How to Build a Golf Course for Profit

All roads lead to making a profit, and setting out to build a golf course is no exception. Unless the golf course of your dreams will eventually pay for itself in user fees, concession profits and other income sources, then the project is doomed from the start. With the cost of building even the most basic 18-hole course running easily over 2 million dollars from start to finish, it's good idea to have an idea of what it encompasses. There are many pitfalls you will need to overcome on the way to profitability. Here are just a few way to deal with them on your journey to build a golf course for profit.

Instructions

1. Do your research. Let's say you have your eye on a piece of property. Your first step is to determine if that is the best place to build your course. Factor in whether the area needs another golf course. Find out if others have failed, and why that happened. Are there enough golfers in the area, with sufficient income, for you to make your course profitable. Is there a lot of competition for the type of people you will hire that makes them unaffordable? As for the land you have chosen, you need to take into consideration available water, type of soil, natural drainage, and restrictions that have been imposed regarding the protection of wildlife, just to mention a few.

2. Choose a golf course architect. He will be responsible for many aspects of the project and will need to be adept in numerous fields including landscape architecture, civil engineering, planning, specification design and costing. Building a golf course is much more than simply rearranging some dirt. The golf architect you choose will be in charge of ever aspect that will affect whether golfers flock to your course or go elsewhere.

3. Have every permit in hand before you turn the first spade of dirt. Also, without the support of your golf course project by the local community, you'll find it difficult to turn a profit. Discuss your plans with the local mayor or city council and try to gain their endorsement. Once you have received approval from the “city fathers” and you have all your permits in hand, you're ready to build.

4. Hire a golf course contractor. This is a very specialized area that demands your full attention. The Golf Course Builders Association of America (GCBAA) is a trade group whose members specialize in the building of golf courses. They stay current on all the changing regulations, and can add improvements to your design (see Resources below).

5. Determine how best to finance your new golf course. Going in, it will be helpful if you or your financial backers have experience with large projects. You or they will understand the benefit of creating a positive cash flow before you pursue permanent financing.

Resources

• The Golf Course Builders Association of America