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Shepherd of the Valley Lutheran Church

Shepherd of the Valley Lutheran Church. University of Mary Fargo, ND. The Consultant Team. Mark Fitzloff Team Leader Josh Kadrmas Statistical Analysis Gene Windhorst Statistical Analysis Steve Stenerson Market Analysis

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Shepherd of the Valley Lutheran Church

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  1. Shepherd of the ValleyLutheran Church University of Mary Fargo, ND

  2. The Consultant Team • Mark Fitzloff Team Leader • Josh Kadrmas Statistical Analysis • Gene Windhorst Statistical Analysis • Steve Stenerson Market Analysis • Peter Engebretson Market Analysis • Matt Sagaser Finance Analysis • Kresha Wiest Finance Analysis • Patrick Rein Finance Analysis • Paul Freeman Marketing Analysis • Myra Very Chief Editor and Legal

  3. Agenda • Introduction & Overview • Statistical Analysis • Market Analysis • Financial Analysis • Legal Analysis • Business Recommendations • Conclusion

  4. F/M Metro Area – Religious Affiliations

  5. Statistics-F/M Metro Area – Growth Population Growth Source: US Census

  6. F/M Metro Area – Households Household Makeup Source: US Census (2000) & City of Fargo

  7. F/M Metro Area – Families Family Makeup Source: US Census (2000) & City of Fargo

  8. F/M Metro Area – Children Child Population

  9. Common characteristics of successful preschools: Smaller class sizes 15 – 20 students 2 teachers Clean and bright facilities that are child friendly Concerns on safety and security Strong academic emphasis Market Research – Demand

  10. Highest market demand is for extended daycare and preschools West Fargo currently does not have any Christian preschools. Preschool will be the strongest point of entry into the existing market. Market Research – Demand

  11. Word of mouth… Positive or Negative Program directors Competitive benchmarking Start the marketing campaign early in the summer months. Use strong emphasis on the Christian focus of this preschool. Market Research – Strategy

  12. Financial Analysis - Overview • Revenue • Expenses • Breakeven analysis • Risk

  13. Financial Analysis – Revenue • Recommended Tuition • Two-day/week session = $75/month • Three-day/week session = $95/month • One-time registration fee = $25 • Non-tuition revenue options • Planned giving, fundraising, donations, grants, and Stewardship programmed monies. • No funding from a lending institution required

  14. Financial Analysis – Expenses • Start Up Cost - $8k - $10k • 10 Students/Session • Annual Revenue = $32k • Annual rate of return expected at 8% • Annual Operating Expense = $31k

  15. Break Even is 8 students per ½ day session Financial Analysis – Breakeven

  16. Financial Analysis - Risk

  17. Legal Analysis • Federal/State • ND Codified Law Title 15.1 • Inspection, qualification, accreditation of facility • Licensing of the teacher (B-3 license to supervise student teachers) • Curriculum • Nutrition • North Dakota Early Childhood Services Chapter 75-03-11 • Teacher to student ratio for preschool is 1:11 (kindergarten is 1:20) • Teacher’s aid qualifications • General guidelines (safety, lighting, etc.) • West Fargo Ordinances • Playground (east alley) • Requires 6’ wood fence • Parking lot • Requirement of 1 space per 3 seats for church, or • 1 space per employee of largest shift, or • Demonstrate agreement with local agency

  18. Business Recommendations • Overall Vision • Preschool through 12 grade • Extended care • Summer care

  19. Business Recommendations • Current Facility Issues • Maximum capacity of 40 students • Full Christian Day School • Hard to compete against established public/private schools • Extra curricular activities, band, and sports • Funding would rely heavily on congregation

  20. Business Recommendations • Progressive 20 year plan • Capitalize on current demand: Preschool • Maximize growth • Efficient use of current facility • Not sitting empty during week • Allow for substantial growth from community • Start small and grow at a sustainable rate • Additional considerations • Before & After School Care • Summer Care (year-round employment for teacher)

  21. Business Recommendations • Progressive 20 year plan (continued) • Timeline- • 1-2 years: Preschool • 3-5 years: Preschool – Kindergarten with extended care • 5-7 years: Preschool – Grade 5 with extended care • 7-10 years: Preschool – Grade 7 with extended care • 10-15 years: Preschool – Grade 9 with extended care • 15-20 years: Preschool – Grade 12 with extended care

  22. Business Recommendations • Develop an Image • Name • First impression • Customer’s will remember • Either draw them or send them to competition • Needs to be easy to remember • Describing the essence of the school • Suggestion, “Little Lambs Christian Preschool” • In line with with “Shepherd” theme

  23. Business Recommendations • Develop the Program • Focus on key areas • Limit students to 15 to 20 per session • Facility promoting clean child-friendly environment • Sound security procedures • Christ-centered academic value • Strong curriculum

  24. Business Recommendations • Pricing and Financial Positioning • Startup costs: $8,000 to $10,000 • Cut costs • Donations from area businesses • Take inventory of volunteers • Pricing: • At or below the competition • 2 day/week 2 ½ hour session at $75 per month • 3 day/week 2 ½ hour session at $100 per month • Tiered pricing • Non-members pay full price • Sister congregation members receive a 10% reduction and no enrollment fee • Members receive a 20% reduction and no enrollment fee discount

  25. Business Recommendations • Assessment of gross revenue:

  26. Business Recommendations • Assessment of expenses:

  27. Business Recommendations • Preschool Staffing • Maximum students at 20 per 1 session • Student to Teacher ratio of 11 to 1 • 1 Teacher • B-3 license to supervise student teachers • Student Teacher • $0 cost • From area colleges • Could cycle new student teachers throughout year • Teacher’s Aide • Minimum requirements

  28. Business Recommendations • Sample Preschool Schedule

  29. Business Recommendations -Before

  30. Business Recommendations - After

  31. Business Recommendations • Additional Suggestions • Form volunteer task force • Write policies and procedures • Establish school calendar • Build playground • Marketing/Outreach • Guided reading • Music

  32. Final Thought • Starting a school is like planting a tree… In 20 years, this seed can become the largest tree in the forest!

  33. Business Recommendations Questions?

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