Mini golf courses tend to be profitable businesses—and sometimes very lucrative—because of their business model. There are steps you can take to make sure your business will be profitable.
Why Mini Golf is Profitable
In business terms, mini golf courses are cheap to run, with very few staff required and low equipment costs. Mini golf courses are profitable because they:
- Attract all age groups
- Have low staffing needs of 1 or 2 people
- Have cheap equipment cost (putters and balls)
- Provide large profit margins
- Give high return on investment (ROI).
The location of a mini golf course can greatly affect its potential for success and overall value. A well-placed mini golf course can attract a higher volume of potential customers, leading to increased revenue and profitability.
Essentials for Success
Space and Cost Considerations
The recommendation for an 18-hole miniature golf course is between 15,000 and 22,000 square feet for the playing surface. However, a site as small as 9,000 square feet can be accommodated. The average cost of developing an 18-hole course is $150,000 to $250,000.
Business Outlook
Yes, a mini golf business is generally a profitable one. However, you still need to consider several factors since these things always impact the overall outcome.
Generally speaking, mini golf business makes a profit margin of around %. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business.
Every year, more than 130 million people of all ages play miniature golf, producing revenues in excess of $1 billion annually for course owners.
Historical Popularity
Mini golf began sometime between 1910-1916. In the 1900s, mini-golf courses started appearing in the United States, and they became standardized and mass-produced. The firsts of such courses include the 1916 Thistle Dhu and the 1927 Tom Thumb golf club by Garnet Carter. The development of artificial green by Thomas McCullough Fairborn in 1922 made building miniature golf courses cheaper.
From children to senior citizens, miniature golf appeals to players of all ages.
Conclusion
A fun family outing, a unique date or a beach vacation tradition, miniature golf is 18 holes of silly obstacles, ramps and rails. It’s almost like a cartoon version of regular golf.
However, a mini golf course can be a very safe and lucrative business investment. By the end of this post, you’ll have all the information you need to decide whether owning a mini golf course is right for you.