Ken Coleman, Daniel, Danielle discussed on The Ramsey Show
Ken Coleman Ramsey. Personality is my co host today. Open phones at Triple 882552 to 5. Danielle is with us. Daniel is in Germantown, Maryland. Hi, Danielle. How are you? Hi, Mr Ramsey. I'm doing well. How are you today? Better than I deserve. What's up? And high. Mr Coleman. I want to say First of all, it's a pleasure to talk to you guys. And I want to also say a huge thank you to you, Uh, Mr Ramsey because of you and your principles, not only have my husband and I have been able to Pay off debt and you know, with a lot of hard work and a literal prayer miracle we were able to pay off our debt and be debt free. Six months early. Yeah. He thinks, and that's also freed me to pursue. You know this God given cough that I have to, um, open a Christian school right outside of our nation's capital. So I'm really excited about all of us that cool. Wow. Which leads me to my question. Flash problem. Last week, I was listening and you told a young lady. That you really want to rewrite this narrative that in order to do righteous work, you have to be broke. And I completely agree. I feel like you shouldn't have to be. Um, but the problem that I see, particularly for private schools and especially Christian schools, is that There's a revenue problem. Um, most Christians will most private schools rely almost 100% on tuition. And, um, that poses a problem because you can't pay teachers what they deserve to be paid. Um, can I think you said the national average is about 60,000 and I know in many schools Teachers in private schools, especially Christians, getting paid less than that, and in order to pay them more. You typically have to hike up tuition, but then that's breaking the backs of the people that you truly want to serve. And so I just wanted to know what are your thoughts and how we can Fix this problem and rewrite this narrative because I 100% agree with you. I just can't think of the solution. How old is the school? And how many students do you have? So, um, it is I'm actually in an interesting situation. I am just joining the school. The school has been running for 21 years. It's a niche school for students with learning differences from sixth grade through 12th grade, and the hope is to grow that, um, ultimately from pre sported 12th grade in the coming years. The car. And what's the cost of tuition right now for 60 approximately $20,000 a year. So if you were going to pay teachers more have you run a model out as to how that would affect your tuition. So I have not honestly, um, this miracle kind of just happened where I'm just now starting with this job, But I will say that, um, from our what I know of our finances. Right now, most of that goes towards teachers, salaries and, um And the reason that the tuition is what it is, is that, um, to cover those things, but we tend to not when you include Jesus and a lot of things. You don't get a You don't really qualify for a lot of the grant or other things that he's done, but I have not. Okay, so first thing. First thing. I think you got to run the model. Okay, Because you've got to really see all right. If we were raised the salaries of our teachers by X amount of dollars, you just run the numbers. And then you've got to play that out. You got to know what you're dealing with First. The second thing I would recommend is that I think, by the way, I'm very, very drawn to your mission. I have a child that that requires some special education services. And I love what you're doing. And these families almost come to this school almost as a last resort. It's It's a real oasis. I'm guessing and, yeah, so couple of things you got going on there because of the demand of that. I think you've got to look at separate fundraising. I think you've got to really come over the model where we're going to. We're going to offset tuition by. We're going to get really serious about raising money, and then you're going to get to some high net worth individuals That's going to take some time. But I think that's got to be a strategy. Long term. And then, um, I would also tell you that, uh, part of this is, uh, opening up more space. If you can do that, when you get more kids than it kind of scales out so There's really no silver bullet answer. But, um, I think that if you can make the case over time, and you're winning for these families, and it doesn't get too ridiculous, um, I think with those three strategies, you can get those salaries up into at least the average in your area. How many teachers do you have? Um, we have about six teachers. Some of them are part time. Some are full time. Six teachers. Yes, And how much and even for me. I'm the vice right now. We have, like 22 kids. Mhm. Well, Yeah, I thought it was much larger than that. Now we're at 22 pretty small. And so if you raise the six teachers $10,000 that would be $60,000. Divided by 22 would be $3000 a piece. That's the model he's talking about. Okay? And then you say, Oh, wait. We're gonna raise it $5000 because we have some kids. We want a scholarship. Right, And that's there are a few that are on a financial assistance will be a few more because you're bumping up from 20 to 25. Yeah, and you know, and you're going to raise your but that's an example of how you'd model the math out. Um, of how to play into it and decide from there. Um You probably and again the type of care and what you're plugged into. I don't know. I'm not an expert on that world just from a business viewpoint, though, uh, having run stuff with six people or 60 people having run stuff with now 1000 people on our team. Um, you will get some economies of scale. That will help your situation as well. If, for instance, you could double your enrollment and double your teaching staff. Yeah. Now you're not gonna do that in 20 minutes. But over time if you had 50 students instead of 25. Things are going to work a lot easier, because right now every single Check that is written by a student for tuition by a parent for tuition. Uh, is a back breaker. If it doesn't come in. You are because you're spread across so few people. And so your risk your volatility is a much higher on a percentage basis. Everyone is living more by the threat by a thread rather than there's no wiggle room, which, as you get a little bit more scale, you've got a little bit more marginal little bit more slash That you can do and still still be responsible with your salaries and with your other, but I think a combination between uh some students are going to get served by the higher tuition. With scholarships. Because we now have room to do that. Um, and some are going to get served with, um by lowering the net cost of the tuition by fundraising like Ken saying. But all the while keeping the fact that this mission is vital and really matters. And I think that's the whole thing you aim at. It is to go those directions. There's a lot going on here, but, um, it truly is more difficult to run a 22 person thing..