Something fun to do as a family.
I wasn’t joking when I said that my family and I are mini golfers. Doing something with my kids that gets their faces away from their screens is important to me.
Proximity to Switzerland, Ohio, Ripley, Jefferson, Trimble, Carroll and Gallatin Counties.
There are estimated to be between 5000 and 10,000 mini golf courses in the US (I have no idea why there is such range). Doing a quick “near me” google search one can find mini golf courses in Madison, Hanover, Columbus, Greensburg, Indy and Cincinnati. My family has been to the one’s in Greensburg, Columbus and Indy, and I had visited the one in Madison years ago. To find an “attraction” type of mini golf, though, you’re going to have to travel to Indy or Cincy. So if its fun, affordable and provides a quality experience, I think the parents and kids in a 7 county radius of Vevay would be willing to travel here.
Time for a question. What can you do for $7?
Maybe a movie. Maybe a fast food meal. Definitely not an amusement park, definitely not a concert, definitely not a sporting event.
This business can operate with minimal expenses.
If a developer is considering operating expenses, mini golf courses are relatively inexpensive. Most can be started by hiring entry level workers. The only inventory to speak of would be balls, putters, and scorecards. So operating expenses can be manageable at about $5000 per month with 2 employees.
Down the road, though, I would hope that owners would consider hiring marketing staff, full time maintenance crews, and also consider paying the entry level positions higher than surrounding entry level jobs. But….
Phased in entertainment, expenses and revenues.
With a complex like this in mind, it would be appropriate to build this in phases. Year 1 you could build a “world class” mini golf course with good parking. Year 2 then brings on the clubhouse with the second 18-hole course built inside with handicap accessible holes. Year 3 could bring about the go kart track and any other attraction that would fit on the property.
Provide year round entertainment for visitors.
So considering the phasing of a project like this, one way I think a course in Vevay could differentiate itself is by creating an indoor 18-hole course. I know of a couple courses in the Greenwood and Indy area and they are, by no means, extravagant in experience. Mostly just black lights and a couple of rocks. Going back to what can you spend $7 on, now what are the options for an outdoor experience that is indoors.
Courses can fit into tiny spaces.
Per the castlegolf website, an outside 18-hole course commonly uses between 20,000 and 25,000 square feet of space, whereas and indoor course can range between 6000 and 12,000 square feet of required space. This particular vacant lot at the east end of Vevay, has roughly 4.5 acres, so there is more than enough room to get this and other projects going.
So now let’s get into the revenue side of just the mini golf course itself. Using the 7 county radius surrounding Vevay as our target market and using the number of students aged 5-18 as our Total Available Market, we come up with 14700 kids. Now, not all of Swiss County will want to play, not all of Trimble County will travel, but by taking a low percentage of kids from each county and adding the same number of parents, I come up with a yearly goal of 18000 rounds of golf. At $7 per round that’s an annual revenue, probably achievable by year 3, of $125,000. There are a lot of factors that could help those numbers, like the extra visitors during Wine Fest, Car Shows, or various First Fridays or the addition of a go-kart track and restaurant. And of course some factors could hurt as well, like staffing turnover, bad marketing plans, etc.
If 18 holes can produce roughtly $125,000 in revenue, then 36 holes should be able to produce $200,000 per year. I think someone in Vevay could turn this investment into a profit.
You can control your construction costs with design and planning.
How much does it cost to create and build a project of this size? Well, there are no definitive calculators for such a project until you get into the details of theming and scope. If one were to consider franchising or modular type construction, I have startup costs ranging between $25,000 and $150,000. For a one-of-a-kind, custom type course one can expect a range of $100,000 to $500,000.
Let me hear your thoughts on what you’d pay and how many times you’d pay for a round a mini golf. I would love to hear some discussion about theming of the course. Maybe you’ve got some time and money laying around and have been looking for your next project. Let’s talk about it.
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