It is quite difficult and bewildering to decide on the longevity and duration of the effects of COVID 19 or the toll it is going to take on a school’s revenue and expenses in general. To guarantee the continuing operation of your institution at its highest capacity, you’ll probably have to create an emergency or immediate response plan. However, the greater financial need for your students will continue to be there in the future as well, and you will need to carry on addressing revenue challenges and make constant budget changes. The way you approach these issues can sink or propel your institution.
This blog guides you with valuable tips for future planning and ensure long-term financial sustainability of schools. With respect to budget projections, a good percentage of schools experienced a shortage for the 2020-2021 academic years. Small schools reported more deficit than big institutions. Apart from that, there are amplified expenses around IT, health and safety operations, and reduced revenue from secondary programs.
With a decrease in revenue and an increase in other expenses, you need to prepare a back-up plan and strategies to ensure your institution remains sustainable. This becomes easier if you are certified in a Diploma in Educational Administration and Management program.
Ways to Perpetuate Your Success While Ensuring Financial Sustainability
Listed are some ideas to help you in your school’s journey towards sustainability:
- Emphasis on retention
It’s quite easier to support an existing student than fill a seat with someone new. Retention needs to be a school initiative and the accountability is on the office, admissions and enrolment teams. Create stability in your finances by retaining learners over the years as it will help you reach your enrolment goals year after year.
- Establish a strong partnership between your enrolment and business offices
Establishing a robust relationship with your business office and enrolment office and working in close association with one another is vital to gain success and quality communication with your teams. Data transparency is necessary in particular. In an organized way, you can better evaluate the budget, set more realistic enrolment goals, estimate how many new learners will be enrolling with what percentage of full pay, double down on retention efforts etc. All of which can aid your school in remaining sustainable.
- Care for your people
The health of your staff, teams, and leaders will affect how students adjust to the new normal. It can also play a crucial role in the overall projection of your school. Ensure that every faculty member gets the much-needed support to do his/her job well. Pay close attention whether they’re being overburdened or feeling burned out. Online learning and work can be exhausting for your teachers, leaders, and students alike, therefore, make sure you provide them the support they need.
- Consider rightsizing
Square your school size with your budget. Consider both your student enrolment numbers and faculty and staff size into account. If you feel like cutting down is requisite for your school, be mindful of the consequences it will have on your school community and the self-esteem of your faculty and staff. Rightsizing isn’t an easy approach, but it can help you to become more sustainable in the long term. If you decide on rightsizing, you’d also consider getting your admissions and marketing team on board. They can aid you in explaining and communicating the reason you’re doing this. Together, you can ensure sharing your goal to reach a sustainable size.
- Look for alternate revenue sources
Get creative by offering various options to grow your revenue. You can think of offering online courses to learners outside the school, apply a small distance learning fee to offset the cost of Zoom or other software, rent out your facilities for events, or deliver school lunches to a student’s home for a fee. Alternate revenue sources can provide you the required boost.
The Silver Lining:
Listed below are a few things that may surface as a consequence from your struggle for sustainability post COVID-19:
- Better decision-making procedure across your office and other departments
- More creative use of technology
- Improved teamwork with other offices
- New revenue streams: online courses, expanded market, etc.
- Option to create better efficiency and a smooth tuition experience for students
- Better assessments of expenses and resource allocation
- Opportunity to try new initiatives
- Data-informed choices will drive budget selections
- Re-evaluating what is required in a new environment creates the willingness to try new and different things
- Leadership may be more open to making bigger changes - like implementing a net tuition revenue strategy or new technology
Final Thoughts
Financial sustainability is vital for the long-term success of your institution. Making determined efforts to move toward a budget that can be maintained in the coming years will aid in ensuring your school, office, and your learners thrive. And you may find some new tools, strategies, or relationships along the way that will transform your school for the better.
