Operational advice | 23
How to make an extra $166,400
in your operation this year
How to make an extra $166,400 in
your operation this year
Though many golf facilities
throughout Australia are operating
in a somewhat profitable way,
many out there are not, due to a
whole list of reasons. One reason
is many clubs continue to have a
‘not for profit’ mindset instead of
the ‘commercial profit’ mindset
needed to get the highest return
on their investment. The ‘not for
profit’ facilities should still try and
make some extra money to put
back into their membership coffers
for any future needs. It still needs to
be run like a business. How many
of you would like to have extra
money in the bank to pay for major
upgrades to your clubhouse or
course? Let me show you how to
make an additional $166,400.
The 4-pillars of a golf business
The easiest way to find extra
money at any given golf facility is
to first break it down into four key
operational areas or 4-pillars which
are identified as revenue, service,
payroll, and expense. Each of these
areas is then reviewed in detail to
find key performance initiatives
that can be improved.
For example,
The 4-pillars approach visually
shown is in the shape of a
diamond with the ‘revenue’ line
running along the bottom point.
Revenue is placed here solely
because revenue ultimately
supports the other three areas of
the operation. Without revenue,
the other three - expenses, payroll,
and service cannot exist. Expenses
and payroll sit on the right and left
point of this diamond. Service sits
on the top and needs to be fully
supported and balanced by these
other two. So where do we start?
Setting some benchmarks
Our golf facility currently is
attracting a mix of member (80%)
and public (20% including some
corporate) play with close to
1,100 members in total. The full
membership category is paying
$1,250 each in annual dues with
the public full 18-hole walking fee
rate at $35. They are experiencing
approximately 47,000 rounds of
golf played on the course each
year. One note here is that clubs
should be tracking rounds by
category on a daily basi ̸