Do you want to start own golf course business?

Are you planning to build a golf course? Although starting a golf course requires a high initial capital but its monthly and maintenance cost are extremely low as compared to other businesses of similar magnitudes. That’s why this business yields profit within a very short time of its launch.
If you have successfully surveyed the area where you are going to start your golf course and accurately calculated the demand or need for a gold course then you can assume your venture to become extremely profitable. In such case, there is a very low amount of risk associated with it provided that you plan it successfully.
So before you move towards this venture, you will have to prepare a comprehensive business plan which will establish the basis of your company’s future operations and decisions. It will help you determine everything, like identifying the finances and personnel needed for the startup, identifying the target customers, allocation of proper resources for its operation and maintenance.
So, if you are wondering how to write an effective business plan then here we are providing you the business plan for a convenience store business startup named ‘Eden Golf’.

Executive Summary

2.1 The Business

Eden Golf will be a fully licensed and insured golf course, located at a 30-minute drive from Downtown Manhattan in the New York City. An 86 acres, 18-hole facility which was previously used as Star Golf Course for ten years has been acquired to be turned into the new course. The Star Golf Course has closed seven years ago due to financial reasons, that’s why it has gone out of shape and requires extensive landscape work. The work has already been started and will be completed within the next three months before the course launches in April. In addition, the following equipment needs to be purchased:

  • Driving Range Equipment
  • Food Equipment for Snacks Bar
  • Landscape Maintenance Equipment

Thirty-five golf carts will be leased to make sure that there is sufficient transportation for the guests and members using the course.

2.2 Management

Eden Golf will be owned and operated by Mark Wilton who is an American professional golfer and one of the most successful golfers of all time.

2.3 Customers

Our customers or members will either be the local residents living near us or the professional players who will visit us from everywhere. Mark will guide and train the members as well as play with them occasionally. Our membership prices are 10% less as compared to that of our competitors. The prices are deliberately set to be lower so as to increase the popularity of this sport in public which is the primary goal of Mark. A snacks bar, a driving track, and a pro shop will also be provided along with the facility.

2.4 Target of the Company

The main target of Mark is to bring back the popularity of this sport through his venture while also generating substantial revenue. He also aims to balance the initial cost of the startup with earned profits by the end of five years.

Golf Course Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Eden Golf will be owned by Mark Wilton. Mark is an American professional golfer and is one of the most successful golfers the world has ever seen. He was one the highest-paid golfers in the world for several years. Following an outstanding junior, college, and amateur career, Mark was 22 years old when he started to play professionally. Within the course of next 20 years, he had already won four PGA tour events pocketing millions of dollars at the time. He reached the number third position in the world golf rankings in less than a year after turning pro. Mark remained the most famous player in golf for the last 30 years until his retirement last year.

3.2 Why the Business is being started

Mark has retired from the professional golf industry, a year before. Golf is his ultimate passion and he cannot imagine his life without it. That’s why he had always thought about starting his golf course throughout his professional career. This business is undoubtedly the best engagement of his precious time where he will remain in contact with various national and international golf players from around the world. Along with having a great time for himself, he will also serve the golf industry as well. He aims to bring back the popularity of this sport through his venture.

3.3 How the Business will be started

The golf course industry is not for everyone to step in. Staring a golf course requires an immense amount of initial capital and a professional-level knowledge of this sport. Mark has both of them. The business will be started by the huge amount of savings, earned from hundreds of competitions and golf matches throughout his career. The financial experts have forecasted following costs for expenses, assets, investment, and bank loans for the business plan.

Golf Course Business Plan - Startup Cost

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

Start-up Expenses  
Legal $75,500
Consultants $0
Insurance $62,750
Rent $22,500
Research and Development $42,750
Expensed Equipment $42,750
Signs $1,250
Start-up Assets $0
Cash Required $322,500
Start-up Inventory $52,625
Other Current Assets $222,500
Long-term Assets $125,000
Total Requirements $245,000
Start-up Expenses to Fund $121,875
Start-up Assets to Fund $195,000
Assets $203,125
Non-cash Assets from Start-up $118,750
Cash Requirements from Start-up $0
Additional Cash Raised $118,750
Cash Balance on Starting Date $121,875
Liabilities and Capital $0
Liabilities $0
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Capital $0
Planned Investment $0
Investor 1 $312,500
Investor 2 $0
Other $0
Additional Investment Requirement $0
Loss at Start-up (Start-up Expenses) $313,125
Total Funding $265,000

Services for customers

Golf is one of the popular sports in the United States where hundreds of businessmen can be seen investing in it or thinking about how to buy a golf course. Buying an existing golf course or starting a new one is not the actual problem since the success of this business entirely depends on the services provided to the members. That’s where investors lack. Mark, having a lifetime of experience in this industry knows exactly which services to provide to the members. Eden Golf will provide following services to its members:

  • An 18-hole golf course
  • A Pro Shop
  • A Snack bar
  • A Driving range

Marketing Analysis of golf courses business

The most important component of golf course business plan is its accurate marketing analysis because it is only after this stage that a good golf course marketing strategy could have been developed. There are four main steps to carry out an accurate marketing analysis which are to identify the current market trends, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products and services. Marketing analysis a must be incorporated before you even think about how to run a golf course.

5.1 Marketing Segmentation

Our target market is the community living in the downtown Manhattan at a 30 minutes’ drive from our course. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. So nearly all of the people are well established and can easily afford our membership fees. A successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become the future members of our golf course.

Golf Course Business Plan - Market Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.1.1 Regular Players:

The first group of our customers will be the community living in the vicinity of our golf in downtown Manhattan. These residents are financially stable and can become the members of our golf course. The community comprises nearly 43% girls and women. Out of the 57% males, 23% are infants and teens, while 13% comprise of old age men. The remaining 21% middle-aged men can become our potential members. A small survey done by Eden Golf’s team in the neighborhood showed that 1 out of every 4 middle-aged men has an interest in playing golf. We hope to convert those persons into our members. They are regular golfers and just play for entertainment purposes. They will also use our pro shop for buying golf-related products and are also hoped to dine at the snacks bar.

5.1.2 Professional Players:

The second category includes the professional players which will become the major user of our facility. Many professional players based throughout the New York City are expected to use our course. We will provide separate professional-level facilities to these players. Due to the popularity and connections of Mark, we expect even the national and international level players to visit our course.

5.1.3 Guests and Audience:

The third category includes the audience and guests who will come to watch the games arranged at our facility. They will just have to pay a small entrance fee but their large numbers will generate the major chunk of revenue.
The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
Regular Players 34% 11,433 13,344 16,553 18,745 20,545 10.00%
Professional Players 48% 22,334 32,344 43,665 52,544 66,432 13.43%
Guests and Audience 18% 8,322 9,455 10,655 12,867 14,433 15.32%
Total 100% 42,089 55,143 70,873 84,156 101,410 9.54%

5.2 Business Target

Mark’s to increase the interest of the people in this sport while also generating sufficient revenue from the course. The business targets are to balance the cost of a startup within next 5 years of launch and to become one of the best golf courses in the New York City.

5.3 Product Pricing

Eden Golf will basically offer three types of packages to its members to choose from:

  • Monthly membership for $1000 per month
  • Semi-annual membership for $5000 per six months
  • Yearly membership for $8000 per year


After identifying the market trends, the market demand, and the potential customers, the next step is to develop an ingenious sales strategy to attract those customers toward us. Like marketing analysis, sales strategy is also an important component of starting a golf course. Many people have debated on how golf course marketing strategies can affect the sales and revenue generated from this business along with increasing the popularity of this sport. Many studies and researches in this industry have also concluded that there are a need for bringing new and innovative gold course marketing ideas to bring back the popularity of this sport and the associated revenue. It shows how important it is to develop an effective strategic business plan before entering this venture. Mark carried out an extensive research about various marketing and advertising strategies and current golf course business trends before developing an effective sales strategy.

6.1 Competitive Analysis:

Golf is one of the most popular sports in the world, especially in the United States. According to a study, “Golf Around The World”, there were more than 34,000 golf courses in the world as of 2015, 45% out of which are located in the United States. These 45% amounted to a total around 15,400 which has fallen from its peak value of 16,052 due to gradual, and steady, market correction. The number of these golf courses declines due to a variety of reasons, one of which was the limited attention paid to this sport and the golf courses, nationally and internationally. Similarly, the number of people who played golf also reduced but still amounted to about 26 million in the United States as of 2017. The stats show that the numbers of golf courses are far below as compared to the number of people who play golf that’s why this market has a lot of potential and competition as well.
The biggest competitive advantage for Eden Golf over its competitors is that it is a venture of a world-renowned golf player, who is being praised in every country of the world. It is basically the key differentiating factor between us and our competitors. Mark will guide and train the members as well as play with them occasionally. Our second competitive edge will a shuttle service which will run two times a day throughout the neighborhood to facilitate the movement of members, in case they want to avail it. Finally, our pricing strategy will also help to drive sales since our prices are 10% less as compared to that of our competitors. The prices are deliberately set to be lower so as to increase the popularity of this sport in public which is the primary goal of Mark.

6.2 Sales Strategy

After carrying out a detailed analysis of every aspect, we have come up with the following brilliant ideas to advertise ourselves and drive sales. This sales strategy has been specifically built to attract as many customers as possible toward us.

  • Mark will visit various golf conferences and seminars where he will introduce his new venture. He will also distribute his golf course business cards among the participants
  • A large-scale social media campaign for our advertisement will be carried out
  • Discounts on the membership for the first three months of the launch
  • A 20% discount will be given on the snacks bar and pro shop to the annual members of our course
  • Arranging the national level golf competitions on the yearly basis

6.3 Sales Forecast

Considering our low prices, free shuttle service, and the chance to meet an all-time golf expert on a regular basis, we hope to attract a lot of people towards us. Due to the quality of our golf course and our unparalleled customer service, our sales pattern is expected to increase with years. The sales pattern will vary throughout the year, with driving more sales in summer as compared to the winters. The sales from the eatables and drinks from the snacks bar will vary similarly but, on the contrary, sales from pro shop will not follow a regular pattern. In December many people buy golf-related products as gifts for their golfers’ friends and family members so that’s when our pro shop will come in handy.
By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

Golf Course Business Plan - Unit Sales

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Sales Forecast      
Unit Sales Year 1 Year 2 Year 3
Monthly Membership 187,330 260,320 258,240
Semi-annual Membership 802,370 815,430 823,540
Yearly Membership 539,320 770230 1,002,310
Driving range 265,450 322,390 393,320
Pro Shop products 1,435,320 1,250,430 1,762,450
Snacks 134,240 394,340 842,230
TOTAL UNIT SALES 3,364,030 3,813,140 5,082,090
Unit Prices Year 1 Year 2 Year 3
Monthly Membership $140.00 $150.00 $160.00
Semi-annual Membership $600.00 $800.00 $1,000.00
Yearly Membership $700.00 $800.00 $900.00
Driving range $650.00 $750.00 $850.00
Pro Shop products $140.00 $120.00 $100.00
Snacks $1,150.00 $1,300.00 $1,450.00
Monthly Membership $214,800 $274,000 $333,200
Semi-annual Membership $120,050 $194,500 $268,500
Yearly Membership $50,110 $71,600 $93,000
Driving range $139,350 $194,600 $249,850
Pro Shop products $62,350 $72,300 $82,250
Snacks $229,500 $365,500 $501,500
Direct Unit Costs Year 1 Year 2 Year 3
Monthly Membership $0.70 $0.80 $0.90
Semi-annual Membership $0.40 $0.45 $0.50
Yearly Membership $0.30 $0.35 $0.40
Driving range $3.00 $3.50 $4.00
Pro Shop products $0.70 $0.75 $0.80
Snacks $3.00 $3.50 $4.00
Monthly Membership $98,300 $183,000 $267,700
Semi-annual Membership $66,600 $119,900 $173,200
Yearly Membership $17,900 $35,000 $52,100
Driving range $19,400 $67,600 $115,800
Pro Shop products $27,700 $69,200 $110,700
Snacks $64,200 $224,700 $385,200
Subtotal Direct Cost of Sales $294,100 $699,400 $1,104,700

Personnel plan

The key to the success of a business is its careful planning in the initial stages. Just like the planning of other components, you must also prepare a Personnel plan before you think about business golf course. It is an extremely important stage because the success of any business significantly depends upon its employees. After getting counsel from other persons associated with this industry, Mark developed the following personnel plan for Eden Golf.

7.1 Company Staff

Mark will hire following staff for Eden Golf:

  • 1 Pro Shop Manager to manage and operate it
  • 2 Snack Shop Manager
  • 2 Administrators / Accountants to maintain financial records
  • 4 Sales Executives responsible for marketing and discovering new ventures
  • 10 Employees for operating and maintaining the Golf Cart
  • 1 Shuttle Driver to pick and drop members
  • 4 Cleaners for cleaning the facility
  • 1 Front Desk Officer to act as a receptionist
  • 3 Security Guards

To ensure the best quality service, all employees will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

 Personnel Plan      
Year 1 Year 2 Year 3
Pro Shop Manager $85,000 $95,000 $105,000
Snack Shop Manager $45,000 $50,000 $60,000
Administrators / Accountants $45,000 $52,000 $59,000
Sales Executives $85,000 $92,000 $109,000
Employees $410,000 $440,000 $480,000
Shuttle Driver $66,000 $73,000 $80,000
Cleaners $63,300 $70,000 $76,700
Front Desk Officer $20,000 $23,300 $30,000
Security Guards $40,000 $45,000 $52,000
Total Salaries $689,300 $750,300 $834,700

Financial Plan

Before starting this venture, Mark considered both the options of building a new golf course and buying an existing one. He hired financial experts to know how much does it cost to build a golf course and after proper analysis, it was evident that the cost of building a golf course is much higher as compared to buying an existing one. That’s why Mark bought the Star Golf Course to be turned into a new golf course.
The next step was to develop a detailed map about the financial projections covering all aspects of the company. The financial plan should craft a detailed map about the cost of startup, inventory, payroll, equipment, utilities and how these costs will be covered by the earned profits. The financial plan outlines the development of the company over the next three years and is specifically developed to achieve both the company’s short-term and long-term objectives.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

 General Assumptions      
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 11.00% 12.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 26.42% 27.76% 28.12%
Other 0 0 0

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

Golf Course Business Plan - Brake-even Analysis
The following table shows the company’s Brake-even Analysis.

 Brake-Even Analysis  
Monthly Units Break-even 5530
Monthly Revenue Break-even $159,740
Average Per-Unit Revenue $260.87
Average Per-Unit Variable Cost $0.89
Estimated Monthly Fixed Cost $196,410

8.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

 Pro Forma Cash Flow      
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40,124 $45,046 $50,068
Cash from Receivables $7,023 $8,610 $9,297
SUBTOTAL CASH FROM OPERATIONS $47,143 $53,651 $59,359
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47,143 $53,651 $55,359
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $21,647 $24,204 $26,951
Bill Payments $13,539 $15,385 $170,631
SUBTOTAL SPENT ON OPERATIONS $35,296 $39,549 $43,582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35,296 $35,489 $43,882
Net Cash Flow $11,551 $13,167 $15,683
Cash Balance $21,823 $22,381 $28,239

8.3.1 Profit Monthly

Golf Course Business Plan - PROFIT MONTHLY

8.3.2 Profit Yearly

Golf Course Business Plan - PROFIT YEARLY

8.3.3 Gross Margin Monthly

Golf Course Business Plan - GROSS MARGIN MONTHLY

8.3.4 Gross Margin Yearly

Golf Course Business Plan - GROSS MARGIN YEARLY

The following table shows detailed information about profit and loss, and total cost of sales.

 Pro Forma Profit And Loss      
Year 1 Year 2 Year 3
Sales $309,069 $385,934 $462,799
Direct Cost of Sales $15,100 $19,153 $23,206
Other $0 $0 $0
TOTAL COST OF SALES $15,100 $19,153 $23,206
Gross Margin $293,969 $366,781 $439,593
Gross Margin % 94.98% 94.72% 94.46%
Payroll $138,036 $162,898 $187,760
Sales and Marketing and Other Expenses $1,850 $2,000 $2,150
Depreciation $2,070 $2,070 $2,070
Leased Equipment $0 $0 $0
Utilities $4,000 $4,250 $4,500
Insurance $1,800 $1,800 $1,800
Rent $6,500 $7,000 $7,500
Payroll Taxes $34,510 $40,726 $46,942
Other $0 $0 $0
Total Operating Expenses $188,766 $220,744 $252,722
Profit Before Interest and Taxes $105,205 $146,040 $186,875
EBITDA $107,275 $148,110 $188,945
Interest Expense $0 $0 $0
Taxes Incurred $26,838 $37,315 $47,792
Net Profit $78,367 $108,725 $139,083
Net Profit/Sales 30.00% 39.32% 48.64%

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Golf Course Business Plan - Projected Cash Flow Diagram

8.5 Projected Balance Sheet

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.
The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

 Pro Forma Balance Sheet      
Assets Year 1 Year 2 Year 3
Current Assets
Cash $184,666 $218,525 $252,384
Accounts Receivable $12,613 $14,493 $16,373
Inventory $2,980 $3,450 $3,920
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $201,259 $237,468 $273,677
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $12,420 $14,490 $16,560
TOTAL ASSETS $198,839 $232,978 $267,117
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $9,482 $10,792 $12,102
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9,482 $10,792 $12,102
Paid-in Capital $30,000 $30,000 $30,000
Retained Earnings $48,651 $72,636 $96,621
Earnings $100,709 $119,555 $138,401
TOTAL CAPITAL $189,360 $222,190 $255,020
TOTAL LIABILITIES AND CAPITAL $198,839 $232,978 $267,117
Net Worth $182,060 $226,240 $270,420

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

 Ratio Analysis        
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 4.35% 30.82% 63.29% 4.00%
Percent of Total Assets
Accounts Receivable 5.61% 4.71% 3.81% 9.70%
Inventory 1.85% 1.82% 1.79% 9.80%
Other Current Assets 1.75% 2.02% 2.29% 27.40%
Total Current Assets 138.53% 150.99% 163.45% 54.60%
Long-term Assets -9.47% -21.01% -32.55% 58.40%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.68% 3.04% 2.76% 27.30%
Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
Total Liabilities 4.68% 3.04% 2.76% 54.10%
NET WORTH 99.32% 101.04% 102.76% 44.90%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 94.18% 93.85% 93.52% 0.00%
Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
Advertising Expenses 2.06% 1.11% 0.28% 1.40%
Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
Main Ratios
Current 25.86 29.39 32.92 1.63
Quick 25.4 28.88 32.36 0.84
Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 19.20% 21.16% 23.12% N.A.
Return on Equity 47.79% 50.53% 53.27% N.A.
Activity Ratios
Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19.7 22.55 25.4 N.A.
Accounts Payable Turnover 14.17 14.67 15.17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1.84 1.55 1.26 N.A.
Debt Ratios
Debt to Net Worth 0 -0.02 -0.04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120,943 $140,664 $160,385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.45 0.48 0.51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23.66 27.01 30.36 N.A.
Sales/Net Worth 1.68 1.29 0.9 N.A.
Dividend Payout 0 0 0 N.A.

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