Golffun Business Plan

Professional Indoor Golf Simulator Center

Executive Summary
Golffun (name changed for confidentiality) is planned as a year-round, downtown, indoor golf
facility, using state-of-the-art electronic golf simulator equipment. A pleasant bar and light
restaurant area will complement the ambiance as a destination for golf and friendship for business
people at lunchtime or after work.
The facility will cost some $600,000 to equip, with the initial capital provided by the founder, some
passive investors, and bank equipment financing. The facility has a potential of $30,000 Monthly
Profit After Taxes by the end of the first year.
The investors will be offered an attractive investment package. Not only will the cash dividends be
attractive, but investors will receive unlimited golf play privileges at Golffun.
Golffun will be more attractive for players during the winter season, when outdoor golf is not
possible, so the opening date is planned for September 2014.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
Company Description
Company Name
Golffun
Mission Statement
“To create a fun atmosphere downtown for golf enthusiasts with a country club feel.”
Company Goals and Objectives
Golffun will become the leading golf business downtown by combining simulators with a country
club style bar to create a fun atmosphere for customers along with a small retail space for golf
equipment and clothing.
Business Philosophy
“G.O.L.F: Game of Love & Fate”
Management and Leadership
Roles within the company are to be decided by the owner John Jones and hired General Manager
William Smith. Mr. Smith (salesman for an oil company) will take responsibility for the “front
office” duties such as customer service, employee management, retail, and sales. Mr. Jones
(financial analyst for an oil company) will take responsibility for the “back end” duties such as
business finances, marketing, inventory, HR, and strategic planning.
Company Strengths
The company will have seasoned executives as senior managers. The concept is not complex, and
the market is large and underserved.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
Products and Services
Overview
Golffun will provide the following products and services:
 Single Player Golf Simulator play
 Multiple Player Golf Simulator play
 Equipment Rental
 Golf Lessons
 Pro Shop
 Bar and simple Restaurant
 Free WiFi Access
Golf Simulator Equipment
There are several companies providing commercial grade golf simulators. The curved screen unit
gives a slightly enhanced experience, but costs $10,000 more.
The recommendation is to have a single curved screen unit for giving lessons and for premium price
play, and flat screens for regular play.
The installed price of a single unit is $65,000 for a curved screen unit and $52, 000 for a flat screen
unit. One should allow 300 square feet per unit to give room for play
Figure 1 Example of Commercial Golf Simulators from the High Definition Golf Company

Golf Play
The main business of Golffun is golf simulator play. This will be somewhat seasonal, with higher
utilization in the winter when outside play is not possible. The summers will also attract some
players because of the convenience of playing downtown near the office. Golffun will be also less
expensive than a traditional golf course.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
The standard units of play will be one hour or one half hour. Fees will be “per player”. Golffun
will offer a variety of innovative promotional packages in order to increase the percentage
utilization. High utilization also brings additional revenue to the restaurant, etc.
Equipment Rental
Most people will not bring clubs to the facility. There will be storage for personal clubs available
for a fee. Clubs and shoes will be available for rent for a modest extra charge on top of the regular
playing fee.
Golf Lessons
Lessons will be managed by a freelance golf pro, who will use the facility, and provide his own
liability insurance. All payments will be through the Golffun system, and a commission deducted
from the payments to the pro.
Pro Shop
There will be a small Pro Shop area, with a selection of clothing and sundries such as golf balls.
Customers will also be able to order more expensive items for pick up the next day or shipment to
their home or office.
Bar and Restaurant
For early morning and lunchtime, the intent is that customers can have a convenient game of golf,
followed by coffee, a snack, or a sandwich. This would avoid the extra time of going to two
locations and increase the attractiveness of Golffun.
Later in the day, a full bar would be provided especially for small groups playing together and for
socializing and networking.
The food would be largely pre-prepared sandwiches and pastries, plus microwave pizzas, and
simple grill items.
Free WiFi Access
As the clientele will be largely downtown business people, there will be free WiFi, so busy people,
can catch a half-hour golf game, eat a sandwich, and catch up on their email all in one place.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
Marketing
Market overview
The golf industry is a steadily growing and sustaining sport. It will forever be a game of business
and pleasure. By creating the first play/bar atmosphere with top of the line golf simulators
downtown, Golffun can appeal to all demographics for years.
Market Size
There are an astonishing 74 golf courses in the Denver Metro area.1 With 27 million golfers in the
USA, using 14,564 courses, assuming golfers and courses are spread evenly, that would equate to
some 127,000 golfers in the Denver Metro area2. With probably fewer than 10 indoor golf
facilities in the city and surrounding area, there is a large market that appears to be relatively
untapped.
Golf Pricing
Though there are some outdoor courses that charge green fees of $75 per person or more, the
municipal courses much lower priced and are used as a pricing baseline. The planned price per
hour of $35 per person is in line with the municipal prices.
Figure 2 Denver Municipal Golf Course prices – per person – source city website

1Golf Now website. Retrieved from: http://www.golfnow.com/denver/courses/course-map

2Reitman, J. (2014, January 31). Construction, Play, Number of Golfers decline in 2013. Turfnet.com. Retrieved from:
http://www.turfnet.com/page/news.html/_/construction-play-number-of-golfers-decline-in-2013-r249
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© 2014 Umnitech, Inc. - Prepared by David Talbot
Marketing Plan
Denver is a very expensive media market, and it is easy to waste media money on a large audience,
of which only a small proportion are golfers.
The initial target market will be downtown business people within walking distance of Golffun, who
can play golf on lunch hours or after work. We will reach these early customers with low cost flyers
and handouts. The objective will to get people playing in the facility in order to work out the early
operational bugs, and provide some immediate cash flow.
The next stage will be newspaper and magazine articles in local papers, free papers and magazines,
such as Denver Life and 5280 Magazine.
Social media and Search Engine Marketing allow targeted advertisements where there is not the
wastage of the mass media. The website and social networks will be very important.
After the startup, the most important marketing tool will be repeat customer follow up. Golffun will
register all players, and use email and other prompts to encourage players to return frequently. As
the marginal cost of an extra play session is practically zero, Golffun will use this mechanism
especially to attract players when the facility is not fully utilized.
Marketing to seniors will be another target, as many seniors like golf and they have the time
flexibility to play in the mornings, for example, when the prime business audience is at work.
Operational Plan
Overview
The operation is relatively simple. The technology is embedded in the simulator equipment. Apart
from changing lamps and updating software periodically, there is no significant maintenance
required.
In addition to marketing, the key aspect is employee coverage over extended opening hours. The
employees should be reliable and personable, but do not need to know golf techniques. The job is
similar to that of a cashier.
Location
The location decision is very important. Golffun needs a 5,000 square foot location in downtown,
but it does not need to be on the main shopping street.
Available properties change frequently, but examples are given in the Appendix.
An important consideration in the location selection is the correct zoning to allow the playing area,
bar, and restaurant.
The tenant improvements will need to be well designed, but are not complex. The simulators
merely need high ceilings. The bar, eating area, and simple kitchen will require the majority of
design and construction work. An older property may need code upgrades, such as sprinklers, but
these should be the responsibility of the landlord.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
Security
Downtown locations with extended nighttime hours pose important security considerations.
Security considerations include the safety of the facility, employees, and customers while inside
Golffun. Security also will address the safety of individuals going from the facility to their cars late
at night.
Food and Beverage
The implementation of the food and beverage service will be phased.
There will be vending machines for soft drinks from the first day, and these will always be available
because of the extended hours. We will quickly add breakfast pastries and lunchtime sandwiches.
The cooking will initially be limited to microwave ready prepared foods, and canned soups which
can be served hot.
The restaurant equipment will include a grill, and we will make tentative steps with burgers etc.
after Golffun has been open for a little while.
Restaurant License
Though the restaurant offerings will be simple, a Restaurant License is required. It is neither a
complex nor expensive procedure to obtain a Restaurant License3. An important consideration in
the location selection is the correct zoning to allow the playing area, bar, and restaurant.
Liquor License
The intention is to have a full beer, wine, and liquor license. Golfers traditionally like to relax with
alcoholic drinks after playing.
In Denver the Liquor License procedure is quite simple, and not expensive4. This is in contrast to
other jurisdictions where Liquor Licenses are very restricted. It is likely that the license will not be
received before the opening day, but should be available soon after. The facility will be built with
the layout for a full bar.

3 Denver City Government. Retrieved from:

http://www.denvergov.org/businesslicensing/DenverBusinessLicensingCenter/BusinessLicenses/RetailFoodEstablishment/tabid/4417
00/Default.aspx
4 Denver City Government. Retrieved from:

https://www.denvergov.org/businesslicensing/DenverBusinessLicensingCenter/LiquorLicenses/NewLiquorLicense/tabid/441741/Def
ault.aspx
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© 2014 Umnitech, Inc. - Prepared by David Talbot
Website and Online Reservation System
Golffun will have an attractive website, with playing details, pricing, and keywords for Search
Engine Marketing.
The main website feature will be the Online Reservation System. Customers will want to see and
reserve open slots both online, or by calling the Center. The intent is to use a “cloud based” service,
which will avoid all the complexity and expense of computer programming and operation.
The preference is to use the Bookeo service, which is well proven with many customers and can be
accessed for $39 per month initially, and $79 per month as the volume rises. The graphics can be
customized to blend in the website, so the customer has a seamless online experience.
Figure 3 The Bookeo online reservation system

Finance
Overview
Golffun is the style of company which has high equipment and facility costs, but low marginal “per
unit” costs. With good equipment utilization Golffun will be extremely profitable.
The $600,000 facility and equipment costs will be met in 3 components:
 Founders investing $100,000
 Passive investors providing $250,000
 Bank financing of $250,000
This will keep the initial monthly cash outflows at a manageable level while the volume picks up.
Founders’ Capital
The Founders will invest $100,000 cash and also personally cosign the building lease and the bank
loan. The Founders will also manage the operations for at least the first year without compensation.
The Founders will receive 75% of the company equity.
Investors’ Capital
The intent is to invite enthusiastic golfers to invest in Golffun. There will be 10 investors who each
contribute $25,000 for a total of $250,000. Each investor will receive not only 2.5% of the
company equity, but also a lifetime Unlimited Play pass to the facility. The company will be
incorporated and the investors will have no liability above that of their investment.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
 Financial Predictions
These financial predictions are also available in Excel Spreadsheet form for interested investors.
The 15 Months projections show that Golffun will be profitable from the start, and should have repaid the bank within a year and a half. At
that point the Founders and the Investors will have a debt-free facility, generating good cash flow, plus a place to meet and enjoy their
unlimited play privileges.
Figure 4 Golffun 15 Month Startup Projections

Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov.

Golf Revenue 31,389 34,203 34,353 40,335 46,344 50,259 50,259 36,597 28,794 28,644 28,644 34,353 34,203 41,856 53,574

Golf Costs 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437 27,437

GM - Golf 3,952 6,766 6,916 12,898 18,907 22,822 22,822 9,160 1,357 1,207 1,207 6,916 6,766 14,419 26,137

Bar Revenue 15,000 15,000 30,000 45,000 45,000 45,000 45,000 30,000 30,000 15,000 15,000 15,000 30,000 45,000 60,000

Bar Cost 12,433 12,433 18,433 24,793 24,793 24,793 24,973 18,973 19,153 13,153 13,153 13,153 19,153 25,153 31,153

GM - Bar 2,567 2,567 11,567 20,207 20,207 20,207 20,027 11,027 10,847 1,847 1,847 1,847 10,847 19,847 28,847

GM - Total 6,519 9,333 18,483 33,105 39,114 43,029 42,849 20,187 12,204 3,054 3,054 8,763 17,613 34,266 54,984

Overhead 4,504 4,567 4,999 5,607 5,678 5,686 5,577 9,107 8,764 8,200 8,091 8,152 8,489 9,059 9,751

Profit BT 2,015 4,766 13,484 27,498 33,436 37,343 37,272 11,080 3,440 (5,146) (5,037) 611 9,124 25,207 45,233

Profit AT 2,015 4,766 13,484 27,498 25,077 28,007 27,954 8,310 2,580 (3,859) (3,777) 458 6,843 18,905 33,925

Bank Loan 221,250 217,500 213,750 195,000 176,250 157,500 138,750 120,000 101,250 82,500 63,750 45,000 26,250 7,500 3,750

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© 2014 Umnitech, Inc. - Prepared by David Talbot
Conclusion
Denver has a need for an attractive indoor golf facility. The founders are experienced executives
who have researched the market, and conceived a valid business plan. The investors will gain an
attractive investment with high cash payouts starting after 15 months, plus unlimited play
privileges.
This is a solid concept with very little liability, and a conservative financial plan.

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© 2014 Umnitech, Inc. - Prepared by David Talbot
Appendix: Sample Locations
This list shows the current market in the target downtown area. This shows that there are several
locations available, and gives the average price per square foot.
1400 16th Street, 80202

Total Space Available: 2,534 SF; $2.83/sf/month;

Completely renovated in 2012, this turnkey restaurant features garage doors, a patio, entirely new bar, kitchen,
dining room and restrooms. Transferable liquor license. Just steps from 16th Street Mall, in the thick of Lodo's
remarkable dining and entertainment scene. This 2,534 square foot restaurant is walking distance to the Pepsi
Center, Coors Field and The Denver Center for the Performing Arts.
441 Wazee Street, 80202

Total Space Available:1,675 SF; $2.58/sf/month

Rare retail unit in the heart of LoDo, one block from the 16th Street Mall Ride! This unit has great street visibility
with large windows allowing great exposure from Wazee Street. It features an open floor plan with 2 bathrooms,
storage, hardwood floors, and washer/dryer hookups. The unit is leased with two tandem garage parking spaces that
are in a heated garage with secure elevator access. This unit can also be used for office space, gallery, and live/work.

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1620 Market St, 80202

Total Space Available:2,800 SF; $2.67/sf/month

LoDo Restaurant Space right off of 16th street mall
1400 Market Street, 80202

Total Space Available:11,000 SF; $0.83 - $2.92/sf/month

1400 Market is the best restaurant, club or tavern location available in LODO. There is a total of 16,500 SF available
for lease. The ground floor consists of 5,500 SF and the basement level is 5,500 SF. The ground floor can be leased
separately from the basement level. Enjoy the panoramic mountain views from the ground floor and second floor.
The site is a few short blocks to the Pepsi Center, the Colorado Convention Center, Union Station and Coors Field.

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600 Champa St, 80202

Total Space Available: 3,505 SF; $1.67/sf/month

" 3,505 RSF overlooking 16th Street Mall " Ideal for restaurant / retail user " Glass elevator to access space "
17,000,000 riders per year on the 16th Street Mall Shuttle " 16th Street Mall is the #1 tourist destination in
downtown

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© 2014 Umnitech, Inc. - Prepared by David Talbot