More and more people are joining the golfing population, making the golfing business highly profitable. There are over thirty million golfers in the U.S., so entrepreneurs can choose from many businesses like golf ranges, lessons or even golf equipment stores. If an equipment store is what you have in mind, you should first consider a few things like gaining some knowledge about the sport, the equipment, accessories and the needs of a player.
A business plan is also vital for starting a new business because it allows you to allocate resources, focus on development and prepare for future opportunities or problems that you may encounter. Most people think that they need a business plan only when they are applying for loans or seeking investors, but the truth is it also gives you a clear vision about the future of your company. The simple startup plan should have a summary, a market analysis and a mission statement. Usually you start with a description of the company and write the summary last.
The golf shop business plan should reveal the potential of a shop that sells common golf equipment like balls, clubs, tees, apparel. It should be located near a course so that clients have easy access. Another important aspect is that almost 90% of the gross revenue for the starting golf store goes to the shop expenses and only 10% is profit. The owner can focus on one item of equipment, a certain brand or even on apparel and accessories. It is important to describe what you’re selling in the golf shop business plan and focus on the customer benefits.
A bank loan is usually enough to capitalize it so the golf shop business plan only needs a three-year financial model. The standard plan should include a revenue forecast, cash flow, balance sheet and profit and loss. After the entrepreneur gains basic knowledge of golf and the equipment he must make goals and projections for the future, including a break-even point, sensitivity analysis and a start-up table. This should be included in the financial plan. A thorough market analysis is necessary if you want to know your market and how to reach the customer needs. The next step is to write about the management team, including backgrounds and personnel strategy, followed by the strategy and implementations and management responsibilities.
Don’t forget to make your shop stand out. Be original and put out some nets so clients can test the equipment or even offer repair services.