Are you about starting a charter school? If YES, here is a complete sample charter school business plan template & feasibility report you can use for FREE. A charter school is an independently operated public school that has greater flexibility in its mode of operation, in return for greater accountability for performance.
A charter school system is a local school district that operates under the terms of a charter between the State Board of Education and the local school district. The system receives flexibility from certain state rules and regulations in exchange for greater accountability with greater emphasis on school-based leadership and decision-making.
The basic difference between charter schools and other public schools is that charter schools are classified as public schools of choice. Furthermore, it is the practice for charter schools to be held accountable for academic results and for upholding the promises they made in their charters.
As a matter of fact, they are required to demonstrate performance in the areas of academic achievement, financial management, and organizational stability. This is so because if a charter school fails to meet the set performance goals, the school is likely going to be closed down.
A Sample Charter School Business Plan Template
1. Industry Overview
Charter schools offer primary- and secondary-level education funded by public sources, but are afforded more flexibility in curriculum design and implementation than traditional public schools. Charter schools receive the vast majority of their funding from federal, state and local governments, so revenue can fluctuate significantly based on budgetary decisions.
However, many charter schools are funded on a per-pupil basis, allowing schools to increase enrollment without having to worry about financial support. Recent reports released by IBISWORLD shows that over the past five years, the Charter Schools industry has grown by 9.8 percent to reach revenue of $41bn in 2018. In the same timeframe, the number of businesses has grown by 5.6 percent and the number of employees has grown by 8.8 percent.
As a result of explosive growth in charter school interest and enrollment, industry revenue is anticipated to grow at an annualized rate of 9.8 percent over the five years to 2018 to reach $40.8 billion, including a 9.2 percent increase in 2018 alone.
In the united states of America, the Charter Schools industry is indeed a large and thriving industry. Statistics has it that the industry is worth $41 billion, with an estimated growth rate of 9.8 percent annually between 2013 and 2018.
There are about 7,975 registered and licensed (accredited) charter schools scattered all around the United States of America and they are responsible for employing about 427,934 people. Aside from Los Angeles Unified School District which has the largest enrollments, no other charter school can boast of dominating the market; every player in the industry can comfortably compete in the industry.
It is important to state that the barriers to entry into the Charter Schools industry are high. As a matter of fact, the industry is pretty difficult for new entrants to establish themselves. So also, the reputation of the school is of utmost importance, as charter schools that have a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.
Reputation indeed is imperative to parents’ decisions when shopping for charter school for their wards. This is so because the quality of education cannot be assessed until after it is complete. As a major marketing tool, schools need to show parents a track record of admission to elite colleges and universities.
Even though this might seem like a highly competitive industry, the industry is still pretty much open for aspiring school proprietors to still come in and compete. As a matter of fact, if you conduct your research and feasibility studies very well before starting your own charter school, coupled with impressive profile of your faculty members, you are likely going to struggle less to make headway in the industry.
2. Executive Summary
Saint Paul® Community Charter School is a standard co – education charter school that will be located in a well – populated residential estate in Saint Paul – Minnesota, United States of America. We are a standard charter school that is composed of primary (kindergarten through sixth grade) and secondary (seventh through 12th grade) educational institution that will be predominantly co – funded by government and through tuition fees and levies from students and of course from other private sources.
Saint Paul® Community Charter School is a client-focused and result driven charter school that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (students and parents alike).
We will offer professional teaching services in a highly secured and conducive learning environment to all our students that is primary (kindergarten through sixth grade) and secondary (seventh through 12th grade). We will ensure that we work hard to meet and surpass all our students’ expectations and educational goals whenever they enroll in our charter school.
At Saint Paul® Community Charter School, our students’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professional educationist cum teachers in various subjects who are well experienced and passionate in imparting knowledge to students at various learning ladder.
Saint Paul® Community Charter School will at all times demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our students’ needs precisely and completely.
We have plans in future to also offer learning platforms to people with both learning disability and physical disability (especially the blind, the dumb and the deaf). Our overall business goal is to position our charter school to become the leading special public school brand in the educational industry in the whole of Saint Paul – Minnesota, and also to be amongst the top 10 charter schools in the whole of the United States of America within the first 20 years of operation.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Saint Paul is the right place to launch our charter school.
Saint Paul® Community Charter School is founded by Dr. (Mrs.) Becky Steve – Carson. She is an educationist per excellence and she has won many award in the education sector in the United States. Dr. (Mrs.) Becky Steve – Carson has both academic qualifications and experience to run a charter school that can favorably compete with other leading charter schools.
3. Our Products and Services
Saint Paul® Community Charter School is going to offer varieties of educational services within the United States of America. Our intention of starting our charter school is to soundly educate people in various subjects and of course to make profits from the education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
- Teaching basic literacy and numeracy
- Establishing foundations in science, mathematics, geography, history and other social sciences
- Constantly working hard to meet regulatory accreditation standards
- Administering public – private funding efforts
- Providing access to extracurricular activities
- Retailing of Educational Books and Materials
4. Our Mission and Vision Statement
- Our vision is to build a highly competitive charter school that will become the number one choice for both parents and students in the whole of Saint Paul – Minnesota.
- Our mission is to provide professional and conducive learning environment to students at different levels of learning.
- Our overall business goal is to position Saint Paul® Community Charter School to become the leading charter school in the educational cum charter school industry in the whole of Saint Paul – Minnesota, and also to be amongst the top 10 charter schools in the United States of America within the first 20 years of operation.
Our Business Structure
It is a known fact that the success of any business is to a larger extent is dependent on the business structure of the organization and the people who occupy the available roles in the organization. Saint Paul® Community Charter School will build a solid business structure that can support the growth of our charter school. We will ensure that we hire competent hands to help us build the charter school of our dream.
The fact that we want to become one of the leading charter schools in the industry in the whole of the United States of America makes it necessary for our organization to deliberately build a well – structured business from the onset. Below is the business structure that we will build Saint Paul® Community Charter School;
- Head of The Charter school (School Proprietress)
- School Administrator
- Tutors for Various Subjects – Secondary (seventh through 12th grade)
- Tutors for Various Subjects – Primary (kindergarten through sixth grade)
- Accountant / Bursar
- Client Service Executive / Front Desk Officer
- Cleaners
- Security Officers
5. Job Roles and Responsibilities
Head of the Charter school/School Coordinator:
- Responsible for providing direction for the college
- Responsible for fixing fees and signing business deals (partnership)
- Responsible for signing checks and documents on behalf of the charter school
- Coordinates all arms of the charter school
- Evaluates the success of the charter school
- Reports to the board of the charter school
School Administrator
- Responsible for overseeing the smooth running of HR and administrative tasks for the charter school
- Designs job descriptions with KPI to drive performance management for tutors (teachers)
- Maintains office supplies by checking stocks; placing and expediting orders
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily activities of the charter school.
Tutors for Various Subjects – Secondary (seventh through 12th grade)
- Effectively teach subject/subjects as assigned by the school administrator
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the charter school
- Contributes his / her quota towards growing the charter school
- Receives complaints from parents and channel it to the appropriate quarters
- Handles any other duty as assigned by the school administrator.
Tutors for Various Subjects – Primary (kindergarten through sixth grade)
- Effectively teaches subject / subjects as assigned by the school administrator
- Teaches basic literacy and numeracy
- Establishes foundations in science, mathematics, geography, history and other social sciences
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the school administrator
- Contributes his/her quota towards growing the charter school
- Receives complaints from parents and channel it to the appropriate quarters
- Handles any other duty as assigned by the school administrator.
Marketing Executive
- Identifies, prioritizes, and reaches out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase growth for the school
School Bursar (Accountant)
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Saint Paul® Community Charter School
- Serves as internal auditor for Saint Paul® Community Charter School
Client Service Executive
- Welcomes/receive parents and students by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with parents and students (e-mail, walk-In center, SMS or phone) provides the parents and students with a personalized customer service experience of the highest level
- Through interaction with parents and students on the phone, uses every opportunity to build parent’s interest in the schools’ products and services
- Manages administrative duties assigned by the HR and Admin Manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to parents and students when they make enquiries
- Receives parcels / documents for Saint Paul® Community Charter School
- Distributes mails in the organization
- Handles any other duties as assigned by the School Administrator.
Cleaners:
- Responsible for cleaning the school facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the school administrator
Security Officers
- Ensures that the school facility is secured at all times
- Controls traffic and organize parking
- Patrols the building on a 24 hours’ basis
- Submits security reports weekly
- Any other duty as assigned by the school administrator.
6. SWOT Analysis
Saint Paul® Community Charter School engaged the services of a core professional in the area of business consulting and structuring with bias in the education sector to assist us in building a well – structured charter school that can favorably compete in the highly competitive education industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Saint Paul® Community Charter School. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Saint Paul® Community Charter School;
- Strength:
As a charter school, our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in the educational sector. We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors and welcome students for enrollment.
- Weakness:
As a new charter school in Saint Paul – Minnesota, it might take some time for our organization to break into the market and gain acceptance via reputation in the already saturated education cum charter schools industry; that is perhaps our major weakness.
- Opportunities:
The opportunities in the education cum charter schools industry is massive considering the number of parents who would want their wards to perform excellently in their education and go ahead to be admitted in Ivy league colleges. As a standard charter school, Saint Paul® Community Charter School is ready to take advantage of any opportunity that comes her way.
- Threat:
Some of the threats that we are likely going to face as a charter school operating in the United States of America are unfavorable government policies that might affect charter schools, the arrival of a competitor within our location of operation and global economic downturn which usually affects spending / purchasing power.
7. MARKET ANALYSIS
- Market Trends
The trend in the charter school line of business is that the keys to attracting students is the educational performance and the pass rate of their students in national exams. Any charter school that has good records will always thrive. The demand for charter schools are driven by the fact that most public cum government owned schools cannot accommodate every students or potential students in a given geographical location.
In some cases, students with special needs cannot cope in public schools hence the need for charter schools. Private schooling offers an alternative for households with higher income, as these institutions often come with a high price tag.
Rising household income levels increase enrollment in private schools, potentially hampering enrollment in charter schools. In 2018, the number of households earning more than $100,000 is expected to increase, representing a potential threat to the industry.
Charter schools are overwhelmingly located in urban areas. Over one-half of all charter school students reside in urban environments, compared with less than one-third of students at traditional public schools. Growth in the percentage of the overall population living in urban areas increase demand for charter schools. The US urban population is expected to increase in 2018, representing a potential opportunity for the industry.
The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, your advertisements, and on insurance policy cover.
Lastly, it is trendier to find charter schools engaging in extra – curricular activities and as a matter of fact, a charter school that thrives in sports can leverage on that to attract students who are sports inclined.
8. Our Target Market
As a standard charter school, Saint Paul® Community Charter School is going to offer varieties of educational services. Our intention of starting our charter school is to soundly educate people in various subjects and of course to make profits from the industry
Our target market as a charter school cuts across people of different class and cultural background whether African, White, Caucasian, Latinos, Indians, and Asians. We will work with the students at different learning stages residing in and around Saint Paul – Minnesota.
Our competitive advantage
Indeed, the charter schools industry is highly competitive and the entry barriers are high. As a matter of fact, it is pretty difficult for new entrants to establish themselves. So also, the reputation of the charter school is of utmost importance, as charter schools that have a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.
With this, it is obvious that a new entrant in to the charter school industry cannot offer this. Reputation indeed is imperative to parents’ decisions when shopping for charter schools for their wards because the quality of education cannot be assessed until after it is complete. As a major marketing tool, schools need to show parents a track record of admission to elite colleges and universities.
We are quite aware that to be highly competitive in the education cum charter schools industry means that you should be able to deliver consistent quality service, your students should be able to experience remarkable difference and improvement and you should be able to meet the expectations of both students and parents alike.
Saint Paul® Community Charter School might be a new entrant into the education cum charter schools industry in the United States of America, but the management staff of the charter school are licensed and highly qualified educationists/teachers at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Saint Paul® Community Charter School is established with the aim of maximizing profits in the education cum charter schools industry and we are going to go all the way to ensure that we do all it takes to attract students on a regular basis.
Saint Paul® Community Charter School will generate income by offering the following tutorial services;
- Teaching High school students various subjects in our charter school
- Teaching basic literacy and numeracy
- Establishing foundations in science, mathematics, geography, history and other social sciences
- Constantly working hard to meet regulatory accreditation standards
- Administering private funding efforts
- Providing access to extracurricular activities
- Retailing of Educational Books and Materials
10. Sales Forecast
One thing is certain, there would always be parents and students who would need the services of charter schools, and as such the services of charter schools will always be needed.
We are positioned to take on the available market in Saint Paul – Minnesota and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the charter school and our student base.
We have been able to examine the charter school market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Saint Paul® Community Charter School, it is based on the location of our tutorial center and of course the wide range of educational cum learning services that we will be offering;
- First Fiscal Year: $250,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. Also, there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions amongst charter schools in the United States of America; hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of the charter school. We will also ensure that our students’ excellent results from national exams and other exams speak for us in the market place.
Our goal is to grow our charter school to become one of the top 10 charter schools in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Saint Paul – Minnesota but also in other cities in the United States of America.
Saint Paul® Community Charter School is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our charter school by sending introductory letters alongside our brochure to schools, parents/households and key stake holders in Saint Paul – Minnesota.
- Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
- Creating a website allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
- Use friends and family to spread word about your charter school
- Introduce Saint Paul® Community Charter School to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
- Post information about Saint Paul® Community Charter School on bulletin boards in places like schools, libraries, and local coffee shops.
- Place a small or classified advertisement in the newspaper, or local publication about Saint Paul® Community Charter School
- Use tutorial referral networks such as agencies that will help match students with Saint Paul® Community Charter School
- Join relevant association or body that will enable you network and meet others in same industry.
- Advertise online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
- Advertise our charter school in relevant educational magazines, newspapers, TV and radio stations.
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We are aware of the potency of a good publicity strategy hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both parents and students in the whole of Saint Paul – Minnesota which is why we have made provisions for effective publicity and advertisement of our charter school. Below are the platforms we intend to leverage on to promote and advertise Saint Paul® Community Charter School;
- Place adverts on both print (community based newspapers and educational magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Saint Paul – Minnesota.
- Distribute our fliers and handbills in target areas in and around Saint Paul – Minnesota
- Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our teaching and non – teaching staff wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
12. Our Pricing Strategy
Charter schools in the United States of America charge students per term/per session and students have the options of either paying their tuitions before resumption or during the school session. Charter schools generally charge students based on loads of factors such as service offerings and extra – curricular activities et al.
At Saint Paul® Community Charter School, we will keep our fees below the average market rate. In addition, we will also offer special discounted rates to all our students at regular intervals. We are aware that there are some students that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such students’ needs.
- Payment Options
The payment policy adopted by Bob Russel & Co® Motivational Speaking Company, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Bob Russel & Co® Motivational Speaking Company, LLP will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients.
13. Startup Expenditure (Budget)
In setting up a charter school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by acquiring a large facility, then you would need a higher amount of capital as you need to ensure that your employees are taken care of, and that your charter school’s environment is conducive enough for the students to learn.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. However, this is what it would cost us to start Saint Paul® Community Charter School in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a large facility that will accommodate the number of clases, playing field, staff offices and parking lots et al (Re – Construction of the facility inclusive) will cost – $350,000.
- Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
- Launching an official website will cost – $500
- The budget for the payment of salaries for the first three months of operations: $120,000
- Additional Expenditure such as Running cost, Business cards, Signage, Adverts and Promotions will cost – $45,000
Going by the market survey and feasibility studies conducted, we came to the conclusion that we will need an average of $750,000 to start a small scale but standard charter school in the United States of America.
Generating Funds/Startup Capital for Saint Paul® Community Charter School
Saint Paul® Community Charter School will be owned and managed by Dr. (Mrs.) Becky Steve – Carson. She decided to restrict the sourcing of the startup capital for the charter school to just three major sources.
- Generate part of the startup capital from personal savings and sale of stocks
- Generate part of the startup capital from government, friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of securing $200,000 education grant from the Government an also obtaining a loan facility of $300,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is a known fact that the future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and of course business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Saint Paul® Community Charter School is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to ensure that we offer nothing less than the best to all our students so much so that they can favorably compete and gain admission into Ivy League colleges.
Saint Paul® Community Charter School will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Securing a standard facility large enough to accommodate our design: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Schools’ Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the school: In Progress
- Creating Awareness for the charter school in Saint Paul – Minnesota: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the education industry: In Progress