Budgeting the hybrid model
Having a good planning budget to work off of is one of the most essential pieces of groundwork for a solid hybrid program. As in any business, you will want to make sure costs are covered by revenue and there is a cushion of some type built in. The major expense categories are not too complicated, so let’s take a look at them:
Building: Rent and Cleaning. Depending on your situation, you will almost certainly need to budget for rent. Many hybrid schools will utilize churches as landlords, but unless the church is treating your program as a ministry that it funds, they will probably want a ‘donation’ to cover costs. This could be anywhere from a few hundred to a few thousands dollars per month. You will want an agreement in place before you decide on tuition. Make sure you discuss cleaning! A small program may get by with volunteers, but it is smart to at least plan on some sort of cleaning expense in your budget to prevent burnout. Nothing burns staff out faster than having to stay late to wipe bathrooms and sweep hallways every week!
Payroll: Administration, teacher, and aide pay will likely be your biggest total expense. Set your salary amounts based on a competitive pay for the skill set you want, and then add 10% for payroll taxes. I would recommend using a payroll company which will cost $50-100 per month (usually a set fee plus $6-10 per employee). It is very wise to also add in a category for substitutes if you teachers get any paid sick days. Paying subs on top of regular payroll can add up quickly! See the article preceding this one on Administration for the positions you will want to budget in for administration. Having an aide or assistant per 2 classes or so is also very beneficial (and some classes may need an assistant of their own). I can’t say often enough that planning for all these things from the start will keep you from having to find the money for them later on!
Curriculum and Supplies: If you purchase all your books and supplies used at school out of your budget, you will need to set aside several thousand dollars per year. A supply fee can also be useful for this, but keeping fees to a minimum usually makes families happier.
Training: A quality program will invest time and resources into training teachers. Especially if your philosophy is not standard fare, you may need to put quite a few hours into training time and/or resources. One way to do this is through books and podcasts, but you will find it beneficial to also pay your teachers for at least an inservice week.
Insurances: You probably will need Workers’ Compensation, Directors and Officers', Liability, and Property insurances. These will be a few thousand a year.
Miscellaneous. Always put in a category for surprises. A few thousand dollars extra to catch anything you didn’t think of or unexpected expenses will keep you in good shape when inevitable things come up.
After you have these totals, you should add another 10% as a cushion, and then work backward from that total for your tuition and class sizes. Low tuition and small classes rarely works, but there can be a nice sweet spot where classes are not too large and tuition isn’t either.