Commercial Activities
Survival of the fittest
The administration of the Bolitho School and the closure of Brantwood Independent School for Girls serve as sharp reminders of the problems the sector can encounter in the current climate. Ian Oakley-Smith reports
Various charities over the last decade or so have found themselves in financial difficulty for all sorts of reasons. This has been true even in the relatively benign environment in which charities have been operating over that time. The current economic difficulties have increased the number of charities encountering financial difficulties and independent schools are no exception to this.
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Feeling the pinch
What strategies can independent school take to respond to the recession? Chris Cook and Robert Griffiths report
In difficult times, all businesses are having to find ways of improving their finances, although this can be particularly difficult in independent schools, where budgets are already stretched thin. Schools are understandably reluctant to exclude pupils whose parents are experiencing difficulties in paying their fees, so what other options are available?
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Estates agencies
Figures for the number of schools for sale vary around 25. Even in these straitened times, schools remain an attractive option for investors. Jeremy Robertson explains how buyers and sellers are brought together
It is said that some of the most stressful things that can happen to you in this life are marriage, divorce, bereavement, a jail sentence and being fired from work. I am not sure where buying and selling a school comes in this hierarchy, but I suspect that the few individuals or companies who go through the process every year would place it fairly near the top.
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School for sale?
Steve Chinn set up Mark College in 1986 and sold it two years ago. The transfer process was long and arduous, but was ultimately successful. Here, he outlines some of the issues he faced before, during and after the sale
I sold my school... it is easy to write that now, but when the sale took place in June 2005, it was a major milestone in my life. I had opened the school nearly 20 years earlier. In the subsequent two decades, it had not only achieved Beacon School status but also won the ISA Award for Excellence and a Sportsmark with distinction.
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Assets for hire
There is a popular misconception that independent schools have endless streams of fee income. For a few, this may be true. For the others, Nick Durkin suggests boosting the coffers by increasing income from lettings
Affordability is a problem for both parents and schools. In an effort to reduce the lifetime costs of education, parents try for scholarships and/or bursaries, which place a growing burden on schools. Alternatively, some parents now opt in to an independent education at a stage when they believe that their child will receive maximum benefit: whether pre-prep, preparatory, lower school or A levels.
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Forthcoming business intelligence events for the independent schools sector
Seminars for chairmen, governors and bursars in 2010
Ready money
Bursars spend much of their time managing an investment mix to produce the cashflow for short-term spending requirements. Jane Ayers extols the virtues of cash deposits as the key to developing schools’ income
Most governors take their financial responsibilities seriously when reviewing their investments, but do they place as much priority on monitoring their banking arrangements? Effective management of the cashflow can add significantly to overall income.
Top of the charts
The Charity Finance Charity Index has been tracking the income of the top 350 UK charities since 1996. Gareth Jones reports on the progress of the independent schools that qualify to appear in the rankings
Income for the index is recorded for five sub-income streams: legacies, voluntary, grants and fees, investment and gross trading. Membership of the index is refreshed each spring to take into account new or growing charities, with rankings based on a three-year average income. The smallest charity in the index currently has an average annual income of £8.8 million.
Utility costs: how schools can make savings
Ways to beat the price rises. By Donald Maclean
Electricity and gas prices have risen by over 100 per cent in recent years, so it is crucial that headteachers and bursars investigate methods of minimising the impact of utility costs on their budgets.
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Exploiting school assets
What sort of person would fit the role of commercial manager and how can you overcome some of the pitfalls he or she is likely to meet? By Nick Durkin
The level of appointment will depend on a review of the school’s letting potential and whether or not the person appointed will control the sports centre and retail outlets – clothes shop, sports shop, and bookshop. Such a review is best undertaken by outside professionals who come with a fresh pair of eyes to explore the commercial opportunities. They can make an objective assessment of the school’s income potential in all areas and suggest annual attainment targets. It is important that the subsequent business plan is endorsed by the governors and the school’s senior management.
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Mind the gap
Independent schools often need to bridge the gap between the need for the latest equipment to run the school effectively and affordability. Phil Harrison extols the virtues of asset finance and leasing to solve this problem
In the independent schools sector, parents expect the latest technologies, the finest accommodation and the best facilities for the fees they pay. However, the income generated from school fees can be relatively fixed and the income stream does not always match the demands and requirements placed on the school.
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