Page 20 - GBC Spring 2019 ENG
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5. PROFITABILITY
We consider pro tability to be a separate value driver as, on its own, it provides useful information for business owners. Being sure you know your gross margin, including how it’s de ned, is important to under- standing the health of your business. If possible, compare your gross margin with industry comparisons or your competitors. What are your gross margin risk points and have you put risk management plans in place? How do you incorporate the seasonality and off-years in this industry into your long range pro tability? What steps can you de ne now to help mitigate those “bad weather” years and maintain pro t margins?
6. INTANGIBLES
Finally,thereareseveralintangiblesthatimpactthesuccessofyourbusiness: its history and reputation, the continuity of the management team, and its relationship with customers, members, associations and competitors.
How innovative is your golf course? When was it last updated? Another factor is how involved you, your team, and your business are in the local community supporting educational and social events to build the loyalty and reputation of the community. These can play a big factor in keeping your golf courses, restaurants or banquet facilities as community favourites.
INCREASED PROFITABILITY
Understanding these value drivers, and how your business performs across multiple areas, will provide several bene ts to you and your business.
You will likely be able to tap into better  nancing options and have broader business transition options. You will be able to attract better talent and, once you build a great team, create a succession plan and improved culture to retain them. You’ll realize increased prof- itability for yourself and your shareholders which can help lower your stress – so you can spend more time gol ng!
Golf Business Canada
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