As a head professional of a golf academy, you are committed to being successful and to running a healthy business. This also includes the financial side of the job. How do you calculate the return on investment for your business? In this blog, we will take you through the definition of return on investment, how you can measure it and what the return of investment of the ProAgenda software can mean for your academy.
What is return on investment (ROI) and why is it important to measure?
Return on investment represents the ratio of costs versus income. As the term suggests, it indicates how much you’re getting out of what you put in. As a head professional, you will have to invest in certain things, including golf equipment, maintenance and software. It is important to gain insight into whether the investments will pay for themselves sufficiently. Do the investments directly or indirectly outweigh the income? The advantage of this calculation is that you can immediately see which investments are worth the cost.
How to measure the return on investment of your golf academy
There are several formulas with which you can calculate the return on investment. One of the most used methods is:
(Investment return – investment cost) / investment cost * 100%
For instance, if you need to invest 30,000 [KB1] dollars and the estimated turnover of this cost is 40,000, then the ROI will be: (40,000 – 30,000) / 30,000 * 100% = 33%
The ROI of your total academy can easily be calculated from the information that he ProAgenda dashboard will provide you. In just a few clicks, you can calculate the total revenue of the academy, which you can directly or indirectly link to your own expenses.
Investment in ProAgenda versus the return of using the ProAgenda software
The most important estimated return from using the golf management software is the increase in the number of lessons that are booked as a result of using it. If you want to calculate the ROI of the investment, you’ll have to optimally use the ProAgenda software, in this case we use an average package size with 3 golf professionals.
The annual cost of using the ProAgenda software is $948. Suppose you then book four extra lessons per month for 100 dollars per lesson. These extra lessons are the estimated result of your commitment in the aftercare, the reduced no-shows because of the automated reminders, and by using the golf CRM system.
Then the ROI will be:
(4800 – 948) / 948 = 406.3%
To clarify this calculation:
4 lessons x 12 months results in 48 extra lessons per year.
48 lessons per year x $100 per lesson results in an extra turnover of $4800.
4800 (48 lessons) = $948 / 948 * 100% = 406.3%.
This means that you will more than earn back the investment by selling only around one extra lesson every week.
Other benefits of using the ProAgenda software
However, the return is not always directly traceable to the use of the software. There are more aspects that contribute to extra lessons booked. The software promotes other benefits in addition to direct return. The return also consists of reducing no-shows and saves you a lot of valuable time because it relieves you of other communication and administration tasks.
Interested in running an even more successful golf business?
Interested in running an even more successful golf business and getting a grip on your finances? Find out more about the golf academy management software by downloading the case of reference.
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