The new reality for schools
Every trust is feeling the pressure. Funding is tightening, expectations keep rising, and efficiency alone is no longer enough.
At this year’s CST Conference, IMP’s session on Developing Commercially for Value and Long-Term brought that reality into focus. We were joined by Bobby Thandi, Deputy CEO at L.E.A.D. Academy Trust and Steve Howell from Red Kite Learning Trust. Together, they shared what it really takes to build commercial maturity inside an education-led organisation.
The conversation made one thing clear. The trusts leading the way are not simply chasing new income streams. They are strengthening the systems and culture that make those ventures sustainable. Their success is built from the inside out.
1. Master the mundane
Commercial success begins with the basics.
Steve Howell, Commercial Director at Red Kite Learning Trust, remembers being given advice that changed how he approached the role.
“I remember very clearly a trustee at the time who was CEO in a big company was saying, Steve, what you really need to do is get the finance function humming like a sewing machine.”
That advice became a turning point. Red Kite’s finance team focused on what mattered most: faster month-end reporting, automated purchase invoicing, dynamic budgeting, and embedded ICFP. Within months, management accounts were being finalised by the tenth working day. Half the month was suddenly free for forward planning.
Operational excellence is not glamorous, but it builds confidence. It gives the board the assurance to take calculated risks. Only 22 per cent of trusts have fully centralised all their core business functions. The ones that have are already proving that strong internal systems are the foundation for sustainable growth.
2. Profit is a tool for generous sustainability
Profit still makes some people uncomfortable in education. The trusts that have moved past that discomfort are the ones redefining what it means.
At L.E.A.D. Academy Trust, Deputy CEO Bobby Thandi leads one of the most commercially mature operations in the country. The trust runs two commercial bases in Lincoln and Derby, employs more than fifty staff, and serves over five hundred clients. Together, those ventures generate £6.5 million a year and gift around £800,000 of profit back to the trust.
Their services range from ICT and finance support to CPD, HR, and marketing. But the purpose never changes. Every profit is reinvested into projects that deliver social value: funding social work, supporting local charities, sponsoring sports clubs, donating equipment.
As Bobby explains, “We try to be generously sustainable. The goal is not to behave like a corporate competitor, but to use what we earn to support our community and stay focused on our mission.”
That simple phrase captures the shift. Profit becomes a means to serve, not a distraction from purpose.
3. The biggest financial risk is regret
Commercial thinking is not about chasing risk. It is about recognising that inaction can sometimes be the greater risk.
A decade ago, L.E.A.D. Academy Trust was offered a small opportunity to invest in a startup, but decided not to invest at the time. That company has since gone into orbit, and the experience became a valuable reminder of the importance of balancing caution with opportunity and shaped how the Trust approaches decisions today.
Now the Trust’s systems, data and governance are stronger. Confidence has replaced hesitation. Faced with the same opportunity today, the conversation would likely be very different: Why aren’t we doing it already?
Risk appetite grows with competence. When finance teams run smoothly, when reporting is clear, and when decision-making is evidence-led, boards are free to think strategically. The real danger is standing still.
4. Move from transaction to partnership
The trusts achieving long-term success are not chasing contracts. They are building partnerships.
Red Kite Learning Trust uses what it calls the partnership curve to describe this journey. At the bottom are transactional relationships. Then collaboration, then partnership, and finally co-dependency, where both parties are invested in each other’s success.
That mindset has shaped how Red Kite works. A partnership with HFL Education helped fill a regional gap in leadership training for sixth-form heads. Another collaboration with Transformative and Civica created a CFO Tribe in Yorkshire, where finance leaders shared problems and developed practical tools the whole sector could use.
These projects show what happens when the question changes from “What can we sell you?” to “How can we help you?” Trusts that work this way grow faster, create more value, and build relationships that last.
5. Be honest about what you are running
A trading subsidiary inside a trust is not a side project. It is a startup.
That means real constraints. Cash flow is tight in the early stages. Credit can be hard to build. You need a named leader with the time and authority to make it work. You need a board that understands and accepts risk.
Both Red Kite and L.E.A.D. Academy Trust engaged early with the Department for Education to shape their governance and compliance. That proactive approach meant fewer barriers later on.
There will always be challenges around pensions, TUPE, and related-party scrutiny. But trusts that communicate clearly about intent and operate with transparency find that regulators and stakeholders are willing to support them.
Commercial activity must be value-led, not revenue-chasing. Strategic partnerships multiply impact. Sustainable innovation needs proportionate risk.
That balance is what makes the difference between a one-off venture and a sustainable enterprise.
Finding your first step
The trusts getting this right have something in common. They started small. They built strength from what they already did well. They moved steadily from competence to confidence.
At L.E.A.D. Academy Trust, that strength was ICT. At Red Kite, it was finance and procurement. For your trust, it might be something else. The point is to start with what already works.
Once your operational base is strong, you earn the right to think bigger. Commercial growth becomes a natural extension of your core mission, not a distraction from it.
And the first question to ask is simple. What is the one thing your organisation already does incredibly well that could become the seed of your commercial journey?
Built around what MATs really need
At IMP, everything we design starts with what MATs genuinely need. The trusts leading the way on commercial growth all share one foundation: clarity, confidence, and control across their finance function.
That is where we come in. By bringing budgets, purchasing, and reporting into one place, we give you the confidence to move quickly when opportunity appears. You get the full picture, not fragments, so your next step is always based on what is real.
If you are ready to explore new ways to grow your trust’s income, start with the systems that keep it steady. When your finance team runs cleanly, innovation becomes safe, sustainable, and aligned with your mission. That is how IMP helps every trust build for the long term.
