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King James VI Golf Club Business Plan 2014

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This plan has been created by:

Version Date People

Version 1.0

Version 2.0

Version 3.0

25/11/13

17/01/14

02/03/2014

Dougie Taylor (Vice Capt)

Bill Scorgie (Finance Convenor)

Moira Lumby (Ladies Capt)

Charlie Scrim (Committee)

Dennis Brown (Committee)

Allan Knox (Professional)

Mike Brown (Managing Secretary)

Amendments 11/04/14 MB

History King James VI Golf Club Establishment & Early years of King James VI GC The King James Golf Club was established in 1858, taking the name from the king who had learned to play golf on the North Inch, Rev Charles Robertson who had been a member of Perth Royal GC was invited to be the first Captain. The first medal was played in April 1859 and involved twice round the 10 holes North Inch course. In 1860 what is believed to be the first Inter Club Match played nine “King Jimmy” members travelled to play Elie & Earlsfield GG who were also founded in 1858. In 1884 a team from King James VI GC are thought to have played the first Inter Club Match in Ireland against Royal Belfast GC. After playing in the 1887 match and holidaying at Portrush some of the KJVI team set up some holes on a barn stretch of coastline round the village, becoming the first to play golf on the land now famous as the Royal Portrush course. After a request in 1885 from the R & A for a donation to help start the Annual Amateur Championship, by sending 3 guineas King James VI GC was one of the 24 clubs who helped start the competition. Tom Morris & Moncrieffe Island King James VI shared the North Inch 10 holes course with other various golf clubs until 1887, when it migrated to its present unique setting of Moncrieffe Island, the only golf course completely surrounded by water in UK. The new course was laid out by the famous St Andrews Professional, “old” Tom Morris (1821- 1908) a 4 times British Open winner in the 1860s and prolific course designer, the course was opened by Lord Provost Dewar on 19th June 1897. The first ladies medal was played in November 1897 and by June1898 the club had 370 members. During WW1 the course was open but only ticking over, for part of WW2 it was reduced to 9 holes with the other 9 holes being cultivated for crops and grazing. Disaster & Recovery

In March 1955 the old wooden clubhouse was burned to the ground despite the heroic efforts of the local fire brigade to get fire fighting equipment across to the site. This was a devastating blow, which destroyed many records and trophies from the early days of KJVI GC History, to say nothing of valuable equipment belonging to individual members of the club. From donations, money raised by members and insurance a new pre-fabricated clubhouse and kitchen was built by Tarran and opened by Jessie Valentine (Anderson). At the KJVI GC Centenary Dinner the Captain Donald Peggie in reference to the fire said “We as a club had lost a great deal in way of trophies and records and much of the most tangible part of our tradition. We did not lose our spirit. This spirit

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led to the replacement of the club-house with the present fine building, and the club rose like a Phoenix on its dead self.” Major tree planting was undertaken during the 60’s and 80’s with over 1,000 planted on both occasions, to provide extra 172 lockers a portable cabin was floated across the river in 1975 using buoyancy barrels. At the end of the 1970’s an extension providing a new flat for the Steward, Professional Shop and extra locker room was built. When the River Tay flooded parts of Perth in 1990 and 1993 the course suffered damage but thanks to the members that volunteered to help the green staff, the course was playable for both summers. Notable Players Over the years the following members have represented Scotland at golf Eric Lindsay, Mark MacDiarmid, Sam McLaren, Paul McPhee, Ian Redford (all as Boy Internationalists), George Rutherford (under 25), Brian Grieve (Senior). In addition the following members have become Golf Professionals Mark MacDiarmid, Tony Coles, Gordon Clark, Keith Salmoni, Craig Stephen, Mark Pirie, Niall McGill, Brian Leishman, Jamie Anton, Sam McLaren, Ian Redford and Neil Cameron. It is unlikely that the KJVI golfing record of Brian Grieve having won the Matchplay Championship 18 times and Stroke play Championship 20 times starting in 1969 and covering six decades will ever be matched. Social Events In 2008 to help celebrate the 150th Anniversary a programme of social events was organised by T & H Promotions, which started with a Sportsman Dinner where Provost John Hulbert called the King James VI course “A Jewel in Perth’s Crown” perfectly describing the stunning attraction that awaits golfers of all standards. These successful events having continued, plus the opportunity given to play in Open Competitions allow members and visitors to enjoy King Jimmy the friendliest Golf Club in Perthshire.

The legal status of our club

King James VI golf Club is a non-profit making body and our object shall be to provide facilities to participate in and promote the enjoyment of the game of golf.

In 2013 we signed a new 20 year lease of the Island with Perth & Kinross Council, with the option

to extend this for another 20 years at the end of the period.

Do we view our Club as a business?

The Golf Club operates as a business to serve its Members. The committee are responsible for all financial management within the Golf Club. The committee main financial obligations are to make sure expenditure is not allowed to exceed income. What is our Golf Club’s Business Plan designed to achieve? The idea behind the business plan is to allow continuity throughout the committee over the next 5 years. It is also been designed to identify the Golf Clubs strengths and weaknesses. This to allow the ongoing committees to provide a plan of improvements and changes, for the operation and management of the Golf Club for the foreseeable future based on strategic direction and priorities. What time-frame is this Business Plan based.

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The Plan is subject to amendment as required but to allow for continuity between committee changes it is established as a rolling forward plan. How have, and how will we engage our membership in the Business Planning Process In August 2013 we invited the members to submit their views on the Golf Club as birdies & bogies. Also we held a Forum night facilitated by the SGU in the Club House. This enabled the Committee to establish the positives and negatives within the Golf Club. In the future, we will continue to consult our members and ensure they are kept involved and advised in the development of our Business plan. Regular Member Surveys, Open Evenings, etc. will be organised.

Situational Analysis

Understanding our club’s situation is an important part to help plan its future. By undertaking

these exercises we understand where the Club is, and which direction it should go.

SWOT Analysis

Our SWOT analysis is designed to identify what we are good at, what we can do better, as well as

the things which may have a positive or negative impact on our club. This is our Club’s SWOT

which includes the input from our Members Survey & Forum in August 2013.

Strengths Weaknesses Club History

Course Layout & Condition

Active Ladies and Seniors Sections

Excellent catering facilities

Friendliness of members and staff

Members willing to help out

Good progressive Committee

Competitive Golf at all levels

Social Activities

Members booking system in full operation

Location

Under-use of Clubhouse Facilities

Access

Reducing Membership

Too many competitions

Course condition/appearance

Parking

Small lockers

Opportunities Threats Member gets Member incentive.

Development of golf packages

Near to the centre of The City of Perth

The decline of the North Inch Golf Course

Packages for Hotels, B&B’s, etc.

Ryder Cup

Using Perthshire as a well known golf and general vacation destination

Economic downturn in members and visitors

Ageing membership

Lack of juniors coming through the club

Local competition

Climate Changes

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More Of / Less Of

Every club has things that they would like more of, and things that they would like less of. This

is our Club’s list of these things taken from the member’s survey and forum in August 2013.

This will be reviewed as part of our existing member’s yearly survey.

To be carried out in the month of September 2014

More Of Less Of Good first impressions of the club

Midweek golf : visitors & members

Members acting as ambassadors

Realism – realistic expectations

Money: long term financial planning

Volunteer help from members

Consideration from council towards parking & access to club (members & visitors)

Better ease of access – ramps @ bridge

Young Members (Juniors)

People with business acumen on committee

Visitor awareness of courses’ uniqueness

Communication – more channels, more feedback from members, more feedback to members

Improvements to course appearance

Considerations shown to Juniors

Visitors & Members Guests

Member use of facilities

Lady Members

Effective marketing of club

Cooperation with local clubs

Practice Facilities (pitching etc.)

Moaning & negativity in membership – inside and outside the club, more listening by the membership

Poorly behaved Saturday visitors / visitors on a Saturday morning

Medal Golf

Acceptance of bunkered vouchers Slow Play on course

Financial Analysis

To get an understanding of our club’s financial situation we have completed a Financial Analysis

Spreadsheet (see appendices). Using the information in this we have identified a number of

noteworthy recent financial trends at our club:

Recent Financial Trends at our Club

1. Membership income remain almost same despite membership numbers falling

2. Visitors income showing steady decline year on year

3. Payroll savings offsetting potential losses

4. Finance costs reducing but can’t be sustained as replacement under 5 year plan

5. Servicing and repairs dropped as new plant more reliable

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Take this opportunity to identify up to five future financial targets that the club must achieve as part

of this plan:

Future Financial Targets at our Club

1. Net increase of 35 new members by 31/10/2014.

2. Visitor’s income to be up by 7.5% by 31/10/2014.

3. Payroll & hire-purchase costs to be below 75% of membership fees by 31/10/2014

4. Bar gross profit to remain above 60%

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Section 2: WHERE ARE WE GOING?

Purpose We have chosen the words that featured most prominently in our Situational Analysis to create a Statement of why our club exists; our Club Purpose King James VI Golf Club, Perthshire’s Friendliest Club, will offer to its members & visitors a fun, challenging and an enjoyable golfing experience for all ages on the only Inland Island Golf Club in the UK. Golf Club Core Areas With our Club Purpose at the centre of everything we do, we have identified the most important Parts of our golf club - our Core Areas.

The main core areas of our Golf Club Finance and Governance: King James VI Golf Club is managed by good housekeeping principles to ensure its financial stability. The Course: Maintenance of a high quality Course using highly professional green keeping Staff and equipment. Members: The life blood of our Club, many of whom support the Club in differernt ways.

Visitors: We take pride in our friendly and welcoming environment at King James VI.

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Resident Golf Professional: King James VI Golf Club has its own professional golfer on hand to give lessons and advice to member and visitors, he also has a well stocked shop to purchase all your golfing needs.

Golf Competitions: As a Golf Club we have one of the most competitive fixture lists in the county. We also have annual open competitions in Ladies, Gents, Senior Gents and junior sections These enabling visitors to come and enjoy the golfing experience at our club at a competitive level. Junior Development: King James VI has an Active Junior Section with professional coaching sessions provided by our resident Golf Pro. These are the areas of the Club that deserve our greatest focus and have been split in to two categories:

Development Areas –these are the areas we will focus our attention on to maintain and develop the Club,

e.g. Retaining Members, New Member Recruitment, etc..

Framework Areas – these are the areas which are key to the Golf Club, e.g. the Course, Our Golf

Professional, etc..

Development Areas Framework Areas

New Membership Recruitment Our Course

Visitors Our Golf Professional

New Members retention Our Club Steward & Catering

Existing Members Retention

Section 3: HOW ARE WE GOING TO GET THERE?

This section is how our Club will achieve its purpose. For each of our Golf Club’s Core Areas, we have

identified:

A Strategy Statement; how this core area will contribute to our overall Club Purpose.

SMART Objectives; what we are seeking to achieve in this Core Area.

Initiatives; the ideas that will help us achieve our SMART Objectives.

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Development Area New Membership Recruitment

Strategy Statement

The Membership is our lifeblood

We need 500 adult members to operate efficiently

SMART Objectives

SPECIFIC – MEASUREABLE – ACHIEVABLE – REALISTIC - TIMED

Increase our present membership by net 35 members (target date 31st October 2014 Attract 10 new members this season from our new Get into golf program

Initiatives

Work in progress

Word of mouth (revisit) Member get member i.e. 1/3 off next year’s membership

Communicate benefits and responsibility for finding new members to the existing club members.

Example Freezing of Golf Club Fees if target is achieved providing the club has no unforeseen costs

Open Days welcome pack free lessons

E Mail communication to database visitors

2 months membership £80 (remember to up sell)

All advertising to have a unique reference code or ask where did you find out about KJ

Advertise at the College

GET INTO GOLF Adult beginners /beginners coaching/ beginners league 6 holes

Demo clubs /starter packs /old clubs

Members benefit list

Development Area New Membership Retention

Strategy Statement

Engage with all new members of the club

So they feel proud to be a part of King James VI Golf Club

SMART Objectives

SPECIFIC – MEASUREABLE – ACHIEVABLE – REALISTIC - TIMED

Reduce new membership attrition by 90% year on year.

All new members rate the welcome at the club as 8 out of 10 minimum.

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Development Area Visitors

Strategy Statement

Maximise enjoyment of visitors because visitor income accounts for 13% of our clubs

revenue

SMART Objectives

SPECIFIC – MEASUREABLE – ACHIEVABLE – REALISTIC - TIMED

Increase visitor revenue by 7 ½ % target date 31st October

Increase repeat Business by 5% annually

Visitors enjoyment score at 7/10 in survey ongoing

Initiatives

Work in progress

(all initiatives to be reviewed at the next sub-committee meeting)

Use Pro & tee-time software to find/fill empty tee-times

Promote existing deals

Yield Management of tee times

Repeat visitors offer financially bacon roll & coffee

Vouchers provided for open competition entries

Outings put up trophy, provide prizes , Photographs longest drive nearest the pin

Open competition package Bacon roll etc

Bridge problem juniors carry clubs

Members guest package for their work colleges

Positive feedback publicised on the web site

Survey visitors “did you enjoy our golf Course & Hospitality in our Club House (what was the weather )

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Development Area New Membership Retention

Strategy Statement

Engage with all new members of the club

So they feel proud to be a part of King James VI Golf Club

SMART Objectives

SPECIFIC – MEASUREABLE – ACHIEVABLE – REALISTIC - TIMED

Reduce new membership attrition by 90% year on year.

All new members rate the welcome at the club as 8 out of 10 minimum.

Visitors enjoyment score at 7/10 in survey ongoing

Initiatives

Work in progress

(all initiatives to be reviewed at the next sub-committee meeting)

Establish a retention of existing members plan

Interaction with new members through E Mail

Provide 4 week buddy golf

New member beginner coaching lessons from the Pro

New members day / night

Revisit new members pack

New members area of the web site 90 day survey

Round of golf with a committee member or club ambassador

Exit survey

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Development Area Existing Members’ Retention.

Strategy Statement

Engage with all existing members of the club

So they feel proud to be a part of King James VI Golf Club

SMART Objectives

SPECIFIC – MEASUREABLE – ACHIEVABLE – REALISTIC - TIMED

Membership Satisfaction score 8 - 10 in annual survey

Initiatives

Work in progress

Use tee-time booking system & pro to identify lone golfers

Annual survey

Annual members event

Communication web site communication letter

Captains invitational event

Members benefits list

Framework Area Course

Strategy Statement Maintenance of a high quality Course using highly professional green keeping Staff and equipment.

SMART Objectives

SPECIFIC – MEASURABLE - ACHIEVABLE – REALISTIC – TIMED

To continue to have a course that members are proud of and visitors wish to return to.

To continue to keep within set budgets to achieve this.

Initiatives

Continue to support our Green keeping staff in the work they do

Continue to encourage member volunteers to help on the course where applicable

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Framework Area Our Golf Professional Strategy Statement

King James VI Golf Club has its own professional golfer on hand to give lessons and advice to member and visitors, he also has a well stocked shop to purchase all your golfing needs. King James VI has an Active Junior Section with professional coaching sessions provided by our resident Golf Pro.

SMART Objectives

SPECIFIC – MEASURABLE - ACHIEVABLE – REALISTIC – TIMED

Maintain our working relationship with your professional as the main Ambassador for our club for both members and visitors

To work with our professional for development of juniors

Initiatives

Continue to encourage members to support our professional

Continue to involve our professional as the main Ambassador for the club

Continue to have an open dialogue with our professional to give feedback from members

Framework Area Catering

Strategy Statement We take pride in our friendly and welcoming environment at King James VI GC and the quality of food provided by our catering team

SMART Objectives

SPECIFIC – MEASURABLE - ACHIEVABLE – REALISTIC – TIMED To have a catering and bar service to be proud of that encourages members and visitors

alike to use the facilities.

Initiatives

Continue to encourage our members to use our catering and bar facilities to support our

steward

Continue to have an open dialogue with our steward as a committee to feedback member’s comments

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Section 4: WHO IS ACCOUNTABLE?

Staff & Volunteers

Having completed our plan we have reflected upon who will be expected to carry it out

successfully. For each of our Club’s Core Areas here is the responsible people and who will help

them:

Development/Framework

Areas of our Club

Person Accountable Supported By

Members Retention Managing Secretary Committee

Members recruitment Managing Secretary Committee

Visitors Professional Managing Secretary

Juniors Junior convenor Professional

Bar & Catering Club Steward Managing Secretary

Financial Management Finance Convenor Manager & Accountant

Pro & Retail Professional Committee

Facilities Captain & Committee Senior Staff

Training

In certain cases our staff and volunteers may need training to help them in their roles. Here are the

training requirements we have identified for our Staff & Volunteers:

Person Training Required

Green`s Staff T.B.A.

Management T.B.A.

Bar & Catering Staff T.B.A.

Section 5: HOW WILL WE KNOW WE ARE THERE?

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To know if we are progressing our Business Plan we need to keep score for each of our

Development Areas. These are our club’s Key Performance Indicators (KPIs) - the things that will

determine whether our SMART Objectives on track to being achieved:

Development Area Primary KPI

Membership All Category’s T.B.A.

Visitors Revenue T.B.A.

New Membership Get into golf T.B.A.

Membership Satisfaction score T.B.A.

Our Committee Meeting Agenda will consist of our KPI Report and any discussion required

around Core Areas that are not ‘Not-Target’

Ongoing Review

Our Golf Club’s Business Plan will only be successful if it is used and regularly reviewed, the

timetabled future review dates for our Club’s Business Plan will be reviewed:

April 2014

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Section 6: The One-Page Plan

Without today’s actions, we cannot achieve our Club’s Purpose. This page contains the immediate

actions that will be undertaken to achieve our Business Plan, the person responsible, and when it

will be done by:

Initiative By Who By When

The Plan Mike & Dougie 15th

April 2014

Finance Bill Ongoing

Recommendations Charlie &

Moira

Next subcommittee

meeting.

Get into Golf A N Other Update 30th April

2014

Membership satisfaction Mike 30th

April 2014

Visitors Allan & Dennis Ongoing

This part of the plan will be revisited every month and updated every three month

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Actual Actual Actual Actual Actual Budget Budget Budget Budget Budget

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Members subscriptions 176136 175,883 166,445 176,530 165,799 165,000 175,000

New member entry fees

Visitor income 46706 47634 43491 40,460 38,006 40,000 40,000

Proshop/Retail

Competiton / Event surplus 9260 10018 9141 14,101 7,357 9,000 9,000

Catering surplus 3120

Bar Surplus 41959 35488 34171 32,857 36,001 40,000 44,000

Gaming machine surplus 400 1660 -3 -460 696 800 800

Other income 62103 59744 63897 71,224 71,300 71,500 64,500

339,684 330,427 317,142 334,712 319,159 326,300 333,300 0 0 0

Clubhouse

Cleaning 8390 6,629 5413 9600 10794 10300 8000

Repairs, maintenance and renewals 7180 12,133 3313 2004 4902 2500 2000

Energy costs 10831 14,441 9881 11792 9984 12000 10000

Social function expenses

Team/match expenses

Sundry c/h expenses

26,401 33,203 18,607 23,396 25,680 24,800 20,000 0 0 0

Course

Payroll costs 79691 81,395 83258 83935 69126 71000 73000

Course rent if applicable 17349 14,961 18832 17753 17917 19000 19000

Water charges

Fuel 7887 4,932 6074 5758 7197 7500 7500

Machine maintenance and hire 16244 14,923 19257 10485 11877 13500 12500

Course Materials 15508 11,149 11060 11352 17932 18000 17000

Finance leasing costs 29935 27,531 27569 24605 12935 17000 25000

166,614 154,891 166,050 153,888 136,984 146,000 154,000 0 0 0

Administration and Customer Services

Payroll Costs 46558 56,929 50582 48991 49480 52000 53000

Professional / Retail 19660 20,653 19261 19897 19162 20500 21000

Insurance, banking, acctg, legal & prof fees 1601 1,469 1311 1478 1196 1500 1300

Golf union subscriptions 4583 3,465 4906 4980 4921 4963 5000

Non-recoverable input V.A.T 11200 12,101 9417 11371 11472 10000 10000

Postage & stationery 5953 6,573 4927 3238 2472 2000 2000

Marketing

Sundry expenses 60829 52,640 58660 61906 62063 62800 57300

150,384 153,830 149,064 151,861 150,766 153,763 149,600 0 0 0

Total Expenses 343,399 341,924 333,721 329,145 313,430 324,563 323,600 0 0 0

Surplus for the year before tax -3,715 -11,497 -16,579 5,567 5,729 1,737 9,700 0 0 0

Corporation Tax if applicable

Surplus for the year -3,715 -11,497 -16,579 5,567 5,729 1,737 9,700 0 0 0

King James VI Golf ClubSTATEMENT OF OPERATIONAL INCOME AND EXPENDITURE

FINANCIAL YEAR END -

Income

Expenditure

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