providing a world-class school for their community for generations to come.   

The objective of the market study and business plan is to formalize a new school's educational / operational /Planning business / financial model, determine its feasibility in their market, enrollment projections, start-up capital requirements, five-year operational budget, internal rate of return (if required), facility/site requirements, and conveyance of the proposition to the investment and founding group. The critical elements of the study will demonstrate the feasibility of the project and value it will provide to the founding team.The rationale behind completing the Market Feasibility Study and Business Plan is to consolidate the scope of the project through an extensive business case analysis, crystallizing the educational and operational~business~financing framework, HR needs, facility/land requirements, future enrollment, capital requirements, break-even point, pay-down to investors, IRR, and net profit. Upon conclusion of the Study, you're in a better position to assess the project's feasibility, optimal model for development / operation, site, and formation. You then go into the project with your eyes wide open and can demonstrate to your founders that you've done your homework understand fully what is involved...as a for-profit or a non-profit.    

Bus PlanFor example, when deciding on whether to use a leased facility (and renovating it) or purchasing your own  site, the benchmark allocated for facilities should be no more than 20% of your budget. Within your budget, your payroll costs (including benefits) will on average be up to 60% of the total school budget.  So you really have 40% to take address the balance of your operational costs. Generally, 10%  of the budget is usually reserved for instructional supplies and replacement of worn out equipment etc., giving you 30% to take care of administrative (e.g., legal, audit, insurance) and facilities costs (e.g., operating costs, building maintenance, snow removal, utilities lease or mortgage). Depending on the school's priorities, we estimate 5% for admin, 20% for building maintenance, utilities and mortgage/lease, and 5% for contingency. The above 60% payroll, 10% instruction and curriculum costs, 5% admin, 20% building maintenance, mortgage/lease and 5% contingency are a good rule of thumb for new start ups or in the school's early development period. If the school is already a matured operation, meaning you're debt free or through the years of fundraising effort (and are able to reduce or "burn" your mortgage), then the amount of reserves for building maintenance/mortgage or lease can be reduced while the budget for other areas can be increased.   

If you're interested in our firm's consulting services, and would like to discuss your needs in further detail, please contact HEG by email or call directly at +1-604-868-0002.
 
To your success, 

Douglas Halladay
President
Halladay Education Group
P: +1-604-868-0002 | E: info@halladayeducationgroup.com  
4316 Arthur Drive, Delta, BC, Canada, V4K 2W8 

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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About Halladay Education Group 

HEG is an experienced international private school consulting firm specializing in private school development services related to improved management and operations of established schools, new school start-ups,  and branch school mergers and acquisition/sales of private schools globally. Here are a few links providing additional info on our firm's school development services: http://db.tt/pd6y4pk6 and http://db.tt/ySODYP2H, and a link to our firm's recent work with clients: http://bit.ly/2ptow7. Our services include:

  • Strategic Planning  
  • Board Governance Workshops & Leadership Development
  • Institutional Assessments & Audits
  • Financial Improvement
  • Private School Formation
  • Mergers, Sales, & Acquisitions
  • Market Feasibility Studies & Business Plans 
  • Government Education Regulatory Relation
  • School Management Services
  • Head Evaluation & Executive Coaching
  • Executive & Faculty Searches
  • Policy, Handbook, & Bylaw Development
  • Climate & Faculty Culture Improvement
  • Crisis & Change Management   


1 comment:

  1. Hi,The State of Qatar is at the cross roads with Business setup in Qatar of contrasting economies, cultures and natural environments.Thanks....

    ReplyDelete