While clubs and facilities may vary on their fiscal years, it is essential for golf course superintendents to be ready with a fiscal plan that acts as a guideline for expenditures in the year ahead.
Ownership expects the superintendent will consider several issues and topics during the budgeting process. Here are some of the most important for superintendent consideration.
Zero-Base Budgeting
Zero-base budgeting can be utilized in which the history of expenses does not matter as much as the standards and expectations of the membership to provide the conditions they require and expect. While zero-base budgeting is not utilized by the majority of superintendents it is a great process for those superintendents taking on a new job or those that have completed a renovation with increased expectations from members/owners.
Historical Budgeting
Historical budgeting operates from a previous baseline. Known factors include per-determined acreage, specific grass species and knowledge of existing conditions required for success.
Across-The-Board Increases
Don’t make the mistake of across-the-board increases in all budget categories to align with the cost of living or consumer price index. Some line items will go up at a greater rate and some will remain stable or actually go down. The best superintendents take weeks to develop their fiscal guideline and can often recite the line items by memory. Selling the budget is much easier when members/owners are confident in the author’s knowledge.
Good Data
Budgetary increases must be backed up with appropriate data. Of course never forget the concept of “what’s in it for me” as often clubs will allow for greater expenditures if it ensures better conditions. Be sure to link the two items together!
Protect Assets
When preparing a budget be sure to sell it as what is needed to protect the most valuable asset of the club. Without golf most clubs would fold. Golf generates pro shop sales, food and beverage, golf car rentals, and dues revenue/green fees/guest fees. See how seldom the cash register rings on rainy days.
Know The Numbers
When buying a home it is important to know the “comps” or comparative price ranges for homes on the market. The same is true for golf course budgets. Know what your neighbors spend and like facilities with similar maintenance standards, manpower and acreage. Clubs do surveys of other clubs in the area. Do your own homework as it is likely that will be much more accurate. Know the numbers of other facilities for the higher line items in the budget such as labor, water, repairs, and chemicals.
