how much to open your own golf course

The median cost to build a golf course is $14 million, not including buying the land. The lowest-priced golf courses cost $7 million. Others cost as much as $25 million.

Full Answer

How much is a golf course really worth?

Those in the industry will tell you that a golf course that was purchased for $5 million in 2006 would be worth about $2.5 million today. From 2010 to 2014, there were a lot of distressed golf course assets put on the market by lenders, financial institutions, and bankruptcy companies.

How much does it cost to run a golf course?

The cost to achieve the condition players expect — or will tolerate — ranges from about $500,000 a year for a daily-fee course to $1,000,000 a year for a private club, estimates Bob Randquist,...

Is buying a golf course profitable?

While buying a golf course is a real estate transaction, golf courses aren’t like traditional real estate. Even thinking about price per round could be wrong. A $100 tee time in the evening could be way more profitable than a $200 tee time in the middle of a time slot when a company wants to host a large and profitable corporate outing.

How much land to build a golf course?

How Much Does It Cost To Build A Golf Course?

• Mobilization. Mobilizing the team to construct the course can cost anywhere from $10,000, requiring minimal work up to $100,000 for an elite course.
• Layout and Staking. ...
• Erosion Control. ...
• Clearing and Grubbing. ...
• Topsoil Strip. ...
• Rock Blasting. ...
• Earthmoving. ...
• Topsoil Replacement. ...
• Drainage. ...
• Irrigation and Pump Station. ...

More items...

Is it profitable to own a golf course?

Profitable golf courses are generally selling for six to eight times EBITDA, while courses that aren't profitable tend to sell at 0.8 to 1.4 times revenue.

How much money can you make owning a golf course?

Golf Course Owners make between $30,000 to several hundred thousand dollars per year. However, golf course owners sometimes will lose money if the course has a bad year. Overall, the golf course industry is very volatile, and there is no guarantee that money will be made.

How much land does it take to build a golf course?

“This means an 18-hole course of all short par 3s could be built on as little as 30 acres, while an intermediate length or executive course of 18 holes of par 3s and 4s would require 75-100 acres, and a full size par 72 course would need 120-200 acres.

How much money do you need to start playing golf?

Beginner sets start around $150 and go up to about $1000. Beginner golf sets are lightweight and usually have quite a bit of flexibility. A beginner set may come with a golf bag, and everything needed to get started on the course.

How many acres do you need for a golf course?

An average 18-hole golf course requires approximately 140 and 180 acres, while a 9-hole course requires 70 and 100 acres. A 9-hole par-3 course can be built on as little as 65 acres, while an 18-hole pitch and putt require around 25 to 30 acres.

How do golf courses make money?

Ways To Raise Money For Your Golf Course. The most common income streams are green fees, membership fees, pro shop sales, and food and beverage sales. While increasing membership fees or green fees might seem like a good way to increase revenue, it might put off more golfers than the additional income earned.

How much water do golf courses use?

In California, an average 18-hole golf course sprawls over 110 to 115 acres and conservatively uses almost 90 million gallons of water per year, enough to fill 136 Olympic-size swimming pools, said Mike Huck, a water management consultant who works with golf courses statewide.

What goes into building a golf course?

These are just some of the many steps that go into building a golf course....Steps in the Golf Course Building ProcessGrading. ... Drainage. ... Rough and Finish Shaping. ... Green Construction. ... Tee Construction. ... Bunker Construction. ... Grassing and Seed Prep.More items...

How much is a golf cart?

between $8,000 and $9,000On average, most golf carts will cost between $8,000 and $9,000. However, some golf carts can be priced as low as the $2,500/$3,000 range and some luxury golf carts can be priced at over $20,000. It depends if you're shopping for a new golf cart or a used golf cart.

Is golf for the rich?

Among other reasons, golf is famous to the rich because it is hardly accessible by anyone else. Some clubs can charge an annual fee to let you use their services, but some clubs can charge you more than $100 for a one-time fee. A box of balls costs $50, and the driver is about $500.

Why do rich people play golf?

Rich people play golf because they can afford the financial costs necessary to overcome its entry barriers. In addition, besides being an enjoyable activity, golf provides a certain social status, and it allows them to network with other wealthy individuals.

Is golf worth the money?

This question will vary for all golfers, but for the most part, golf is worth it. You can learn to play golf with a lower budget, but golf will be expensive for many players. If you are enjoying yourself and you can afford it, continue to play golf.

Due to the spread of the coronavirus, is this business essential?

No. Under current guidelines across multiple states, this business is not classified as essential while emergency orders are active.For more inform...

What are the costs involved in opening a golf course?

The costs associated with opening a golf course are significant. The largest upfront expense is usually land, as courses can require 200 acres of l...

What are the ongoing expenses for a golf course?

The ongoing expenses for a golf course business largely consist of maintenance fees for the course and any buildings on the property. In 2016, the...

Who is the target market?

A golf course’s ideal customer is an affluent golfer. Such a person enjoys the sport, and they have the money necessary to go golfing regularly.

How much can you charge customers?

According to Golfweek, most privately owned golf courses charge an average of $40 per round with a cart on the weekend. Weekday prices tend to be s...

How much profit can a golf course make?

In 2015, 69 percent of golf courses broke even (24 percent) or earned a profit (45 percent). The profitability of these courses varies greatly, dep...

How can you make your business more profitable?

Golf course businesses can add additional revenue streams and increase profits by hiring golf pros who offer lessons, putting in a pro shop that se...

Is this Business Right For You?

Anyone who is well-versed in a variety of aspects of business and enjoys golfing themselves may be qualified to run a golf course. It’s important t...

What happens during a typical day at a golf course?

During the golf season, there are lots of day-to-day activities that must be done. A few include: watering and mowing fairways, roughs and greens c...

What are some skills and experiences that will help you build a successful golf course?

Business owners that build a golf course from scratch should be familiar with golf course design. Even if they hire a golf course architect to actu...

What are the costs involved in opening a miniature golf course?

The costs of opening a mini-golf business vary, but typically run up $500,000. One professional group estimates that it will cost between $15,000 t...

What are the ongoing expenses for a miniature golf course?

The good news is that after the initial expenses to open a course, the ongoing expenses are relatively minor. Some of the costs will vary by busine...

Who is the target market?

In general, your best clients will be families. This is because the parents will help to control the behavior of children (which will not be true o...

How much can you charge customers?

The exact cost may vary by region, but it is typical to charge customers about $5 to $7 to play 18 holes. This pricing makes your business a very c...

How much profit can a miniature golf course make?

The exact amount of profit your business makes greatly depends on the region as well as what the local entertainment competition is. However, the r...

How can you make your business more profitable?

In order to maximize profitability, be sure to have an advertising presence in logical areas for potential customers, including schools, churches,...

Is this Business Right For You?

This job is definitely for someone who is enthusiastic about mini-golf. This helps you to not only enjoy your job but to facilitate minor repairs a...

What happens during a typical day at a miniature golf course?

The daily activities for a mini-golf business are pretty simple. You will be talking to customers, taking their payment, providing them with equipm...

What are some skills and experiences that will help you build a successful miniature golf course?

Prior experience working at a mini-golf business or other type of recreational center can be helpful to in starting this business. Similarly, being...

What is the growth potential for a miniature golf course?

The exact growth potential of a mini-golf business varies by area. Nationally, businesses that focus purely on mini-golf have experienced a decline...

How to market a golf course?

Golf course businesses can be effectively marketed through social media and online advertisements directed at area residents. Pur chasing advertisements on local sports radio stations is another effective way to raise awareness of a course.

How can a golf course business increase its revenue?

Golf course businesses can add additional revenue streams and increase profits by hiring golf pros who offer lessons, putting in a pro shop that sells equipment, installing a driving range adjacent to the course, or having a restaurant on site.

How many golf courses broke even in 2015?

In 2015, 69 percent of golf courses broke even (24 percent) or earned a profit (45 percent). The profitability of these courses varies greatly, depending on their location, prestige, fees and amenities. Some just barely broke even on the year, while others brought in sizable profits.

What is the primary product of a golf course?

A golf course business’ primary product or service is course fees, which golfers pay to play the course. These fees account for a significant portion of a business’ revenue, but they are far from the only source of revenue. Some other things golf courses sell are: golf clubs and other equipment. lessons.

What is a CO in golf?

A CO confirms that all building codes, zoning laws and government regulations have been met. If you plan to lease a location: It is generally the landlord’s responsibility to obtain a CO. Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a golf course.

Is it cheaper to buy an existing golf course?

Purchasing an existing business is sometimes cheaper, and it’s often perceived as less risky because the business already has a history. The Golf Course Market maintains lists of courses that are currently for sale and ones that will soon go to auction.

Who is qualified to run a golf course?

Anyone who is well-versed in a variety of aspects of business and enjoys golfing themselves may be qualified to run a golf course. It’s important to have a broad business background, because golf courses are multi-faceted businesses.

Golf Championships on SMGD courses

At Close House – Colt Course. Sept 2017. A prestigious European Tour Championship hosted by Lee Westwood.

The Cost of Building a Golf Course

It’s one of the most difficult questions to answer, but one of the most commonly asked, how much does it cost to build a golf course? The answer depends on a variety of factors; three of the most important being, what type of course the client wants, what type of land the course is to be built upon, and the competency of the golf course architect.

What is a business structure for miniature golf?

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation. Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your miniature golf course is sued.

What is a CO for mini golf?

Miniature Golf Courses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

Can I start an LLC myself?

You can start an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee. Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services.

How much did Doyle pay for the golf course in Florida?

The $3.8 million Doyle paid for the course, in Florida’s third-biggest market, is slightly more than the average purchase price ($3.1 million) for the 114 golf course sales tracked by Leisure Investment Properties Group last year.

What is the National Golf Foundation's GolfMAP system?

The National Golf Foundation’s GolfMAP system, for example, provides a detailed look at demand-related variables such as participation rates, golfing households, rounds played, interest among non-golfers, and household income in a particular region.

Where did Dan Doyle Jr. play golf?

E very day for almost 20 years, Dan Doyle Jr. passed the same public golf course near Tampa, Fla., while driving his kids to school or heading to the office. The town-owned Belleview Biltmore Golf Club in Bellaire was the venue at which Doyle learned to play the game as a youngster and he’d frequently feel pangs of disappointment ...

What to consider before building a mini golf course?

Another important factor to consider before building a mini golf course business is how much you can charge for tickets. This can determine how many people you attract, what kind of people, as well as how quickly you recoup your costs and make a profit.

What is the motto of a mini golf course?

The old real estate motto, ‘Location, location, location!’ also applies to building a mini golf course business. Choosing the right location can be a huge factor in determining your success.

Is it hard to build a mini golf course?

Building a mini golf course business is not as difficult as you might think. To start with, contracting a turnkey company like Mini Golf Creations to design, build and deliver a ‘ready-to-play’ course can make life a whole lot easier. However, before embarking on any new business venture, it’s very important to do your research to ensure your ...

Do you need a business to run a mini golf course?

Know the business. You don’t need any special qualifications to run a mini golf course business. In fact, once the course is built, the business will practically run itself with limited staffing and maintenance. It can also generate strong ongoing returns. However, it’s a good idea to know the ins and outs of running a mini golf business ...

How To Start A Custom Shop

Location…this is important….really important….find a spot that has very high traffic flow and is in a town or area where the niche is not being itched. It does not have to be the newest area for the retail spot, some of those are so high on rent that its makes the overhead to costly to ever be profitable.

How Many Square Feet Should I Get

Somewhere around (1500 sq. ft) is perfect for starting out. It will give you enough room for a repair area, custom fitting net, etc etc. To keep your overhead in check, look for used club racks, club repair equipment, launch monitors etc…EBAY is a great place for these items when you are starting out.

Inventory and Mission of the Store

For your inventory…you need to find out what niche you are going after in the custom club arena…There are basically three choices here:

Grand Opening and Marketing

We’ll your business is finally here and you are ready to open in a few months. Since this is going to be a local business I would suggest a simple website and working with a local web marketing person to develop a marketing plan for PPC (pay-per-click advertising).

Adding Employees

Now that the business is up and running…you are going to need people to help you. Always look for people smarter than you are…dont be afaid of that….its good they are smarter….listen to ideas….give people a bonus system or stake in the companies success.

Expansion into other areas

Last, always look to see if there is new businesess that fits in you core of knowledge. or expand your shop into another community with the same demographics. If you are at 200K in sales, maybe your business is maxed out at that point in that particular market…but there may be other markets you can apply the same knowledge to.

Evaluation

At the end of every year or half year..look at all areas of the business and see what can be improved. Get outside opinions from other business owners in your area and see what methods of marketing have worked well for them. Also keep looking for better ways to satisfy your clients needs.