More independents fall victim to the recession
May 14, 2010
A somewhat depressing, if not unexpected, article in the Times Education Supplement today confirming that the recession is really starting to impact the independent sector.
Unsurprisingly, it does seem to be the smaller schools which have been hardest hit as they have limited options open to them to turn things around.
It may be stating the obvious but the key to survival is to act and act early. In my experience independent schools leave things far too long before taking measures to address the issues they are facing, often believing that things will turn around. When things are heading south the decisions to be made are always difficult ones and it requires a highly skilled and commercial Board of Trustees to make the right decisions and make them quickly. Sentimentality has to be put to one side. Commerciality is the order of the day.
I cannot emphasise enough how important it is to engage your professional advisors as soon as you have concerns. The popular belief (perpetuated by the media) is that banks close down schools. Ultimately that is possibly true but working closely with the bank from an early stage can ensure support and survival. No bank wants to close down any business, especially a school, and they will work very hard with you to avoid this happening. Similarly, ensure you have your lawyer and accountant on board too. Many accountancy and legal practices have turnaround professionals who have knowledge and experience in assisting distressed schools.
So where can Minerva assist? Well firstly we have links with many professionals who can provide you with the right support and advice. We can also help with negotations with the bank, should this be required. On such an emotive subject an independent negotiator with knowledge of the banking sector can be invaluable. However, the main way we can help is to ensure that things don’t get that bad in the first place. Effective cost management is vital to a schools financial health especially at a time of dropping pupil numbers and rising costs. Please engage with us and let us help you reduce your costs and improve your bottom line.
Lorraine's Twitter feed:
- Not as far or as fast as @MrJaseyD or @brookerh but managed to put in 5 miles this am which bodes well for Great South Run training schedule
- My Twifficiency score is 33%. What's yours? http://twifficiency.com/
- Picked up another new client yesterday! Am so delighted, business is progressing well.
- Post Edited: Concealed consultancy commission is raising energy bills http://bit.ly/dBds5N
- New post: Concealed consultancy commission is raising energy bills http://bit.ly/dBds5N
- OMG how can they describe this woman on @dragonsden as a 'business woman' she's utterly hopeless
