_Mar/inspirationalinsights.jpg "Inspirational Insights")
By David Gould
In the March issue, Golf Business profiled four golf course operators who battled back from the brink and have positioned their businesses for success (“Back From the Brink,” page 36). This exclusive Q&A, in the words of the late Paul Harvey, reveals “the rest of the story” and provides inspiration for any course owner who has ever felt the road to recovery was too hard to travel.
Dan Wikel
Board Advisor
Canal Shores
Wilmette-Evanston, Illinois
Where did you draw inspiration from during the toughest times?
If you worked on this turnaround, you could always look around and see a lot of professional talent pitching in to find solutions. Also, the bordering communities were invested in seeing things work out. The other factor that reassured me was how modest the operating costs really are—only about $500,000 a year. The arrears and obligations were big, but the annual nut really isn’t.
When did you realize that things were turning for the better?
Once we set up the cash-flow model and went through a cycle or two, we could see that it was an effective tool. At a certain point I realized I didn’t have to audit the cash-flow spreadsheet every week anymore. I could do it once a month. Other bright spots would appear. For example, the area private clubs got behind us, lending or even donating mowers and other gear. That was very nice to see.
What’s the most unconventional business idea your team employed for Canal Shores?
We set up an arrangement with Northwestern University under which their alumni could use certain holes for tailgating and parking at home football games, with the majority of the payment upfront. Football spectators also rented interior spaces and outdoor patios for their groups. That was a pretty original concept that produced a solid revenue source for us.
How do you plan to keep innovating in the future?
Our thought is that we actually won’t have to use a lot of out-of-the-box measures going forward. We did the classic turnaround and we feel we’re moving toward normalization of the operation. However, we do plan to launch a foundation-style capital campaign, with community support. The goal is to build it to $500,000 or as much as $1 million. That would allow us to create a solid schedule of capital investments that would ensure a very stable and successful business for the long term.
David Wetli
General Manager
North Shore Golf Course
Tacoma, Washington
Where did you draw inspiration from during the toughest times?
The most inspiring thing to me were the avid golfers who continued to support our operation even when it looked like the golf course was going to be closed. That and the game of golf itself. The other factor was the strength of the public opposition to the redevelopment—it was vocal and well-organized.
Was there an advisor or mentor who provided helpful advice during the difficult periods?
I was appreciative that the executive director of our PGA section, Jeff Ellison, reached out to me to put me in touch with our section employment consultant. I also had many conversations with business people and friends.
What was the hardest adversity you faced?
Our rounds did suffer, and we lost a lot of tournament groups. They book way out, so they can’t have uncertainty about you being open or not.
What’s the most unconventional business idea you employed?
This is going to sound strange, but we responded to what we were up against by playing golf. Our attitude was, if the place is going away, let’s use it for its intended purpose while it’s still here. Like most PGA professionals, actually playing golf had become a low priority for me. The threat of North Shore closing changed that. It reconnected me to the game. It also reminded me that playing your golf course is still the best way to spot the little details and really fine-tune what the customer’s experience can be.
How do you plan to continue innovating in the future?
Innovation for us is doing what a good operation that’s thinking long-term will do—and we’re on that track. We fixed drainage problems on some fairways, and we’ve rebuilt our mower fleet. We needed a lot of tree work and have done a fair amount of it. We’ve painted, re-carpeted, done a lot of minor repairs. We’re back on track to where our schedule of maintenance is happening as it should.
How do you express your appreciation to the players who stuck with you, and the new golfers as well?
We make an effort to show appreciation to our customers every day in the way we serve them. We also make it a point to have the professional staff join our members’ club for each of their monthly tournaments as well as joining them and public golfers for golf on a weekly basis.
Ronnie Kelley
Owner
River’s Bend Golf Club
Chester, Virginia
Where did you draw inspiration from during the toughest times?
It helped a lot when we got involved with Blueline Conservation Incentives. My contact there is an expert on the subject and great to work with. Another big support has been having my wife back at the club handling the food-and-beverage operation—she had missed a lot of time with illness.
When did you realize that things were turning for the better?
When your golf course is part of a residential community, as we are, the overall state of the community affects you, and this development has become very desirable. If a home goes on the market, it’s sold within a week. Chesterfield County is growing, there are industrial parks going in. We’ve got a good environment to work in, if we can keep on track.
What was the hardest adjustment you’ve had to make?
Not being able to keep staff in place the way I’d like to, for budget reasons.
What’s the most unconventional business idea you employed?
An idea that I’ve thought about lately involves converting to a 12-hole golf course with a strong golf academy component. The six holes that are along the river could be converted to residential. Our current fifth hole and 16th hole are an inner loop that start and finish at the clubhouse—that would be the traditional golf part of our facility. Developers contact me all the time, and this acreage is zoned residential. I’m already back to giving lessons quite a bit, and our range is ideal for an academy.
Kevin O’Brien
General Manager
LochenHeath Golf Club
Williamsburg, Michigan
Where did the core group get its inspiration during the toughest times?
When you see the beauty of this location and appreciate the quality of the golf course, it’s almost impossible to think that the site would be used for anything else. Obviously, the members and property owners had a financial stake that motivated them to help save LochenHeath, but from what they tell me, they knew deep down it was destined to be what it is today.
When did they realize that things were turning for the better?
Things taking place in 2010 that showed them a way forward and a solid possibility that they could get their deal done. Various steps like the foreclosure, scheduling of the auction and so forth were setting the stage.
How do you plan to continue innovating in the future?
The plan for us is to work toward becoming one of the finest clubs in the Midwest. Part of that is to take our practice facility, which is already excellent, and build an academy-style environment for our golfers. Long game and short game, we truly have it all. For instruction talent, we have Adam Schreiber as a professional dedicated to teaching, and our new director of golf, Terry Crick, comes to LochenHeath from a high-profile director of instruction position. That sends a strong message about what the new member will have available, if they are focused on game improvement.