This question is akin to saying “do I want my venue to perform well?” or “should I examine how we operate periodically?” The answer in both cases is “yes!” A better question is how do I get the most out of my facility? It’s a critical question whether you run a sports tourism destination or community recreation center. No matter the level of performance, it could always be better. This requires a process that can take facilities from where they are to the next level of operations.
Facility optimization is an intense examination of all aspects of how a venue operates. It drills down into a variety of areas including business development, daily operations, financial tracking, staff development, and space utilization. Community leaders and private developers are pursuing this approach as way of positioning their facilities for success. Is it the right time for your facility? Below are several scenarios in which facilities seek an optimization solution:
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Your Facility is Underperforming
The primary reason why venue owners pursue optimization services is because the facility is not meeting its established goals whether they are revenue-related or economic impact goals. The facility may be having a negative fiscal impact on the municipality’s budget while not reaching a level of satisfaction among residents. Or there may be a need to reduce a subsidy.
An optimization study helps determine the gap between goals and performance and diagnosis the causes. A plan is developed from this information, which often includes a project management timeline. An optimization plan should be supported by a detailed 5-year financial forecast. This is a critical because it provides the data necessary to ensure that the changes to your facility meet the market opportunity that was identified through the optimization process. The financial forecast includes a 5-year cash flow forecast, a right-sized program plan, and a rundown of direct and variable costs, projected revenues by project or product, facility and operating expenses, and utilization projections.
You Want to Maximize the Performance of Your Venue
Often times, the opposite scenario is true. While your facility is serving the community and experiencing solid growth, it’s still a good time to evaluate your current business model and operations. An optimization report includes a detailed examination of demographics and socioeconomics in your region as well as a competitive analysis. These report components provide a clear picture of how your facility can best serve the community around it and opportunities to standout from competitors. It also provides insight on opportunities to enhance performance, whether it’s changes in the facility, developing new programs, or a new approach to marketing the venue, for example.
Your Facility Must Meet the Needs of an Evolving Community
While we all know that communities change with time, we may not always grasp how that impacts consumer preferences. The optimization process provides an analysis of trends in sports, events, recreation, and wellness participation rates in the surrounding region. Through this process, it’s also important to communicate with the local community and its stakeholders to determine their current interests and how your facility can remain relevant through its amenities, programs, and events.
New Venue Leadership
Changes in venue leadership are great times to seek expert guidance from experienced facility operators. An optimization study can provide a great opportunity to assess all aspects of operations and develop a plan that bolsters the abilities and processes of the new venue leadership. A shift in leadership can be both stressful and hopeful. An optimization study can help direct efforts on the specific strategies and tactics that can lead to overall success from the start.
If you are ready to maximize the performance of your facility, meet new challenges, and delight guests, you’re ready for optimization. Call us today at 727-474-3845 or click here to provide more information about your project.