US Off Course Golf Business

 

Executive Summary

This feasibility study assesses the viability of establishing three indoor golf driving range, an indoor putting green, and a combined putting and chipping green, along with additional sports facilities in Montrose, PA. The proposed venture aims to cater to the growing demand for recreational and sporting activities in the area and expect to follow the national trend of incremental participation rate in the modern golf industry, providing a comprehensive facility for golf enthusiasts and other sports enthusiasts.

Market Analysis:

Montrose, PA, exhibits a steady demand for off course golf activity. The proposed facility aligns with the preferences of the local community and has the potential to attract visitors from neighboring areas. A thorough market analysis indicates a favorable environment for the establishment of the proposed golf and sports facility. Susquehanna county with about 38,540 population will be a good market for specific off course golf facility to support the current available classic on course golf facilities in the county. Other surrounding cities like Binghamton, Wilkes-Barre and Scranton will be also supporting the demand potential to enhance the establishment feasibility.

The most important aspect that we found in the study is that there is no similar establishment with specific concept to focus on off course golf (within 30 to 45 minutes’ drive). Current national trend in golf industry which has increased meaningfully in recent years due in large part to the growth of off-course golf, which is expected to continue to grow, driven in part by leading national players like Topgolf’s will support the future operational sustainability of the company’s proposed establishment

Facility Features:

The facility will feature indoor golf driving range bays equipped with modern technology to enhance the user experience. A well-designed putting green and a combined putting and chipping green will provide a versatile space for golfers to refine their short game skills. Additionally, the inclusion of other sports facilities, such as pickleball courts or a multi-purpose volleyball field, will broaden the appeal and attract a diverse clientele.

Financial Projections:

Financial projections indicate a positive return on investment within a reasonable timeframe.

IRR	16%
NPV	358,916
Net Cash Flow	221,283
Payback Period	7.0

 

Revenue streams will be generated mostly through user fees when utilizing the facilities and also from other amenities like bar. A detailed financial analysis, including startup costs and operational expenses, is provided in the Economic Analysis part of the study including scenario analysis to understand potential profit and drawback from specific scenarios. Simulation using Oracles’s monte carlo add ins also run to understand the investment pay back period performance under uncertainties regarding budget, opex and potential market share.