How to start a golf driving range business: your first swing

Starting a golf driving range business is an exciting venture that combines a passion for the game with sharp business savvy. The golf industry is a multi-billion dollar market, with steady demand for practice facilities from serious golfers, casual weekend players, and families looking for a fun outing.

This guide will take you through the practical steps of selecting the right location, securing funding, acquiring equipment, and obtaining the necessary permits to help you launch a successful golf driving range business in the U.S.

Step 1: create your business plan and validate the idea

Your first move is to map out the local market. You can start by pulling demographic data from the U.S. Census Bureau to understand your potential customer base. Also, check reports from the National Golf Foundation (NGF) for industry-wide trends and participation rates.

Next, size up the competition. A simple search on Google Maps reveals nearby ranges. Some new owners skip this, but you should drive by to observe their traffic. Note their peak hours, pricing, and the condition of their facility. This firsthand look is invaluable.

Understanding the startup costs

With that research in hand, you can build a realistic budget. The initial investment requires careful planning. Securing and preparing at least 15 acres of land is often the largest line item, followed by construction and equipment.

• Land Acquisition or Lease: Varies widely, from $100,000 to over $1 million.
• Construction (netting, lighting, building): Expect to budget $250,000 to $750,000.
• Equipment (dispensers, balls, mats): Typically runs $50,000 to $100,000.
• Initial Permits and Marketing: Set aside $25,000 to $75,000.

This brings your estimated total to between $425,000 and $2 million. A detailed budget is your best asset when you approach lenders or investors for funding.

Here are 3 immediate steps to take

• Identify three potential parcels of land and research their current zoning regulations.
• Create a profile of your top two local competitors, noting their pricing and amenities.
• Build a preliminary budget spreadsheet using the cost ranges provided.

Step 2: set up your legal structure and get licensed

First, choose a business structure. Most owners select a Limited Liability Company (LLC) to protect personal assets from business debts. It offers pass-through taxation, so profits are taxed as personal income. Filing fees with your Secretary of State are typically $50 to $500.

With your business entity registered, you need a federal Employer Identification Number (EIN) from the IRS to hire staff. It is free and you can apply online. You will also need a state business license and possibly a seller’s permit if you plan to sell merchandise.

Navigating local permits and zoning

Your biggest hurdle will be local permits. You need building permits and, most importantly, a zoning permit from your city or county planning department. Many new owners underestimate this process; securing approval for commercial recreation can take 6-12 months and cost several thousand dollars in fees.

If you plan to offer food or drinks, you will also need a health permit from the local health department. A liquor license involves a separate, often lengthy, application process with your state’s Alcoholic Beverage Control (ABC) board. Start these conversations early.

Here are 4 immediate steps to take

• Decide between an LLC and a C Corp and check your state's filing requirements.
• Apply for a free Employer Identification Number (EIN) directly from the IRS website.
• Schedule a pre-application meeting with your local planning and zoning department.
• List all items you plan to sell to see if you need a state seller's permit.

Step 3: secure your insurance and manage risk

With your legal structure in place, the next step is to protect your business. Insurance for a driving range is not a one-size-fits-all policy. You will need a package that covers the unique risks of this business, from errant golf balls to customer slips and falls.

Key policies and typical costs

You should plan for a few core policies. General liability is your top priority, as it covers customer injuries. A $1 million per occurrence policy is standard, with annual premiums between $5,000 and $15,000. Many owners forget that this does not cover their own assets.

For that, you need property insurance. This protects your building, netting, and equipment from events like fire or severe weather. In addition, if you hire even one employee, you must have workers' compensation insurance. This is a state requirement that covers their on-the-job injuries.

It is best to work with a broker who understands sports and recreation businesses. You might want to consider providers like K&K Insurance or Philadelphia Insurance Companies, as they specialize in this field and can bundle policies for better rates than a general agent might find.

Here are 4 immediate steps to take

• Get quotes for a general liability policy with at least $1 million in coverage.
• Create an inventory of all your physical assets to determine your property insurance needs.
• Contact an insurance broker who specializes in sports facilities, like K&K Insurance.
• Review your state’s requirements for workers' compensation insurance.

Step 4: select your location and buy equipment

You need a parcel of at least 15 acres to accommodate a 300-yard driving distance plus a buffer zone. Look for land zoned for "Commercial Recreation." Some owners get tripped up here; if your ideal spot is zoned "Agricultural," you may need a special use permit, which adds time.

When you negotiate a lease, push for a long-term agreement of 10 years or more with renewal options. This protects your investment in site improvements. Also, clarify who is liable for property damage from errant golf balls. It is a detail you do not want to overlook.

Key equipment and costs

Once your site is secured, your focus shifts to equipment. It is tempting to buy cheap mats, but they wear out fast and create a poor customer experience. You can get better value with durable goods from reputable suppliers like Range Servant or Wittek Golf Supply.

• Ball Dispenser: $5,000 - $15,000 for a reliable automated system.
• Range Balls: $8 - $12 per dozen. Plan for an initial inventory of 10,000 to 20,000 balls.
• Hitting Mats: $200 - $500 per mat. Quality mats last longer and reduce player fatigue.
• Ball Picker Machine: $4,000 - $10,000. A dedicated picker saves significant labor.

Here are 3 immediate steps to take

• Identify a property and confirm its zoning classification with the local planning department.
• Request quotes from two equipment suppliers, such as Range Servant and Wittek Golf Supply.
• Draft a list of non-negotiable lease terms, including a 10-year initial term and renewal options.

Step 5: set up your payment processing

Your customers will expect to pay with cash, credit, and debit. You need a system that handles single purchases, like a bucket of balls, and recurring fees if you offer memberships. Many new owners get locked into systems with high monthly fees or expensive hardware.

Look for a payment solution with transparent, low transaction fees. While average commission rates from providers can run from 2.5% to 3.5%, you can find better options. This is an area where a little research saves you a lot of money over time.

For ranges that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done. It is a simple process.

At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for taking payments for lessons on the tee line or from a mobile beverage cart. Your funds are available instantly on your JIM card.

• Get Started: Download JIM app for iOS
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
• Access Funds: Your money is available right on your JIM card as soon as the sale is done - no wait for bank transfers

Here are 3 immediate steps to take

• List all the ways you will collect money, from bucket sales to memberships.
• Compare the total cost of two traditional payment processors, including all fees.
• Download the JIM app to see how the interface works on your phone.

Step 6: secure funding and manage your finances

With your business plan ready, you can approach lenders. The Small Business Administration (SBA) is a great starting point. An SBA 7(a) loan is versatile and can fund everything from land to equipment. Banks like these loans because the government guarantees a portion of them.

For larger projects that include buying land and a building, the SBA 504 loan program is another strong option. It often requires a lower down payment, sometimes as little as 10%, because the financing is split between a bank and a partner organization.

What lenders want to see

Lenders will scrutinize your business plan and financial projections. A personal credit score over 700 is usually expected. Be prepared to contribute a 10-20% down payment. Interest rates typically float a few points above the Prime rate, so factor that into your projections.

Budgeting for your first six months

A frequent misstep is underestimating operating cash. You need enough working capital to cover payroll, marketing, and inventory for the first six months. This buffer is what keeps the lights on while you build your customer base. A good target is $50,000 to $100,000.

Here are 4 immediate steps to take

• Contact your local Small Business Development Center (SBDC) for free help with your loan application.
• Calculate your six-month working capital needs based on your detailed budget.
• Check your personal credit score with one of the major bureaus.
• Identify two local banks in your area that are SBA Preferred Lenders.

Step 7: hire your team and set up operations

Your core team will include a Range Manager to oversee operations, staff, and customer service, with a typical salary of $45,000 to $60,000. You will also need part-time Range Attendants for the front desk and ball sales, usually paid $12 to $16 per hour.

A dedicated Groundskeeper is needed for mowing, ball picking, and equipment upkeep. To boost revenue, consider contracting a PGA or LPGA certified professional for lessons. They often work on a 60/40 or 70/30 revenue split, which minimizes your upfront cost.

Managing daily operations

With your team in place, you need systems to manage them. For staff scheduling, software like Homebase or When I Work lets you build and share schedules easily. For sales, a point-of-sale system like Lightspeed can handle transactions and track your inventory of balls and merchandise.

Many new owners overstaff at the beginning, which can drain cash flow quickly. A good benchmark is to keep total payroll costs between 30% and 40% of gross revenue. Monitor this ratio closely during your first six months of operation.

Here are 4 immediate steps to take

• Draft job descriptions for a Range Manager and Range Attendant, including pay ranges.
• Search the PGA of America website for certified professionals in your local area.
• Sign up for a free trial of a scheduling app like Homebase to test its features.
• Project your first-quarter payroll based on a 35% payroll-to-revenue target.

Step 8: market your range and attract customers

Building your local presence

Your first customers will come from your immediate area. Start by setting up a Google Business Profile with high-quality photos of your facility. This makes you visible on Google Maps. Also, run targeted Facebook ads to users within a 10-mile radius who have an interest in golf.

A common mistake is to cast too wide a net. Focus your initial budget on these hyper-local efforts. A customer acquisition cost (CAC) under $50 is a good target for this type of campaign. Your goal is to become the go-to spot for your neighborhood.

Promotions and partnerships

A grand opening event is a great way to generate buzz. Offer a "first bucket free" promotion to attract 100-200 people on your opening weekend. You can also build partnerships with local high school golf teams or corporate leagues for steady, recurring revenue.

Consider an email list from day one. Collect emails at the front desk and send a simple weekly update with specials or tips. This direct line to your customers is more effective than social media alone for driving repeat business.

Here are 4 immediate steps to take

• Set up and fully complete your Google Business Profile with photos and hours.
• Plan a grand opening event with a specific discount or offer.
• Draft an email to one local high school golf coach to propose a partnership.
• Create a simple sign-up sheet to start collecting customer emails at your front desk.

Step 9: set your pricing and revenue streams

Your pricing strategy directly impacts your profitability. Most ranges use a tiered bucket system. For example, you might offer a small bucket (40-50 balls) for $9, a medium (70-80 balls) for $13, and a large (100-120 balls) for $16. This encourages upselling to the larger, better-value buckets.

Many owners make the mistake of competing solely on price. Instead, aim for value. Your price should reflect the quality of your mats, balls, and overall facility. Visit your competitors to see their pricing, but do not just copy it. Your goal is to position your range, not just match a price point.

Creating recurring revenue

Memberships are a great way to build a loyal customer base and predictable income. A simple monthly membership could be $99 for unlimited range balls. You can also offer packages, like 10 large buckets for the price of eight, to encourage repeat visits without a full membership commitment.

Also, consider other income sources. Renting clubs can add revenue; a set might rent for $15. Partnering with a teaching pro for lessons, where you take a 20-30% cut of their fee, provides income with no upfront staffing cost. These small additions can significantly boost your bottom line.

Here are 4 immediate steps to take

• Set prices for three different bucket sizes based on local competitor research.
• Outline the details of a monthly membership package, including the price and benefits.
• Decide on a price for club rentals and a revenue-share percentage for golf lessons.
• Create a simple punch card or package deal to encourage repeat business.

Step 10: maintain quality and scale your operations

Maintaining quality standards

Your reputation depends on the condition of your facility. A good standard is to replace the bottom 10% of your golf ball inventory every quarter. Also, rotate your hitting mats weekly to ensure even wear, and plan to replace them entirely every 12-18 months.

To measure quality, you can track customer feedback. A simple comment card at the front desk works well. If complaints about ball quality or mat conditions exceed two or three per week, it is a clear signal to check your inventory and maintenance schedule.

Knowing when to scale

Some owners expand too soon after a few good months. A more measured approach uses data. When you have consistent wait times of over 15 minutes during peak hours for a full month, it is time to think about adding more hitting bays.

Another benchmark is revenue. Once you hit 80% of your maximum capacity on weekends for two consecutive months, you can justify investing in more equipment. For managing this growth, you might look into software like foreUP, which can handle advanced bookings and memberships as you expand.

Here are 4 immediate steps to take

• Create a schedule to inspect and cycle out your worst 10% of range balls each quarter.
• Set up a simple system, like a comment box, to gather customer feedback.
• Define one key metric, like 'weekend wait times,' to trigger your expansion plan.
• Review the features of a golf management software like foreUP for future planning.

You now have a clear path to open your driving range. The key is to focus on the player experience; great mats and fresh balls create loyal customers. Your detailed plan is your best asset, so trust your preparation and get started.

And when it comes to payments, a simple approach works best. JIM lets you accept cards on your smartphone for a 1.99% transaction fee, no hardware needed. This makes sales easy from the start. You can Download JIM and be ready for opening day.