Hello from Mike Kahn: I'm all about the golf business and the game. As my distance off the tee shrinks, apparently participation in golf is also shrinking. I've seen it all and done it all in the golf business, yet I've been a recreational player 99% of the time. The 1% was when I was a Canadian PGA member in the early 60's. As I blog along, probably mostly talking to myself, my comments might be picked up by a blind squirrel - and maybe even post a reply.
Thursday, September 3, 2020
Wednesday, April 22, 2020
Sunday, March 10, 2019
Saturday, March 7, 2015
Sorry for neglecting this blog, but this is new, which I feel is important:
It's something that has not happened in over 10-years in the golf course business.
I'm receiving requests from money lending sources asking me to find golf courses needing loans.
If you read this and are in that mode call me: 941-739-3990, or write: mike@golfmak.com.
Remember to review my lender's wish list at this page at my web site: http://www.golfmak.com/financing%20golf%20courses%20in%202014.html
Mike
It's something that has not happened in over 10-years in the golf course business.
I'm receiving requests from money lending sources asking me to find golf courses needing loans.
If you read this and are in that mode call me: 941-739-3990, or write: mike@golfmak.com.
Remember to review my lender's wish list at this page at my web site: http://www.golfmak.com/financing%20golf%20courses%20in%202014.html
Mike
Monday, February 3, 2014
WHY EVERY GOLF COURSE SHOULD BE KNOCKING DOWN MY DOOR
MY CONSULTING AND ADVISORY SUCCESSES
"I'll do it my way." seems to be theme among golf course owners and managers. Why not use my experience and endless successes applying my proven management methods? Pick up the phone and call me for a free consultation: 941-739-3990, or write: mike@golfmak.com.
Look at samples of my successes:
I managed a 27-hole golf course in Sarasota, Florida, Oak Ford Golf Club, 27-holes, while it was in C-11 bankruptcy. Without interference from the owner (I was hired by the Fed), I was able to apply my methods without interference. It about 18-months. In the beginning I had no (zero) money to work with, no credit line, no trade credit, no cash in the bank. I made it work.
Here's my results while running Oak Ford Golf Club:
Here's a few other successes:
A 900-member private club, Orange Park Country Club, Jacksonville, Florida. I was hired to conduct the new owner's diligence, transition, then managed the business briefly. The new owner received an offer of more than $1 million more than he paid for club less than a year earlier. Sold!
I managed another Jacksonville resort golf course, The famous Ravines Golf Resort, Middleburg, Florida, for less than one year. My plan was successful in increasing rounds and revenue sufficient to draw attention from another investor who gladly paid my short term owner over $1 million profit. The subsequent owner reversed all my strategies, "I'll do it my wayyyyyy!" and lasted less than two years. He walked away left the bank holding the bag. The course grew in. Here's a picture I took of the famous 9th hole looking back from the completely mildewed and ruined clubhouse:
I managed a 36-hole golf course, The Eagles, in Tampa, Florida, while in foreclosure proceedings from B of A for its $5.2 million mortgage. My methods increased rounds and revenue, but I went through the operation with a fine tooth comb and found waste and inefficiency in every nook and cranny of the place. By the time my methods were implemented we were at a pace to do almost $4 million in sales on 100,000 rounds and close to $1 million in net earnings. A buyer came along and offered $9.2 million for the place. Sold!
I was consultant and adviser to Belleview Biltmore Golf Club, Clearwater, Florida, for the previous owner in 2010 - 2012. The ownership I advised for paid $1 million (equivalent) for the Donald Ross designed golf course and sold it to the City of Belleair for $3.4 million in 2012.
I am currently advising a fine 18-hole golf course, Indigo Lakes Golf Club in Daytona Beach, Florida. Acquired in late May (2013), with an outstanding management team, and after getting the 'feel' of it's marketplace, we went to market in August. Results: August rounds are up 365% and revenues up almost 400% over August the previous year. No! Those are not type errors!
My management methods are proven time and time again. My strategy is aggressive, tenacious, experienced, and 100% successful. I don't care if the market is saturated. I'll get more than my share players on a golf course under my care. It's not magic. I use an almost endless attention to detail, employee behaviors, and timeless proven every-day business sense.
My fees? Negotiable depending on the scope of the work and time involved. Be assured, my fees are very reasonable.
"I'll do it my way." seems to be theme among golf course owners and managers. Why not use my experience and endless successes applying my proven management methods? Pick up the phone and call me for a free consultation: 941-739-3990, or write: mike@golfmak.com.
Look at samples of my successes:
I managed a 27-hole golf course in Sarasota, Florida, Oak Ford Golf Club, 27-holes, while it was in C-11 bankruptcy. Without interference from the owner (I was hired by the Fed), I was able to apply my methods without interference. It about 18-months. In the beginning I had no (zero) money to work with, no credit line, no trade credit, no cash in the bank. I made it work.
Here's my results while running Oak Ford Golf Club:
- Annual rounds from 48,000 to as high as 84,000
- Revenue from $1,495,000 to $2,200,000
- Earnings from $0 to $700,000
Here's a few other successes:
A 900-member private club, Orange Park Country Club, Jacksonville, Florida. I was hired to conduct the new owner's diligence, transition, then managed the business briefly. The new owner received an offer of more than $1 million more than he paid for club less than a year earlier. Sold!
I managed another Jacksonville resort golf course, The famous Ravines Golf Resort, Middleburg, Florida, for less than one year. My plan was successful in increasing rounds and revenue sufficient to draw attention from another investor who gladly paid my short term owner over $1 million profit. The subsequent owner reversed all my strategies, "I'll do it my wayyyyyy!" and lasted less than two years. He walked away left the bank holding the bag. The course grew in. Here's a picture I took of the famous 9th hole looking back from the completely mildewed and ruined clubhouse:
I managed a 36-hole golf course, The Eagles, in Tampa, Florida, while in foreclosure proceedings from B of A for its $5.2 million mortgage. My methods increased rounds and revenue, but I went through the operation with a fine tooth comb and found waste and inefficiency in every nook and cranny of the place. By the time my methods were implemented we were at a pace to do almost $4 million in sales on 100,000 rounds and close to $1 million in net earnings. A buyer came along and offered $9.2 million for the place. Sold!
I was consultant and adviser to Belleview Biltmore Golf Club, Clearwater, Florida, for the previous owner in 2010 - 2012. The ownership I advised for paid $1 million (equivalent) for the Donald Ross designed golf course and sold it to the City of Belleair for $3.4 million in 2012.
I am currently advising a fine 18-hole golf course, Indigo Lakes Golf Club in Daytona Beach, Florida. Acquired in late May (2013), with an outstanding management team, and after getting the 'feel' of it's marketplace, we went to market in August. Results: August rounds are up 365% and revenues up almost 400% over August the previous year. No! Those are not type errors!
My management methods are proven time and time again. My strategy is aggressive, tenacious, experienced, and 100% successful. I don't care if the market is saturated. I'll get more than my share players on a golf course under my care. It's not magic. I use an almost endless attention to detail, employee behaviors, and timeless proven every-day business sense.
My fees? Negotiable depending on the scope of the work and time involved. Be assured, my fees are very reasonable.
Thursday, April 25, 2013
I PREDICTED TODAY'S GOLF BUSINESS DILEMMA IN AN ARTICLE I WROTE YEARS AGO
I wrote this paragraph over 12-years ago - updated in 2009-10. In particular, it's the last paragraph on my article about the modern golf ball.
"Unless cooler heads prevail in the construction of new golf courses, look for a decline in golf participation in the next few years - with or without Tiger. There are already a number of golf course in financial trouble in Canada and the USA (some estimates as high as one in four golf courses cannot pay their bills). They can't pay their bills, because play has dropped."
"Unless cooler heads prevail in the construction of new golf courses, look for a decline in golf participation in the next few years - with or without Tiger. There are already a number of golf course in financial trouble in Canada and the USA (some estimates as high as one in four golf courses cannot pay their bills). They can't pay their bills, because play has dropped."
Michael A Kahn, 2009 - 2010
The full article was about the development of the golf ball, particularly the Surlyn cover and solid core developed in the late 60's and early 70's. I tested the Spalding range ball when it first came out.
The article was really what I felt was one of the reasons golf grew so dramatically in the 70's and 80's - the economics of the golf ball. Mainly, the price of golf balls was coming down while the durability of the modern golf ball is almost forever.
Here's the link: http://golfenomics.bizland.com/ball.htm.
Wednesday, April 24, 2013
WHY DO SO MANY GOLF COURSE OWNERS CHASE 10-CENT DOLLARS?
WHY DO GOLF COURSE OWNERS SPEND SO MUCH TIME AND ENERGY CHASING 10-CENT DOLLARS?
Let me make it simple: When a person hands the clerk $60.00 to play a round of golf the only exchange in inventory is the pencil and score card. All the preparation is done - golf course maintenance, etc.
If a person spends $10.00 in the grill room for a beer, burger and fries, the cost of that sale including ingredients, preparation and serving, plus support infrastructure will be at least $9.00. So here's my simple math:
Collect $60.00 for a green fee. Net = $60.00
Collect $10.00 for beer and burger. Net $1.00. But wait!
I need to sell 60 cheeseburgers to take in $60.00! So, what's my point?
Concentrate 90% of your total energy into putting golfers on the golf course. Chase those 100-cent dollars - then make the best of the concession 'opportunities' while the customer is on your property.
MY FORMULA: 80-15-5
I believe the revenue formula for a daily fee or semi-private golf club should be 80% from fees, 15% from the grill room, and 5% from merchandise. The closer a golf course business is to my formula, the more likely it will be a successful business.
What is your experience? Write me: mike@golfmak.com
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