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COVID-19 has shocked the world with its sudden and global onset. We are now more familiar than ever with terms like PPE, flat- tening the curve, and physical distancing. In addition to the human impact, businesses of all sizes are feeling the economic impact. COVID-19 poses unprece- dented challenges for the Canadian golf industry. With the situation constantly evolving, executing a robust crisis management plan at your facility, is crucial.
When the full weight of the novel COVID-19 epidemic fell onto Darin McCorriston’s shoulders, he thought about the survival of the golf courses and clubs in his care. Like most golf course owners and operators in Canada, he quickly realized that the potential impacts of the epidemic could last for some time and are beyond his control. McCorriston made an important decision – the type of decision that measures the quality of crisis lead- ership – “I knew that I had to get control of the things that I could control.”
Controlling what could be controlled meant stopping the outflow of cash and evaluating the payment obligations of each contract for which he is responsible. As the president of TMSI Sports Manage- ment in Ottawa, McCorriston is responsible for a good deal, includ- ing looking after multiple golf courses and sports venues with almost 300 employees.
GETTING THE RIGHT THINGS RIGHT
Stephen Johnston, the founding partner of Global Golf Advisors Partners (GGA) in Toronto, says it simply, “Golf course owners must have a plan for crisis management of their courses.” Johnston suggests a number of important actions that golf course owners and operators should take during tough times.
1. Determine Available Cash
Measure every financial obligation of your facility. McCorriston stated that this was his first step and with good reason. “My banker needs to understand our clubs and how they work. It helps for the banker to see that we know what we are doing.”
When the bank understands that the golf course owner has reliable command of the available cash position, the banker can be more confident that the golf course can afford debt expansion or abatement. Johnston adds, “Some small business owners are not particularly sophisticated in banking matters, so it helps to have friends who can assist at the bank. Bring in the professional support necessary to demonstrate to your banker that your course will endure.”
Showing the business acumen that earned him the Ottawa Business Entrepreneur Award, McCorriston took a business-driven approach. Deal with the most immediate threat first.
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