Shepherd of the Valley Lutheran Church

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Shepherd of the Valley Lutheran Church. University of Mary Fargo, ND. The Consultant Team. Mark Fitzloff Team Leader Josh Kadrmas Statistical Analysis Gene Windhorst Statistical Analysis Steve Stenerson Market Analysis - PowerPoint PPT Presentation

Transcript of Shepherd of the Valley Lutheran Church

  • Shepherd of the ValleyLutheran Church

    University of Mary Fargo, ND

  • The Consultant Team

    Mark Fitzloff Team LeaderJosh Kadrmas Statistical AnalysisGene Windhorst Statistical AnalysisSteve Stenerson Market AnalysisPeter Engebretson Market AnalysisMatt Sagaser Finance AnalysisKresha Wiest Finance AnalysisPatrick Rein Finance AnalysisPaul Freeman Marketing AnalysisMyra Very Chief Editor and Legal

  • AgendaIntroduction & OverviewStatistical Analysis Market AnalysisFinancial Analysis Legal Analysis Business RecommendationsConclusion

  • F/M Metro Area Religious Affiliations

    Chart1

    51819

    27722

    289

    4580

    3669

    3010

    12106

    71172

    Sheet1

    ELCA51819

    Catholic27722

    WELS289

    MO Synod4580

    United Methodist3669

    Presbyterian3010

    Other12106

    Unclaimed71172

    103195

    Sheet1

    Sheet2

    Fargo91048

    Moorhead33390

    West Fargo17581

    Sheet2

    Metro Area Population Spread - 2004 Projection

    Sheet3

    OwnRent

    Fargo1850820760

    OwnRent

    Moorhead74304230

    OwnRent

    West Fargo57711824

    Sheet3

    18508

    20760

    Fargo

    7430

    4230

    Moorhead

    5771

    1824

    West Fargo

  • Statistics-F/M Metro Area GrowthPopulation GrowthSource: US Census

    YearFargoMoorheadWest FargoMetro Area196047,000N/A3,328106,027197053,365 (+14%)29,6875,161 (+55%)120,261 (+13%)198061,383 (+15%)29,998 (+1%)10,099 (+96%)137,574 (+14%)199074,084 (+20%)32,295 (+8%)12,287 (+22%)153,296 (+11%)200090,599 (+22%)32,177 (-0.4%)14,940 (+22%)174,367 (+14%)2004(est.)91,048 (+0.5%)33,390 (+4%)17,581 (+18%)178,242 (+2%)

  • F/M Metro Area HouseholdsHousehold MakeupSource: US Census (2000) & City of Fargo

    FargoMoorheadWest FargoTotal households39,26811,6605,771 Family households20,724 (53%)7,036 (60%)4,091 (71%) Non-family households18,544 (47%)4,624 (40%)1,680 (29%)Average size (household)2.202.432.59Median Income$35,510$34,781$44,542

  • F/M Metro Area FamiliesFamily MakeupSource: US Census (2000) & City of Fargo

    FargoMoorheadWest FargoFamily20,724 (53%)7,036 (60%)4,091 (71%)Married Couple Family16,407 (42%)5,515 (47%)3,308 (57%)Female Householder, no husband present3,078 (7%)1,148 (10%)572 (10%)Average size (family)2.913.043.09Median Income$50,486$49,118$51,765

  • F/M Metro Area Children Child Population

  • Market Research DemandCommon characteristics of successful preschools:Smaller class sizes 15 20 students 2 teachersClean and bright facilities that are child friendlyConcerns on safety and security Strong academic emphasis

  • Market Research DemandHighest market demand is for extended daycare and preschoolsWest Fargo currently does not have any Christian preschools.Preschool will be the strongest point of entry into the existing market.

  • Market Research StrategyWord of mouth Positive or Negative Program directorsCompetitive benchmarking Start the marketing campaign early in the summer months.Use strong emphasis on the Christian focus of this preschool.

  • Financial Analysis - OverviewRevenueExpensesBreakeven analysis Risk

  • Financial Analysis RevenueRecommended TuitionTwo-day/week session = $75/monthThree-day/week session = $95/monthOne-time registration fee = $25 Non-tuition revenue optionsPlanned giving, fundraising, donations, grants, and Stewardship programmed monies.No funding from a lending institution required

  • Financial Analysis ExpensesStart Up Cost - $8k - $10k

    10 Students/SessionAnnual Revenue = $32kAnnual rate of return expected at 8%Annual Operating Expense = $31k

  • Financial Analysis BreakevenBreak Even is 8 students per day session

    Chart1

    632004507543175

    474004460043175

    316002792526975

    158002745026975

    Revenue

    Total costs

    Fixed costs

    Students

    Revenue

    Break Even Graph - SOTV Preschool Program

    Outline

    Shepherd of the Valley Preschool and Kindergarten

    Financial Feasibility Outline

    Budget expected costs and returns of various alternatives

    Estimate expected costs and revenue.

    Estimate the students/revenue needed to break-even.

    Estimate the returns under various seniarios, prices and capacity levels (best case, typical, and worst case scenarios).

    Benchmark against area school averages and/or competitors (cost, margin, profits, ROI, etc.).

    Identify limitations or constraints of the economic analysis.

    Project expected cash flow during the start-up period.

    Project income statement when reaching full operation.

    Estimate the total capital requirements

    Assess the needs of the project and how these needs will be met.

    Estimate capital requirements for facilities, equipment and inventories.

    Replacement capital requirements and timing for facilities and equipment.

    Estimate working capital needs.

    Estimate start-up capital needs until revenues are realized at full capacity.

    Estimate other capital needs.

    Estimate equity and credit needs

    Identify alternative equity sources and capital availability; or financing needs and alternative sources of funding

    Debt to Equity levels.

    ChurchBud

    Shepherd of the Valley

    FY 2006 Budget Planning Worksheet

    Church Budget20052005 est2006

    Revenue$95,000$83,935$105,000

    Expenses$95,224$105,404$103,814

    Net$(224)$(21,469)$1,186

    Startup

    Shepherd of the Valley Preschool

    Estimated Start Up Costs

    July 28, 2005

    ITEMCOSTNOTES

    Playground Equipment5,000Swings, Slides, Etc.

    Kitchen$300Stove

    Tables0.0

    Chairs0.0

    Fence$1,200105 lineal ft. w/ 4ft gate (no labor)

    Playground Gravel$30012 cubic yards @ 20.80 yard plus delivery

    Technology$500One Computer Required

    Security - Camera$1,000

    Security - Gate with lock$500

    Security - Alarm$1,200

    Total10,000

    Input

    Shepherd of the Valley Preschool and Kindergarten

    Input Variables

    7/28/05

    REVENUE

    Preschool Registration Fees$25.00One time Non Refundable

    2 days/week preschool$75.00Per Month/Session

    3 days/week preschool$95.00Per Month/Session

    Extenden Care$2.00Per Hour

    Summer Care$2.00Per Hour

    Rate set @ % of total cost80%

    EXPENSES

    Variable

    craft and supplies/day/student$1

    lunch/day/student$1.90Concordia catering

    Fixed Costs

    Certified Teacher Salary$15,500Per Year

    Teacher Aide Salary$12,000Per Year

    Taxes & Benefits35%% of Salary

    Utilities Expense$200Per Month

    Summer Care Employees$10Per Hour

    OTHER INPUTS FOR USE

    Preschool & Kindergarten Inputs

    School Year9Months/School Year

    School Year38Weeks/School Year

    School Year5Days/Week

    School Year7Hours/Day

    Summer Care Inputs

    Summer Care3Months/Off-School Year

    Summer Care14Weeks/Off-School Year

    Summer Care5Days/Week

    Summer Care10Hours/Day

    Before and After Care Inputs

    Before&After Care9Months/School Year

    Before&After Care38Weeks/School Year

    Before&After Care - PreSchool2Days/Week

    Before&After Care - Kindergarten3Days/Week

    Before&After Care3Hours/Day

    Preschool

    Shepherd of the Valley Preschool

    Estimated Profit and Loss Statement for various activity levels throughout year

    July 28, 2005

    Preschool Students/Session30252015105

    Revenue

    Before & After Care0.00.00.00.00.00.0

    One-Time Registration Fees$3,000$2,500$2,000$1,500$1,000$500

    Preschool (T-TH Sessions)40,50033,75027,00020,25013,5006,750

    Preschool (MWF Sessions)51,30042,75034,20025,65017,1008,550

    Summer Care0.00.00.00.00.00.0

    TOTAL REVENUE$94,800$79,000$63,200$47,400$31,600$15,800

    Variable

    Summer Craft & Supplies0.00.00.00.00.00.0

    School Craft and Supplies2,8502,3751,9001,425950475

    Summer Food and Beverage0.00.00.00.00.00.0

    School Food and Beverage0.00.00.00.00.00.0

    Total Variable$2,850$2,375$1,900$1,425$950$475

    Fixed

    Prinicipal or Director0.00.00.00.00.00.0

    Certified Teacher Salary31,00031,00015,50015,50015,50015,500

    FT Teachers Aide Salary12,00012,00012,00012,0000.00.0

    Payroll Expenses for Aide and Teacher (Health & Life Ins, Pension, Taxes, Worker's Comp)15,05015,0509,6259,6255,4255,425

    Summer Care Employees0.00.00.00.00.00.0

    PreSchool Utilites Expense1,8001,8001,8001,8001,8001,800

    Summer Care Utilities Expense0.00.00.00.00.00.0

    Liability Insurance4,0004,0004,0004,0004,0004,000

    Advertising Expense250250250250250250

    Total Fixed$64,100$64,100$43,175$43,175$26,975$26,975

    TOTAL COSTS66,95066,47545,07544,60027,92527,450

    Net Income (Loss)27,85012,52518,1252,8003,675(11,650)

    kwiest:depending on student teacher availability

    Summer Care

    Shepherd of the Valley Summer Care Program

    Estimated Profit and Loss Statement for various activity levels throughout year

    July 28, 2005

    Preschool Students/Session30252015105

    Revenue

    Before & After Care0.00.00.00.00.00.0

    One-Time Registration Fees0.00.00.00.00.00.0

    Preschool (T-TH Sessions)0.00.00.00.00.00.0

    Preschool (MWF Sessions)0.00.00.00.00.00.0

    Summer Care42,00035,00028,00021,00014,0007,000

    TOTAL REVENUE$42,000$35,000$28,000$21,000$14,000$7,000

    Variable

    Summer Craft & Supplies$1,050$875$700$525$350$175

    School Craft and Supplies

    Summer Food and Beverage3,9903,3252,6601,9951,330665

    School Food and Bev