Income generation


‘Ensure that there is a minimum of 15% profit.


Therefore, maybe we should call the process “profit generation” rather than “income generation”. This allows us to have more realistic forecast figures.’


Tap into external support I mentioned earlier about business involvement. Now is the time to start forging relationships with businesses, but see it as a two-way partnership. Do not go straight in asking for assistance, instead invite them into your school and plant the seed that a relationship could be mutually benecial. Corporate social responsibility


(CSR) is a big thing in industry, so nd out whether local companies offer this or look for national organisations that have specic CSR schemes that you could benet from for a particular project. Finally, we all have fond memories


of our school days and, thanks to the rise of Facebook groups, there is a growing popularity in school reunions. Why not take advantage of this and form an alumni? Ask ex-students to donate funds to the school or, even better, do this via Direct Debit and set up a charity arm so that you can claim Gift Aid. By setting up a charitable trust you will also stand a better chance of being successful with grant applications!


Keep an eye on the numbers At this stage it is important that enthusiasm for income generation does not overlook the need for


realism. What I mean by this is that actually what we are looking for in income generation is prot –and even better than this is ‘gross’ prot. I always try to make staff cost neutral if they are part of the income generation drive – in essence, this is then a cost saving for the school. The next focus is to ensure that


there is a minimum of 15 prot. Currently, my gross prot margin is in excess of 20% and allows for a saving of at least the same again in stafng costs. Therefore, maybe we should call the process ‘prot generation’ rather than ‘income generation’. This allows us to have more realistic forecast gures within our budgets. There are other considerations


that need taking into account, too – such as should you have a separate trading arm, will you need to be VAT registered and can you run this on your current nance system? The list of questions could go on and the simple answer is to seek expert advice for each question as your individual context will need to be taken into account. In summary, there is much


revenue that can be gained by schools if resources can be focused in the right directions. Most of us generate some income already but it is by looking around us and seeing what we have


THREE QUICK STEPS TO START YOU OFF 1


2 3


Claim Gift Aid on all donations. Remember, non- uniform day income is classed as a donation, so this alone could generate a nice sum each year.


Gain staff buy-in by asking them for ideas and by getting them involved in the process.


18 AUTUMN 2017 FundEd


available that we will reap the best dividends. Provide opportunities for staff development and be mindful that you do not have the monopoly on good ideas! However, a good business plan will be the telling factor as to whether the idea will work or not. Remember, schools are businesses. It will be the entrepreneur in us that will prove just how much extra revenue we can generate to enhance our dwindling budgets!


Russell Dalton is Finance and Business Director at Pershore High School, where he has worked for the past 13 years. Prior to this he had a full career in the Army. Through hard work and by introducing new initiatives he and his business team generate hundreds of thousands of pounds each year for the school. He thrives on the entrepreneurial aspect of the role, which has seen him form a trading arm for the school. He now helps other schools to be successful with their income generation.


Produce a database of your parents, know where they work and what they do. You may be able to ask them to encourage their companies to assist via CSR.


IMAGES: MSMOLOKO; KATYAGRIB/THINKSTOCK.


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