How to start a golf simulator business: your game plan

Starting a golf simulator business is an exciting venture that combines a passion for the game with sharp business savvy. The indoor golf market is growing rapidly, with steady demand from casual players, serious golfers who train in the off-season, and corporate events.

This guide will take you through the practical steps of developing your business plan, securing funding, selecting the right location, and acquiring equipment to help you launch a successful golf simulator business in the U.S.

Step 1: Develop your business plan and validate the market

Start by analyzing your local market. Use data from your local chamber of commerce and reports from the National Golf Foundation to understand demographics. You might also survey nearby golf courses to identify gaps in their off-season training options and member interests.

Next, identify your direct competitors. Use Google Maps and Yelp to find other simulator venues. Study their pricing, league offerings, and customer reviews to find your unique angle. A common oversight is to ignore indirect competitors like entertainment centers or traditional driving ranges.

Estimate your startup costs

Your budget is the foundation of your plan. While costs vary, mapping them out provides a clear financial target. Many new owners focus only on the simulator and forget the construction and furnishing costs needed to create a premium experience.

• Golf Simulators: $20,000 - $70,000 per unit
• Lease & Build-Out: $10,000 - $50,000+
• Licenses & Permits: $500 - $2,000
• Furniture & Amenities: $5,000 - $15,000

With this information, you can draft your formal business plan. The Small Business Administration (SBA) offers excellent templates. Focus on your market analysis, marketing strategy, and detailed financial projections to present a strong case to potential investors.

Here are 3 immediate steps to take:

• Draft a one-page summary of your business concept and target customer.
• Create a spreadsheet to budget your startup costs with low and high estimates.
• Analyze the pricing and services of at least two local competitors.

Step 2: Establish your legal structure and secure licenses

Choosing the right legal structure is a foundational step. Most new golf simulator businesses register as a Limited Liability Company (LLC). This structure protects your personal assets from business debts and lawsuits. Profits are taxed on your personal return, which simplifies things.

You file for an LLC with your state's Secretary of State, usually for a fee of $50 to $500. A mistake some new owners make is starting as a sole proprietorship to save money, but this offers no liability protection. It is a risk not worth taking.

Once your business is registered, you need a federal Employer Identification Number (EIN) from the IRS. It’s like a Social Security number for your business. You can apply for an EIN for free on the IRS website, and it's required for hiring employees and opening a bank account.

Navigate state and local permits

Next, contact your local city or county clerk for a general business license. You will also need a Certificate of Occupancy from your local building department. This confirms your space meets all zoning and safety codes for public assembly, a process that can take 30-60 days.

If you plan to serve food or alcohol, the licensing gets more complex. A liquor license from your state's Alcoholic Beverage Control (ABC) board can take 6-12 months and cost $5,000 to $20,000+. Start this application process as early as possible.

Here are 4 immediate steps to take:

• Decide between an LLC and a C Corp and visit your Secretary of State's website.
• Apply for a free Employer Identification Number (EIN) directly from the IRS.
• Contact your city's planning department to inquire about the Certificate of Occupancy process.
• Research your state's ABC board requirements if you plan to serve alcohol.

Step 3: Secure insurance and manage risk

Your next move is to protect your business. General liability insurance is your top priority. It covers claims if a guest is injured or if their property is damaged. A typical policy provides $1 million in coverage and can cost between $1,500 and $4,000 annually.

You also need property insurance to cover your simulators, screens, and furnishings. A frequent mistake is to underinsure this expensive equipment. Make sure your policy covers the full replacement cost of each unit, not just its depreciated value. This is a detail you should confirm with your agent.

Key policies and providers

If you have employees, workers' compensation is legally required in most states. It covers medical bills and lost wages for work-related injuries. If you serve alcohol, you must add liquor liability insurance. This protects you from claims related to intoxicated patrons.

You might want to work with an agent who understands entertainment venues. Consider getting quotes from providers like The Hartford, Next Insurance, or Philadelphia Insurance Companies. They have experience with the specific risks of a business like yours, from errant swings to equipment damage.

Here are 4 immediate steps to take:

• Request quotes for a $1 million general liability policy.
• Create an inventory of your equipment to get an accurate property insurance quote.
• Contact an insurance agent who specializes in entertainment or sports facilities.
• Check your state's requirements for workers' compensation insurance.

Step 4: Select your location and purchase equipment

Find the right space

Plan for at least 300 square feet per simulator bay. A ceiling height of 10-12 feet is non-negotiable for a full swing. Look for commercial properties zoned for "indoor recreation" or "entertainment." Check with your city's planning department to confirm the use is permitted.

When you negotiate your lease, ask for a Tenant Improvement (TI) allowance. This is money from the landlord to help pay for your build-out. It can significantly reduce your upfront cash outlay. Some owners forget this and pay for all renovations themselves.

Choose your simulators and amenities

With your space in mind, you can select your equipment. Simulators from brands like TrackMan or Foresight Sports are industry standards. Beyond the simulator unit, you will also need projectors, impact screens, turf, and computers for each bay. Plan for comfortable lounge furniture as well.

Here are 4 immediate steps to take:

• Calculate the total square footage you need for your desired number of bays.
• Research local commercial zoning codes for "indoor recreation" facilities.
• Ask potential landlords about a Tenant Improvement (TI) allowance.
• Request pricing guides from two simulator suppliers like TrackMan or Foresight Sports.

Step 5: Set up your payment and booking systems

Most customers will pay per hour. You should also plan for event deposits and recurring membership fees. Look for a payment solution that handles all these scenarios. Many new owners get locked into high rates, which can eat into profits over time.

Typical credit card processing rates hover between 2.5% and 3.5% plus monthly fees. For a business that needs to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and the sale is done.

At just 1.99% per transaction with no hidden costs or extra hardware, it is a strong option. It's particularly useful for taking payments for lessons on the bay floor or for food and drink orders away from a fixed counter.

• Get Started: Download the 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 waiting for bank transfers.

Now that payments are sorted, consider your booking system. You need software that shows real-time bay availability and lets customers book online. This reduces phone calls and avoids double-bookings. Look for platforms like Acuity Scheduling or SimplyBook.me that integrate with payment processors.

Here are 4 immediate steps to take:

• Map out your pricing for hourly rates, memberships, and private events.
• Compare payment processing rates, including the 1.99% offer from JIM.
• Download the JIM app to test its workflow on your phone.
• Research two booking software options that handle online reservations and payments.

Step 6: Secure funding and manage your finances

Explore your funding options

With your business plan ready, you can approach lenders. SBA 7(a) loans are a common route, with amounts from $50,000 to $150,000. Lenders typically look for a credit score over 680 and a solid plan. Interest rates often range from the Prime rate plus 2.75% to 4.75%.

You might also consider equipment financing. This loan is specifically for your simulators, and the equipment itself serves as collateral. This can sometimes make the approval process smoother than a traditional business loan, as the lender’s risk is lower.

Calculate your working capital

Many new owners focus on the big equipment purchase but forget the cash needed for the first six months. You should budget for at least $30,000 to $60,000 in working capital. This covers rent, payroll, utilities, and marketing before your revenue stream is stable.

Here are 4 immediate steps to take:

• Research SBA 7(a) loan requirements on the official SBA website.
• Contact your bank to ask about equipment financing options for simulators.
• Create a spreadsheet projecting six months of operating expenses.
• Gather your personal financial statements to prepare for a loan application.

Step 7: Hire your team and set up operations

Build your front-line team

Your first hire is likely a Bay Attendant. This person manages bookings, greets guests, and offers basic simulator help. Plan for a wage of $15-$20 per hour. A certified golf instructor can add a premium service, often working as a contractor for $75-$150 per lesson.

Many new owners understaff peak times to cut costs, but this often leads to poor service. One staff member for every two to three active bays is a good ratio for busy Friday and Saturday nights. This ensures guests get the attention they expect.

Streamline your daily workflow

With your team defined, you need a system to manage them. Employee scheduling software like Homebase or 7shifts helps you build schedules and communicate with staff. This avoids missed shifts and booking confusion. Aim for labor costs to stay between 25-35% of gross revenue.

If you serve alcohol, your staff must have state-approved server training, such as a TIPS certification. This is a non-negotiable legal requirement. Make sure you build this training time and cost into your onboarding process for every new hire who will serve drinks.

Here are 4 immediate steps to take:

• Draft job descriptions for a Bay Attendant and a contract Golf Instructor.
• Research your state’s requirements for alcohol server certification.
• Compare the features of two employee scheduling platforms like Homebase or 7shifts.
• Set a target labor cost as a percentage of your projected revenue.

Step 8: Market your business and acquire customers

Generate buzz before you open

Your marketing should start before your doors open. Create Facebook and Instagram pages to document the build-out process. Posting photos of the simulators being installed or the lounge area taking shape builds a local following eager for day one.

Plan your grand opening

A grand opening event creates immediate traffic. You could partner with a local golf pro for free 10-minute swing tips. Offer a 25% discount for anyone who books a bay during your opening week to create urgency and fill the schedule.

Once you have an opening date, run targeted social media ads. Use Facebook to reach golfers within a 10-mile radius. A budget of $500-$1000 for the first month is a solid starting point to generate awareness and test what works.

Create loyal customers

Now that you have customers, focus on loyalty. Develop corporate and individual golf leagues. A frequent misstep is to price leagues too high at the start. It is better to price competitively to fill the spots, then adjust later as demand grows.

Use your booking system to collect emails for a weekly newsletter. Share league updates and member-only promotions. Aim for an email open rate of 20-25%. You should also track your customer acquisition cost (CAC), which should be around $25-$50.

Here are 4 immediate steps to take:

• Create social media profiles and post photos of your build-out progress.
• Outline a grand opening event with an introductory discount.
• Draft a structure and pricing for your first golf leagues.
• Set a starting monthly budget for local social media ads.

Step 9: Set your pricing and maximize revenue

Define your hourly rates

Your hourly rate is the core of your revenue. A dynamic model works best. You can charge a premium for peak times like evenings and weekends, perhaps $50-$65 per hour. For off-peak hours, like weekday mornings, a lower rate of $35-$45 attracts customers.

Some owners make the mistake of setting one flat rate. This leaves money on the table during busy periods and fails to incentivize visits during slow times. Check competitors' websites and even call them to get a clear picture of local pricing.

Build out memberships and leagues

With your hourly rates established, you can create memberships. A basic tier might cost $100 per month for four off-peak hours. This creates a predictable, recurring revenue stream. Leagues also drive consistent traffic and build community among your regulars.

Don't forget about food, beverages, and merchandise. These items carry high profit margins. A standard markup for drinks is 300-400%, while merchandise like branded golf balls or shirts can have a 50-100% markup. These sales significantly boost your overall profitability.

Here are 4 immediate steps to take:

• Define your peak and off-peak hours and set two different hourly rates.
• Outline a basic membership tier with a monthly price and included perks.
• Call two competitors to confirm their current hourly and league pricing.
• Calculate the sale price for a beverage using a 300% markup.

Step 10: Maintain quality and scale your operations

Your reputation depends on a consistent customer experience. Create a daily checklist for your staff. It should include tasks like calibrating projectors, cleaning screens and turf, and confirming all software works correctly. This ensures every guest gets the same premium experience.

Measure your performance

To measure service quality, track equipment uptime and aim for 99% availability. You can also use simple feedback cards to calculate a Net Promoter Score (NPS). A score above 50 is a good target. This data shows you what customers love and where you can improve.

Once your quality is locked in, you can look at growth. The key metric is bay utilization. If your bays are booked over 80% during peak hours for three straight months, it is time to consider expansion. Some owners expand too soon and hurt their cash flow.

As you grow, you might outgrow your initial booking software. Look into comprehensive venue management platforms like Clubspeed. They handle leagues, multi-location bookings, and marketing in one system, which helps you manage a larger operation without chaos.

Here are 4 immediate steps to take:

• Create a daily quality checklist for your staff to follow.
• Track your peak-hour bay utilization rate every week.
• Set an 80% utilization rate as your trigger to start planning an expansion.
• Research a venue management system like Clubspeed for future growth.

Starting a golf simulator business is about more than just the tech. Remember that your guests are there for the experience, not just the swing data. You have the roadmap to get started, so go build a place where people love to play.

As you get set up, keep your payments simple. JIM lets you accept cards right on your phone for a flat 1.99% fee, with no extra hardware needed. It helps you get paid easily from day one. Download JIM to get started.