6/10/ Ways to Grow a Business, Any Business, Including Clubs. 4 Ways to Grow a Business. 4 Ways to Grow a Business

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1 , Any Business, Including Clubs Mitchell L. Stump, CPA Pen and paper required Tough questions to ponder Perspective of a Member or a prospective Member, customer or prospective customer Two basic theories: 4 Ways To Grow A Business Hedgehog Theory 1

2 4 Ways To Grow A Business Increase the number of Members of the type a Club wants. Increase the number of times Members come back to use the Club s amenities. Increase the average value of each sale. Increase the effectiveness of each process in the business. Hedgehog Theory First: Who are you? No, really!! Do you really know who you are? Why do you exist? Does your staff buy into your vision? Really? 2

3 Second: Who is your Club s target customer or Member? What role does each Department Director play? Who is letting you down? If they aren t on the bus get them off! Take a journey with me as a prospective or current Member The Club Experience 3

4 The Club Experience Anticipation Driving to the Club Looking for my front door Who do I meet? How am I greeted? What do I see? Is it up to your expectations as part of Club Management? What do I really get for my money? What I need vs. what you offer. What would get me to join? What will it take to get me to stay? Do your Club employees really, really care that much about me? Build multi-million dollar buildings but Must I pay extra for Pros to teach me a game you offer? Use cheap bag tags? Use yellow golf balls? Have un-raked bunkers in the afternoon? Have unclean restrooms on the golf course? Ignore disabled Members and family? 4

5 In the Locker Room Are attendants surprised when a guest arrives? Do attendants ignore me? Doesn t the attendant speak English? Can t I easily find an empty locker? Isn t the attendant be the ultimate concierge? Aren t you a Member of LRMA (Locker Room Managers Association) at the price of $100 annually? In the Marketing Department Would prospective Members not receive a follow-up contact to join? Is there no follow-up with former Members? Don t they meet with the Teaching Professionals daily regarding another way to sell the Club to a prospect? Not meet with each New Member in the first 6 months for a referral? Why Facebook/Twitter when I want to see you face to face? Bringing Members together for social and athletic activities? Can you be the best at tweeting in the Club World? In the Golf Department Don t you play 9 holes with every new Member to get to know them? What is their reading program?» Good to Great» The Mulligan» Seven Days in Utopia (Movie)» Gung Ho» Seasons of Life» Private Clubs in America and around the World» The First Tee Nine Core Values» Club It s All About Golf Book What is their teaching program based on the above? 5

6 In Food and Beverage Do you require food minimums? Raise dues and give me free food. Cater to Members houses when you spent several million on a building? Allow nonmembers to use the Club? Why should I join? Ever think about making them a Member first? Pursue nontraditional activities that place 501(c)(7) tax status in jeopardy? Don t you send your F&B Manager to the Sports Departments to demonstrate daily lineups regarding customer service? Have I left anyone out? Golf Course Superintendent Spruce up the bag drop area. It is 20x20. You beautifully maintain 100+ acres daily. It is my front door. General Manager Your staff is letting you down daily. What are you doing to create Good to Great or Gung Ho at your Club? Maintenance Find some paint for the interior of your golf course restrooms other than Maintenance Building beige. Club House Cleaning Team Find the restrooms and take ownership. Club Controller Run the numbers on the value of one new Member or one lost Member and share it with your Department Heads. Club Controller Run the numbers on having a food minimum vs. having a golf guest fee minimum. How much of a guest s fee and cart fee goes to the bottom line? Why should I join your Club? Your food is not better than a 5 star restaurant and I can go to one 7 days a week and not go to the same restaurant twice. Your Members are not nicer. Your employees are not better. And please, you are just another golf course unless you are # 1 in your state. 6

7 You exist because there is a real need for what you offer. I want to join!!!! I want to belong!!! You can do this better than anybody else! Step up to the plate and quit doing what you have always done, thinking you will have better/different results next time! Isn t that what Albert Einstein said is the definition of insanity? Only 4 ways to grow a business and Move from Good to Great! Be #1 in your Department! Be # 1 in your Club! Be #1 in life!! 4 Ways To Grow A Business Increase the number of Members of the type a Club wants. Increase the number of times Members come back to use the Club s amenities. Increase the average value of each sale. Increase the effectiveness of each process in the business. 7

8 Hedgehog Theory If you are a Golf Club, could it be It s All About Golf? Thanks!! Visit Club It s All About Golf Book authored by Mitchell L. Stump, CPA is available at 8

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