Do you want to start a driving range? If YES, here is a detailed sample golf driving range business plan template & FREE feasibility report. A driving range is where golfers of all level go to practice or fine tune their golf swings. The difference between a driving range and an actual golf course is that golfers in a driving range do not need to retrieve their golf balls, no matter how many they hit.
A driving range business can be started by an entrepreneur who knows about the game and is also business savvy. It is however not an easy business to run and it also requires huge capital to start off as you would need to buy or lease a land and build or renovate the houses and stalls that should be on the range.
However, there are necessary items that would need to be in place if you intend starting this kind of business, such as determining where to build your driving range and also designing the layout. This might not be an easy task and so you would need the help of someone experienced to help you do this. Most entrepreneurs who go into this business usually hire a business consultant.
Hiring a business consultant who is reputable on knowledgeable in this field will be of a great help to your business. Next is in writing a business plan. However, while it might not be so easy for you to write a business plan as it would need to cover financial aspects as well, you might engage the services of a professional business plan writer. Below is a sample of a driving range business plan for you.
A Sample Driving Range Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The golf driving ranges have no dominant companies with a huge market share according to IBIS World; however, the industry sees revenue of $10 billion yearly and it was projected to have an annual growth of 3.1% between 2011 and 2016. In the United states of America, there are about 50,369 golf driving ranges that employ more than one hundred and twenty one thousand people.
During the period between 2011 and 2016, the industry’s revenue has improved even though many consumers seem not to have the time to practice their golf swings. What boosted the industry’s revenues were increase in leisure activities and fitness issues.
Revenue for 2016 to 2021 has been projected to grow as more driving ranges continue to enhance their products and improve in innovations so as to attract more customers to use the driving ranges even those that have less spare time to do so.
Also, to attract customers who operated on a budget, many driving ranges introduced coupons and discounts. Also, more driving ranges have started incorporating other fun activities like bowling into their businesses so as to bring in more customers.
According to statistics, the demand in the golfing industry is not only healthy but on a surge as well as more participation even in the PGA Junior League Golf has increased to 223% since 2013. Also, there has been an increase in more people wanting to learn golf and a retention rate of 73%.
However according to the National Golf Foundation, there has been a slight decline in the number of golfers in America but crucial areas such as pro golfers, novice golfers and those just interested in the game had their demand numbers remaining strong.
Golf courses asides from working to better manage resources such as labor and water more efficiently, are also making use of data and technology, this is to afford them the ability to innovate rapidly and also make better decisions.
More people not playing the sport are also watching as television ratings have gone up by more than 22%, which means more than 110 million people were tuning in to watch golf whenever a tournament was on.
2. Executive Summary
Green Swing Driving Range is a top driving range that is located at a strategic location here in West Palm Beach Florida that intends to serve our local, corporate and national clients. We would be offering several services to our clients asides from the membership deal that would see them practice their swings which includes trainings from a PG Pro as well as sales of practice balls and equipment.
We also have plans in place to ensure that we offer our consultancy services to those who are looking to start this kind of business as well for a fee. Our vision as a world class dedicated driving range is to ensure that we are the preferred driving range here in West Palm Beach and be amongst the top ten ranges in the United States of America by 2025.
We have strategic plans in place to ensure that we stand out from our competitors by engaging in intense publicity and advertising strategies. Some of the strategies that we would use in standing out from our competitors include offering special contests and promotion to increase awareness about our driving range; we would also ensure that we install our bill boards in strategic locations.
Technology is going to be incorporated into a huge part of our activities here at Green Swing Driving Range. We intend to build our own app that will ensure that our customers can still connect to us when they are not at the range physically.
We intend to create and generate interest for the game of golf by participating in local school programs and other community programs here in West Palm Beach Florida. We would ensure that we carry out our social corporate responsibility ethically.
We are going to source for and employ only competent and experienced employers who we know can well handle our business and take it to the height which we intend. Our employees will be well paid and well trained as well to better communicate our values to our customers.
We know the importance of customers to any business and so we intend to treat our customers with the utmost respect. Our loyal customers will get special discounts from us as we will do all we can to ensure that we retain our customers whilst seeking to attract new ones.
Finally, our Chief Executive Officer, Mr. Frank Cubacini is a businessman and entrepreneur with several successful businesses and will ensure that our business attains the height which it is intended for.
3. Our Products and Services
Green Swing Driving Range intends to offer world class service to all intending and pro golfers who are looking for a place to practice their shots. Our strategic location has made it very easy for us to be able to attract the kind of clients we want to our driving range.
However, we intend to offer other products and services as well in addition to our core service. This is because we believe in creating multiple sources of income so as to help boost and ensure that we have a healthy bottom line as an organization.
We however would not conduct any sell any products or services that does not fall under our category of incorporation or that is not permissible under the laws of the United States of America. Therefore some of the products and services we intend to offer at Green Swing Driving Range are;
- Membership fees
- Sales of practice balls
- Sales of golf equipment and clothing
- Offering of golf lessons/instructions
- Snack bar and café
- Consultancy and advisory services
4. Our Mission and Vision Statement
Our vision is to ensure that we become a first class driving range for advanced and novice golfers in West Palm Beach – Florida, and amongst the top ten driving ranges in the United States of America by 2025.
To achieve our intended vision, we would ensure that we help all levels of golfers regardless of their abilities develop their games by hiring PGA Teaching Pro to give out daily lessons, thereby ensuring that each customer’s fees are well utilized.
Our Business Structure
Green Swing Driving Range is a standard driving range in West Palm Beach Florida and to maintain a certain standard we know how it is important to get it right from the beginning especially as regards the business structure. It is for this reason that we have gone out of our way to ensure that we hire only the right employees who know what it means to run a driving range and who are willing to ensure that we succeed.
Due to our future goals and objectives, it is very important to us that we source correctly for only the right staff. Our management staffs for instance are all experienced and competent at what they do and have the required experience to make Green Swing Driving Range attain its vision and objectives of being amongst the top ten driving ranges in the United States of America by 2025.
Due to the fact that we intend to offer varied products as well as services to our customers, this will require us to hire more hands to fill in these positions than a conventional driving range that offers less products and services. Therefore the business structure that we intend to build at Green Swing Driving Range is;
- Chief Executive Office
- Range Manager
- Human Resources and Admin Manager
- Purchasing Manager
- Inventory Manager
- Marketing Executives
- Customer Service Executives
- Range Drivers
- Security Guard
5. Job Roles and Responsibilities
Chief Executive Office
- Creates the overall strategic direction for the company
- Recruits and selects the right management personnel to communicate the company’s goals and objectives to lower end staff
- Responsible for representing the company in high stake deals
- In charge of overseeing all the day-to-day tasks that goes on in the driving range
- Settles complaints for customers on behalf of the organization
- Ensures that the driving range runs smoothly without any hitches
Human Resources and Admin Manager
- Responsible for sourcing for and recruiting new employees on behalf of the company
- Responsible for carrying out trainings and assessment of employees
- In charge of overseeing that the administrative tasks are run smoothly
- Responsible for sourcing for reliable vendors and suppliers on behalf of Green Swing Driving Range
- Responsible for negotiating and reviewing contracts with vendors
- Drafts the purchasing budget after liaising with all the necessary departments
- Checks the inventory level of products stored and ensures that it correlates with documented figures
- Monitors incoming and outgoing inventory and ensures that it is correctly documented
- Liaises with the purchasing manager on the correct stock to get for the organization
- Is responsible for conducting marketing research and survey that will allow the company better penetrate the target market
- Carries out direct marketing that will boost the revenue of the company
- Identifies new markets and demographic information
- Prepares financial reports, financial statements, budgets, general ledger accounting and any other reports needed by the organization
- Prepares accurate tax documents and ensures that that it is submitted to tax authorities
- Ensures that all the accounts of the company is reconciled with that of the bank at the end of the month
Customer Service Executives
- Carries out interaction with customers physically and on the phone and uses very opportunity to communicate the brand of the company to the customer
- Responsible for ensuring that the database for customers is accurate and constantly updated
- Carries out any other duties as assigned by the administrative manager
- Ensures that players are driven round during practice
- Drives round the range before and after practice to ensure that no items were left behind
- Any other duties as assigned by the driving range manager
- Ensure that the driving range is kept clean before customers arrive
- Ensure that the rest rooms are kept clean before and after use
- Ensure that there is sufficient cleaning supplies at all times
- Ensures that everyone within the property is secured at all times
- Monitors the surveillance cameras to check out for any abnormality
6. SWOT Analysis
Even though we know how fine our business concept is, we intend to hire a business consultant to look through our business concept using a professional analysis and help us know if the business concept would sustain our business and help us be able to compete favorably with others in the industry.
The business consultant we hired was able to carry out a thorough SWOT (Strength, Weakness, Opportunities and Threats) analysis that allowed us know how we were going to fare in the Driving Range Business here in Florida and in the United States of America. Below is the result of the SWOT analysis that was conducted on behalf of Green Swing Driving Range;
Our strengths at Green Swing Driving Range are numerous. Firstly, our strengths lay in the fact that we have competent staff on ground to take our business from where we are to where we intend it to be. We also have several products and services in place to ensure that whenever there is a down time for golfing, our business still moves on.
Another advantage we have is the fact that our owner Mr. Frank Cubacini is an entrepreneur and businessman, who has the expertise in ensuring that our business gets to the desired level.
Florida has enough golf courses and so there are also plenty driving ranges that would pose as a challenge to our driving range business here in West Beach Palm. Nevertheless, we have strategies in place to ensure that we overcome whatever weakness we are likely to face whilst running the business.
More people are now developing interest in golf which means the opportunities that abound in this field is limitless. There are a lot of people looking for how to perfect their golf swings and novices and children looking to play the game either as leisure or as a build up to something more serious.
We know that as a business we are likely to face certain threats during the course of running and starting our driving range business, we are however prepared to face whatever threats that might crop up for Green Swing Driving Range.
The threats we are likely to face are other entrepreneurs starting up a driving range close to our location and offering similar products and services that we are offering. Also, there is the threat of having an economic downturn which is likely to affect how customers spend their money and how many would be willing to spend.
7. MARKET ANALYSIS
- Market Trends
The market trend for golf has changed as more people – children, young adults, adults and middle-aged – are now becoming interested in the sport. This has led to driving ranges becoming more innovative as regards what products and services they intend to offer their customers especially to the children as they intend to catch them at a young age. Any driving range that intends to make profit as well as favorably compete with other driving ranges must always remain proactive and innovative in the offering of services to its customers.
One trend that has enveloped driving ranges is how to keep its door open by offering different services to its customers. This usually includes adding extra conveniences such as aesthetics, which will not only ensure that the customer is retained but that they refer others as well, and making it easier for customers to locate their balls in the range.
Lastly, technology has also made a great impact on driving ranges, as a number of driving ranges now have apps that offer theoretical teachings to their clients. Also, the internet and social media platforms has caused most driving ranges to be able to penetrate other target markets that would not otherwise have been penetrated through conventional advertising means.
8. Our Target Market
Golf is no longer a sport for a certain group of people but is increasingly becoming a sport for everyone even children. Florida is known as a sport loving state and so we are perfectly located at West Beach Palms to attract the kind of customers we would need for our driving range business.
After conducting a thorough research, we have decided on three target market segments –Children, Adult, and Schools – for Green Swing Driving Range. The market research was essential as it allowed us know what we should expect from the target market and what would be expected of us.
We therefore are in business to cater to the following group of people:
- Young Adults
- Corporate Executives
- Government Officials
- Advanced golfers
- Business People
At Green Swing Driving Range we intend to build a business that will not only generate income, and compete favorably with other driving ranges but also become the preferred driving range here in West Palm Beach Florida due to its world class facilities and also be amongst the top ten driving ranges in the whole of United States of America by 2025. The above is the reason that we have come up with competitive advantage strategies that will help us stand out in the industry.
First off, we intend to ensure that we use real grass instead of artificial turf so that golfers – novice and advanced – who come to practice their swings will have a real feel of how a golf course should be. We also intend to make sure we have affordable rates and packages for all our various customers.
Another competitive advantage we intend to have against our competitors is to ensure that we have a solid business structure. A solid business structure will allow us hire only competent and experienced employees that not only know how to run the business but also understand the vision we seek to attain and work towards attaining it.
One thing we do not intend to compromise on is our excellent customer service. We know that our customers are the reason for our existence and so due to this we will employ several strategies that will ensure that we retain more of our customers. Our customer care executives will be trained in handling our different customers no matter the situation that might crop up.
Lastly, we intend to ensure that our employees are well taken care of by paying them attractive remuneration and ensuring that they undergo constant training that will enhance their skills and make them better than their colleagues in the market place. Also, we will ensure that our employees work in a conducive environment and that they have great welfare packages so as to enhance their productivity.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Green Swing Driving Range is a world class facility that has been established with the aim of ensuring that golfers both old and young practice their golf swings and become better. Even though this is a service oriented business, we intend to also derive income from products we intend to use in catering to all our various customers.
Therefore, Green Swing intends to generate income by providing the following product and services;
- Membership fees
- Sales of practice balls
- Sales of golf equipment and clothing
- Offering of golf lessons/instructions
- Snack bar and café
- Consultancy and advisory services
10. Sales Forecast
Golf is no longer seen as an elite sport as more people are now playing the sport which means demand is rising for driving range for either novice or advanced people seeking to practice their golf swings.
Our strategic location at West Palm Beach Florida is very favorable as we are very close to several golf courses, where Pros play, and are therefore optimistic about generating, meeting and even exceeding our target within a period of a year.
Before arriving at our sales projection, we carried out a critical analysis of the market in joint efforts with a hired business consultant, who analyzed our chances at succeeding in this market and then came up with the sales projections. The date and information used were accurate and were obtained in relation to similar start-ups here in West Palm Beach and in the whole of Florida State.
The sales projection for Green Swing Driving Range located in West Palm Beach Florida and based on certain assumptions is stated below;
- First Fiscal Year-: $1,900,000
- Second Fiscal Year-: $3,800,000
- Third Fiscal Year-: $7,600,000
N.B-: The above sales projection is based on the available data and the information obtainable in the industry right now. Should there be a shift in interest to other sports, an economic meltdown that will ensure that people no longer have money to spend, or the arrival of a major competitor; within the above stated period, this might result to a change in the sales projection, which might cause it to go wither up or down.
- Marketing Strategy and Sales Strategy
Marketing serves a dual purpose as it not only generates revenue for the company but also communicates the brand of the company for customers – both existing and potential. This is why we hired a marketing consultant to conduct a thorough marketing survey for us that will allow us determine how best we would penetrate the market.
The intention of this market survey is so that we could draft the right marketing strategies that will be effective in getting a share of the target market. Our marketing executives have been empowered to also create the right marketing strategies and also monitor, review or remove strategies that were not effective for Green Swing Driving Range.
We know the importance of the internet especially when it comes to marketing and so we intend to use our website to ensure that we market our products and services. We also intend to create a mobile app that will help golfers especially novices learn more about golfing and tip on how well to better their games.
We also intend to network with golf courses here in West Palm Beach Florida so that they could refer golfers who are looking for a driving range to practice their game at to us. Therefore, the marketing strategies we intend to adopt for the Green Swing Driving Range in delivering our products and services are;
- Throw a catered grand opening party and give out freebies
- Introduce our driving range business to corporate organizations, golf courses, and other stakeholders here in West Palm Beach Florida
- Sponsor relevant programs in schools in West Palm Beach Florida and in the local community as well
- Ensure that we use the internet as well as our social media platforms such as Facebook, Twitter and LinkedIn to market our products and services
- Give out discount coupons especially for frequent visitors
- Encourage our loyal customers to refer us to others
- Engage in direct (word of mouth) marketing
- Place adverts in local media outlets (newspapers, magazines, radio and television)
11. Publicity and Advertising Strategy
The aim of establishing a dedicated driving range that is of the world standard and offering several golf related services is so that we can become the preferred driving range here in Palm West Beach Florida and in the whole of Florida as a whole. To however achieve our purpose, we intend to increase the level of awareness for our Green Swing Driving Range by engaging in several publicity and advertising strategies.
Our plan at Green Swing Driving Range is to grab a huge share of the market and hold in to it for a long time. We also intend to stand out from amongst our competitors and will therefore develop intense and proactive publicity strategies dedicated to promoting our brand while also increasing our bottom line; ensuring that we stay in business for a very long time.
Therefore some of the platforms we intend to use in promoting Green Swing Driving Range include;
- Place bill boards in strategic and prominent places all around West Beach Palms and in the whole of Florida as well.
- Use an attractive signage to garner attention from prospective customers
- Print colorful brochures and place them in strategic places especially in places where golfers frequent
- Launch a website and use the online presence to promote Green Swing Driving Range
- Conduct special contests and promotions, as well as special rates so as to spread the word about your driving range.
- Sponsor relevant programs in the community
- Distribute our fliers and place them in strategic places
- Leverage on social media platforms such as Facebook, Twitter, and LinkedIn to promote our driving range
12. Our Pricing Strategy
When it comes to setting the price for your driving range, your price would depend on several factors; such as if your practice bay is artificial turf or just grass, and how big your driving range is. If you decide to use grass as your practice bay, you might want to charge your customers a bit higher especially as grass is more expensive to maintain.
Therefore in setting a price, you would need to have a detailed strategy so that you do not operate at a loss in the long run. Especially if you intend to offer additional services as well.
Other things that would determine your pricing would be your overhead as well as running expenses. We intend to lower our prices in the first three months than what is generally obtainable here in Florida, this is so as to be able to attract the number of customers we would need for our driving range business.
- Payment Options
Having the right payment options is very vital especially as our diverse customers would prefer not to be limited to just one or two options but to have several options that would be quite convenient for them. Therefore our all inclusive payment options for our various customers at Green Swing Driving Range are:
- Cash payment
- Payment via check (especially for quarterly and yearly subscribers)
- Payment via Point of Sale (POS) Machine
- Payment via credit card
- Payment via online banking
The above payment platforms were carefully chosen for us by our bank and we have been assured that these plans will be hitch-free.
13. Startup Expenditure (Budget)
Driving range might look so easy to start up but it is a difficult business especially if one intends to ensure that it reaches an international standard. In generating capital for our driving range business, the bulk of it will be spent on overhead as well as some of the operating expenses, such as leasing a land for use which should be at least 275 yards, also we intend to pay our employees and utility bills for at least a certain period of time till the business is able to sustain itself.
The key areas we therefore expect to spend our start-up capital on are;
- Total fee for registering the business – $1,000
- Licenses, zoning permits and other legalities – $5,000
- Accounting services and software – $2,000
- Cost of hiring business consultants – $25,000
- Insurance coverage (general liability, property insurance and workers’ compensation) – $10,000
- Cost of buying a land for use – $600,000
- Cost of putting up houses and stalls on the land – $200,000
- Operational cost for the first 6 months (employee salaries and utility bill payment) – $300,000
- Purchase of tractor and golf carts – $150,000
- Purchase of golf clubs, balls, tees, tee mats and golf ball picker – $50,000
- General marketing promotions as well as promotion for the grand opening event – $50,000
- Other start-up expenses (furnishing the offices and stalls with stationeries, phones, computers, furniture, and printers) – $100,000
- Purchasing world class security gadgets – $50,000
- Cost of storage equipment (racks, lockers, shelves and bins) – $17,000
- Setting up the drink and café bar – $50,000
- Cost of launching a website – $1,000
- Cost of throwing a catered opening party – $20,000
- Miscellaneous – $69,000
From the above report, we would need an estimate of $1,700,000 to be able to start up and successfully run a driving range business here in West Palm Beach Florida. The amount covers most of the overhead expenses as well as several operating expenses such as the payment of employee salaries for the first 6 months of business.
Generating Funding / Startup Capital for Green Swing Driving Range Business
Green Swing Driving Range is owned by business man and entrepreneur Mr. Frank Cubacini. Mr. Cubacini is a well renowned business man in Florida as well as in the whole United States of America. He intends to bring in more investors during the course of generating capital so that a world class driving range can be achieved for West Palm Beach Florida.
Therefore the areas which Mr. Cubacini intends to generate his start-up capital from are:
- Sales of stock and properties
- Seek for loan from private investors in exchange for equity
- Approach a commercial bank for loan
N.B: From the above three sources, the sum of $400,000 was realized from the sales of personal stocks and properties. From the different private investors that Mr. Cubacini approached, he was able to secure the sum of $600,000 in exchange for 10% equity in the company. Finally, the bank has approved the sum of $700,000 as all documents for the loan were just signed off last week. We expect our account to be credited at any moment from now.
14. Sustainability and Expansion Strategy
Any business that is established with the purpose of making money and also competing with others, will always seek for means by which it can sustain itself and grow or expand at its own pace. There are several factors – such as business structure, loyalty of customers and re-investment strategies – that ensure that a business’ is sustained and eventually expanded.
First off, a company’s business structure is very important as it lays the foundation for how the business will eventually turn out. Most businesses that fail usually started off with the wrong business structure by assigning the wrong employees to the wrong position and also not employing competent employees to handle various tasks and assignments.
Secondly, the securing the loyalty of customers is very important, because a business that has more loyal customers than new one is getting certain things right. According to research, a company spends less in retaining its loyal customers and more in acquiring new ones. To this effect, we intend to ensure that we offer our customers excellent services by quickly resolving complaints and giving out discounts or extra bucket of balls monthly to our loyal customers.
Even though we intend to generate revenue from our core as well as additional services so as to have a healthy bottom line, this will not stop us from re-investing certain amounts of money back into the business so as to ensure that the business is sustained.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed