"Making a Difference, One School at a Time"
Outside the Lines by L&G - "Profiling Stern Alumni in Unconventional Careers"
Aliza Lakhani and Deborah Garcia
Issue date: 3/10/09 Section: Voices
In the spirit of Social Enterprise, we met with Raj Thakkar, founder and owner of Charter School Business Management (CSBM), a provider of education business services. Prior to CSBM, Mr. Thakkar was the Chief Financial Officer of Explore Charter School where he discovered that day to day business matters distract educators from their primary goal of focusing on student achievement.
CSBM’s mission is to support the charter school movement by instilling a strong foundation of finance, operations, human resources and compliance at each of the schools it works with. CSBM was recently honored with the 2009 Blue Ribbon Small Business Award from the U.S. Chamber of Commerce. A few of CSBM’s many clients include: Harlem Success Academy Charter School, South Bronx Classical Charter School and New Leaders for New Schools.
L&G: What is a charter school?
Thakkar: A charter school is a public school. The word “charter” literally means contract. If you are awarded a charter, you will be judged based on your academics, operations, financial feasibility and compliance with the law. First and foremost it’s the academics – making sure that your students are achieving each year. Charter schools are generally located in disadvantaged neighborhoods in order to create public choice. To date, there are about 4,000 charter schools nationwide and charter law exists in 40 of the 50 states plus Washington D.C. and Puerto Rico. They have a tremendous impact and student achievement is rising rapidly in charter schools.
L&G: Why did you feel there was a need for CSBM?
Thakkar: Nationwide, there are educators opening charter schools. They are very passionate about academics, but often do not realize they are running multi-million dollar small businesses. They simply just need the support. Our organization gives clients two choices: we either teach them to fish or fish for them. We can professionally train their business leaders to handle the non-academic needs or they can outsource their needs such as benefits, payroll, and financial analysis to us. We have helped more than 100 charter schools not only in New York but also in New Orleans and Chicago. There is just a ton of energy around this.
L&G: Are there other organizations that offer similar services? What sets CSBM apart?
Thakkar: There are other organizations that serve all non profits. However, we specifically provide business management for the charter school industry. On the west coast, there are competitors who provide only the outsourcing function. Philosophically, I did not feel right about doing this because the schools should be given a choice.
L&G: In the spectrum of non-profit, social business and for-profit, where does CSBM fall?
Thakkar: I call ourselves “a wish we were for profit” business. Initially, we tried to reach out to foundations in order to structure ourselves as a non-profit but the interest level did not exist three years ago. So, technically we are a for-profit business but we serve non-profit organizations. As a result, we have to keep our prices as such so they can continue to afford it.
L&G: Why education? Why are you passionate about this field?
Thakkar: To me, education is the biggest problem the U.S. faces. Education is how countries formerly considered third-world, have dug themselves out of having that label. The system in the U.S. previously felt like a monopoly, but with the introduction of charter schools, competition has shaken things up a bit. I wish we could get past the politics and see that this is about all of our children, not "those kids". Having worked for 4 years as the Chief Financial Officer of Explore Charter School and living the reality of all of the superhuman efforts involved with running a successful, independently-managed charter school, there is no other field I would rather be in. Most, if not all, of the big fundraising dollars are being funneled to the "franchise" charter schools to replicate instead of the "Mom and Pop" charter schools. I came from an independently-run school and want CSBM to continue making sure the Mom and Pop charters continue to be successful, even if feels like it is against all odds.
L&G: What lies ahead for CSBM?
Thakkar: Continued growth and being further entrenched with the support of charter schools in New York by working with more that are considering applying, already approved and opening in the near future and/or in trouble and need help with their business management. We are also offering more types of services to existing schools with not only business responsibilities, but also with their duties related to operations and compliance. This helps school leaders stay focused on what they know best - student achievement.
We will also continue to provide professional development to more cities and states in addition to New Orleans and Chicago, which are highly motivated to attract CSBM to their regions of the country. So far, New Jersey and Georgia are excited about the potential of CSBM helping schools in their states. I'm guessing that Washington DC, Indianapolis and Philadelphia may contact us soon. If the political climates change, then perhaps Massachusetts, Rhode Island and/or Puerto Rico may contact us as well.
L&G: What are your opinions on the current Administration's views regarding the educational system and charter schools, specifically?
Thakkar: I can't express how truly important it is that education and charter schools to be supported politically. Challenging the status quo has created an uproar in cities around the nation, rightfully so. For Obama to deal with education with integrity, place it at the forefront and back it with real dollars to try new and innovative things is absolutely phenomenal. I'm excited to learn more about the Race to the Top Program Obama and Duncan are talking about and potentially have CSBM be part of helping schools get there.
L&G: Have you always wanted to be an entrepreneur?
Thakkar: My first day at Explore, I asked “who do I turn to for help?” The Executive Director responded with “well, there is one person at the city and one person at the state”. From that first day, I knew the idea was there but it would take time. Also, entrepreneurship is in my blood. My father, my grandfather and great-grandfather were all entrepreneurs.
L&G: Why did you decide to pursue your MBA at Stern?
Thakkar: My undergrad degree was in Engineering from Hofstra University, where I realized in my last semester that business is what I should have been doing all along. At the time professionally, I was part of an executive team that helped a company escape bankruptcy. After successfully saving that company, my reward was to pursue my MBA. NYU just felt like home to me and once I learned more about it, I didn't even bother applying anywhere else. I knew it was NYU or wait until they accepted me.
L&G: Any advice for current students?
Thakkar: Consider working directly at a charter school or the NYC Department of Education. There is a ton of innovation going on and the value of what you will learn is immense. Being part of education reform feels amazing, day in and day out. If you have the drive for it, opening your own business is one of the most empowering and challenging things you can do. I feel connected to every entrepreneur out there, including my father, grandfather and great-grandfather, simply because they each had the guts to take a giant risk.
L&G: Stern is…
Thakkar: A highly valuable resource.
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