Startup cost
$500k
TRUiC Business Ideas
How to Start a Golf Course
Decision Snapshot
Golf Course
Idea Score
48
Profit margin
23%
Break-even
18 mo–36 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Part time
Part 1 - How to start a Golf Course business - Background
According to Golf Digest, more than 20 million people in the United States golf. Golf courses provide these people with a place to play the sport. Most courses are 9 or 18 holes, and they may have other amenities, such as clubhouses and pro shops.
Our guide is in 3 parts:
- Part 1 - How to start a Golf Course business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
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 land or more. Other major expenses include:
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designing the course itself
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preparing the land and building the course
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installing an irrigation system
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acquiring or constructing a building for a clubhouse
One couple in New York built their own course, which they expect to cost $1.5 million by the time all 18 holes are installed. A third of their budget ($500,000) went towards land and a building. Additionally, this couple cleared the land, designed the course and built the holes themselves, which kept costs down.
Business owners who don’t have the skills or time required to do all of this work should be prepared to spend significantly more.
Because building a golf course is so expensive, many business owners opt to purchase one instead. 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.
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 average course budgeted $750,000 for these expenses. This figure doesn’t include employees’ salaries, which could be an additional several hundred thousand.
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 does a golf course make money?
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:
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golf clubs and other equipment
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lessons
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food and beverages
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club and golf cart rentals
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 slightly lower.
Some courses, however, charge significantly more. For instance, courses built since 1990 charge $60.55 per weekend round on average. Furthermore, some well-known courses, such as ones where PGA championships have been played, charge hundreds of dollars per round — up to $495.
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, depending on their location, prestige, fees and amenities. Some just barely broke even on the year, while others brought in sizable profits.
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 sells equipment, installing a driving range adjacent to the course, or having a restaurant on site.
Day-to-Day and Growth
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:
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watering and mowing fairways, roughs and greens
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collecting course fees from golfers
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repairing broken-down equipment
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attending to any golfers who need assistance
Capital improvements, non-emergency repairs and routine maintenance are usually made during the offseason.
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 actually design their course, it’s still helpful to know a little about the subject. Having this basic knowledge will help a business owner know what questions to ask and what advice to take from an architect. There are many books on this subject, such as The Golf Course and Golf Course Architecture.
All business owners, regardless of whether they’re building a golf course or purchasing one, should be familiar with how courses operate. There are several resources that business owners can learn from:
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The National Golf Course Owners Association hosts the Golf Business Conference and has an informative forum for golf course owners.
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The Golf Course Superintendents Association of America has educational resources on environmental issues and maintaining courses.
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There are also many books on owning and running golf courses, like The Complete Guide to Course Management and The Business of Golf.
What is the growth potential for a golf course?
Most golf course businesses have just one location, but a single location might contain several 9- or 18-hole courses. For instance, Pine View Golf Course has two courses, the Championship Course and the Executive Course. The Golf Club of California is an example of a business that has just one course.
What are some insider tips for jump starting a golf course?
While it may be tempting to try and reduce design, construction or irrigation fees, business owners should resist cutting back in these areas. Golfers often seek out the most challenging courses, and skimping on a course’s design or construction could hurt its long-term success. Not having a robust irrigation system can also prove detrimental, as it can leave fairways and greens dry and brown during times of drought.
How and when to build a team
Running a golf course requires a sizable team of employees. Golf Course Industry reports that the average course’s maintenance staff consists of 17 employees, which includes six year-round employees, ten seasonal employees, and one part-time employee and / or independent contractor for odd jobs. This doesn’t take into account additional employees that are needed to collect course fees, operate restaurants or provide lessons.
Part 2 - Is a Golf Course business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Golf Course business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Golf Course Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Golf Course business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.