Golf is a captivating sport for many. Golf lovers even pay for golf club memberships or pay to visit their local golf course for leisurely enjoyment. What if you could spare yourself those expenses by building or purchasing your own golf course?
Where Does One Start?
Golf courses on the existing market cost less than a luxurious home. The average cost of building a golf course is $5 – $10 million dollars. Purchasing an existing course can range from $2.5 million upwards, depending on the location and other factors. The process begins once you have a particular property in mind that you would like to purchase. Consulting a broker who specializes in golf course properties is critical.
A lawyer is also key in assisting you to go through all the relevant legal paperwork to ensure all documents have been filed and everything is in order. It’s also important to look at how the previous owners operated the establishment and how they managed areas such as marketing, maintenance, daily operations, etc.
Once this is done, a golf course consultant may function as an effective advisor, helping you account for the areas of improvement, as they would be knowledgeable about the changes required to ensure your success. National Golf Foundation consultants can provide you with in-depth studies aimed at finding out if the property you’re looking into is worth it.
Generating Revenue
When purchasing a golf course, the potential for it to generate revenue is key in ensuring you are getting a return on your investment that is substantial. The type, of course, you intend to operate helps determine the ways in which you can earn revenue. Private clubs focus more on selling membership and ensuring that these members return annually. It is a more dependable source of income. Public courses focus more on selling green fees, attracting new customers, and keeping existing customers.
A pro shop is important, where you will the essential golf equipment like clubs, balls and so on. You can overprice these items due to the store’s convenience for those members or customers who may have forgotten their equipment. You can also rent golf carts and clubs if you desire, as an additional revenue stream. Golf lessons are also an option, as they will continually attract new customers, especially those new to and interested in the sport.
Operating food stalls or restaurants on your property can also help to generate income and will entice customers to return.
Location According to Lightspeed, if you intend to buy a golf course, location is critical. It is important that your golf course is located as close as possible to current and prospective golfers. That way your operation has a chance of flourishing as opposed to being at a location that does not have a high rate of consumers for your product. Factors such as the number of golfers, other courses in the area, and accessibility are important.
Operating a golf course has many risks. Consulting the relevant experts about the process, potential revenue, location, etc, will help to determine the viability of your investment and ensure your success.