CFB XXX-PSP-BUSINESS LINE XXX (Golf Course or Curling Club or Base Fund etc.)
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CFB xxx-PERSONNEL SUPPORT PROGRAMSENTITY NAME i.e. Golf Course or Base Fund etc.
BUSINESS PLAN 2013-2016
Place local logo if desired
TABLE OF CONTENTS
Section 1 Executive summary page XX
Section 2 Company summary page XX
Section 3 User analysis page XX
Section 4 Services page XX
Section 5 SWOT analysis page XX
Section 6 Marketing & sales strategy page XX
Section 7 Milestones page XX
Section 8 Organizational summary page XX
Section 9 Risk analysis page XX
Section 10 Financial plan page XX
Annex A page
Annex B page
Etc.
1.0 Executive Summary
1.1 Annual Report
In a concise format, describe organization and organizational structure as well as the recent history of the facility/organization.
The cottage and campground facility isthe onlymorale & welfare facility under the CFB XXX PSP umbrella that offers a service to thewhole family. For over twelve years, this facility has provided a pleasant and affordableholiday destination for the CF community in XXX, the region and the country. We welcome up to 15,000 visitors every year and the facility has enjoyed consistent occupancyrates with a well-established clientele.
The first five yearsof operation were very difficult and in many aspects a learning experience; rates were set too low while expenses were too high andas a result tremendouslosses were incurred. In 2003, the accumulated losses had reached the $ 700K point. It became painfully clear that the operation could not continue this trend as it was forming a burden to the Base Fund that could not be sustained. A new business plan was implemented at the start of FY 2003/2004 with an overarching goal to reach the break-even point. To do this, severe cutbacks in staff were introduced as well as increases in rental rates. In order to achieve further efficiencies,it was decided in 2004to reduce the operation, for the winter months, to an amount of units (8) that could be maintained by one staff member.
Due to the above-mentioned measures and a rigorous adaptation of the new business model, the negative financial trend has now been arrested. The Net Income/Loss for FY 2010-11 was $ -15K, with a profit of $11K on a cash flow basis. The CFCF loan balance outstanding ($ 272K, at the end of FY 10-11) and related loan service expenses (~ $40K) remain to be a large expense item. The CFCF loan amortizes in 2018, therefore loan service cost are projected as per the straight line projection over the duration of this Business Plan.
In April of 2009 a differential pricing scheme was implemented that entailed the users that do not belong to the CF community, i.e. “associate members” to pay 15 % more than tier one users, “regular members”. This implementation was in line with existing NPF policies on club memberships and has produced a noticeable increase in revenues. The full impact will not be realized until the upcoming FY since bookings under the old price structure were still made for the first half of FY 10-11. The increase in revenues, over previous FY, for cottages and campground was mostly due to a combination of the two tier pricing system and an increase in occupancy rates (6% overall). If occupancy rates remain consistent, further gains are expected with the two-tier pricing system.
The quality of the facility was maintained as was evident by the results from the customer feedback surveys as well as the strong occupancy rates by CF members indicated that we were well within our value proposition and mandate.
We increased our weekday occupancy rates by 5% (cottages) over last year, which indicated that the marketing and pricing strategies were successful.
1.2 Results on previous year objectives
Repeat previous year’s objectives and describe the results.
1.3 Financial results
Operations
Fiscal Year / Net Income / Change in Cash FlowApril 1 2010
April 1 2011
April 1 2012
April 1 2013
Bank Balance
April 1 2010 / April 1 2011 / April 1 2012 / April 1 2013$ / $ / $ / $
Unencumbered cash
April 1 2010 / April 1 2011 / April 1 2012 / April 1 2013$ / $ / $ / $
Indicate a four year trend
1.4 Strategic priorities
The National strategic priorities are identified as follows:
· Ensure effective and efficient management of all NPF business lines
· Provide quality leadership at all management levels
· Identify future leaders and support their career development
· Responsiveness to the CF community's needs as it pertains to the delivery of Morale & Welfare programs
CFB XXX strategic objectives are as follows:
· Etc.
1.5 Outlook 2013/2014
Describe the financial outlook and main objectives for the upcoming year.
1.6 Outlook 2014/15 - 2015/16
Describe the financial outlook and main objectives for year 2 & 3.
2.0 Company Summary
2.1 Current status
The Golf Club is an 18 Hole full service golf facility located at XXXXX. The club falls under the direction of CFB XXX PSP. The golf course is widely considered to be one of the premier courses in XXX. Unforgettable scenery and meticulously kept turf conditions are the trademark qualities of the club.
The club operates with the Specialty Interest Activities (SIA) operating principles in mind which includes the fact that SIAs need to operate with the goal of financial profitability and sustainability. The membership rates are set with this key principle in mind and in conjunction with the competitive analysis (section 4.1) as well as the value proposition.
2.2 Entity History
In the early 1960's the idea of creating a golf course to service CFB XXX personnel and their families was proposed using Crown land around the site of the XXXX. With the addition of land owned by private proprietors and the considerable financial support and volunteer work of more than 300 Canadian Armed Forces servicemen, Royal Canadian Mounted Police members and civilian defense personnel the course began to take shape. The club was opened in 1965 with only three holes, which are played as holes 14, 15 and 16 today. Construction on an additional 6 holes began immediately and 9 holes were opened for play in 1967. With the help of a CFCF loan the 18 hole layout was completed in 1974. In 1991 a new clubhouse and driving range were built to better serve the membership and military community.
2.3 Past Performance
3.0 User Analysis
The following charts represent membership and green fee sales by category for fiscal year 2012/13.
The Military / DND community are the major users of the golf club. While membership sales in the regular category are less than in other categories, military tournaments and green fees are a significant part of the overall revenue and rounds played at the club. In fact, green fees sales for the military are larger than all other categories combined. One advantage of the membership package structure is that it allows an accurate understanding of rounds played by members in a given fiscal year. This, in turn, allows the club to better accommodate Military tournaments.
All Military/ DND personnel are able to access tee times in the same manner as all other club members. In addition to Military/ DND personnel who purchased membership packages, 240 Military/ DND personnel also requested access to tee times in 2012/13.
4.0 Services
Membership Rates 2012/13Package / 20 rounds / 30 Rounds / 40 Rounds / 50 Rounds / Unlimited Rounds
N/A / $ 650 / $ 850 / $ 1020 / $ 1600
N/A / $ 650 / $ 850 / $ 1020 / $ 1600
N/A / $ 850 / $ 1085 / $ 1325 / $ 1900
N/A / $ 990 / $ 1275 / $ 1530 / $ 2200
$ 430 / $ 630 / $ 815 / N/A / N/A
$ 280 / $ 400 / $ 500 / N/A / N/A
Definitions:
· Regular Members. The following persons are eligible for regular membership:
- members of the Regular Force and their families;
- members of the Reserve Force and their families;
- former members and their families; and
- foreign military personnel on duty with the Canadian Forces (CF) and their families.
· Ordinary Members. The following persons are eligible for ordinary membership:
1. DND Public Service employees/full time contractors (for the period of their contract) and their families;
2. former DND Public Service employees receiving a pension for DND service, and their families;
3. Staff of NPF, CF and their full time contractors (for the period of their contract) and their families;
4. former Staff of NPF, CF receiving a pension for NPF service and their families;
5. serving members of the RCMP and their families;
6. members of the Canadian Corps of Commissionaires, or other security force when employed at a CF location, and their families; and
7. staff of the C/MFRC and their families.
· Associate Members. Subject to the approval of the B/W/U Commander or his/her representative, any person not specified in paragraphs above may be invited to become an associate member. Associate membership shall be for one year with no guarantee of renewal for further one-year terms and may be renewed upon approval of the Executive Committee
· Intermediate Member - Junior in previous year, currently enrolled full time in post secondary education and not older than 23 years (as of June 1 of year of play)
· Junior Member - Between 10 years (as of May 1 of year of play) and 18 years (as of June 1 of year of play)
Green Fees Rates 2012/13Rates / 18 holes / Twilight
Regular / $32 / $17
Ordinary / $39 / $25
Associate / $59 / $35
Member/Guest / $50 / $30
* Ten round coupon available to military at a reduced rate of $280
Above is an example, describe your services and business operations.
4.1 Competitive analysis
You will have to ensure that a competitive market analysis is provided; to this end a competitive scan needs to be completed on your closest competitors. The analysis needs to be completed both on the quantitative and qualitative levels, in the sense that you are competing on price (quantitative) as well as value (qualitative). Below is an example of a qualitative scan.
Use the value proposition for SIA’s within PSP which is “a competitive price for a comparable product or service”
Our value proposition is:
A competitive price for a comparable product or service”
Membership fees / Green Fees / Entrance fee / Food and Beverage AssessmentOur club / $1600 / $32 / $0 / $200
Competitor 1 / $2237 / $59 weekday
$67.85 weekend / $2873 / $400
Competitor 2 / $1770 / $43 weekday
$51 weekend / $0 / $0
Competitor 3 / $2311 / $93 / $3500 / $300
Competitor 4 / $2526 / $95 / $5000 / $450
Competitor 5 / $2360 / $80 / $1750 / $500
Competitor 6 / $2100 / $48 weekday
$58 weekend / $0 / $300
5.0 SWOT Analysis
5.1.1 Strengths
5.1.2 Weaknesses
5.1.3 Opportunities
5.1.4 Threats
6.0 Marketing & Sales Strategy
6.1 Pricing strategy
What is your pricing strategy as it relates to sections 3 & 4 above? What are you doing to attract new customers and to retain your current members/clientele?
6.2 Discount strategy
What is your discount threshold? What do you base your discounts on? How do your discounts relate to section 6.5?
6.3 Promotion and brand development
What are you planning to do as it pertains to the strengthening and promotion of your brand, both to internal and external markets, needs to include an implementation plan…………what by when?
6.4 Social Media Strategy
What is your social media strategy and how does it tie into the rest of this section?
6.5 Value proposition & differentiation strategy
What makes you different from your competition, why should people use your services as opposed to other service providers?
6.6 Demographic data of primary and extended markets
Insert demographical information such as socio-economical data; where does your main clientele as well as extended markets reside in relation to your B/W/U and what challenge does this present?
7.0 Milestones
Highlight specific and major milestones (what by when?) as they relate and support to the objectives mentioned in section 1.
FY 13-14Base/Wing objective # 1 / Ensure all Base Fund business lines will be financially viable by end of FY 13-14.
Entity objective # 1 / · Increase membership income.
· Ensure that capital replacement program is in place and funded.
Metric # 1 / · Increase dues by 4% and green fees by 2%
· Complete a five year recap plan by end of season 2013
Base/Wing objective # 2 / Implement employee recognition program
Entity objective # 2. / Implement employee recognition program to include all employees (PT, FT and casual)
Metric # 2. / Organize staff golf tournament and Christmas party
Base/Wing objective # 3 / Conduct customer feedback survey and use results to improve quality of programming
Entity objective # 3 / Membership survey for all membership categories
Metric # 3. / Concluded by end of season with implementation of improvements in next playing season
FY 14-15
Base/Wing objective # 1
Entity objective # 1
Metric # 1
FY 15-16
Base/Wing objective # 1
Entity objective # 1
Metric # 1
8.0 Organizational summary
The organization’s staff complement is as follows:
Full-time year round staff
General Manager (1) - reports directly to the PSP Manager.
Course Superintendent (1) - reports to General Manager
Administrative Assistant (1) - reports to General Manager
Seasonal full-timestaff
Mechanic (1) - reports to Course Superintendent
Turf Care Staff (7) - reports to Course Superintendent
Bar/Kitchen Supervisor (1) - reports to General Manager
Bartenders (2) - reports to Bar/Kitchen Supervisor
Short Order Cooks (3) - reports to Bar/Kitchen Supervisor
Pro Shop Staff (2) - reports to General Manager