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The Loop

Survey upshot: Golf is a business, so treat it like one

August 28, 2014

A strategic planning survey to which more than 300 golf course operators reportedly responded suggests one reason for the game's lethargic performance in recent months and years: Bad business practices.

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The survey, conducted by Golf Convergence, a strategic consulting business based in Castle Pines, Colo., "demonstrated that golf course operators complain about uncontrollable factors to mask their culpability for being poor operators," the company said.

Among the findings of the survey:

35 percent are operating without a current business plan. 76 percent believe that their market is oversupplied. 73 percent don't engage in customer relationship management. 88 percent never have their golf course secret shopped. 82 percent rarely engage in customer surveys.

"I'm disappointed," James Keegan, Managing Principal of Golf Convergence said, "but I'm not surprised. Having seen over 4,000 golf courses, I continue to be amazed that most of the people in the golf business got there for the love of the game, but most lack the business acumen and formal education to be able to engage in a successful small business."

Keegan recently wrote in his blog at golfconvergence.com that, "a golf course is a living organism that requires constant reinvestment to create sustaining value for the golfer."

"I believe most golf clubs in America cover operational expenses," he said, "but few set aside sufficient capital reserves."

The status quo, as he is fond of saying, is a formidable foe.