7 Ways Private Schools can Thrive in Tough Times

Independent schools in many parts of the world have struggled in recent years, as families needing to save money either look for cheaper alternatives or move their children to the local free offer. With falling enrolment, one of the first strategies private schools often employ is to offer discounts. However, if schools don't control costs accordingly, they can find that a ten or twenty profit margin soon becomes a loss of a similar magnitude. 

However, all is not lost. With the right approach, schools can not only survive but can thrive in uncertain times. It is all about focusing on quality, being efficient with costs, innovative with pricing, and creating a compelling ‘school story’ which is intelligently disseminated and professionally followed through. Below I share some of my experiences over the last few years of managing schools. In combination, they can provide just the fillip a school needs to get them through the worst and back into profit. Ignored, they can spell disaster.

1. Be efficient with staff cost and utilisation

The goal is to ensure that overall staff cost is between fifty and sixty  of a school's revenue. Using staff efficiently becomes key here. You want staff who have a collegiate attitude and are prepared to fully immerse themselves into the heart of the school.

A school succeeds or fails based on the quality of its leaders and teachers: but you have to ensure that their cost can be sustained by the school's business model. It's quite a balancing act.

2. Ensure operational costs add value

It is important to have a good understanding of where a school's operational costs are being spread. Overseeing the school's P&L becomes critical. It's not about micro-managing, but rather ensuring that resources are being used wisely and are contributing to the children's education. Always ask yourself this question: ultimately everything should add value in one way or another.

3. Work out your offer and communicate it loudly and clearly

Increasing and sustaining enrolment becomes the critical determiner of a school’s long-term viability. The website is a critical part of this: in many ways it's your 'shop window'. It should communicate far more than the school’s location and academic offer. Good websites get under the skin of the school and tell a story: this is why I like the work of Interactive Schools, as they take the time to understand the school’s DNA and create individualised websites. 

However, without understanding who you are yourself, it is challenging for anyone to come in and turn that into marketing collateral. Take the time to look at your school and really work out what makes you unique. Look at the market and work out what they want: do your research. I see a lot of schools who haven't updated their curriculum in years and who are frankly out of date. It is such a competitive marketplace now: schools that thrive do this very well. Joining a body like the Independent Schools Association or COBIS becomes vital here, as it can keep you plugged into support networks. Neil Roskilly and Colin Bell are two of the most supportive people I have met in education.

If you work out your story create a compelling 'shop window' website that displays this loud and clear, you might be surprised at how enquiries increase. The last group I managed saw attendance at open days more than double due to their new websites. Choosing a school is such a personal decision: make sure the website really shows the beating heart of the school and stands out from the crowd.

4. Use SEO to your advantage

You can use search engine optimisation (SEO) like Adwords to buy your way up the Google rankings, but a better (and cheaper) way of doing it is by linking social media into your website. The more you post on Facebook and tweet about what your school is up to, the further up the Google list the school appears and the more relevant your school becomes to prospects. You need to have staff on board and will take a little training, but it is well worth it. 

I cannot stress enough how important it is to be on the first page when someone Googles ‘private schools in West London/Reading/Windsor’ etc. Again, Interactive Schools are great at linking things together (I’m getting nothing for recommending them - I just think that Simon and team do a very good job).

5. Think about offering pricing models

Offering different pricing models is something I’ve started to see in international schools. After all, we are used to seeing them in other industries, so why not in schools? I’m not talking about variations in the core business of teaching and learning, but rather the added extras that make parents' lives easier and add value to a child's education: collection from home, breakfast, after-school clubs, weekend and holiday activities and so on. 

This is where private schools could really stand out: indeed, some are beginning to do this already. By offering a ‘no-frills’ entry point, with additional value on top, schools are more likely to get those all-important initial expressions of interest.

6. Focus on conversions through improving your admissions process

This is critical. From the moment a prospective parent clicks on a school’s website, they should be compelled to register their interest. This should be followed with a phone call to arrange a visit. A school I recently visited had a 10% overall conversion rate from enquiries, but a 46% rate when the families visited the school. Getting them through the door is so important, so this process has to be made as slick and user-friendly as possible. 

Of course, this can work against you if your teachers are lacklustre and your buildings are falling down. Any prospective parent should be able to ask any teacher or pupil and get the same answer: it's great to work and learn here. Everyone forms part of the admissions process: not only the Registrar.

7. Consider joining a schools’ group

A number of schools have joined groups like ours, either through affiliation or through the group investing in the school. The owner may retain partial ownership and may even stay on as Head, or they may decide to sell and move on. 

There are many advantages to joining a group: economies of scale can be leveraged through sharing back office support like payroll, a broader pool of staff can be drawn on if staff are keen to stay within the group, and best practice can be shared between schools. A group will have the cash to update the school and breathe new life into the campus if need be. This can be just the kickstart it needs. 

However, there can sometimes be trade-offs. The larger schools' groups are sometimes accused of creating ‘cookie-cutter’ schools, with a sense of the school being homogenised as too many efficiencies and one-size-fits-all curriculum and assessment models are brought in. 

It is important for any group to ensure the school maintains this critical DNA: after all, it is one of the main reasons parents send their children to a particular school. They like what it represents. If this is eroded parents can vote with their feet and leave. This has happened with some groups being successful in one geography and failing in others: they don’t take the time to really get under the skin of the school and work out what makes it special in that particular part of the world.

About Forfar Capital

Forfar Capital is a global, education-only investment and school advisory business. At Forfar, we are keen to invest in and support schools to help them thrive. As a small, personalised outfit, we look to ensure any schools we invest in keep that critical sense of self, whilst bringing in fresh ideas and operational efficiencies. 

If you are a school owner in the UK or internationally, or know of a school that would like to work with us, then please do get in touch.

You can email me at [email protected] or connect via LinkedIn. 

We look forward to working with you in supporting a new generation of unique, innovative, efficient private schools.