In the current economic climate, it can be difficult for club owners to think about expansions and renovations to their facilities, but here are three reasons why this is the right time to plan or begin these types of projects.
A Turning Economy
Economic downturns are cyclical, and the most successful companies plan for the upturn so that they are ready when consumer confidence is on the rise. Renovations, adding new program elements and updating the look and feel of your facility are things that can help you capture members by providing more at a higher level than your competitors.
Best Dollar Value
The construction industry in most parts of the country is slow. The market is highly competitive, which means if you ask for three contractors or sub contractors to bid on a project, you will likely be receiving some of the best pricing in the past decade.
Reinvestment
As consumers evaluate how they spend money, they inevitably start looking at the value they are getting for their dollar. They want to see a reinvestment in the products, services and facilities that they are using and be confident they are getting more at your facility than the one down the street.
How can you capitalize on these things?
While surviving an economic down turn is tough, trying to predict when it will turn may be tougher. The key is to be ready.
Create a Master Plan for the Facility. This should define your needs, goals and potential projects. Master plans determine very specific things: the sequence of projects (so you aren’t reworking things you just finished), budgets and timelines for implementation. Master plans can look at timelines as short as one year or as long as 25 years – it all depends on your goals and constraints. A master plan can be a relatively inexpensive road map to the development of your facility, but be sure to consult with an architect or planner to determine what you are actually hoping to accomplish, since ultimately the cost is determined by the scope of the project you would like to tackle.
Poll Members Using Satisfaction Surveys. This will allow you to determine what they need or don’t need, and to find out what areas you can improve to make their membership experience more desirable.
Bring in a Design Team. The company you choose should have experience with club design. They should be able to balance priorities by helping to determine space constraints, design elements and club flow.
Determine the Scope of the Project. The design team should be able to help identify the true scope of the project. This is especially necessary if you are going to take advantage of the Best Dollar Value. Most contractors are happy to give you order of magnitude pricing early in the design process, but they need some type of documentation in order to price, which is typically done with drawings. Your design team can prepare schematic documents to take advantage of this, and it also gives you a benchmark for how much the project will potentially cost. In today’s climate you may find the estimate is within your financial reach, but if it isn’t, it will at least give you an outline to plan for.
Once you established a definite plan and a timeline, you can begin to share it with staff, members and potential members. Let everyone know what you are intending to do! This lets your team know what you are planning, so when members ask questions, they have answers. It also gives members the opportunity to get excited and comfortable with the idea of change. Finally, by celebrating what you are doing and its benefits with potential members, it will help drive sales and let everyone know you are reinvesting.
There are many things you can do in a downturned economy to be successful; plan now so you aren’t playing catch up when the economy booms! Take advantage of this slow time and maximize what you will inevitably have to spend in the future anyway.
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Bryan Dunkelberger is a principal at S3 Design, Inc. He can be reached via e-mail at bdunkelberger@s3design.com or by phone at 617.472.8804, or you can visit them online at www.s3design-inc.com.
