| As we enter the final two months of 2008, your Club | | | | provides a great foundation for goal setting for both |
| should be well on its way if not finished with its | | | | qualitative and quantitative improvements in the |
| Business Plan for 2009. Yet, I find that in many cases | | | | upcoming year. |
| Clubs have not yet even started the process. When | | | | 2. Competitive Analysis |
| I ask why the plan hasn’t begun, I hear a litany of | | | | Who is your competition? What do they charge? |
| amusing responses, well actually unfounded excuses. | | | | What is your unique selling advantage? |
| A sampling of the feedback includes: | | | | 3. Membership Planning |
| - We can’t start a new budget when we don’t | | | | What are your Club trends for both membership |
| have final numbers for 2008. | | | | enrollment and attrition by category? What real growth |
| - We haven’t decided what we are going to do | | | | do you want to plan for in 2009? What has been the |
| with our operation in the off season. | | | | trend with upgrades and downgrades? What are |
| - We’re too busy. | | | | you doing with Initiation Fees? Do you have financing |
| - We’re afraid of what it might look like. | | | | in place? How will you handle your wait list to join? |
| - We tried that before and it did not help us. | | | | To resign? |
| - It takes too much time and we don’t ever use it | | | | 4. Pricing Plan |
| for anything. | | | | What price increase will you take this year and |
| | | | when? Will dues increase? If so, will that cause |
| Any of this strike a chord? Be honest now! | | | | attrition? How will you price your cart and guest |
| The reality is that many Clubs either don’t have the | | | | fees? What about F&B. Remember, except |
| skills, commitment, discipline, or desire to put together a | | | | for a very few elite Clubs in the Country, cost does |
| plan. Planning is work! Hard work! But like any | | | | matter. |
| other hard work well done, it provides great benefits. | | | | 5. Payroll Planning |
| A forward thinking approach with a financial plan in | | | | What payroll increases are you authorizing for the |
| place for the entire year and then updated on a | | | | Club’s employees in 2009? Are the increases |
| quarterly basis with a forecast with a focus on | | | | performance based or just “no thought” across |
| creating the future is a paradigm that any successful | | | | the board increases? Can your Club afford to give |
| business utilizes. Yet, I find that in most cases Clubs | | | | increases? Do you have incentive based |
| do little more than take a perfunctory look at the | | | | compensation plans in place or do you just pay for |
| numbers from the prior month usually about 15 to 20 | | | | showing up regardless of the performance? |
| days if not more after the month has ended. | | | | 6. Expense Planning |
| I have seen amazing transformations in the actions | | | | What expense increases are you anticipating? Have |
| Clubs take when the financial realities of their business | | | | you reviewed each department on a line item basis to |
| are made known to them in black and white terms | | | | determine if the expenses may have significant |
| with a well thought out financial plan and a forecast of | | | | fluctuations either up or down? Items that can |
| the future business. I have implemented forecasting | | | | change significantly include general liability insurance, |
| where it previously was not utilized and immediately | | | | property taxes, utilities, fertilizer, chemicals, and fuel. |
| new plans were developed for better expense | | | | Have you reviewed these thoroughly to ensure you |
| controls and the marketing ideas became number one | | | | have an accurate view of the expense side of the |
| priorities instead of just “when I get to it” | | | | financial plan? |
| afterthoughts. | | | | 7. Marketing Plan |
| A focus on creating the future through a thorough, well | | | | Do have a written quarterly game plan for driving the |
| crafted business plan is what separates great | | | | revenue sources that are important to your Club? |
| operators from marginal and poor performers. It the | | | | Are specific timelines and people assigned to carry out |
| difference between swimming toward a destination | | | | the plans? Have you budgeted the needed dollars |
| and just drifting with the current. It reminds me of a | | | | for marketing to ensure you will be able to achieve the |
| passage from Alice in Wonderland. When Alice | | | | results you need? Check out our industry best |
| encounters a Cat during her travels, she asks the cat | | | | website solution for Private Clubs at |
| for advice on the road she should take. The Cat | | | | 8. Retention Planning |
| responds by asking Alice where she wants to go. | | | | Do you have a comprehensive calendar of events |
| Alice responds that she really does not know. The | | | | that appeal to all segments of your membership to |
| Cat responds by telling Alice that if she doesn’t | | | | keep them using the Club and providing needed |
| know where she wants to go, then the road she | | | | revenues. Is your calendar planned ahead at least 3 |
| takes really doesn’t matter. Do you know where | | | | months at all times? Or are you trying to come up |
| you want to go in 2009? | | | | with things at the last minute because the newsletter |
| You must have goals. But putting together a financial | | | | copy is due? |
| is more than just crunching numbers. There is much | | | | 9. Qualitative Improvement Planning |
| groundwork that must be completed in order to get | | | | Do you have a written quarterly plan in ever |
| the proper foundation to plan. A solid financial plan is | | | | department for qualitative improvement? Specifically, |
| the final results of a thorough Business Planning | | | | are you challenging all of your Club departments to |
| process which includes: | | | | implement 2 or 3 initiatives that either create a better |
| Components of a thorough Business Plan include: | | | | member experience, provide for improved employee |
| 1. SFSWOT Analysis | | | | efficiency, introduce a new product or service, or |
| This is analysis of each Club department’s and the | | | | produce a better financial result? |
| Club’s overall | | | | 10. Capital Planning |
| - Successes | | | | Do you have a written capital replacement plan in |
| - Failures | | | | place for 2009? Replacing depreciated assets on |
| - Strengths | | | | an annual basis is another component of a successful |
| - Weaknesses | | | | business. Do you have the necessary cash to |
| - Threats | | | | replace what is needed in 2009? Are you going to |
| - Opportunities | | | | finance or lease needed equipment? Have you done |
| | | | | the analysis? Is your plan at least looking ahead 5 |
| It provides a critical self assessment of your Club and | | | | years? |