As schools became increasingly run like businesses, many in the education sector voiced concerns. Worries abounded that financial issues would overtake the importance of teaching, and that independence would give way to corporate ownership. While these concerns are still valid, it is now widely accepted that schools can benefit from making sound, creative business decisions to increase revenue and make the most of the resources they have. Specialist Sports College Handsworth Grange in Sheffield has recently opened a fitness suite, which, as well as being used by pupils, is also being run as a business to increase revenue for the school. The project has been completed with the help of finance from education specialists Syscap.

Handsworth Grange in South Yorkshire has over 1020 pupils from the age of eleven to sixteen. Anita Wilson is Director of Finance and Administration at the school, with responsibility for finance, the premises, administration and support staff. Following the opening of the new fitness centre she also has receptionists and fitness instructors under her care. “It is a role that is constantly evolving to meet the growing need for staff and facilities that fall outside teaching responsibilities,” explains Anita. “But our energies focus on improving standards of teaching and care for the pupils. That has to be the bottom line.”

The fitness suite project was part of a general facilities improvements programme that also included updating the school's ICT facilities. “We are working towards specific EU e-learning targets,” says Anita, “but have our own goals for ICT improvement as well.” Handsworth Grange School aimed to install a PC into every classroom in order to offer staff immediate access to electronic records such as registration and pupil information and enable them to update this information in real time. The ICT project was budgeted to cost around £90,000.

As a finance manger used to making the most of the school's financial resources, Anita understands the benefits of leasing some equipment and services. “Leasing enables us to acquire the resources we need now, rather that waiting for next year's budgets,” she explains. As such, Anita was confident she could lease both the ICT equipment and fitness suite – including the upfront costs for new staff. “We knew that Syscap would be able to handle the ICT side, and approached another company recommended by the fitness equipment provider to see if they would finance that side of things.”

During her discussions with the other leasing company, Anita had been offered a yearly payback agreement with a deferred payment for the first year. Syscap agreed to match this offer, and was completely upfront with the entire payment plan, including the end of term costs. “Syscap has leased both the ICT and fitness suite and I know exactly where we are in terms of payments,” says Anita. “This is vital for our budgets and helps us to plan strategically.”

In addition, the fitness suite is being marketed to the general public to generate an estimated £20,000 per year for the school from 2006. The gym has capacity for 800, but only requires a membership list of 450 to reach that revenue target. “We already have over 300 members,” says Anita, “so we're well on track to making this a real profit centre for the school.”