What Capital Investment Can I Afford?
“How much will this cost?” is the first question, each Owner asks.
“How much of an increase in your profit, do you wish to achieve?” is our company response.
The bottom line is that to increase sales and profit the owner needs to determine what must be done and what could be done with the course and budget accordingly.
Operating costs vary for a variety of reasons:
- Some owners have a large salary and others have none
- Some courses have a utility vehicle in the overhead
- Some courses have the ball and putter distribution done by another sales desk unrelated to miniature golf
- Some owners place a premium on having excellent maintenance which costs more.
Variables & Sensitivity
Any miniature golf operator should be aware that there are variables that will impact the plan including
- Higher operating costs
- Lower than expected attendance
The knowledge that these variables may occur will help the owner provide a hedge on his or her bet. The owner might make several financial analyses to show low, medium and high potential sales levels. Then, use the highest potential operating costs against each sale’s forecast. This Sensitivity Analysis enables the owner to adjust sales and operating costs that he or she believes are probable and then compute the potential capital investment to be made.
Starting the Renovation Process
Now if you are ready to consider a renovation or would like additional information on how doing so can help to expedite sales and increase your bottom line, please go to the AGS Contact Form at www.adventureandfun.com and fill out the information and email to our company. Or call us at 231-922-8166.