Golf Digest reports that roughly 20 million Americans play golf every year, with a large number of them being millennials. That means that not only is golf as a sport in a healthy place, it certainly indicates that the long term prognosis for golf as a business is solid. Golf offers enthusiasts to play well into their golden years which means that the younger generations who are developing a love for the game now can spend decades playing. What does that mean for you? It means that your dream of starting your own golf course may be a solid investment opportunity. Here are some things you should know.
Know Your Cost
As is the case with any business upstart, it’s most vital that you know how much money you need access to to make your dream a reality. To install a golf course, you’ll have to have access to roughly 200 acres of land. The area in which you’re looking to develop your course will dictate the price of that much land, but you should plan on a decent amount of money for it regardless. There will also be a fee for bringing in a professional to design your course and then the actual work of constructing it. If there are steps of the process that you know how to do personally you can save yourself some startup money, but you’re still going to be looking at between 1 and 2 million dollars on average. But remember: this investment is designed to generate income for decades.
Know Your Market
This sounds elementary, but it has to be stated: know the market that you’re looking to start a golf course in. If your hometown isn’t a place where golf is popular, you would be foolish to sink a huge amount of money into putting in a golf course there. Reach out to people in your community, send out mailers, and even talk to local sporting goods stores to get a read on how many people in your desired area play golf. Find a market for your course instead of building a course and trying to attract a market.
Multiple Revenue Streams
When you’re developing your business plan, be sure to take into account every way that your course can make money. While your primary revenue stream will be course fees (what people pay to play on the course), it’s important to find other ways to generate income. Offer golf lessons to beginners, have a bar and grill in the club house, rent out clubs to visitors, and find other ways to up-sale every person who comes for a day on the links. Every dollar counts.
If you take your costs into consideration and then maximize your revenue potential, your golf course goal can become a long term investment opportunity.