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Greetings!
How's your summer going so far? Here in Vancouver we're enjoying temperatures in the low-80's with clear blue skies and low humidity. I spend my time between our house here in the farm country south of Vancouver and our cottage in the US peninsula of Point Roberts.
I'm pleased to share that HEG is signing off on another Market Study and Business Plan for a new for-profit K-9 IB School in Malaysia. Next is a Feasibility Study and Business Plan for a new Tribal School in Alabama.
A critical element before starting a private school or university is to gauge the market demand for the envisioned school and quantify the investment capital needed within a detailed formation and five-year operational budget. This process determines whether there is demand for the specific school program and tuition fee at that specific location, what it costs to open that school, and whether it's a sustainable operation (and if the founder's pockets are deep enough).
I've witnessed at least 10 schools close over the last 12 months; some established, some new. What their closures indicate to me is two fold:
- People are not buying what they're selling. In other words, parents and students are not attracted to the educational program being offered at that school; and
- The Directors and Board of the school are not operating the school within a financially sustainable business model.
If you're thinking of starting a new school, or have an established school, you owe it to yourself to ensure that you can statistically quantify what your market wants, what fees it is capable of paying, and ensuring that the revenue 'coming in' matches or is less than the expenses 'going out.' I know this sounds pretty simple, but why did all those schools close while others didn't? It's just simple supply and demand and responsible governance!
Is your group thinking of starting a new school? Today
I'm going to share with you the process to develop a market-feasibility study and business plan, which ensures that you're better prepared to open your school. Ple ase read on to find out more.To
your success,  Doug
Halladay President Halladay Education GroupP.S. Don't forget to go to our secure Online Store to invest in our Strategic Planning or Start-A-School Toolkits.
  
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Where's HEG Working Right Now?
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 Many of you ask what is HEG is being approached to work on next. Here's an update:
- Formation of a new PreK-9 IB Private School in Malaysia
- Formation of a Private PreK-12 IB School in Panama
- Formation of a new Private K-12 IB School in Saudi Arabia
- Feasibility Study and Business Plan for a new Private Early Childhood Center and Gr. 7-12 Tribal Senior School in Alabama
- Design of a Strategic Plan for a Public School District in New Hampshire
If you're interested in our
consulting services, and would like to receive our written material, or would like to discuss your needs further, please contact
Doug Halladay by email
or calling directly at 1-604-868-0002. |
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In The News
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BBC News - Setting aside the specific circumstances of Mark Elms, of Tidemill Primary School
- the total included back pay and extras on top of a basic of about £83000...
First-Ever Virtual Boarding School Expos Hitting the Web Fall 2010
The Association of Boarding Schools (TABS) will host the first-ever
virtual Boarding School Expos this October and December. Prospective
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Solutions For Your School
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STARTING A SCHOOL
Starting
a school can be challenging & you never have a 2nd chance to make a 1st
impression. Our team is experienced in starting schools in the
USA, Canada, & Internationally. Click here for more info.
STRATEGIC PLANNING
We're experienced with developing Strategic Plans for private schools globally. We deliver a plan that focuses your
school's vision, builds consensus, donor confidence, & defines priorities for your Board & Staff. No school should be without one. Click here for more info.
BOARD GOVERNANCE WORKSHOPS
Great schools have great
boards. Can you afford not to have one? Our one-day governance workshop & online self-assessment survey fine-tunes your
board's performance & focuses our priorities. Click here for more info.
SCHOOL EVALUATION
As
a Trustee are you sure your school is doing the  best it can? Our school review is measuring if you're heading in the right direction. Quickly get the whole
picture with our In-Depth School Performance Review.
Click here for more info.
BUYING AND SELLING SCHOOLS
HEG
& our licensed brokers assist buyers/sellers with mergers, purchases, or sales of K-12 Schools, Post Secondary Institutions,
& Career Colleges in Canada, US, and Internationally. Click here for more info.
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Developing A Market-Feasibility Study & Business Plan
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, thanks for reading down this far. At HEG, we're strong believers in due
diligence when starting a school. We believe that the rationale behind developing a school
should be based on quantifiable data rather than emotions. There are a
number of qualitative and quantitative survey tools you can use to
determine the level of demand for your school (e.g., focus groups, phone surveys, online surveys, mail surveys).
The
purpose of the Market-Feasibility Study is to provide statistically-based data to
help answer the following questions:
-
What
is the level of demand for your school?
- Who
is the target market?
- What
is the likelihood of parents enrolling their children at your school?
- How
many students will enroll?
- What
will prevent families from enrolling?
- What
level of tuition would they pay?
- Will they need financial aid?
- What
is the impact of pricing on enrollment?
- What
is the response to the educational programs
- What
will generate confidence in a brand new private school?
This
process allows HEG to evaluate your project's capacity for success,
markets for
enrollment, and ensure clarity in the development of
your
business plan and start-up preparation. We view the market-feasibility study
like
building the foundation of a house; you need to establish all the building blocks before you commit your putting resources and capital into
building
the school.
Once
you've hard data for projected enrollment demand, we then develop the business
plan, which includes proformas for the start-up budget and five-year
operational budget. The plan illustrates the opportunity, program
requirements,
demand, time lines and benchmarks, facility needs, leadership structure,
start-up costs, operational budget, and investment structure.
An effective Market-Feasibility
Study and Business Plan will determine the best location,
capital requirements for start-up and operating budget, feasibility of the proposed
school model in that regional market, facility/site requirements, and convey the proposition to your financing group. The
rationale behind the Study and Plan is to first consolidate the
scope and scale of your formation project through an extensive business case
analysis and identify the elements and costs associated with developing your school and tasks associated with opening it. Our four-step development
model focuses on the following stages: 
Market-Feasibility Study &
Business Plan Development Plan -
Implementation
of University Formation Plan
-
Operation,
Management, & Ongoing Support
Our process with meeting the
Client onsite to establish the key elements of your school, including: vision and
mission, timelines, tuition, facilities, staffing, corporate structure
and goals, values, and educational program. We then conduct the market study. After the study has been conducted, demographic and community
information has been gathered and data analyzed, we then deliver a Feasibility
Report addressing the key questions above and
then a Business Plan to determine start-up costs and five-year operational
budget based projected enrollment.
The business plan focuses on:
-
School model
- Pricing Strategy for Tuition
- Positioning And Competition
- Admissions And Enrollment
- Human Resources
- Formation Overview
- Location, Facilities, and FF&E
- Detailed Proforma Financial Statements and Budgets
(Payroll, Capital Contributions, Financial Statement, IRR, Income Tax
Loss
Carry-Forward, Development Costs, Revenue, Procurement, Depreciation and
Amortization, Administration Costs, Physical Plan and Maintenance Costs,
Land
Acquisition and Mortgage)
HEG and our experienced team are well suited and
experienced to help assess and lead the development of your school. By
utilizing our quality controls, it ensures proper planning,
development, and operation of your institution, delivery of a world-class
curriculum, and assurance that your school will be sustainable.
When you think about all those schools that closed in the last year, my guess is that they didn't do their homework. Many of the clients that we complete the study and business plan for never open their schools. We think it's better to spend a little money now than waste a lot of money later. On the other hand, we provide the blue print for you to build a solid foundation for a sustainable school.
NEXT
STEP , if this article strikes a note with you, and you feel that your group needs to help developing a market/feasibility study and business plan, then you should seriously consider our services. If you'd like to learn more about how we can help your organization,
please email HEG or call our direct line at +1-604-868-0002 to find out more. |
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HEG Recommends
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Here are 2 of our most popular toolkits that will help you either start your own school or develop
your own strategic plan.
STRATEGIC PLANNING TOOLKIT
Learn
how to develop your own Strategic Plan with step-by-step instructions contained
in our detailed Workbook & Manual, along with $500 worth of bonus CD's. It's
all here to help you develop your own plan. Click here for more details.
START-A-SCHOOL TOOLKIT
Are
you still struggling with starting a school? Experienced school leaders share how they started their school from the ground up. You'll also receive
our bonus CD ($150 value) on developing your strategic plan. Click here for more details.
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To
your success,
Douglas
Halladay
President
Halladay
Education Group Inc.
P:
604.868.0002
F: 868.472.8737
E: info@halladayeducationgroup.com
www.HalladayEducationGroup.com
You are receiving this because you signed up at HEG's website or you
told us you wanted to subscribe. We will never
distribute your address to anyone. Period. We promise. |
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