11/18/2022 by Sheila Olson 0 Comments
An Entrepreneurs Guide to Starting a Successful Golf-Related Business
More people than ever before are playing golf in the US. As reported by CNBC, in the year 2020, the player base reached 24.8 million and experienced a healthy growing trend even during the COVID-19 pandemic when numerous other sports suffered unprecedented setbacks. For individuals planning to start a golf-related business, the best time to do so is the present. In this article by NY Gold Fitness Guru, we’ll explore the steps one can take to launch and manage a successful golf-related business.
Decide a Niche
As a new business, you will not have the resources or expertise to cater to a broad segment of customers. Hence, it is better to choose a specialized group of target customers and create product offerings to fulfill their needs. Once you have developed a loyal customer base, the business can grow by selling additional offerings and entering new markets. Here are two of the best golf-related business ideas for you to explore:
Online Golf Store
Running an online store will help to utilize the growing popularity of e-commerce to your advantage. As reported by the Ecommerce guide, global e-commerce sales in 2021 peaked at $4938 billion and are expected to grow upwards of $7000 billion by 2025. While you won’t be catering to the full market, even serving a minute share results in potential earnings in millions. As an online store, you can choose to sell apparel, golf equipment, and other types of gear. Additionally, this is a future-proof idea, as when business picks up, you can choose to start selling goods internationally.
Compared to a golf course, a driving range attracts casual and professional players alike. When done well it can become a staple attraction for your city/town that attracts locals, tourists, and players. Additionally, it provides the option to upsell other products to customers, such as food, beverages, and merchandise, and implement a membership system to generate consistent revenue. Location will play a key role in the success of this business, hence do comprehensive market research before making an investment.
Other lucrative golf-business ideas include becoming a golf trainer, starting a miniature golf course, running a golf podcast, working as a golf-event photographer, and starting a golf player management company.
Regardless of the niche, you choose, creating a strong business foundation will be essential for long-term growth and success. Here are the steps you’ll need to follow:
Write a Business Plan: Your business plan will include details regarding location, product offerings, market research, pricing, competitor analysis, funding, and all other important aspects of the business.
Establish a Corporation: S Corp and C Corp are two similar yet different business structures that you can choose from. Establishing a corporation will protect your personal assets from business debts and allow you to use business expenses as tax write-offs. Additionally, these business structures make it easy to raise funds for the business by issuing shares. Whether you want to raise funding from public or private investors, shares are a great way to keep track of how much equity you own and distribute. Here is a resource to help you choose between a C Corp and vs. S Corp.
Adopt a Digital-First Approach: To be competitive in today’s business environment, adopting a digital-first approach is crucial. This includes going paperless by using cloud-based applications for storage, project management, and accounting. Additionally, you’ll need to invest (time and money) towards creating a strong digital presence through a website and social media. If budget permits, choose a few influencers who are a right fit for the brand to promote products/services and generate buzz among their followers.
Apply for Licenses: Depending on where the business is registered, you may need to apply for one or multiple licenses. Operating a business without proper licenses can lead to fines and lawsuits, which you should avoid at all costs.
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