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Sound Finances

4/28/2020

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Gross Profit = Member Dues Revenues & +/- departments
Dues are the Members Support for delivery of the experience

Net available of Capital - 12-18% of Operating Revenue

Plant & Equipment to PPE Total 

Book Value - slide 25 

Lesson 1: Refocus the AgendaExpanding the breadth of governance at your club begins with making changes to the monthly board agenda. The resulting “new agenda” must minimize focus on today’s operations and direct attention to the future view of the club and the capital requirements necessary to realize that vision. Focus the agenda on the club’s balance sheet and balance sheet key performance indicators that matter to every club. Refocusing the monthly agenda is entirely within the control and purview of the manager and the club president or chairman of the board.
Lesson 2: Put the Income Statement in Perspective (and keep it there!)Introduction of a new agenda should coincide with an effort to ingrain proper perspective on the club’s income statement. The majority of member-owned clubs (90%) set the income statement to break-even excluding depreciation and, by definition, a break-even outcome is not a financial driver. The income statement must be viewed as a vehicle for delivering services and amenities to the membership. The financial discussion related to it concerns making appropriate operational choices (hours of service, scope of services and amenities, level of service and quality) related to delivering membership value. Understanding the balance between operational choices and dues against the backdrop of member expectations is the proper view of the income statement.
Lesson 3: Make Every Minute CountInvest in your club and your career by conducting an honest evaluation of the focus and format of your current agenda. How much time is the board being directed (or allowed) to spend on last month’s results or on operational issues like F&B results, green speeds and member discipline. Compare that to how much time they are given to envision, strategize and actualize the club’s future. For too many clubs, the distribution of meeting time is about 90% tactical and only 10% strategic. The board’s time together is extremely limited, and it is a resource that no club can afford to waste. A periodic review of your meeting agendas is the best way to ensure that the board’s valuable time is used to the club’s best advantage—in proactive preparation for the future.

1 Comment
Lincoln Furnace Repair link
10/13/2022 11:51:57 pm

I enjoyeed reading this

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