Investors will want to understand the unique elements of your driving range and how they combine to create competitive positioning that they can profit from.
The business model for a driving range is relatively straightforward, providing golfers with a place to practice their performance.
Driving ranges make money by charging customers for the use of golf balls and a tee area where they can practice their swing.
While a bucket of balls can cost you $20 as an initial investment, you'll be re-selling the balls over and over before you'll need to replace them through loss or damage.
If you expect to start a driving range and seek investment, it is likely that you will need to approach investors with a professional business plan.
Pro Business Plans has worked with many driving ranges to prepare professional business plans for investment and strategy.
After the grand opening, ongoing promotions may include getting search engine presence so you appear at the top when users search for you and targeted social media promotions.
For instance, Facebook allows you to target people that ‘like’ Golf within a 12-mile radius of your driving range.
The range of these factors will cause financial variance, but the best approach to forecasting is using the performance of comparable driving ranges or the prior operating history if yours has it.
These assumptions are packaged into three to five-year projections to form an income statement, cash flow projections, and a balance sheet .