NCCET July Webinar - CE Entrepreneurship – Walk the Talk
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CE Entrepreneurship Walk the Talk! Presented by Patty W. Pool, MBA, PhD Grayson County College Denison, Texas
description
Every continuing education division is capable of engaging in entrepreneurial ventures. The latitude that you have to be entrepreneurial, according to Dr. Patty Pool, starts with you! This session focuses on how you change the college conversations to include revenue generation to cover your division.
Transcript of NCCET July Webinar - CE Entrepreneurship – Walk the Talk
CE EntrepreneurshipWalk the Talk!
Presented by
Patty W. Pool, MBA, PhD
Grayson County CollegeDenison, Texas
Today’s Program
• Entrepreneurship –– What is it? – How risk tolerant is your college?
• Can You Walk the Talk? – Techniques that move your
division forward
Today’s Program
• Learn to Think Like a For-profit– A pricing model that works
• Ideas to Bank On!– Transform your strategies to focus
on revenue instead of expenses
An entrepreneur is….
one who starts a business or other venture
that promises economic gain, but also entails risks.
(American Heritage New Dictionary of Cultural Literacy, Third Edition, 2005)
Entrepreneurship inContinuing Education
The practice of undertaking new ventures, ideas, services, promotions and/or practices that promise economic gain for the college based upon an acceptable risk tolerance.
Patty Pool, 2011
SURVEY QUESTION
What is the level of risk tolerance at your college?
a. High – We have a very entrepreneurial culture that encourages risk taking.
b. Moderate – We actively seek new ventures with moderate risk.
c. Low – Only the sure-thing is tolerated.d. No tolerance – We focus primarily on
reducing costs at all cost.
Risk in Entrepreneurship Requires Administrative Support
3 Ways to Assure Administrative Support1. Know more about your
business than anyone else at your college
2. Make informed projections3. Be accountable
Accountability = Credibility
Know more about your business than anyone else at your college!
• Know your state guidelinesTake time to learnBe able to answer the question, “Can we do that?”
• College budgets are about expenses • Build your foundation on revenues
Learn to use the college ERP
Make informed projections• Know who you are dealing with• Tell the story of how the new
venture fits the college mission• Be able to satisfy the analytics
– Show revenue versus expenses– Demonstrate improved cash flow– Give Go/No Go scenarios
Accountability = Credibility• Work from an enterprise resource
planning (ERP) perspective• Keep track of RESULTS
SURVEY QUESTION
How is CE organized at your college?a. Clear lines between open
enrollment (scheduled classes), community ed, and corporate/business training.
b. Depends on who is paying—private pay or grant-funded.
c. Small staff doing it all!d. Other
Organize to Maximize Talent
Do you have the right people on the bus and in the right seat?
Jim Collins, Good to Great
Deliver Solutions
–Open Enrollment – Scheduled Classes
–Customized Training
SURVEY QUESTION
How do you price courses and class offerings? a. We use a fixed hourly rate similar to
the credit programs. (May or may not add fees)
b. We use a formula that covers expenses.
c. We cover expenses and include a markup.
d. Other method
What is a Price?
Bundle of Attributes
Training and Education = Services• Tangible Attributes
– Workbooks, textbooks, handouts– Binders, jump drives, tools
• Intangible Attributes– Experienced instructors– License required for curriculum,
equipment– Web access to your division
What is Price to CE?
Price of the Class = RevenueCosts Associated = Expenses
Price – Expenses = Contribution to Overhead
Pricing Considerations
• Breakeven Pricing• Competition• Markup for Retail • Bundle Pricing
The Pro Shop Model and Continuing Education Budget
Increase sales and expenses increase
Do you stop selling when your budget is at zero?
Do you close the pro shop?
Worksheet-Expenses & Variables
Assumptions: No. of Different Modules
1
Hours per Module 4
No. of deliveries 2
Course Contact Hrs 4
Number of Trainees 15
Instructor Rate/Hour $45
Textbook Cost Each $0
Workbook Cost Each $15
College Enrollment CE Transcript y
DirectExpenseCalculations
Direct Expense Calculations:
Generational Dynamics
Course Materials 200
Supplies Provided 100Instructor RateIncld fringe 7.65% 388Course Customization 500Workbook Total Cost 225
Textbook Total Cost 0
Equipment 0
Total $1,413
Price
Price to Client $2,350
Direct Cost $1,413Contribution to Overhead (CTO) $937
selected expenses X predetermined markup
This example illustrates a 65% markup on expenses.
Price &Check PointRatios
Price to Client $2,350
Direct Cost $1,413Contribution to Overhead (CTO) $937
Ratios
ROI =net benefits/costs 66%
Gross Margin =CTO/Price 40%
Caution! Use micro-analysis sparingly
Look at your offerings as a group rather than “by the each.”
Potential to grow?Potential to feed into other
programs?
The Worksheet Will Work for You!
Track your business:Sales RevenueExpenses by CategoryContributions to OverheadState Funding/Reimbursement Contributions
Calculate Financial RatiosOverall Return on InvestmentGross Margin Percentage
Ideas to Build On!• Certifications
– Healthcare professions– Technical Needs– Local needs
• Renewable Professional CE Credits• Partnerships with for-profits—split
tuition• Host conferences & events
Entrepreneurship Starts with YOU!
Understand the level of risk tolerance at your college
Become the expert on CEUse a pricing model that sustains
growthBuild partnerships everywhere
