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Describes the founding, early growth, and expansion plans of New Leaders for New Schools, a nonprofit public education venture that recruits, trains, places, and supports principals in U.S. urban school districts. Set two years after the creation of the company, this case presents the strategic, financial, and operating issues that arise as New Leaders'' senior management team tries to transition their organization from a start-up company to a mature and fully stabilized company capable of influencing national reform of school leadership practices. Focuses significantly on New Leaders'' choice between two alternative ten-year growth strategies. One plan calls for New Leaders to expand aggressively by raising approximately $100 million in outside investment, opening principal recruitment and training programs across the country, and reaching millions of students through its principal corps. An alternative plan envisions New Leaders as a smaller and more focused organization that works closely with carefully selected school districts and charter school operators to demonstrate the impact on student achievement of well- designed school leadership practices.; To understand New Leaders'' strategic, financial, and operating model. To analyze the scalability of New Leaders'' model under various scenarios. To evaluate the ability of the public education sector to attract talented entrepreneurs and managers.