What is a Profit-Driven Budget?

The profit-driven budget is a bold new approach to developing and using a budget as a guide to set and meet financial goals. 

Traditional methods of creating and using budgets aren’t effective:

• Too time consuming

• Doesn’t provide key insights

• Creates a backwards approach to meeting “profit” goals

• Are created and forgotten

The profit-driven budget approach turns traditional upside down:

• Easy to create 

• Easy to understand  

• Easy to use

• Highly effective 

A profit-driven budget is a budget process and tool that drives real action towards goals and objectives that matter most to a club’s financial success.

The process identifies a specific allocation of Costs/Expenses based on known Revenue and Profit targets, an evaluation of those costs, and development of strategic metrics of key targets and goals.  

No budget experience necessary. We can produce the most effective budget you’ve ever had, or simply compare your budget with our “best-practice” allocation budget to see where you might have opportunity.

No more spending hours upon hours trying to create the ultimate strategic plan, or developing metrics and KPIS that just simply do not matter. MavrIQ’s approach is BOLD and unique but more importantly, results driven.

Welcome to the MavrIQ world of managing golf courses, it’s going to change your view on profits in the golf business forever.

A Successful Budget Process

This is what a typical and traditional budgeting process looks like. It is outdated and ineffective. Let’s review what a well-planned traditional budget process looks like:

• Start with strategic planning

• Create Goals and Objectives 

• Develop tactics and timelines

• Drop in last year’s financial data as a reference point

• Spend hours upon hours going through every revenue and expense item for usefulness and integrity

• Decide where and how much to adjust the new budget numbers using analysis from review exercise and new goals

• Decide if we are happy with the new “profit” and if we aren’t, make some minor adjustments until we see a slight growth of profit

• Get budget approved (where applicable)

• Provide managers with new budget and tactical objectives

• Use flash reports to help make decisions that will ensure targets are met

This is what most of today’s operators do to create next year’s budget (if they create one at all) and manage the process. There simply isn’t enough time to do it right. Operators are asked to do too much and to find time to effectively produce a salient budget and planning strategy just isn’t in the cards, not to mention the data is overwhelming:

• Strategic planning – no time

• Drop in last year’s financial data, bump revenues by a certain % and expense by a certain % 

• Make sure profit grew a bit and we’re done

• Meet with managers and ask why they aren’t meeting budget (they have no control to make adjustments)

• Get monthly financials back and hope to exceed budget. If not, we hope a bit harder for next month and make excuses about the economy or weather

• Spend our days putting our fires and getting frustrated that we aren’t seeing the fruits of all our hard work

• Rinse and repeat

This is insane, time to stop this ineffective madness and start taking control of your financial performance. Managers have so much on their plate they simply can’t spend the time necessary to get it right. They don’t receive data quick enough to make the right calls, and don’t have tools that can lead them to successful change even when they see the problem.

Profit-driven Budget Process

• Analyze critical needs and choose the path to meet these needs

• Use profit-driven budget to set key performance indicators

• Ensure accurate, timely data is compiled and available to the dashboard

• Manage your indicators daily following insights and strategies to stay on target

• The only surprise will be how effective this system works