Donna Genie tells campground owners to focus on raising revenue instead of cutting expenses when cash flow tightens. A $1,000 revenue gain outweighs small cost cuts. Review major costs like utilities and insurance, then boost income through better guest experience, add-ons, and marketing.
What one piece of advice would I give to a brand new campground owner who perhaps has never owned a business before? Or what piece of advice would I give to a campground owner who has been in the business for a long time? That one thing is the same and let's discuss it. Many entrepreneurs go into business and one of their first things they do whenever anything is troubling with cash flow is to attempt to cut expenses. Cutting expenses is something you ought to pay attention to once in a while. However, it shouldn't be the primary focus of your energies if your business is having cash flow issues. Focus on raising revenue. What can you do to get more sales? What can you do to bring more revenue into the door? The answer to raising revenue will solve any of the problems that any business ever has with cutting expenses and it's a multiple exponential growth factor. If you grow your revenue by $1,000, that's equivalent to cutting expenses by a hundred dollars and it's a much easier job and will multiply throughout future uses. Yes, I do recomm that you take a look and not overspend on certain categories, especially things like utilities or insurance. Those things ought to be looked at on a periodic basis, but they will not save your business. At the end of the day, revenue will. Revenue cures all ails in a business, so focus on what you can do to bring more customers to your park. Have a better experience for your park, offer more add ons, amenities, other sources of revenue that you can achieve based on your current marketing efforts. If you're not doing marketing, you should be so contacting prior guests who loved your park. Ask them to come back. Also, marketing does not mean discounting, it means asking people to remember you and put you at the top of their list. So focus your efforts on growing revenue rather than cutting expenses because cutting expenses can cut you all the way out of business.
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