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Driving range business, wise move?

  • 11-10-2010 6:11pm
    #1
    Registered Users, Registered Users 2 Posts: 91 ✭✭


    My accountant and I were discussing business lately and he suggested to me that I should open a driving range as I was looking for a new business. My father owns land in a perfect location, there is no driving range in the town at the minutr (the one that did exist closed after its owner passed away a number of years ago and my accountant told me he used to do this guys accounts and said it was very profitable a number of years ago up until it closed. I am curios of your opinions on this, he was not inclined to give me too much detail for some reason, so I question what costs would be involved here and what sort of turnover would you expect in a town of a population of 6,000 and has a golf club with 500 members?


Comments

  • Closed Accounts Posts: 177 ✭✭AndyJB


    EPjnr wrote: »
    My accountant and I were discussing business lately and he suggested to me that I should open a driving range as I was looking for a new business. My father owns land in a perfect location, there is no driving range in the town at the minutr (the one that did exist closed after its owner passed away a number of years ago and my accountant told me he used to do this guys accounts and said it was very profitable a number of years ago up until it closed. I am curios of your opinions on this, he was not inclined to give me too much detail for some reason, so I question what costs would be involved here and what sort of turnover would you expect in a town of a population of 6,000 and has a golf club with 500 members?

    Hi,
    I'm an occasional golf range user!

    There's certainly no harm looking into getting one started. Was the previous range worked as a limited company or was he a sole trader? If it was a limited company there might be some info available via www.CRO.ie.

    You should put costs together for the initial infrastructure setup eg shed, ball dispenser, cash till, T'ing off mats, tractor/mini tractor for ball collections, distance markers, perimeter netting (to help prevent stay shots breaking neighbours windows!), you'll also need one or two putter training greens and a toilet or two for the punters, flood lighting etc etc. Probably a good idea to sell tea/coffee/soft drinks. Don't forget you'll probably also need planning permission.

    Most of the above can be done via the phone/net so no major cost involved putting it together. You'll also have running / maintenance costs eg ESB, Rates, wages/prsi, diesel, phone, grass/greens care & maintenance etc.

    How far from the town are you? The range I use is in Cork, they've a local golf pro attached and he offers lessons from there. You pay his fee + extra for the 100 balls.

    I'd also suggest you pay a visit to as many ranges as possible and see how they operate and note what machines etc they use. Visit them at various times and you'll get an idea of their foot fall.

    The obvious people to start asking questions of would be existing/local golfers. If you could get a pro on board you could offer group lessons for kids and other groups. Any golfing societies in the area? Offer them special discounts on balls etc? The range I use has a small office for the pro where he reviews videos of his learners swing/posture as part of the lesson all done using Golf analysis software on his PC.

    There may also be a tax implication on any transfer of land from family farm to you, run that past the accountant.

    Best of luck.


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