Business Philosophy

Education and Business

Harrow International is a for-profit organisation. However, the quality of educational provision takes priority over profit margin. Returns to the investor gradually increase over time to ensure that in the first years of a school’s operation, its financial constraints are minimised.

To become great, schools need to operate on a sound financial and business basis. The priority is to maintain positive cash-flow. Consequently, schools can guarantee a sustainable quality of educational resources and facilities with the capacity to continue reinvesting in the on-going development of the school.

Operating Principles

Ownership

• Harrow International is flexible in considering various forms/levels of participation including a long-term management contract or JV with a reputable local partner.
• The ownership of the schools is to remain separate from the operation/management of the schools i.e. there will be an asset holding company and a management company.

• While Profit & Loss is important, the emphasis is on achieving positive cash-flow as soon as possible to ensure financial sustainability.
• The schools are usually expected to break even and achieve positive cash-flow within 3 to 5 years of starting operations.
• Schools will pay Harrow International an annual management fee of up to 20%, computed as a percentage of the revenue.

• The School Board, comprising representatives from Harrow School UK, Harrow International, Joint venture partners and other persons deemed qualified by the Governors including at least one person who is a parent, is responsible for overseeing the operational management of the school through the Head Master.
• The Head Master is responsible for managing all aspects of the operation of the school.
• Fees are set by the Governors and are usually at the top end of the fees charged by international schools in that country/city.