Whether you're just starting next year's budget or you're further along in the process, benchmarking is a great way to "fact check" your decisions.
Consult high-level reports like the Executive Dashboard for strategic perspective on performance and the sustainability of your financial model. Department-level reports (Food & Beverage, Course Maintenance, Labor etc.) provide a solid, fact-based frame of reference and credible third-party support for your decisions. Club Benchmarking Essentials and Premium plan subscribers can also use the new Financial Forecasting feature to track progress throughout the year and get a look ahead at where those decisions are taking them.
Fact-Check Key Areas of Your Budget
- The Dues Engine: Are the club's dues rates and member counts really in balance with its cultural goals? Is the "dues engine" providing sufficient revenue to support future operational needs or is it time for the board to discuss a tune up?
- F&B Goals and Results: Are results in the F&B department within industry norms? Are board expectations realistic or in need of adjustment? This is an area where presenting facts based on industry data can be a game-changer. Start by running the Available Cash/KPI report to get the big picture. For a deep dive, run your CB Food & Beverage report.
- Course Maintenance Spending: The golf course is sacred turf which makes it an easy target for opinion-driven decisions. It's important to keep an eye on the facts: What percentage of the club's gross profit is going to maintain the golf course and how does that number align with the club's goals and culture? For most clubs, the combined allocation for course maintenance and non-golf sports is 40 percent of gross profit. Again, the high level view is in the Available Cash report. Run the Course Maintenance report for the breakdown.
- Capital Funds: Many clubs burned through capital reserves to fund operational needs in the worst of the downturn, and getting deferred capital projects back on the front burner will be critical to survival for those clubs. Does your club have a viable, sustainable plan for funding capital? Study Capital Generation KPIs in the Executive Dashboard report, and get additional detail in the Balance Sheet-Capital-Debt report.
- Payroll and Benefits: Payroll is a private club's largest expense, but the staff is integral to sustaining the unique culture that draws members in and keeps them coming back. Getting it right in this area of your operation is critical and the Payroll to Operating Revenue ratio shines a spotlight on how you're doing. In fact, it's such an important KPI that you'll find it in the Available Cash report, the Executive Dashboard report and in the Labor report. If you need additional detail, specific benchmarks for salaried and hourly positions are available in the Compensation & Benefits section.
Learn more by watching our recorded webinar:
Using Benchmarks in the Budget Process
Do you have a question about benchmarking your budget or would you like to learn more about Club Benchmarking? Email us at [email protected]