Why Professional Management?

Why Professional Management?

Club management companies were once seen as inconsistent with the image of the club and a sign of failure. This has changed. Professional management firms now operate many reputable properties, including some of the most elite private clubs. In fact, roughly 2,500 of the approximately 14,000 golf properties in the country are now operated or owned by professional club management companies.

As Bob Dedman, the founder of Invited (formerly ClubCorp), said over 60 years ago, “The club business is nobody’s business because it’s nobody’s business.” Unfortunately, for many clubs, this still rings as true today as it did then.

THE 7 SUBSTANTIAL BENEFITS OF PROFESSIONAL MANAGEMENT

1. A Wealth of Experience

A professional management company brings substantial experience to the table. Its clients include member-owned clubs, developers, private equity groups, and investors, providing exposure to diverse club situations. This experience brings fresh ideas and best practices to the club.

2. Economies of Scale

Professional management companies receive better pricing from industry vendors than clubs can do independently. Club savings often cover management fees for services such as maintenance equipment, golf carts,
merchandise, and more.

3. Depth of Expertise

Larger management companies have experts in every area of club and property management, assisting owners, boards, general managers, and staff. A team outperforms an individual every time.

4. Proven Management Systems

The best companies have tailored proprietary management systems. This includes various aspects such as accounting systems, employee training, software platforms, human resources, financial models, agronomic standards, technology, market analytics, inventory management, and membership sales and retention.

5. Improved Financial Performance

Clubs often overspend and operate inefficiently. Industry professionals now successfully operate clubs as profitable businesses while maintaining excellent member and guest experiences, service levels, and course conditions. Actually, they improve these. For-profit mentality improves a club's financial health.

6. Better Boards and Happier Owners

The professional management group and general manager handle property operations, allowing the owners to focus on critical issues and long-term goals. They can work “on” the club, not “in” it. Ironically, it allows private club boards to enjoy their club, fulfilling their initial purpose. The owner or board retains control while the management company operates behind the scenes.

7. Innovation and Change

Good management companies are staying innovative and offering creative solutions to clients. It includes various elements like membership structures, expanded lifestyles, new technologies, training, and education. Because most companies have experience on the for-profit side of the business, they have learned to think like entrepreneurs and owners.

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