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:
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 /
 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.  For 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:
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