Charter School Association Myths and Science of Sustainability

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Creating SustainabilityThe Science and Myths of Building High Performance Non-Profits by E. Ted Fujimoto, PresidentLandmark Consulting Group, Inc.

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  • LET YOURNON-PROFIT GROWCreating SustainabilityThe Science and Myths of Building High Performance Non-Profits

    E. Ted Fujimoto, PresidentLandmark Consulting Group, Inc.

  • LET YOURNON-PROFIT GROW

  • LET YOURNON-PROFIT GROWSustainabilityEarned RevenuesPhilanthropic Funding

  • LET YOURNON-PROFIT GROWSustainabilityCoreOperations

  • LET YOURNON-PROFIT GROWSustainabilityEnough capital ($) generated from earned revenue to: Pay for core operations to fulfill mission Surplus to pay for scaling, risks/mistakes, as well as new opportunitiesDependency on philanthropic funding only for:Scaling, Risk Mitigation, and New Opportunities

  • LET YOURNON-PROFIT GROWSustainability-PrincipleSustainability is about creating more perceived value by customers than the cost to operate that activity and business.

  • LET YOURNON-PROFIT GROWFive Sustainability Killers

  • LET YOURNON-PROFIT GROWMeet Mark Real estate agent Mortgage Broker Organize your move Interior Designer Home Insurance Life/Health Insurance Financial Advisor, Securities Broker Tax Preparer House cleaning Yard Service Pest Control Auto mechanic Windshield repair Kids tutoring

  • LET YOURNON-PROFIT GROW

  • LET YOURNON-PROFIT GROWHedgehog Concept

  • LET YOURNON-PROFIT GROWAssociationAdvocacyEventsServicesProducts

  • LET YOURNON-PROFIT GROWRadical IdeaCase Study

  • LET YOURNON-PROFIT GROWHow toCore Operations:MembershipProducts & ServicesEventsMarketing & SalesFinanceHRBoardState B-MemberCouncilState A-MemberCouncilState B AdvocacyState A AdvocacyState B Unique Services/SupportState A Unique Services/SupportCEOState BEDState AEDVP/COO

  • LET YOURNON-PROFIT GROWCMO

  • LET YOURNON-PROFIT GROW

  • LET YOURNON-PROFIT GROWSurvey Myth

  • LET YOURNON-PROFIT GROWThe Perfect FitMarketabilitySignificantValueProfitabilityDo charters perceive a huge need and want to buy a solution?Does the business model support creating short-term and long-term profit?Does the solution save charters significant costs and/or create huge additional value?What we can be deeply passionate about?What we can be the best in the world at?PassionExpertise

  • LET YOURNON-PROFIT GROWHow To Get Real Market InputBe HumbleYour best ideas Talk to 50 customers Open conversation of biggest issues they feel like they need help with Association wont be able to solve all their issues Which issues do they think the Association is or can be capable of providing the most value One on one, small groups

    Validate needs and perceived value with broader customers Larger groups, survey

  • LET YOURNON-PROFIT GROWValue PrinciplePerceived value is what countsToo expensive to change perceived valueCustomer does NOT have to purchase with the right motives to receive benefits/valueYour offering does NOT need to be a complete solution to be the right productThirst/Desire/Comfort is why people buy from one versus another

  • LET YOURNON-PROFIT GROWProduct MixEntryEntryMid-Level/Partial SolutionsMid-Level/Partial SolutionsBig CompleteSolutionsEntryEntryMid-Level/Partial SolutionsBig CompleteSolutions

  • LET YOURNON-PROFIT GROWMyth of Earned Revenue$1M additional expense to generate $1.4M in earned revenue (71% profit margin)Core OperatingBase Line

    Chart1

    100900

    2501100

    5001000

    1000750

    1500500

    Earned Revenue

    Contributions

    Sheet1

    Earned RevenueContributionsSeries 3

    Year 11009002

    Year 225011002

    Year 350010003

    Year 410007505

    Year 51500500

    To resize chart data range, drag lower right corner of range.

  • LET YOURNON-PROFIT GROWMyth of Earned Revenue-CMONeed as much contributions as they did at the beginning or moreNumber of Schools

    Chart1

    100900

    2501100

    5001000

    1000750

    1500500

    Earned Revenue

    Contributions

    Sheet1

    Earned RevenueContributionsSeries 3

    Year 11009002

    Year 225011002

    Year 350010003

    Year 410007505

    Year 51500500

    To resize chart data range, drag lower right corner of range.

  • LET YOURNON-PROFIT GROWMyth of Earned Revenue

  • LET YOURNON-PROFIT GROWActivity More perceived value than actual cost Generates more cash than it costs Generates margin for risks, growth, and opportunitiesActivityActivityActivityEarned Revenue Principle Examples: Services 2-3x times cost = minimum 30% margin Products higher volume = 5-10% margin

  • LET YOURNON-PROFIT GROWCash Flow Generating more cash inflow than outflowBiggest enemy of cash flow is TIMING!Q1$100KExpenseQ2$100KExpenseQ1$0KRevenueQ2$0KRevenue$ (100K)$ 0$ 100K$ 200K$ (200K)$ (200K)$ (100K)$ 100K

  • LET YOURNON-PROFIT GROWCash Flow Generating more cash inflow than outflowBiggest enemy of cash flow is TIMING!Q1$100KExpenseQ2$100KExpenseQ3$100KExpenseQ4$100KExpenseQ1$0KRevenueQ2$0KRevenue$ (100K)$ 0$ 100K$ 200K$ (200K)$ (200K)$ (300K)$ (100K)Year 1Year 2Planned Launch$ 100K$ (100K)

  • LET YOURNON-PROFIT GROWCash Flow Generating more cash inflow than outflowBiggest enemy of cash flow is TIMING!Q1$100KExpenseQ2$100KExpenseQ1$0KRevenueQ2$0KRevenue$ (100K)$ (100K)$ 0$ 50K$ (200K)$ (400K)$ (300K)$ (400K)Year 1Year 2Planned Launch$ (350K)$ (100K)

    $400KExpense

  • LET YOURNON-PROFIT GROWTeamTeamTeamTimingCommitmentsVolumeSkill/ExprienceStaffingRhythm

  • LET YOURNON-PROFIT GROWTeamTeamTeamTimingCommitmentsVolumeSkill/ExprienceStaffingRhythm

    CMO

  • LET YOURNON-PROFIT GROW

  • LET YOURNON-PROFIT GROWIn ActionOrganization Focus

  • LET YOURNON-PROFIT GROWUsing Small Teams

  • LET YOURNON-PROFIT GROWNo SilosDependableSpecific DeliverablesTimelinesQuality Levels

  • LET YOURNON-PROFIT GROWGovernanceBusinessBusinessBusinessBoard of DirectorsBoard of DirectorsAdvisory BoardAssociationAssociationContractsInternalStaffABC

  • LET YOURNON-PROFIT GROW

  • LET YOURNON-PROFIT GROWKnow your customer

  • LET YOURNON-PROFIT GROWKnow how many have needCreate 100% awareness7 multi-mode communication hitsCommunicate value /benefitsStay on message/Keep it simpleCreate predictable rhythmUse entry and up-sell opportunitiesBuild trust/credibilityDont wait for perfection

    How to

  • LET YOURNON-PROFIT GROW

  • LET YOURNON-PROFIT GROWGenerate Results50% qualified lead rate25-50% close rate

  • LET YOURNON-PROFIT GROWFive Sustainability Strategies

  • LET YOURNON-PROFIT GROWMore than SustainabilityIncreased Capacity, Scale, Growth!

  • LET YOURNON-PROFIT GROWDiscussion/Q&A

    E. Ted Fujimoto, PresidentLandmark Consulting Group, Inc.

    TedF@ConsultLandmark.org415-963-4406www.ConsultLandmark.org

  • LET YOURNON-PROFIT GROWCharterConnectState Association

    Advocacy Events P&S offerings Visits/MeetingsCharter School Leaders100% Immediate AwarenessRapid, Personal, and Informed Communications to all your membersHi Joe, this is Gwen from the associationhow are you? George wanted me to give you a quick call to let you know the bill AB 231 actually passedthis means $100 more per student next yearhow do you like that?We thought you would love to know because I know you had helped us with your letter to Senator Brown.

  • LET YOURNON-PROFIT GROWThank you!!!

    E. Ted Fujimoto, PresidentLandmark Consulting Group, Inc.

    TedF@ConsultLandmark.org415-963-4406www.ConsultLandmark.org

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