1. sports
2. golf

Outline Business Plan for Gatwick Golf Facility
Created for:
Harte Holdings,
11 Angelsea Street,
Cork.
By:
Robert Hill Consulting,
Suite 15,
The Parklands,
Southern Cross Road,
Bray, Co. Wicklow, Ireland.
Telephone: +353 1 2764141
E-Mail: info@roberthillconsulting.com
Online: www.roberthillconsulting.com
Submitted: Tuesday 4th August, 2009
Outline Business Plan for Gatwick Golf Facility
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1. Table of Contents
1. Table of Contents ..........................................................................................................................................................................2
2. Executive Summary .......................................................................................................................................................................3
3. Facility Description........................................................................................................................................................................8
4. Marketing Plan..............................................................................................................................................................................12
5. Operations.....................................................................................................................................................................................25
6. Operating Projections & Assumptions.....................................................................................................................................29
7. Methodology.................................................................................................................................................................................38
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Outline Business Plan for Gatwick Golf Facility
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2. Executive Summary
The golf facility envisaged for the Charlwood Road site adjacent to Gatwick Airport will be unique for the region and
the greater London area. It will offer not only affordable access to the game of golf for the local community through
the provision of state-of-the-art playing and practice facilities, but also a ‘links-style’ golf environment which recreates
some of Britain’s most famous links golf holes from championship links across the nation.
The primary purpose of this business plan is to set a strategic direction for the future of this facility. It will address a
business model, finance and marketing issues that will be key to the future success of the business. This process is
challenging from the standpoint that there are several other golf course and driving range facilities in the market and
this is a new start-up enterprise. This document will outline how the facility will differentiate itself to succeed.
The market strategy is based on becoming a viable choice for people looking for a place to practice every aspect of the
game of golf as well as for those looking for a unique ‘links-style’ golf experience on which to play. The target markets
include families, adults, children, and golf societies from within a 20 minute radius. Golf is becoming increasingly
popular with children at younger ages. The facility will have programs in place to meet the needs of kids wanting to
learn the game of golf while also appealing to adults of all levels who want a quality place to play, practice or take
lessons. The facility will also build relationships with local schools and centres of higher education to hold classes at
the range, and to use it as a practice facility for their golf teams. The marketing objective is to actively support
continued growth and profitability through effective implementation of the strategy.
The facility which is on 37 hectares includes;
•
34-bay covered floodlight driving range
A state-of-the-art 34 bay driving range facility will provide covered and heated bays for practice throughout
the year. Each bay will provide a comfortable and ideal environment considering space, lighting, warmth and
protection from the elements.
•
Links short-game practice & teaching facility
The facility will include a short game teeing area, a practice bunker and chipping green all designed to
replicate links golf play. Golf tuition will play an important role at the facility as it serves to make the game
accessible and enjoyable for all in the local community and beyond.
•
9-hole links-style golf course
A first in Britain, this 9-hole course will replicate great links holes from the nation’s most famous Open
Championship golf courses. Turnberry, Muirfield, St. Andrews, Carnoustie, St. Georges and Troon will all be
brought together at this unique facility offering golfers from the locality the opportunity to play some of the
world’s great golf holes all in one venue.
Robert Hill Consulting
05/08/2009
Outline Business Plan for Gatwick Golf Facility
•
Page 4 of 38
Practice putting facility
An extensive putting green will recreate a links putting surface for people to practice before they play golf and
for those who simply enjoy taking on an exciting putting course.
•
Clubhouse
The clubhouse is a 200 square meeting lodge which acts as the heart of the golf facility. All visitors on site will
register in the golf shop in the clubhouse where they can purchase green fees, driving range basket, apparel,
accessories and light refreshments. The building incorporates ladies and gents locker room both with toilet
and shower facilities, and a lounge and terrace area where visitors can relax with friends and enjoy light
refreshments and snacks.
•
Car Park
The car park will cater for in excess of 100 cars for users of the facility and staff.
2.1 Business Model Summary
Mature golf markets such as the UK have been witnessing a slight fall in golf participation over the last decade
primarily due to the increase in the cost of participation and the time it takes to participate in the game. Falling
membership trends have also highlighted the perceived poor value of golf membership. The business model for this
new facility aims to address these trends by creating a more dynamic and open golf product which focuses on value
for money and the creation of a community focal point.
Five core revenue centres will include;
•
Green Fees
•
Membership Subscriptions
•
Driving Range Balls
•
Tuition
•
Retail
2.1.1 Access for all
Primarily, the business model for the new facility will operate on a ‘pay & play’ basis which means that it will be open
to and encourage use by all members of the public. The objective will be to break down any perceived barriers to the
game while also providing a truly unique and state-of-the-art golf facility for established golfers in the region.
2.1.2 Family centre
The new facility intends to place a great deal of emphasis on encouraging family involvement. The short-game area,
driving range and practice putting facilities provide an ideal environment for families to share golf practice and tuition.
Family rates both on the golf course and the practice facilities will reinforce this culture.
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2.1.3 A centre of excellence
The facility has the potential to establish itself as one of the foremost centres of teaching excellence in the region. A
centre for golfers who wish to achieve higher skills standards and receive personalized coaching programs in an
exceptional facilities environment.
2.1.4 Golf Foundation
The new facility intends to establish itself as a centre for the Golf Foundation. The Golf Foundation is a charity
committed to the sporting and social development of young people through golf. In an attempt to achieve enjoyment
and excitement many children turn to sport and through their participation they develop a range of personal skills and
qualities that will help them later in life - honesty, respect, co-operation, self motivation, concentration and
perseverance. The organisation focuses its work at the beginner level, and aims to give all young people a positive
experience through the medium of golf regardless of their background or circumstances. Through its work, the
Foundation hopes that those introduced to the sport will go on to be both regular participants and responsible
citizens.
2.1.5 A community club
A club membership will be made available at the facility with the intention of creating a community at the facility. The
size of the membership will be limited to 250 to ensure sufficient balanced access for members and visitors alike.
Among the membership categories offered, will be a ‘Local Membership’ for those who reside within the immediate
vicinity, a ‘Senior Membership’ and a ‘Junior Membership’, all of which will be available at a significantly reduced rate
to encourage regular local and junior use of the facility. The club will host regular competitions and events as well as
offering the facility for golfers to obtain a CONGU handicap.
2.1.6 Making the game more affordable
The model will place an emphasis on affordability and making the game accessible. Green fee rates will average €11.34
per visitor in the first full year of operating increasing to £12.02 by year 5. This rate will be significantly cheaper for
juniors at £7.50. The average cost of a basket of balls on the range will be £2.58 in year 1 which is 14% below the
regional average. Tuition rates are projected to average £20 for 30 minutes in line with current regional pricing.
Membership will be made available with two main categories at an average of £528 for 12 months. This is 30% less
than the current £771 average membership rate for the market. There will also be a special ‘Local Membership’ made
available to residents within 5 minute radius of the site priced at a 50% discounted rate of just £294 for 12 months
membership. There will be a similar rate for ‘Senior Membership’ and a further 50% discount for ‘Junior
Membership’. This membership model shows the facilities commitment to being price competitive and making golf
accessible in its first 5 years of operating. It also highlights the facilities commitment to the local community through
significantly subsidised membership rates and by encouraging a junior club at the facility as a centre for local children
to learn and play for as little as £12.25 per month all inclusive.
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05/08/2009
Outline Business Plan for Gatwick Golf Facility
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2.2 The Market
The market research has determined a regional golfing market of approximately 23,000 golfers within a 20 minute
radius of the site. Examining local supply, the research also highlights that there is current golf course supply to meet
the demand for 12,409 local green fee golfers suggesting an under supply of golf facility. This market research has
driven the business model and facility design. The golf course concept of a link-style recreation has evolved from the
suitability of the site to deliver such a product and also to differentiate the playing experience from all the other golf
course products that currently exist in the regional market place.
2.3 Staffing
The golf facility will employ 12 full time and seasonal staff once completed.
2.4 Financial
The financial model provides evidence of a viable and profitable golf operation. The first 3 years (Pre-1, Pre-2, Pre-3)
of operating the driving range facility will produce a modest operating profit of £49,563. A further 5 years of
operating with the 9-hole golf course will deliver a projected £555,656 in net operating profit for the 8-year period.
Table 1: Overview of Operating Sales & Net Profit Projections for new Facility
£800,000
£700,000
£634,320
£653,053
£688,233
£713,250
£600,000
£429,999
£500,000
£400,000
£300,000
£255,577
£268,859
£282,770
£200,000
£100,000
£0
£105,464
£9,577
Pre-1
£17,484
Pre-2
£22,502
Pre-3
£132,597
£147,999
£3,828
Year 1
Total Income
Robert Hill Consulting
£116,204
Year 2
Year 3
Year 4
Year 5
Net Profit
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Table 2: Summary Operating P&L for new Facility
Total
£
Pre-1
£
Pre-2
£
Pre-3
£
Year 1
£
Year 2
£
Year 3
£
Year 4
£
Year 5
£
Income
Membership Income
Green Fee Income
Range Income
Golf Shop Operating Profit
Total Income
42,2150
931,992
1,953,866
618,054
3,926,061
0
0
219,163
36,414
255,577
0
0
230,625
38,235
268,859
0
0
242,624
40,146
282,770
22,472
104,072
234,268
69,187
429,999
107,946
181,519
242,992
101,863
634,320
94,853
199,623
251,999
106,579
653,053
97,224
218,312
261,297
111,399
688,233
99,655
228,466
270,898
114,231
713,250
Expenditure
Administration & Management
Golf Course Maintenance
Total Expenditure
1,853,237
151,7168
33,70405
180,000
66,000
24,6000
183,075
68,300
25,1375
189,554
70,715
26,0269
256,525
169,645
42,6170
258,475
270,381
52,8856
256,599
280,250
53,6849
265,079
290,557
55,5635
263,931
301,320
56,5251
555,656
9,577
17,484
22,502
3,828
105,464
116,204
132,597
147,999
Net Profit
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Outline Business Plan for Gatwick Golf Facility
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3. Facility Description
3.1 Goals and Objectives
•
Stake a claim for the regions premier 9-hole golf facility
•
Develop a community club encouraging golfers to develop a social focus at the facility.
•
Create an opportunity for people to try the game and learn how to play
•
Encourage young people in the community to get involved and active in the game
•
Provide a golf environment like no other currently available to the community.
•
The facility will cater for in excess of 100,000 golfing visitors annually when mature.
•
Modest annual increase in NET operating profit year on year
3.2 The Driving Range
Golfers of all ages and skill levels will enjoy the high quality of the practice facility and will be able to work on all
aspects of their game. The driving range will be fitted with state-of-the-art equipment including mats with a true grasslike hitting surface to allow for a proper swing and follow through, with accurate ball flight trajectory and spin. The
driving range will include;
•
Flood-lighted range and putting area
•
34 hitting bays with the best artificial surfaces available
•
12 hitting bays with dual left- and right-hand set up
•
Hitting areas with adjustable-location rubber tees in varying heights
•
Regularly install and rotate new artificial grass mats and top-quality range balls for a realistic practice
environment.
•
300+ yard long and 100+ yard wide range
•
Sloped landing area for better visibility of ball flight and landing distance
•
Target flags laser-measured and slope-adjusted for distance
•
Top quality range balls for outstanding, consistent feel and distance
•
Conveniently located ball dispensing machines at each end of the range
•
Completely handicap-accessible range and clubhouse
•
Satellite Big Screen TV in the driving range bays and clubhouse
•
Club hire (always free for kids)
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3.3 The Practice and Teaching Facility
The links short-game practice & teaching facility will be unique for the region. A golf school staffed by qualified PGA
Professionals where golfers of all ages and abilities can enjoy learning the game and the art of links play. The facility
will include a short game teeing area, a practice bunker and chipping green all designed to replicate links golf play.
Golf tuition will play an important role at the facility as it serves to make the game accessible and enjoyable for all in
the local community and beyond. The short-game practice facility will include;
•
Large teeing area with shaped outfield of up to 60 yards in length
•
Extra large real-grass putting green, mowed regularly for speed variation.
•
Short-distance chipping around grass putting green
•
Sand bunker, including sloped edge for additional lie practice
3.4 Professional Services
Golf tuition and coaching will play an important role at the golf facility catering for all types of golfers - from the raw
beginner right through to the elite golfer. The qualified PGA Professionals will operate junior golf lessons, private golf
lessons, one day golf schools, group sessions, clinics, playing lessons, golf fitness and golf psychology coaching.
The team will utilise state-of-the-art equipment including:
•
Video Analysis
•
Weight Right Pro Force-Plate Analysis System
•
Explanar Golf Training System
•
Smart Gym Exercise System
•
Leading Training Aids
3.5 Custom Fitting
A professional custom fitting service will be provided at the facility with a wide choice of manufacturer brands
available for customer choice. The extensive practice facilities will provide the ideal environment on which to evaluate
and assess customer requirements by qualified staff.
3.6 Tuition
Whatever a players current level of skill, from beginner to low-handicap, professional golf instruction is a ticket to
improvement. The facility will provide a group of experienced PGA and LPGA golf instructors providing the perfect
mix of patience, positive reinforcement and a sense of humour to make learning fun.
3.7 Club Repair
The club repair specialists at the facility will have extensive training in all aspects of club-building and will be able to
help select the proper changes for golfer’s equipment. A special club repair workshop within the clubhouse will
provide this service
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Outline Business Plan for Gatwick Golf Facility
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3.8 The Golf Course
Designed by Ron Kirby, one of the world’s most renowned golf course architects, the golf course at the facility will
offer a unique golf environment. The 9-hole course will recreate golf holes from some of Britain’s most prestigious
trophy links courses.
A first in Britain, this 9-hole course will replicate nine great links holes from the nation’s most famous Open
Championship courses. Turnberry, Muirfield, St. Andrews, Carnoustie, St. Georges and Troon will all be brought
together at this unique facility offering golfers from the locality the opportunity to play some of the world’s great golf
holes all in one venue.
Table 3: The 9 holes to be recreated at the new facility
Hole No.
Recreation
No. 1
St Andrews Old Course, Hole 1, Burn
Par
4
No. 2
Turnberry Ailsa Course, Hole 2, Mak Siccar
4
No. 3
Carnoustie, Hole 2, Gulley
4
No. 4
Muirfield, Hole 3
4
No. 5
Royal St. George’s, Hole 6, The Maiden
3
No. 6
Carnoustie, Hole 18, Home
5
No. 7
Turnberry, Hole 7, Roon’ the Ben’
5
No. 8
Royal Troon, Hole 8, Postage Stamp
3
No. 9
Muirfield, Hole 18
4
Length
Medal Tee: 376 yards
Ladies Tee: 339 yards
Junior Tee: 320 yards
Medal Tee: 428 yards
Ladies Tee: 380 yards
Junior Tee: 340 yards
Medal Tee: 435 yards
Ladies Tee: 390 yards
Junior Tee: 365 yards
Medal Tee: 378 yards
Ladies Tee: 345 yards
Junior Tee: 345 yards
Medal Tee: 154 yards
Ladies Tee: 130 yards
Junior Tee: 130 yards
Medal Tee: 500 yards
Ladies Tee: 460 yards
Junior Tee: 405 yards
Medal Tee: 469 yards
Ladies Tee: 419 yards
Junior Tee: 395 yards
Medal Tee: 123 yards
Ladies Tee: 118 yards
Junior Tee: 118 yards
Medal Tee: 414 yards
Ladies Tee: 370 yards
Junior Tee: 330 yards
This concept will not only bring these magnificent golf holes together in one venue, but will also introduce a links golf
experience to the region which is currently not available. It will stand as the only links-style golf facility within a 25
mile radius.
Designed and constructed to the highest standard, the golf course will also enjoy the highest standards of golf course
maintenance and presentation ensuring year-round playability and excellent surfaces.
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05/08/2009
Outline Business Plan for Gatwick Golf Facility
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3.9 The Clubhouse
The clubhouse will be designed to incorporate comfort, efficiency and an understated interior elegance that serves as a
salute to the history and traditions of the game. Carefully located between the driving bays, the short game area and
within easy access to the 1st tee and 18th green, it will serve as the heartbeat of the entire facility.
Facilities within the clubhouse include a Golf Shop, Ladies and Gentlemen’s Locker Rooms, Toilet facilities and a
comfortable lounge. An outdoor patio area will also feature and a variety of cold drinks and snacks will be available
for spectators or for those relaxing between practice or after their round. The clubhouse will be completely spike
friendly. Gents and Ladies locker rooms will be equipped with lockers allowing for personal belongings to be stored,
however not for golf club storage.
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Outline Business Plan for Gatwick Golf Facility
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4. Marketing Plan
4.1 National Participation Trends
Table 4: National participation trends – how often do golfers play?
Courses
Average
Average Annual
Average Annual Average Annual
Members
Member Rounds
Visitor Rounds
Total Rounds
Private Members
1,367
594
25,500
2,500
28,000
Proprietary Club
604
478
20,520
10,480
31,000
Proprietary P&P
281
196
8,414
22,586
31,000
Municipal Club
187
297
12,750
21,750
34,500
Municipal P&P
46
0
0
34,500
34,500
Average
487
20,926
8,752
29,678
Total
2,485
1,211,325
52,001,326
21,748,174
73,749,500
9-hole courses show an average of 16% less annual visitor rounds to 18-hole Courses in all categories.
•
The above data shows that the average number of paid visitor rounds played on a Proprietary Pay & Play 18hole Golf Course is 22,586 rounds per year.
•
Taking into account that national trends indicate 9-hole golf courses process on average 16% fewer paid
rounds, this means an average of 18,972 paid rounds for a 9-hole Proprietary Pay & Play Golf Course.
•
Each green fee golfer plays on average 9.1 times per year
Table 5: National participation trends – participation rates by age
% population
10.3%
9.9%
10
8.2%
8.4%
7.7%
7.9%
7.7%
7.4%
5
0
3.6%
15-19
20-24
18-24
25-34
35-44
45-54
55-64
65
plus
Avg
Table 5, highlights the opportunity that lies with the junior market as the greatest participation rate in the 15 – 19
years of age segment. Strong also is the 25 – 34 age group. Both of these segments demand a fresh, contemporary
approach to golf provision both in terms of the environment and the management of the facility.
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4.2 The Local Market
As a general rule, people will drive no more than an average 20 minutes to visit a golf facility. This 20 minute radius
does vary in rural and urban regions but it offers a good indication of market size in which we can examine the local
golfing population and the existing number of facilities to assist in determining demand for the new facility.
Table 6: Local Golfing population within a 20 minute radius
Age
Total
Males
Females
15 - 19
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 - 74
75 - 79
80 - 84
Totals
21992
20102
24434
30460
32852
29488
26662
28345
21424
17409
16825
15411
13171
9110
333324
11331
9840
11997
14914
16436
14872
13387
14205
10531
8481
7961
7097
5710
3696
163568
10,661
10,262
12,438
15,545
16,416
14,616
13,275
14,141
10,893
8,928
8,863
8,314
7,460
5,415
169,756
Participation
Golfers in Market
10.3%
7.7%
8.2%
8.2%
8.4%
8.4%
7.9%
7.9%
7.4%
7.4%
3.6%
3.6%
3.6%
3.6%
2265
1548
2004
2498
2760
2477
2106
2239
1585
1288
606
555
474
328
22733
•
There are currently 22,733 golfers in the region.
•
Following national participation trends, we can now assume these golfers are categorized as;
- 15,155 Green Fee (Non-Member) Golfers
- 7,578 Member Golfers
•
To achieve the mature 19,000 visitor rounds budgeted within the financial model, there is a requirement for
2,088 local green fee golfers (this assumes the region meets the national participation averages of visitors
playing 9.1 rounds per year). This does not include those who are not yet golfers but may use the facility as a
centre of learning.
•
There are 5 pay and play golf courses within the market (see Competitive Environment 4.2) that provide a full
length golf course and whose business models are based on the attraction of pay and play green fee rounds.
These 5 facilities (assuming 22,586 visitor rounds for 18-hole P&P facility) require 12,409 local green fee
golfers.
•
Therefore there is a market of 15,155 Green Fee Golfers and supply for 12,409 through exiting facilities. We
can determine therefore is sufficient demand (2,746 golfers) to meet the facility needs of 2,088 local green fee
golfers.
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Outline Business Plan for Gatwick Golf Facility
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4.2.1. The Target Market
The market strategy is based on becoming a viable of choice for people looking for a place to play a round of golf in
an open and welcoming environment and those who wish to practice every aspect of the game. The target markets are
separated into three segments; "Juniors," "Adults," and "Families".
Juniors - Age range of 9 - 17 years of age. Most of the parents of these children also play golf. In addition to golf
many of this group plays other sports. The facility will offer this market affordable access to playing and practice
facilities encouraging tuition and improvement services individually, as a group (schools, clubs etc.) and with family.
Adults - This group has an age range of 18 - 59 years of age. National trends tell us that 70% of this group are males
(professional/white collar worker) with an annual household income in excess of £40,000. One of the objectives is to
reach attract this profile as well as a wider target market including women and men from outside this socio-economic
group by breaking down the perceived barriers to entry.
Families – Golf clubs have not historically been family destinations. They tend to be controlled by and aimed at adult
men. This has played a role in the slowing of participation in the game. The new facility will actively target family
participation through extensive junior programmes and family promotions. The extensive practice and teaching
facilities will provide the ideal environment to attract and retain family entertainment.
4.2.2. Driving Range Demand
The number of golfers in a market is more important than the number of people. Generally, it is not recommended
that a golf practice range facility be built unless there are at least 6,500 golfers in the market area within a 20 minute
radius for a 30 bay range. This equates to 216 golfers per bay.
There are two existing golf practice range facilities in the market providing 72 bays. This means there is currently a
provision for 15,552 golfers – an under supply of 7,181 or 34 driving bays within the market of 22,733 golfers. It
would indicate therefore, that there is sufficient demand for a new driving range facility providing 34 bays.
4.2.3. Driving Range Market Trends
•
There are over 600 driving range facilities across the UK. The majority of these are in South England
•
The average standalone commercial facility has 30 bays
•
70% of driving ranges over totally covered bays
•
86% of driving ranges are floodlight
•
Average opening hours are 87.5 hours per week
•
Average price is 3.53p per ball with newer ranges at the higher end of the scale averaging over 5.05p per ball
•
Average occupancy for driving range is 27% at weekends and 21% midweek. 100% occupancy is 135 balls per
bay per hour
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4.3 Competitive Environment
In analysing the competitor market it is necessary to determine the following in the domestic market place:
•
Determine similar products in the market place
•
Assess the product and service of the competitors
•
Assess the yield management structure of competitors
•
Assess the level of success of the competitors
New Gatwick Golf Product Requirements:
•
Pay & Play Business Model with membership product
•
Practice / Driving Range facility
•
9-hole or 18-hole golf course of full length
•
‘4 star’ services
•
‘4 star’ product delivery
Table 7: Competitor Overview
Name
Type
Distance
From Site
Golf Course
Practice
P & P with
membership
P & P with
membership
P & P with
membership
5 minutes
9 holes, 1662 yds
Netted Practice Facility
25 minutes
18 holes, 6,600 yds
Short game & practice
range
15 minutes
36 holes, 6,100 yds
Warm up facility
Tilgate Forest
P & P only
15 minutes
18 holes, 6,800 yds
35-Bay Floodlight Range
Ifield G&CC
Member Owned
15 minutes
18 holes, 6320 yds
Practice facility
Copthorne G C
Member Owned
15 minutes
18 holes, 6435 yds
n/a
Chartham Park
P & P with
membership
25 minutes
18 holes, 6680 yds
Practice facility
Redhill & Reigate G C
Member Owned
20 minutes
18 holes, 5272 yds
n/a
Redhill G C
Driving Range
20 minutes
9 hole short course
37-Bay Floodlight Range
Betchworth Park
Member Owned
30 minutes
18 holes, 6325 yds
n/a
Rusper Golf
P & P with
membership
20 minutes
18 holes, 6742 yds
12-bay driving range
Burstow G C
Gatton Manor
Cottesmore G&CC
Those clubs shaded in Table 7, are the most comparable competitors in the current market place as they meet the
criteria of a pay & play model with some level of practice facility.
Robert Hill Consulting
05/08/2009
Outline Business Plan for Gatwick Golf Facility
Tilgate Forest GC
Page 16 of 38
Located in Tilgate Forest Park and 15 minutes from the site, this facility is the most
comparable golf product in the region. It consists of an 18-hole par 72 course which is
both challenging and rewarding for all golfers, a35-bay driving range and a 9-hole Par 3
course, ideal for beginners or for a fun warm-up round.
Tilgate Forest Golf Centre is one of the best Pay & Play courses in the South. It follows a
pay & play model and offers a season ticket product rather than membership.
•
•
•
•
•
•
•
•
Redhill GC
18 Hole Championship Course
9 Hole Par 3 Course
35 Bay Floodlit Driving Range
Golf Superstore
Public Bar and Catering Facilities
Function rooms
P.G.A Tuition
Club Customisation and Repairs
Redhill Golf Centre opened in 1992, with just the Driving Range, while the Golf Course
was under construction. This opened shortly afterwards. It is located a little over 20
minutes from the site. Primarily a 37-bay Floodlit Driving Range, the 9-hole Golf Course
is just over 1,500 yards in length and so although the golf course is not a comparative
product, the facility does attract the target market for practice, tuition and a route into the
game. There is no membership available for the course and no booking facility is in place.
Redhill is a driving range competitor rather than a golf course competitor.
•
•
•
•
Rusper GC
37-bay floodlight driving range
9-hole short course
Golf retail
P.G.A tuition
Rusper Golf Club and Driving Range is situated on the Surrey - West Sussex border and is
only a short drive from the M25 and M23 and the A24, and approximately 20 minutes
from the site. It includes an award winning 18-hole golf course and a 12-bay driving range.
The club follows a pay & play model but also offers a membership product. It is price
aggressive and would be a golf & practice competitor for the Crawley market.
•
•
•
•
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12-bay driving range
18-hole golf course
Golf retail
P.G.A tuition
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Outline Business Plan for Gatwick Golf Facility
Gatton Manor
Gatton Manor is the furthest competitor from the site located 30 minutes away, but it is
included in this assessment as it is a competitor for the Crawley golf market. The facility
incorporates an 18-hole golf course, a short game and practice range as well as a ‘3 star’
18-bedroom hotel and conference facilities. It attracts to the group society market and also
provides a membership product although it is primarily a pay & play model.
•
•
•
•
•
•
•
Cottsmore G&CC
Page 17 of 38
18-hole golf course
Short-game & practice range
Extensive clubhouse facilities
Golf retail
P.G.A tuition
18-bedroom hotel
Conference facilities
The club is 1 mile from the M23 and 15 minutes from the site. It incorporates golf, a 21bedroom hotel and a health club on a mature 247 acre estate. Golf consists of an 18-hole
parkland course and an 18-hole short course.
The business model is pay & play on which it is heavily focussed but it also runs a
successful membership club. The golf operation has the advantage of feeder facilities from
the hotel. The golf course would not be considered ‘4 star’ in presentation or construction
but is nonetheless successful in attracting repeat domestic business.
•
•
•
•
•
•
•
Burstow GC
18-hole parkland golf course
18-hole short-course
Warm-up facility
Golf retail
P.G.A tuition
21-bedroom hotel & conference facility
Health club
Burstow Golf Club is a 9-hole course situated less than 5 minutes from the site on 21
acres. It is a pay & play short 9-hole golf course with a Gym4Golf netted practice facility.
Although the product is not directly comparable, it is the closest golf facility to the site and
does currently attract the local market, particularly juniors, seniors and learners. It also
offers a limited membership product.
•
•
•
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9-hole short course
Practice facility
P.G.A tuition
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Outline Business Plan for Gatwick Golf Facility
Chartham Park GC
Page 18 of 38
Designed by Neil Coles and constructed in 1988, the 18-hole parkland golf course at
Chartham Park sits on 145 acres and is surrounded by ancient green belt woodland. It
features an abundance of mature trees, lakes and several heathland holes on the back 9.
The club is owned and operated by The Club Company and incorporates golf and health
& fitness facilities in its business model. It is heavily pay & play focussed with a strong
membership base. It offers a contemporary clubhouse environment and heavily targets the
family country club market. It is 25 minutes from the site.
•
•
•
•
•
•
•
Others
18-hole golf course
Practice facility
Golf retail
P.G.A tuition
Extensive clubhouse facilities
Health & Fitness Club
Membership products
There are 4 member owned clubs in the domestic market which are run primarily for their
members. Although they are not as aggressive in targeting the green fee market, their golf
products are nonetheless attractive to this market. Membership is also available albeit at a
higher rate. The clubs are;
•
•
•
•
Ifield G & CC
Copthorne GC
Redhill & Reigate GC
Betchworth Park GC
.
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Competitor Review:
The ratings are based on the following criteria with a maximum rating of 10 and a minimum of 0. The maximum
score can be 60.
Course:
Domestic recognition, presentation quality
Service:
Based on expected ‘4 star’ target market customer service
Product:
Based on ‘4 star’ product delivery, aesthetics and ambiance in relation to business concept
Location:
Accessibility for target market
Price:
Membership and Green Fees Prices in perceived value for money
Yield:
Return on membership and fee structure adopted by venue
Table 8: Competitor Review
Course/s
Service
Product
Location
Price
Yield
Total
Tilgate Forest GC
7
7
7
8
8
8
46/60
Redhill GC
2
6
5
7
7
6
33/60
Rusper GC
6
7
6
7
8
7
41/80
Gatton Manor GC
8
8
8
7
8
8
47/80
Cottsmore G & CC
6
6
6
7
7
6
38/80
Chartham Park GC
Burstow GC
8
8
8
8
7
8
2
5
3
7
7
3
47/60
27/60
Ifield GC
6
6
6
8
6
5
35/80
Copthorne GC
7
6
7
8
6
5
37/80
Redhill & Reigate GC
7
7
7
8
7
6
42/80
Betchworth Park GC
8
7
7
8
7
6
43/80
Pay & Play
Membership
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Outline Business Plan for Gatwick Golf Facility
Page 20 of 38
Table 9: Competitive 9-hole Green Fee Rates
£30
£28
£25
£20
£18
£20
£15
£15
£15
£13
£15
£13
£12
£13
£12
£9
£10
£5
Average
Rusper
Betchworth Park
Redhill
Redhill & Reigate
Chartham Park
Copthorne
Ifield
Tilgate Forest
Cottesmore
Gatton Manor
Burstow
£0
Table 10: Competitive Subscription Rates
£1,400
£1,250
£1,128
£1,200
£900
£832
£850
£860
Redhill & Reigate
£950
Chartham Park
£1,000
£914
£815
£800
£640
£600
£400
£200
Average
Rusper
Betchworth Park
Copthorne
Ifield
Tilgate Forest
Cottesmore
Gatton Manor
£0
It should be noted from Table 10, that these membership fees relate to 18-hole golf courses.
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Outline Business Plan for Gatwick Golf Facility
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4.4 Marketing Strategy
4.4.1 Events:
•
Local Community Invitation Day. A family event introducing the facility and services to the community in the
early stages of development and opening. This can then be an established as an annual event to participate in
local community life.
•
Press Event. An early press invitational event which encourages press visits from both regional and national
press. This assists with awareness and critical evaluation for general promotion
•
The Crawley & West Sussex Links Open Championship. The establishment of an annual ‘Links Open
Championship’ event would provide a fun and distinct offering to the local golf circuit. The event would help
in emphasising the unique links environment at the facility and open its doors to golfers of all age and ability.
•
Charity / Celebrity launch event. An ideal way to garner publicity for a launch, this event is also wonderful
opportunity to raise funds for worthwhile local causes.
•
Junior Open Championship. A prominent junior event is a critical tool for establishing a junior notoriety and
providing burgeoning golfers with a goal for achievement.
•
PowerPlay Golf. As a 9-hole facility, the course is ideally suited to establish itself as a PowerPlay Golf Venue.
•
Hoteliers Event. Local hotel operators are encouraged to participate in this launch event to educate them on
the product and use the facility as an attraction for visitors into the locality
4.4.2 Local School Sports Partnership:
The Golf Foundation created the Community Links programme in January 2007 to replace the Starter Centre
Initiative. It is structured in 3 levels to help clubs progress towards GolfMark. The programme is designed to help
clubs and facilities actively engage with the community through work with individual schools, school sport
partnerships, young people’s organisations and local authorities. It also provides a young person with an introduction
to a club or golf facility.
A Community Links facility will offer taster sessions in local schools using the Tri-Golf and Golf Xtreme
programmes; registration on the Junior Golf Passport for all participants; appropriate procedures for safeguarding
children; coaching at the facility for new junior participants that are
4.4.3 Junior Golf Passport
The Golf Foundation’s Junior Golf Passport is a comprehensive, progressive, structured and fun programme designed
to help young people learn about playing the game of golf.
Each child receives a record of achievement as they develop their skills and knowledge, which has acted as a very
popular way of motivating new players. Indeed, the EGU/EWGA club survey in 2006 identified the Junior Golf
Passport as the most widely used national learning programme in England.
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Outline Business Plan for Gatwick Golf Facility
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The Junior Golf Passport: Enables PGA Professionals and volunteers to use creative and innovative teaching
methods; Stimulates strong, sustainable links between schools and clubs; Gives children a fun experience whilst they
learn
4.4.4 Families Days:
Family days at the golf centre would encourage family participation through fun and gentle competition. With tuition
provided they are an excellent way to highlight the benefits of spending time together with golf as well as making it an
affordable activity. Family promotions would also play an important role in the marketing mix.
4.4.5 PR:
The public relations for the new facility will be outsourced to a professional golf public relations agency with expertise
in this specialised field. They will be tasked with garnering media coverage for all revenue components.
4.4.6 Pricing:
Peak & Off-Peak pricing is a proven yield model for golf operations and will be implemented at the new facility. In
order to establish adequate market share, the pricing strategy over the initial 8 years is to offer all services at a reduced
rates to the exiting products while also adding value to the experience through service, loyalty recognition and tailored
customer promotions.
4.4.7 Loyalty:
A loyalty card program will encourage regular use of the facility through recognition and rewards. Loyalty is hard
earned with the golf market and must value. Not only should this include discounted rewards for use at the facility,
but also rewards for other related or complimentary products and services within the locality.
4.4.8 PowerPlay Golf Official Venue:
PowerPlay Golf is a new nine-hole form of golf, where there are two flags on every green. Players can score extra
points if you take a 'PowerPlay' and go for the Black Flag, but have a limited number of 'PowerPlays' in their round.
The game is only available at Official Venues around the world and this is envisaged to play a role in the facilities
marketing strategy. The appeal of the game is it adds something new, something different to the golf experience, it has
a younger more accessible appeal and plugs into a national marketing vehicle.
4.4.9 Web Site:
An invaluable tool for creating awareness of the facility and its marketing strategy, the web site will also act as an
important sales tool offering online reservations, voucher purchases, group purchasing and credit facilities for driving
range and tuition services.
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Outline Business Plan for Gatwick Golf Facility
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4.4.10 CRM:
A Customer Relationship Management system and data capture strategy to assist in understanding customers and
capturing their preferences will be at the heart of the new facilities marketing efforts. This will allow the facility to
tailor promotions of interest and value to customers and contact them directly.
4.4.11 Advertising:
Advertising will be used on a targeted basis only in the local and regional media – primarily print media. Targeted
advertising means the advertising of specific events or offers with data capture mechanisms built in to track return on
spend and drive a call to action.
4.4.12 Promotions:
Promotions are an integral part of the facilities marketing strategy running consistently to manage the yield from the
various activities and target market segments with offers of appeal and interest. They will operate both as a driver for
the individual revenue centres as well as with the objective of cross pollinating. Examples of the promotions
envisaged include;
•
Family Day. Regular family entertainment encourages community involvement and
•
Online tee times. The promotion of special rates sold through the online tee times agency will offer effective
direct promotion of golf course tee times to a database in excess of 1.8 million golfers in the UK
•
Retail promotions will act as a system for moving seasoned stock. They will also be carried out in conjunction
with core suppliers
•
Pay the time. From opening to mid-day, this promotion
•
Demonstration Days. Carried out regularly with equipment manufacturers to promote new equipment and
custom fitting services
•
Kids go free. Juniors joining their parents for a round of golf without charge at select period throughout the
year are an effective driver of participation for parents.
4.4.13 Packages:
•
Tuition. groups, classes, learn & play, golf schools, clinics and academies are all package opportunities
•
Play and Stay. In conjunction with local hotels and guest houses, these packages are an effective way to
encourage stays in the locality and broaden the reach of the target market.
•
Green fees. Group packages, individual rounds, junior rounds, can all be packaged for volume purchases
•
Schools. As part of the strategy to develop school relationships, these packages will encourage school groups
to use the facilities as a discovery, learning and development exercise.
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Outline Business Plan for Gatwick Golf Facility
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4.4.14 Sales Strategy
Table 11: 8-Year Sales Projections
£800,000
£700,000
£600,000
£500,000
£400,000
£300,000
£200,000
£100,000
£0
Pre-1
Pre-2
Membership Income
Pre-3
Green Fee Income
Year 1
Range Income
Year 2
Year 3
Year 4
Golf Shop Operating Profit
Year 5
Total Income
Table 11a: 8-Year Sales Projections
Total
Pre-1
Pre-2
Pre-3
Year 1 Year 2 Year 3 Year 4 Year 5
£
£
£
£
£
£
£
£
£
Membership Sales
422,150
0
0
0
22,472 107,946 94,853 97,224 99,655
Green Fee Sales
931,992
0
0
0
104,072 181,519 199,623 218,312 228,466
Driving Range Sales
1,953,866 219,163 230,625 242,624 234,268 242,992 251,999 261,297 270,898
Shop Operating Profit
618,054
36,414 38,235 40,146 69,187 101,863 106,579 111,399 114,231
Total Income
3,926,061
255,577 268,859 282,770 429,999 634,320 653,053 688,233 713,250
4.4.15Marketing Budget:
The marketing budget will be controlled by the centre’s Director of Golf with elements outsourced to a marketing
specialist to extract maximum return from the budget With an initial investment in a CRM system and online
marketing platform, the marketing spend can be modest. The first three years of opening the budget is used to create
awareness and sell the practice facility and associated professional services. The first two years of operating the golf
course will require a significant increase in the budget to generate awareness of the new facility and includes associates
costs such as events and launch promotion.
Table 12: Projected Annual Marketing Budget
Pre-1
Pre-2
Pre-3
Year 1
£50,000
£50,000
£50,000
£80,000
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Year 2
£70,000
Year 3
£60,000
Year 4
£60,000
Year 5
£50,000
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Outline Business Plan for Gatwick Golf Facility
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5. Operations
5.1 Personnel Plan
Facility personnel are a vital ingredient in the success of the facility. Experienced staff should be recruited from
successful comparative facilities with an understanding of the market and the industry. Training will be provided on a
regular basis with specific emphasis on customer service and health & safety.
Prior to the opening of the golf course, the clubhouse team will be limited to two full time staff and two part time
staff while the course superintendent for the facility will oversee the practice maintenance while also being responsible
for the grow-in of the golf course.
Table 13: Course Staffing
Course Salaries
Superintendent
1st Asst
Greenkeeper 2nd asst
Ops 1
Seasonal ft
Seasonal ft
Table 14: Operations Staffing
Admin Salaries
Golf Director
Group Sales and Golf Co-ordinator
Administrator
Retail Staff
Retail and Reservations 2 pt
Pre-Course
Opening
£25,000
Pre
45,000
20,000
20,000
Year 1
£45,000
£30,000
£25,000
£20,000
£10,000
£10,000
First 5 months
45,000
15,000
15,000
15,000
20,000
Full Year
45,000
25,000
20,000
15,000
20,000
5.2 Driving Range & Short-game Facility
Customers will be processed in the clubhouse/reception to ensure that all customers are welcomed and meet with a
staff member. Access to the driving range bays and short-game facility are through the main clubhouse reception. The
golf ball dispenser is located immediately inside the entrance to the range bays where baskets will be available for
filling. Operation of the dispenser will be through a card system which will be purchased at golf reception. This card
will act as a loyalty card adding credit rewards for use.
Golf balls in the driving range area will be collected by a rage collector vehicle which will be manned by a trained staff
member. Collection will take place once a day prior to peak time which begins after 4pm. The collector and cleaning
area located at the end of the range bays, has direct access for the collector machine where balls will be filled into the
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cleaning machine and from their transferred automatically into the dispenser. Bays will be fitted with state-of-the-art
mats and tee provisions and safety information.
5.5 Tuition
Tuition services will be delivered by initially one retained PGA professional growing up to five when the facility is
mature. The professionals will not be retained employees but rather provided with use of the facility for a 10% lesson
commission all of which must be booked through the facility. The facility will also support the professional services
with marketing support.
This structure means that the facility can hope to attract leading PGA Professionals from the region and by so doing
also attract their extensive customer base and awareness to the facility. Services offered would include;
Links Lesson: (1 Hour)
Designed to meet personal requirements, Links private lessons would suite all abilities, from the complete beginner to
professional. The one-on-one instruction would include a video analysis which would be posted to an online personal
account.
Prepare to Play the Links: (2 hours)
Learning the elements of links golf will deepen enjoyment of playing this particularly challenging course. The ability to
know which shot to select and how to execute it will make the experience more enjoyable, and help those who are not
used to playing this style of course. Specialties would include low ball flight, pitching from bare lies, high ball flight
(downwind holes), chip and runs, and the ‘Texas wedge’.
Putting Academy: (1 hour)
This 1 hour lesson would provide the most comprehensive putting coaching available. It would analyse all aspects of
putting, from stroke to strength, to rhythm and alignment, and the PGA Instructor would work to improve what is
arguably the most important area of the game.
Beginners 6-week courses: (1 hour per week for 6 weeks)
For people who want to start the game, this is an ideal format through which to learn the fundamentals of golf. It is a
group lesson for up to 8 people at a time and is as much a social hour as it is a valuable introduction to playing the
game.
Junior Programmes:
These will differ to suit various levels according to age and ability. They can work on an individual basis as well as a
popular group basis with local clubs, schools and child networks.
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Family Programmes:
Sharing lessons as a family is a fun and informative way to improve and spend time together. The sessions would be
suitable for all levels and abilities. All sessions would also include video analysis.
Links Half Day Clinic: (3 hours)
Three hours of intensive “tailored” instruction suitable for any level of golfer, from beginners to advanced players.
The instructor will work on short game skills and the full swing.
Corporate / Society Clinics:
A customised programme created to make a corporate event an unforgettable golf experience. Events would be
tailored from one hour to a full day.
5.3 Golf Course
Table 15: Maintenance Budgets
Pre-1
Materials and Fertiliser
£10,000
Pre-2
Pre-3
£10,500
£11,025
Repairs, Renewals
Year 1
Year 2
Year 3
Year 4
Year 5
£25,000
£26,250
£27,563
£28,941
£30,388
£5,000
£5,250
£5,513
£5,788
£6,078
Petrol, Oil and Power
£3000
£3,150
£3,308
£12,000
£12,600
£13,230
£13,892
£14,586
Equipment Leasing
£20,000
£20,000
£20,000
£45,000
£45,000
£45,000
£45,000
£45,000
£2,500
£2,625
£2,756
£2,894
£3,039
£25,000
£26,250
£27,563
£28,941
£30,388
£8,000
£8,400
£8,820
£9,261
£9,724
Equipment Hire
Sand Slitting
Sand for Dressing
£5,000
£5,250
£5,513
Agronomy Fees
Protective Clothing
£1,000
£1,050
£1,103
£1,500
£1,575
£1,654
£1,736
£1,823
Office and Stationery
£1,000
£1,050
£1,103
£1,158
£1,216
£1,276
£1,340
£1,407
Sundries
£1,000
£1,050
£1,103
£1,158
£1,216
£1,276
£1,340
£1,407
Total Maintenance Costs
£41,000
£42,050 £43,153 £126,315 £130,381 £134,650 £139,133 £143,839
All sand slitting is included in construction budget
Grow-in and associated grow-in machinery costs is in construction budget
5.4 Clubhouse
Customers will be processed in the clubhouse/reception to ensure that all customers are welcomed and meet with a
staff member. The total footprint of the clubhouse will be roughly 230 square metres. The Clubhouse is designed to
be part of the same structure as the driving range bays. This means access to the bays is through the clubhouse
reception area. It will service both driving bay customers as well as course & short-game customers.
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The clubhouse will include an open plan reception / shop area. This area is the focal point of the building. It controls
the flow of all customers using the facility and functions are;
•
to process customer arrivals with a reception desk
•
to retain a retail wall & floor space
•
to provide option for small scale tea/coffee service area
•
to offer a casual seating & lounge area
•
access to driving bays, locker & toilet facilities, short-game area and to golf course.
5.5 Fit-out Costs
The estimated fit-out costs for the clubhouse and driving range facility are as follows;
Table 16: Fit-out requirements
Fit-Out Costs
Cash Required
Retail Fixtures & Fittings
Retail Stock
Hire Equipment
IT
Driving Range Equipment
Furniture
Locker Room Fittings
Total Fit-Out Costs
STG£
23,163
15,000
25,000
5,000
15,000
45,000
7,500
8,000
143,663
5.6 Health & Safety
The management and maintenance of golf courses rely on a wide range of tasks, each of which may present associated
hazards or risks to the health, safety or welfare of employees and visitors. The HSE has published guidance on this
subject in ‘Health and Safety in Golf Course Management and Maintenance’ (HS(G)79) under the headings of:(i) Management of health and safety
(ii) Working environment
(iii) Machinery
(iv) Occupational health
There are also directives on health & safety at work for employees, manual handling and machinery operations. These
guidelines would be implemented and upheld stringently by the facility management
5.7 Hours of Business
The Facility will operate from 8am to 10pm daily with winter and summer variation for the golf course.
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6. Operating Projections & Assumptions
6.1 8-Year Operational Projections
Table 17: 8-Year Operating Income Summary
Total
Pre-1
Pre-2
Pre-3
Year 1
Year 2
Year 3
Year 4
Year 5
£
£
£
£
£
£
£
£
£
24,438
397,712
422,150
0
0
0
0
0
0
0
0
0
9,031
13,441
22,472
15,406
92,540
107,946
0
94,853
94,853
0
97,224
97,224
0
99,655
99,655
304,925
329,433
50,578
49,456
197,601
931,992
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
33,320
42,585
4,494
3,698
19,975
104,072
57,192
60,701
9,252
11,131
43,244
181,519
65,405
67,885
10,994
11,333
44,006
199,623
73,883
75,302
12,799
11,541
44,787
218,312
75,125
82,960
13,039
11,754
45,588
228,466
1,895,546
58,320
1,953,866
214,843
4,320
219,163
225,585
5,040
230,625
236,864
5,760
242,624
227,068
7,200
234,268
235,072
7,920
242,992
243,359
8,640
251,999
251,937
9,360
261,297
260,818
10,080
270,898
940,386
211,229
1,151,616
72,828
0
72,828
76,469
0
76,469
80,293
0
80,293
110,897
19,626
130,523
143,532
42,996
186,528
148,176
46,415
194,591
152,828
49,978
202,807
155,364
52,213
207,577
470,193
63,369
533,562
618,054
36,414
0
36,414
36,414
38,235
0
38,235
38,235
40,146
0
40,146
40,146
55,448
5,888
61,336
69,187
71,766
12,899
84,665
101,863
74,088
13,925
88,013
106,579
76,414
14,994
91,408
111,399
77,682
15,664
93,346
114,231
3,926,061
255,577
268,859
282,770
429,999
634,320
653,053
688,233
713,250
Membership Income
Members Joining Fees
Members Subscriptions
Total Membership Income
Green Fees
Visitor Peak
Visitor Off-Peak
Junior Green Fees
Member Guest
Societies/Corporate Days
Total Green Fee Income
Driving Range Revenue
Driving Range Basket Sales
Tuition Income
Total Range Income
Shop
Golf Shop Sales
Golf Shop Hire Sales
Total Shop Income
Less Direct Expenditure
Cost of Shop Sales
Cost of Hire Sales
Golf Shop Operating Profit
Total Income less COGS
Robert Hill Consulting
05/08/2009
Outline Business Plan for Gatwick Golf Facility
Page 30 of 38
Table 18: 8-Year Operating Expenditure Summary
Total
Pre-1
Pre-2
Pre-3
Year 1
Year 2
Year 3
Year 4
Year 5
£
£
£
£
£
£
£
£
£
917,521
103,896
26,831
120,622
15,780
19,014
470,000
21,695
8,678
21,314
8,207
22,914
8,000
42,611
21,695
24,458
1,853,237
85,000
7,500
1,500
12,000
1,500
2,000
50,000
2,500
1,000
2,500
500
5,000
1,000
3,000
2,500
2,500
180,000
89,250
7,875
1,575
12,600
1,575
2,100
50,000
2,625
1,050
2,500
525
2,000
1,000
3,150
2,625
2,625
183,075
93,713
8,269
1,654
13,230
1,654
2,205
50,000
2,756
1,103
2,500
551
2,100
1,000
3,308
2,756
2,756
189,554
118,750
12,368
4,000
14,908
2,000
2,300
80,000
2,500
1,000
2,500
1,200
2,500
1,000
6,000
2,500
3,000
256,525
125,000
15,750
4,200
15,750
2,100
2,415
70,000
2,625
1,050
2,625
1,260
2,625
1,000
6,300
2,625
3,150
258,475
130,000
16,538
4,410
16,538
2,205
2,536
60,000
2,756
1,103
2,756
1,323
2,756
1,000
6,615
2,756
3,308
256,599
135,200
17,364
4,631
17,364
2,315
2,663
60,000
2,894
1,158
2,894
1,389
2,894
1,000
6,946
2,894
3,473
265,079
140,608
18,233
4,862
18,233
2,431
2,796
50,000
3,039
1,216
3,039
1,459
3,039
1,000
7,293
3,039
3,647
263,931
Ground Staff Wages and Salaries
Materials and Fertiliser
Repairs, Renewals and Fencing
Petrol, Oil and Power
Course Equipment Leasing Costs
Course Equipment Hire Costs
Fairways and Top Dressing
Agronomy Fees
Protective Clothing
Office Costs and Stationery
Sundries
Total Golf Maintenance Costs
757,650
162,954
25,128
71,502
272,500
12,564
144,297
40,205
11,270
9,549
9,549
1,517,168
25,000
10,000
0
3,000
20,000
0
5,000
0
1,000
1,000
1,000
66,000
26,250
10,500
0
3,150
20,000
0
5,250
0
1,050
1,050
1,050
68,300
27,563
11,025
0
3,308
20,000
0
5,513
0
1,103
1,103
1,103
70,715
84,333
18,288
2,500
7,736
32,500
1,250
15,394
4,000
1,329
1,158
1,158
169,645
140,000
26,250
5,250
12,600
45,000
2,625
26,250
8,400
1,575
1,216
1,216
270,381
145,600
27,563
5,513
13,230
45,000
2,756
27,563
8,820
1,654
1,276
1,276
280,250
151,424
28,941
5,788
13,892
45,000
2,894
28,941
9,261
1,736
1,340
1,340
290,557
157,481
30,388
6,078
14,586
45,000
3,039
30,388
9,724
1,823
1,407
1,407
301,320
Total Overhead
3,370,405
246,000
251,375
260,269
426,170
528,856
536,849
555,635
565,251
Total Income less COGS
Total
£
3,926,061
Pre-1
£
255,577
Pre-2
£
268,859
Pre-3
£
282,770
Year 1
£
429,999
Year 2
£
634,320
Year 3
£
653,053
Year 4
£
688,233
Year 5
£
713,250
Total Overhead
3,370,405
246,000
251,375
260,269
426,170
528,856
536,849
555,635
565,251
NET PROFIT/LOSS
£555,656
£9,577
£17,484
£22,502
£3,828
£105,464
£116,204
£132,597
£147,999
Administration & Management
Salaries
Insurance
Telephone
Light & Heat
Postage & Stationery
Audit & Accountancy
Advertising & Marketing
Fixtures & Fittings Depn
Bank Charges
Miscellaneous
Laundry
Recruitment / Training
Uniforms
Hygiene / Cleaning
Computer Costs
Maintenance
Golf Maintenance Costs
Table 19: 8-Year P&L Summary
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Outline Business Plan for Gatwick Golf Facility
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6.2 Assumptions
The following are the assumptions driving the operational projections model for the Gatwick Golf Facility.
6.2.1 An 8-Year Model
The financial model examines 8 years of operating performance. The first 3 years – noted as Pre-1, Pre-2 and Pre-3 –
are operating under the assumption that the driving range and short-game facility are operating, while the golf course
is still under construction. These 3 years are ‘Pre-Completion’.
Table 20: Operational Phasing Plan
Pre-1
January – December:
34 Bay Range, Short-game & Clubhouse
Pre-2
January – December:
34 Bay Range, Short-game & Clubhouse
Pre-3
January – December:
34 Bay Range, Short-game & Clubhouse
Year 1
January – June:
34 Bay Range, Short-game & Clubhouse
July – December:
9 hole Golf Course, 34 Bay Range, Short-game & Clubhouse
Year 2
January – December:
9 hole Golf Course, 34 Bay Range, Short-game & Clubhouse
Year 3
January – December:
9 hole Golf Course, 34 Bay Range, Short-game & Clubhouse
Year 4
January – December:
9 hole Golf Course, 34 Bay Range, Short-game & Clubhouse
Year 5
January – December:
9 hole Golf Course, 34 Bay Range, Short-game & Clubhouse
6.2.2 VAT
Figures shown in assumptions are GROSS Price Points.
All figures provided in the financial projections are NET of VAT at 15%
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6.2.3 Membership
Table 21: Membership Joining Fees & Category Sales
Joining Fees
Year 1
Year 2
Year 3
Year 4
Year 5
7-Day
£200
£200
5-Day
£100
£100
Local
£50
£50
Junior
£25
£25
Senior
£50
£50
7-Day
25
60
5-Day
25
60
Local
25
0
Junior
25
5
Senior
25
0
Cumulative Members
125
125
7-Day
25
85
85
85
85
5-Day
25
85
85
85
85
Local
25
25
25
25
25
Junior
25
30
30
30
30
Senior
25
25
25
25
25
Total
125
250
250
250
250
Year 3
Year 4
Year 5
Membership No.
Cumulative Full
Members
Table 22: Membership Subscription Rates
Subscriptions
Year 1
Year 2
7-Day
£245
£588
£602
£617
£633
5-Day
£145
£468
£479
£491
£503
Local
£97
£294
£301
£308
£316
Junior
£47
£147
£150
£154
£158
Senior
£97
£294
£301
£308
£316
No membership will be accepted until the golf course is complete. The number of members is kept at 250 which
include 5 categories.
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Outline Business Plan for Gatwick Golf Facility
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6.2.4 Green Fee Rates
Table 23: Gross Green Fee Rates for 9-hole round
Green Fees Rates 9
holes
Year 1
Year 2
Year 3
Year 4
Year 5
Visitor Off Peak
£15.00
£15.38
£15.76
£16.15
£16.56
Visitor Peak
£17.50
£17.94
£18.39
£18.85
£19.32
Junior Green Fees
£7.50
£7.69
£7.88
£8.08
£8.28
Member Guest
£10.00
£10.25
£10.51
£10.77
£11.04
Corporate / Society
£12.50
£12.81
£13.13
£13.46
£13.80
Winter Rates 9 holes
Year 1
Year 2
Year 3
Year 4
Year 5
Visitor Off Peak
£12.50
£12.50
£12.50
£12.50
£12.50
Visitor Peak
£15.00
£15.00
£15.00
£15.00
£15.00
Junior Green Fees
£6.25
£6.25
£6.25
£6.25
£6.25
Member Guest
£6.25
£6.25
£6.25
£6.25
£6.25
Corporate / Society
£12.50
£12.50
£12.50
£12.50
£12.50
Green fee rates are based on providing a competitive market position having evaluated the comparative product
pricing.
Green Fee Rates are average rates for the year offering a degree of flexibility to assist with promotional strategy.
Winter Rates are November to April inclusive.
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05/08/2009
Outline Business Plan for Gatwick Golf Facility
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6.2.5 Driving Range
Table 24: Driving Range Rates and Sales
Driving Range Prices
Pre-1
Pre-2
Pre-3
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Good Bucket Price
£3.00
£3.00
£3.00
£3.00
£3.08
£3.15
£3.23
£3.31
Great Bucket Price
£5.00
£5.00
£5.00
£4.00
£4.10
£4.20
£4.31
£4.42
With a round Bucket
£2.00
£2.00
£2.00
£2.00
£2.05
£2.10
£2.15
£2.21
Members Bucket
£2.00
£2.00
£2.00
£2.00
£2.05
£2.10
£2.15
£2.21
Promotion Price Bucket
£2.00
£2.00
£2.00
£2.00
£2.05
£2.10
£2.15
£2.21
Utilisation
Pre-1
Pre-2
Pre-3
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
No. of Bays
34
34
34
34
34
34
34
34
Bay Usage per day
7.00
7.35
7.72
7.79
7.87
7.95
8.03
8.11
No. Baskets per day
238
250
262
265
268
270
273
276
No. Baskets per year
85,680
89,964
94,462
95,407
96,361
97,324
98,298
99,281
% Utilisation
21%
22%
23%
23%
23%
23%
24%
24%
Sales Volume %
Pre-1
Pre-2
Pre-3
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Good Buckets
50%
50%
50%
50%
50%
50%
50%
50%
Great Buckets
15%
15%
15%
15%
15%
15%
15%
15%
With a Round Bucket
0%
0%
0%
5%
5%
5%
5%
5%
Members Bucket
10%
10%
10%
10%
10%
10%
10%
10%
Promotion Bucket
25%
25%
25%
20%
20%
20%
20%
20%
Bucket prices are based on national and regional comparisons with no price increase until the years 2 of the full facility
opening. ‘Good Buckets’ are assumed at 50 balls. ‘Great Buckets’ at 100 balls. Utilisation is based on national averages
6.2.6 Tuition
Table 25: Lesson Rates & Commission Rates
Tuition Rental
Pre-1
Pre-2
Pre-3
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
30 minute lesson
£20
£20
£20
£20
£20
£20
£20
£20
Lessons per day
6
7
8
10
11
12
13
14
Commission is 10%
Tuition is currently envisaged to operate on a rental basis with regional PGA Professionals rather than retaining the
service on a full time. 10% commission is charged for each lesson which is priced at a national and regional average.
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05/08/2009
Outline Business Plan for Gatwick Golf Facility
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6.2.7 Retail
Table 26: Retail Average Spends
Retail (Average Spend)
Pre-1
Pre-2
Pre-3
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
£3
£3
£3
£3
£3
£4
£4
£4
£4
£4
Member Guest / Junior
£2
£2
£2
£2
£2
Society
£2
£2
£2
£2
£2
£1
£1
£1
£1
£1
£2.10
£2.15
£2.21
£2.26
£2.32
Member
Visitor
Range User
£4
£1
£4
£1
£4
£1
Hire (Average Spend)
All Golfers
Retail Margin 50%
Hire Margin 70%
Retail average spend rates include apparel, accessories, confectionary and refreshments.
Hire average spends rates include clubs, trolleys and buggy’s none of which I is envisaged will be available until the
opening of the golf course.
6.2.8 Rounds of Golf
Table 27: Projected Golf Course Rounds
Rounds per year
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Members
2175
7500
7500
7500
7500
Visitors Peak
2320
4000
4500
5000
5000
Visitors Off Peak
3480
5000
5500
6000
6500
Juniors
705
1500
1750
2000
2000
Members Guests
435
1500
1500
1500
1500
Corporate and Societies
1880
4000
4000
4000
4000
20000
23500
24750
26000
26500
Member’s rounds are assumed at an annual average of 30 rounds per member which includes all categories from 7day, 5-day, juniors and seniors. Visitor rounds are based on the assumed rates with the assumed marketing budgets
and the assumed staffing levels. It also assumes a golf course of the quality envisaged by the development team,
constructed and maintained to a high standard.
The round volume assumed is for 9-hole rounds only. 18-hole rounds which will be available are assumed at two 9hole rounds.
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Outline Business Plan for Gatwick Golf Facility
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6.2.5 Clubhouse / Administration Staff
Table 28: Operations Staff Structure
Admin Salaries
First 5 months Yr 1
Full Year
Pre- 1, 2, 3
Golf Director
£45,000
£45,000
£45,000
Sales Co-ordinator
£15,000
£25,000
Administrator
£15,000
£20,000
Retail Staff
£15,000
£15,000
£20,000
Retail and Reservations 2 pt
£20,000
£20,000
£20,000
Total Admin Salaries
£110,000
£125,000
£85,000
4% Annual Increase in Salaries
For the years prior to the opening of the golf course, the facility will operate on a 12.5 hour day or an 87.5 hour week.
This will be staffed with a full time golf director and full time retail staff member. It will be supported by 2 part time
staff. Once the golf course opens, a sales coordinator and club administrator will be added to the team to provide
sufficient resource.
6.2.6 Course & Facility Maintenance Staff
Table 29: Golf Corse Staffing Structure
Course Salaries
Year 1
Superintendent
£45,000
1st Asst
£30,000
Greenkeeper 2nd asst
£25,000
Ops 1
£20,000
Seasonal ft
£10,000
Seasonal ft
£10,000
Total Course Salaries
£140,000
4% Annual Increase in Salaries
In the years prior to the opening of the golf course, the facility is maintained by one full time staff member on a salary
of £25,000 in Pre-1. This is the only salary carried until such a time as grow-in is complete and the golf course opens.
All other course maintenance salaries are included in the construction budgets until such a time as the course is open
for play. Once open, it is assumed 4 full time staff and 2 seasonal for the summer months.
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6.2.7 Maintenance Budgets
Table 30: Golf Facility Maintenance Budgets
Pre-1
Pre-2
Pre-3
Materials and Fertiliser
£10,000
£10,500
£11,025
Repairs, Renewals
Petrol, Oil and Power
Equipment Leasing
Year 1
Year 2
Year 3
Year 4
Year 5
£25,000
£26,250
£27,563
£28,941
£30,388
£5,000
£5,250
£5,513
£5,788
£6,078
£3000
£3,150
£3,308
£12,000
£12,600
£13,230
£13,892
£14,586
£20,000
£20,000
£20,000
£45,000
£45,000
£45,000
£45,000
£45,000
£2,500
£2,625
£2,756
£2,894
£3,039
£25,000
£26,250
£27,563
£28,941
£30,388
£8,000
£8,400
£8,820
£9,261
£9,724
Equipment Hire
Sand Slitting
Sand for Dressing
£5,000
£5,250
£5,513
Agronomy Fees
Protective Clothing
£1,000
£1,050
£1,103
£1,500
£1,575
£1,654
£1,736
£1,823
Office and Stationery
£1,000
£1,050
£1,103
£1,158
£1,216
£1,276
£1,340
£1,407
Sundries
£1,000
£1,050
£1,103
£1,158
£1,216
£1,276
£1,340
£1,407
41,000
42,050
43,153
126,315
130,381
134,650
139,133
143,839
Sand Slitting is included in construction budget. Grow-in and associated machinery costs are in construction budget
6.2.8 Cash Flow Requirements
Table 31: Operating Cash Flow Projections
Pre-1
Jan
£
Feb
£
Mar
£
Apr
£
May
£
Jun
£
Jul
£
Aug
£
Sep
£
Oct
£
Nov
£
Dec
£
Cash Flow
-10277
-20554
-23164
-18106
-7937
2233
12402
14904
25073
27575
19854
9577
Cash Flow
-617
-10810
-12938
-7000
4315
15630
26945
30195
41510
44760
37255
27061
Cash Flow
16683
6305
4409
10997
23241
35484
47728
51488
63731
67491
59941
49563
Year 1
Jan
£
Feb
£
Mar
£
Apr
£
May
£
Jun
£
Jul
£
Aug
£
Sep
£
Oct
£
Nov
£
Dec
£
Cash Flow
34218
18781
11588
12640
19188
23960
47071
59418
78931
83392
68779
53391
Cash Flow
40594
27427
24645
37707
60904
88523
119197 138748 165717 177141 168427 158855
Cash Flow
145635 131934 128961 142654 167472 197181 230444 252153 281174 293751 284749 275060
Pre-2
Pre-3
Year 2
Year 3
Year 4
Jan
£
Jan
£
Jan
£
Jan
£
Jan
£
Feb
£
Feb
£
Feb
£
Feb
£
Feb
£
Mar
£
Mar
£
Mar
£
Mar
£
Mar
£
Apr
£
Apr
£
Apr
£
Apr
£
Apr
£
May
£
May
£
May
£
May
£
May
£
Jun
£
Jun
£
Jun
£
Jun
£
Jun
£
Jul
£
Jul
£
Jul
£
Jul
£
Jul
£
Aug
£
Aug
£
Aug
£
Aug
£
Aug
£
Sep
£
Sep
£
Sep
£
Sep
£
Sep
£
Oct
£
Oct
£
Oct
£
Oct
£
Oct
£
Nov
£
Nov
£
Nov
£
Nov
£
Nov
£
Dec
£
Dec
£
Dec
£
Dec
£
Dec
£
Cash Flow
261823 247993 245244 259996 286951 319285 355692 380100 411707 425936 417056 407657
Cash Flow
394678 381034 378778 394558 423444 458001 496972 523576 557389 573165 564647 555656
Year 5
Jan
£
Feb
£
Robert Hill Consulting
Mar
£
Apr
£
May
£
Jun
£
Jul
£
Aug
£
Sep
£
Oct
£
Nov
£
05/08/2009
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£
Outline Business Plan for Gatwick Golf Facility
Page 38 of 38
7. Methodology
Primary Research:
A 2-day regional visit was carried out to examine competitive products within the immediate market place. Three
facilities in particular were given greater focus which were Tilgate Forest, Redhill GC, Chartham Park and Rusper GC
as these were deemed the most comparable in terms of facilities provided, their operating model and their target
market.
While on site, the facilities were evaluated and price points recorded. Information on the performance of these
facilities was also sourced from the operators.
Interviews were held with two comparative facilities managed by Play Golf Holdings in London and Manchester to
garner information on market trends, operating performance and operating requirements.
Secondary Research:
•
Golf Range Report, Golf Research Group, Colin Hegarty
•
Financial Performance of UK Golf Courses, Golf Research Group, Stephen Blake & Colin Hegarty
•
England Golf Impact Report, England Golf, Bill Bryce
•
Golf Consultants Association Roadshow, IMF Sports Marketing Surveys, Tony Scott
•
Golf Facility Planning, STRI, Roger Bennet
•
Golf Benchmark Survey, KPMG, Andrea Sartori
•
The Census for England and Wales, Office for National Statistics
Robert Hill Consulting
05/08/2009