2 of 23

Agenda

Start-up, non-profit business
Pre-Launch Budget Considerations

Post-Launch Budget Considerations
Back of the napkin exercise

Tier 1

Tier 2

3 of 23

Start-up, Non-Profit Business

4 of 23

What need are you filling?
How do you know there is a need?
What data supports this?
Who else fills this need?
Who is your competition?

Needs

5 of 23

Describe your product
Describe your customers

Product and Services

6 of 23

How do you get paid?
When do you get paid?
What are your sources of revenue?
Who are your vendors?
What are your expenses?
How do you pay them?

It’s a Start-Up Business

7 of 23

What is a non-profit organization?
Does it mean the organization can’t make a profit?
What role does IRS have?

It’s a Non-Profit Business

8 of 23

Supply and Demand

Product/service
Customers
Building Inventory

Economics 101

9 of 23

A minimum viable product is a version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.

What is the minimum number of customers you need to be viable as you launch your educational model? How many in year 2 and year 3?�

Minimum Viable Product

10 of 23

Define them
Where do they come from?
How will they get to your school?
How will they hear about you?

Take out your phone exercise�

Customers

11 of 23

How do you attract them?
How do you track them?
What happens (policies, procedures, people) once they are “in?”
Create a pipeline – demand - waitlist
Data, data, data

Customers

12 of 23

Pre-Launch Budget Considerations

13 of 23

Cash
Fundraising/donations
Grants
Line of Credit

Funding Sources

14 of 23

Money

How much money should the organization have to get started?

15 of 23

Reimbursement type grants (like CSP)
Professional Services – what is their value? What is their cost?

Attorney – general counsel and real estate
Insurance – health, property and casualty, liability
Back office/CFO service/accounting
Owner’s representative
Commercial Realtor
Marketing/Website development and maintenance
Grant writer
Salary for school leader and others

Deposits for facility, equipment, software
Tenant improvements

Expense Considerations/categories

16 of 23

DO NOT ASSUME!

An approved charter contract from your authorizer does not imply your school has a strong operational plan.

17 of 23

Post-Launch Budget Considerations

18 of 23

Big kid budget

Congratulations!

The school is open!

You’re a big kid now!

19 of 23

Per Pupil Revenue (PPR)
Title Funds
Possible - Mill Levy
Grants
Donations/Fundraising
Other

Funding Sources

20 of 23

Heightened level of:

Prudence
Scrutiny
Transparency
Responsibility

Significance of Public Funds

21 of 23

Facilities Costs
Salaries and benefits
Size of facility

Best Practice Ratios

22 of 23

Back of the Napkin Exercise

PPR = $9,000
100 square feet/pupil

23 of 23

For more information, please contact:

Patti Glock

Director of Business Services

pglock@coloradoleague.org