Golf Course Business Plan Template

Golf Course Business Plan Template

If you want to start a Golf Course or expand your current Golf Course business, you need a business plan.

The following Golf Course business plan template gives you the key elements to include in a winning Golf Course business plan.

You can download our Golf Course business plan template (including a full, customizable financial model) to your computer here.
 

Golf Course Business Plan Example

I. Executive Summary

Business Overview

[Company Name], located in [Location] is a new golf course company that focuses on providing expertly designed golf courses for the general public, families, and players of all skill levels ranging from novice to expert. [Company Name] aims to be the most fun golf course in the area for individuals and families of all ages.

Products Served

[Company Name] will provide three different golf courses to choose from, ranging from the beginner course to the expert course. The company will also provide golf lessons and host golf tournaments and events.

Additional offerings include a full restaurant, lounge, golf store, children’s play area, and Frisbee golf options.

Customer Focus

[Company Name] will primarily serve the residents within a 20-mile radius of the facility. The demographics of these residents are as follows:

• 195,203 residents
• Average income of $46,000
• 49.3% married
• 40.5% in Management/Professional occupations
• Median age: 43 years

Of the above-mentioned residents, about 35% of the population are fairly active and regularly participate in a variety of recreational activities.

Management Team

[Company Name] is led by [Founder’s Name] who has been in the golf course industry for nearly 20 years. While [Founder] has never owned a golf course himself, he has been a golf club manager since age 21 and has spent most of his adult life working at golf courses. As such [Founder] has an in-depth knowledge of the golf course business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will fill a specific market niche in the growing community. In addition, [Founder] has surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent the business when launched.
• The location is in a high-volume area with easy access from multiple residential and commercial zones.
• The management team has a track record of success in the golf business.
• The golf course is a proven business model and has succeeded in communities throughout the United States.
• Local competitors leave a large gap in the market—there are multiple elite golf courses in the area catering to high-net-worth golf players who are serious about the sport. There are no golf courses that cater to the general public, families, and novice players.

Financial Highlights

[Company Name] is seeking a total funding of $7,000,000 to launch the golf course. The capital will be used for funding capital expenditures, manpower costs, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

• Golf course design/build: approximately $6,500,000
• Working capital: approximately $500,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial Summary	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$560,401	$782,152	$1,069,331	$1,379,434	$1,699,644
Total Expenses	$328,233	$391,429	$552,149	$696,577	$776,687
EBITDA	$232,168	$390,722	$517,182	$682,858	$922,956
Depreciation	$7,000	$7,000	$7,000	$7,000	$7,000
EBIT	$225,168	$383,722	$510,182	$675,858	$915,956
Interest	$6,016	$5,264	$4,512	$3,760	$3,008
Pre Tax Income	$219,152	$378,458	$505,670	$672,098	$912,948
Income Tax Expense	$76,703	$132,460	$176,985	$235,234	$319,532
Net Income	$142,449	$245,998	$328,686	$436,864	$593,416
Net Profit Margin	25%	31%	31%	32%	35%

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here] is a newly established golf course company that will provide a family-friendly recreation option for players of all skill levels to enjoy. The company will have three expertly designed golf courses suited to a range of skill levels from novice to expert. [Company Name] aims to be the most fun golf course in the area for individuals and families of all ages.

[Company Name] is led by [Founder’s Name] who has been in the golf course industry for nearly 20 years. While [Founder] has never owned a golf course himself, he has been a golf manager since age 21 and has spent most of his adult life working at golf courses. As such [Founder] has an in-depth knowledge of the golf course business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

[Founder] began researching what it would take to create his own golf course company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop his business plan in order to approach investors.

[Company Name]’s History

Once his market analysis was complete, [Founder’s Name] began surveying the local properties for lease or sale and located an ideal location for the golf course. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].

Once the lease is finalized on the property, the company can begin to build-out the golf courses and ancillary facilities such as the restaurant and lounge.

Since incorporation, the company has achieved the following milestones:

• Located available property that is ideal for golf course development
• Developed the company’s name, logo, and website located at [website]
• Hired a designer to develop the three golf courses
• Hired a general contractor for the build-out of the facilities
• Determined equipment and necessary supplies
• Began recruiting key employees

[Company Name]’s Products/Services

Below are [Company Name]’s product and service offerings:

• Golf course memberships
• Golf lessons
• Exercise classes
• Restaurant and lounge
• Children’s play area
• Golf store

 

III. Industry Analysis

The United States Golf Course industry is valued at an estimated $26.2B. The target market for most golf courses is composed of mid-to-high-income earners because memberships tend to be expensive. Households earning more than $100,000 in annual income represent a majority of golf course customers. The number of households in the U.S. in this category is expected to increase over the next five years, which means greater opportunities for the industry to grow after a minor decline since last year.

Over the past couple of decades, the golf course industry has changed significantly, moving away from catering to high-net-worth men and elite players and focusing more on attracting millennials, women, and families.

Consumers with disposable incomes are consistently on the search for new recreational activities to try. With a wide variety of recreational activities available, golf course owners need to do several things to compete with other types of recreational businesses. To be competitive in the market, industry operators should streamline their operations using the latest technology, maintain well-kept grounds and facilities, and ensure customer service is top-notch.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents of [Location] and its surrounding areas.

The community of [Location] has thousands of active children, teenagers, young adults, adults, and seniors who regularly participate in recreational activities.

Customer Segmentation

The Company will primarily target the following three customer segments:

1. Young Adults: Young adults make up the largest target market segment as these people spend the most time on recreational activities and have the time and energy to play them.
2. Students: The town has a large population of high school and college students who seek a place where they can have some fun activities with their family and friends. Also, there are multiple high schools and colleges located in the surrounding area.
3. Parents: The business will attract parents looking for an option to keep their children active and entertained, and for family-friendly activities they can do together.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following businesses are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Superior Golf
Superior Golf is an established golf course in [Location]. In business for over 30 years, Superior Golf delivers exceptional service for its elite golf club members. Superior Golf also offers a variety of amenities for golf club members including a full restaurant, bar, lounge, sauna, swimming pool, tennis court, and access to exclusive events.

Superior Golf serves serious golfers and charges premium prices.

Tee Time Golfing Company
Tee Time Golfing Company is a golf course catering to millennials who are looking for a fun place to spend time with friends and play a round of golf. The company offers a tiered membership package that includes full access to the golf course and additional amenities such as the bar, billiard room, and cigar lounge.

The pricing structure for Tee Time Golfing Company is more moderate that Superior Golf, but is still high for many families in the area. Additionally, this golf course targets adults and is not ideal for families with children.

Hole In One Golf
Hole In One Golf is also a local golf course that provides private golf lessons for aspiring players and serious golfers. The company has professional golfers on staff to provide these lessons as part of the golf club’s membership offerings. Customers can also enjoy the golf course’s other amenities including a swimming pool, exercise classes, and spa.

While Hole In One Golf has a similar pricing structure to [Company Name], and offers golf instruction, it caters to serious golfers rather than the general public.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Management: The company’s management team has [xx] years of golf managerial and hospitality experience that allows them to market and serve customers in an improved and more sophisticated manner than the competitors.
• Relationships: Having lived in the community for over 25 years, [Founder’s Name] knows all the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Great service at an affordable price: The complete array of services offered by [Company Name] rivals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these services at a much more affordable price.
• Location: [Company Name]’s location will be near the center of town, giving the company access to people going to and leaving work, school, colleges, clubs, and passersby shopping in the city.

 

VI. Marketing Plan

You can download our Golf Course business plan template (including a full, customizable financial model) to your computer here.

[Company Name] seeks to position itself as a fun golf course option for the whole family to enjoy. Consumers can expect a welcoming environment, friendly staff, and expertly designed golf courses for every golf player from the novice to the seasoned golfer.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Convenient location
• Customer-focused environment
• Moderate price point
• Multiple golf courses for varying ability levels

Promotions Strategy

[Company Name] expects its target market to be individuals living within a 20-mile radius of its location. The company’s promotion strategy to reach these individuals includes:

Social Media
[Company Name] will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO
The company will invest in developing a professional website that displays all the features and benefits of the golf course. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Local Publications
[Company Name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.

Major Publications
The company will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of [xyz] and [Company Name] can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost-effectiveness. These ads will include discount coupons so that response to the ads can be tracked.

Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.

Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Direct Mail
The company will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other incentives for people to visit the golf course.

Pre-Opening Events
Before opening the golf course, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Pricing Strategy

[Company Name]’s pricing will be moderate, so consumers feel they receive great value when choosing the company’s golf course.

 

VII. Operations Plan

Functional Roles

[Company Name] will carry out its day-to-day operations as a golf course. There will also be numerous administrative functions involved.

In order to execute on [Company Name]’s business model, the company needs to perform several functions. [Company Name] anticipates using the services of [X] employees, divided into the following roles.

Service Functions

• Golf course attendants
• Ancillary service staff (restaurant, store, children’s play area)
• Private lesson instructors
• Operations manager on duty

Administrative Functions

• General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
• Hiring and training staff
• Brand management/social media
• Customer service/front desk functions

Miscellaneous

• Maintenance personnel

Milestones

The following are a series of steps that lead to the company’s vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

Date	Milestone
[Date 1]	Finalize lease agreement
[Date 2]	Design and build out [Company Name]
[Date 3]	Hire and train initial staff
[Date 4]	Kickoff of promotional campaign
[Date 5]	Launch [Company Name]
[Date 6]	Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name] who has been in the golf industry for nearly 20 years. While [Founder] has never owned a golf course himself, he has been a golf manager since age 21 and has spent most of his adult life working at golf courses. As such [Founder] has an in-depth knowledge of the golf course business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Hiring Plan

[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

• Operations Manager: 1 full-time employee to manage the day-to-day golf course operations and assist [Founder] with managerial duties.
• Golf course attendants: 5-6 (to start) golf course employees who will work varied schedules.
  Ancillary Staff: 5-6 (to start) employees to work in the restaurant, store, and children’s play area.
• Maintenance Manager: 1 full-time employee to handle all golf course maintenance duties.
• Marketing manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
• Janitorial staff: 2 employees who will clean the facilities once it has closed for the day.

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from its golf course memberships and fees. The company will also generate revenues from sales from the restaurant, golf store, and event tickets.

The golf course lease, equipment, supplies, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:

• Salaries
• Golf course supplies and equipment
• Golf course maintenance
• Business Insurance
• Lease on property and utilities
• Taxes

Ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $7,000,000 to launch the golf course. The capital will be used for funding capital expenditures, manpower costs, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

• Golf course design/build: approximately $6,500,000
• Working capital: approximately $500,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of customers per day	Per location
Year 1	50
Year 2	75
Year 3	125
Year 4	175
Year 5	250
Annual Rent	$90,000

 
5 Year Annual Income Statement

		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
	Product/Service A	$151,200	$333,396	$367,569	$405,245	$446,783
	Product/Service B	$100,800	$222,264	$245,046	$270,163	$297,855
	Total Revenues	$252,000	$555,660	$612,615	$675,408	$744,638
Expenses & Costs
	Cost of goods sold	$57,960	$122,245	$122,523	$128,328	$134,035
	Lease	$60,000	$61,500	$63,038	$64,613	$66,229
	Marketing	$20,000	$25,000	$25,000	$25,000	$25,000
	Salaries	$133,890	$204,030	$224,943	$236,190	$248,000
	Other Expenses	$3,500	$4,000	$4,500	$5,000	$5,500
	Total Expenses & Costs	$271,850	$412,775	$435,504	$454,131	$473,263
EBITDA		($19,850)	$142,885	$177,112	$221,277	$271,374
	Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
EBIT		($56,810)	$105,925	$140,152	$184,317	$234,414
	Interest	$23,621	$20,668	$17,716	$14,763	$11,810
PRE-TAX INCOME		($80,431)	$85,257	$122,436	$169,554	$222,604
	Net Operating Loss	($80,431)	($80,431)	$0	$0	$0
	Income Tax Expense	$0	$1,689	$42,853	$59,344	$77,911
NET INCOME		($80,431)	$83,568	$79,583	$110,210	$144,693
Net Profit Margin (%)		-	15.00%	13.00%	16.30%	19.40%

 
5 Year Annual Balance Sheet

		Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
	Cash	$16,710	$90,188	$158,957	$258,570	$392,389
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$21,000	$23,153	$25,526	$28,142	$31,027
	Total Current Assets	$37,710	$113,340	$184,482	$286,712	$423,416
	Fixed assets	$246,450	$246,450	$246,450	$246,450	$246,450
	Depreciation	$36,960	$73,920	$110,880	$147,840	$184,800
	Net fixed assets	$209,490	$172,530	$135,570	$98,610	$61,650
TOTAL ASSETS		$247,200	$285,870	$320,052	$385,322	$485,066
LIABILITIES & EQUITY
	Debt	$317,971	$272,546	$227,122	$181,698	$136,273
	Accounts payable	$9,660	$10,187	$10,210	$10,694	$11,170
	Total Liabilities	$327,631	$282,733	$237,332	$192,391	$147,443
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	($80,431)	$3,137	$82,720	$192,930	$337,623
	Total Equity	($80,431)	$3,137	$82,720	$192,930	$337,623
TOTAL LIABILITIES & EQUITY		$247,200	$285,870	$320,052	$385,322	$485,066

 
5 Year Annual Cash Flow Statement

	Year 1	Year 2	Year 3	Year 4	Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)	($80,431)	$83,568	$79,583	$110,210	$144,693
Change in working capital	($11,340)	($1,625)	($2,350)	($2,133)	($2,409)
Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
Net Cash Flow from Operations	($54,811)	$118,902	$114,193	$145,037	$179,244
CASH FLOW FROM INVESTMENTS
Investment	($246,450)	$0	$0	$0	$0
Net Cash Flow from Investments	($246,450)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
Cash from equity	$0	$0	$0	$0	$0
Cash from debt	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
Net Cash Flow from Financing	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
SUMMARY
Net Cash Flow	$16,710	$73,478	$68,769	$99,613	$133,819
Cash at Beginning of Period	$0	$16,710	$90,188	$158,957	$258,570
Cash at End of Period	$16,710	$90,188	$158,957	$258,570	$392,389