Golf Course Training Centre Business Plan
Greek Golf Training Centers will be a full-service sport complex situated in Athens. There are currently no other golf facilities like this one anywhere in or around Athens. This plan will be used to define the scope of our services, as well as a means of gaining the necessary investments to open the facility. It will also be used on a continual basis in the evaluation of Greek Golf Training Centers mission, goals, and objectives.
The key to success for Greek Golf Training Centers is the ability to market effectively, creating an unmatched “cool” atmosphere where people enjoy themselves, and hiring qualified and knowledgeable staff to aid in the running of our programs and leagues.
The Golf industry is a booming business that will dramatically be expanded in Greece within the next years. Greek Golf Training Centers is conservatively projecting a modest net profit in its first year of operation with this increasing steadily by the end of the third year.
The main objectives for the Greek Golf Training Centers are:
- Sell 200 memberships in year one, 300 in year two and 400 by the end of year three.
- Organize and develop various teams, depending on level, business type, available time, etc., so as to fill them to capacity.
- Sponsor and/or support one event in year one, two in year two, four in year three.
- Show a net profit margin in the first year of operation.
The Greek Golf Training Centers is a single sport and fitness complex designed to be used by the residents of Athens and the surrounding areas.
It is our mission to provide the best programs, staff, and equipment to fully meet the various sport and fitness needs of our members, while generating a profit for the owners and investors.
Besides providing an excellent value to our customers, the Greek Golf Training Centers is determined to create an unmatched sporting atmosphere that will add to the enjoyment of every member and employee of the facility.
Dedicated to the community, the Greek Golf Training Centers strives to support and sponsor community events, as well as host them whenever possible. Our hope is that through the use of our facility, members’ enjoyment and appreciation for golf, fitness, and for life will be enhanced.
1.3 Keys to Success
- Marketing: We must make the Greek Golf Training Centers a distinguished name in Athens and creatively market our services to each of our market segments.
- Atmosphere of facility: By creating an unmatched “cool” atmosphere in the Greek Golf Training Centers through the use of first class equipment and targeting facilities, elegant and comfortable lobby, showers and changing rooms, floors, colors and decoration, people will want to frequent our facility often and recommend it to their colleagues and friends. Furthermore, our ability to retain members will be enhanced.
- Knowledgeable/qualified staff and management: By providing the users of the facility with knowledgeable and qualified staff who show genuine concern for the patrons, people will feel comfortable and confident that the Greek Golf Training Centers can meet all of their golf and fitness needs.
The Greek Golf Training Centers is a golf complex that will provide both members and casual users an opportunity to participate in a continuous golf training by getting expert help, without time limitations.
2.1 Company Ownership
The Greek Golf Training Centers will be a Limited Liability Corporation financed partially by direct owner investment and a long-term loan.
Dimitrios Vastarouchas and Helen Brasinika will own 25% of the company each.
The other two limited partners will own 40% and 10% respectively.
2.2 Start-up Summary
Our start-up costs are mostly equipment purchase, main building (which will be a wooden pre-fabricated building of good quality), training center construction, golf equipment for the retail store, stationery, legal costs, advertising, land rent and expenses associated with opening our first office. The start-up costs are to be financed by direct owner investment.
Products and Services
The Greek Golf Training Centers will be a golf complex that provides its users with the following services:
- Golf practice using unlimited number of balls and the best types of feeder. Simulation of various conditions that can be met in a golf course shall be done using sloped mats, tees, sand, targets for pitching and putting training aids.
- Training by professionals.
- Golf equipment shop.
- Lobby for relaxation and discussion with colleagues where brandy, cigars and refreshments will be available.
- Participation in events and activities.
Golf Training Facilities
The Greek Golf Training Centers will house a large training area (50 m x 100 m) at which, members could have continuous practice without interruptions.
The advantages shall be the semi-automatic feeding, the possibility to aim to different targets under various conditions, the independency of weather conditions (which is the basic current problem in open golf courses), the absence of time limitation (businessmen can not enjoy golf now since the open golf course training facilities in Athens close at 16:00), and the use of first class equipment.
Greek Golf Training Centers will offer professional training (private or group programs), performance analysis once a month for members (using pc, digital video etc), fitness programs, putting aids, and a library with necessary material such as video tapes, books and magazines.
Golf Equipment Shop
A golf equipment shop will be strategically placed in Greek Golf Training Centers to attract potential buyers. The shop will sell first class equipment and training aids.
Lobby and Other Facilities
Other features and services Greek Golf Training Centers will have include:
- Full service locker rooms for both men and women that will accommodate up to 40 lockers. Large shower areas, benches, sinks, and bathroom facilities will all be included as well.
- An administrative area housing various offices and waiting room will be located at the entrance. Card system will be used for members.
- A luxury lobby will be located on the main floor of the facility. Members will have the chance to enjoy brandy, english tea, fresh juices and smoke a cigar in a peaceful place, decorated in the english traditional style. A library will be located in lobby for members to use.
Generally, the pre-fabricated complex shall be made of high-quality of wood.
The nets which surround the training area can be used for advertisement and promotion of potential sponsors.
Events and Activities
A series of activities will be scheduled for the members. Through internal competitions awards shall be earned and teams formed to enjoy golf in Athens golf course. Also, in the future a golf team could be established.
Additionally, special events will be organized for children and schools in order to promote golf in younger generations.
Market Analysis Summary
The Greek Golf Training Centers will be the only golf complex of its kind in all Athens and surroundings (more than four million people). Some aspects of the facility will cater mainly to Athens golf course members but, generally will appeal to everyone in the area.
Because of the flexibility of time schedule, the independency of weather conditions, and in combination with the comfortable auto feeding system, our market segments vary from dedicated golfers to people who want to learn golf, have some stress relief leisure activities and socialize with other members.
In addition, Greek Golf Training Centers shall develop good relations with well known golf training schools worldwide in order to bring golf to youth, advise and urge them to continue for a professional career.
It should be emphasized that at the moment, people in Athens can enjoy golf only in Athens (Glyfada) Golf Course. There are 700 members, however the age average is higher than 55 years old. Moreover, the unique training facility in Athens is in very bad condition since there are not ball feeders, it is weather dependant, and most of all closes at 16:00. Consequently, businessmen, employees, doctors, lawyers, etc. do not have the chance to familiarize with golf.
4.1 Market Segmentation
A market segment for Greek Golf Training Centers will be the existing golfers (700 members of Athens Golf Club). These people love golf and continuously try to improve their performance.
There are some highly skilled persons, while others are above 90′ (their score), however as it has been mentioned above most of them are older than 50 years. Provided that they can practice at any time and weather conditions, a part of them will join Greek Golf Training Centers. Nevertheless, due to their age average they are expected to have more leisure time which does not prevent them to use the existing facilities of Glyfada Golf Course.
An important market segment for Greek Golf Training Centers will be the scientists. This market segment include employees such as doctors, lawyers, managers in private companies and public organizations, economists, etc. These people will be a target market for special promotions and periodic activities.
Another market segment for our facility will be those who shall combine business with entertainment. They will have a stress relief where they can enjoy a brandy and discuss in a comfortable place with their guests and/or colleagues.
This is a smaller, but important market segment for our facility. Although fees will be high for private employees, there will be some of them who will join our Center. Except the chance to learn golf, develop public relations, join teams to play golf in a course or arrange golf vacations.
Another small market segment for Greek Golf Training Centers will be the students who are attracted due to golf’s uniqueness, its fitness programs and continuous exercise, competitions and other events.
This market segment will be our middle term growing market and maybe the most important in a few years.
In combination with golf promotion in Greece, co-operation with foreign well known golf schools and the proper attitude that will be developed, young people will form teams and take part in competitions, continue golf studies abroad and become professionals (at least a few of them). These people will be the Center’s flag and support it accordingly.
Another small market segment is with the housewives. Golf is unknown to them, however, since they have plenty of time we estimate that a small number will be attracted. They can have some stress relief especially in the morning time.
Tourists, foreigners who work in Greece, guests and etc. will join us, however, they do not like to be locked into long-term commitments but like the freedom to come and go when the opportunity presents itself. Moreover, we expect that segment to reach a peak value during the Olympic Games (Athens 2004).
4.2 Service Business Analysis
The golf business is a booming industry in Greece. At the moment there are a total of three golf courses, the Athens (Glyfada) Golf Club, Rhodes Island Golf Club, and Corfu Golf Club.
Another golf course in North Greece has already closed because grass was too dry and a small course operates in a hotel of Crete island. However, in last year many dramatic changes have taken place. Specifically, Fuji Bank started negotiations with Rhodes Island Club for further investments, the Crete’s Hotels Association has started a superior golf course’s construction in Crete and they plan to build more, and repairs have been started in the North Greece Golf Club.
In addition, the construction plans for the new golf course in Markopoulo have already been approved. Furthermore, a well-known entrepreneur in Greece has planned three golf courses in Peloponnisos area and the construction start day is expected soon. Generally, golf expansion in Greece will be very rapid within next years. It should be noted that Greece is one of the remaining (few) European countries at which golf has not been promoted yet. It should be also mentioned that sales of golf equipment in Greece are very low at the moment.
4.2.1 Competition and Buying Patterns
The competition of Greek Golf Training Centers in Athens and the surrounding areas includes Athens (Glyfada) Golf Club only. The others are located very far from the Greek capital. As it is mentioned above, the training facilities of Athens Golf Club are in a very bad condition. There are no automatic ball feeders for training, mats with slope, areas with sand, sloped areas, etc. Moreover, the training place is exposed to weather conditions. There are not targets for training.
In addition no one can practice after 16:00. Another point is that there is not lighting arrangement for night training. However, there are 700 members that enjoy golf games and they have long term memberships.
Potential members will usually compare the training facilities and find one that fits their specific needs, or has the amenities that he/she wants. Value is usually very important to these potential members as most people want to get the best value for their euro.
In terms of fees and total cost it should be noted that a member needs around 300 balls for practice. At present she or he has to pay 3 euro for 40 balls at Glyfada Golf Club therefore a total of 22.5 euro per practice day. If we assume 10 days per month then a cost of 225 euro results. In addition the member has to pay 1,300 euro per year (annual membership) and consequently 110 euro per month. Therefore, total cost will be 335 euro. In our case the monthly cost is 110 euro.
Another factor that will affect Greek Golf Training Center’s financial figures will be the opening of a franchise in competition. However, the capacity of the Greek Golf Training Center is limited to 500 members and can be retained even with the surrounding areas only. Therefore, that will not be a problem for the future. Furthermore, new programs, events and etc. will be developed on a continuous basis.
4.3 Target Market Segment Strategy
Due to the size, appearance and convenient location of our facility, many people will be attracted to Greek Golf Training Centers to see what we have to offer. However, we will not be content to just wait for customers to come to us. Instead, we will focus our marketing strategies on those market segments who match our offerings. The great thing about marketing Greek Golf Training Centers, is that each market segment relates, in certain ways, to all the others.
Our main objective with our early marketing strategy will be to get people into our facility and convince people that we can bring golf to Greece. Once people see what we have to offer, and feel the atmosphere that will be created, they will want to return and participate in the many activities and programs that will be available to them.
Some of the ways Greek Golf Training Centers will get people into the facility include:
- Offering tours to junior and senior high schools during the building and early completion of the facility.
- Having a large promotional event to open the facility that will be free to everyone.
- Hosting and/or supporting various community events that will attract many people who otherwise would not come.
- Mailing our free day passes to managers of shipping companies (they have relations with Asians who adore golf), businessmen, managers of big companies, etc.
- Provide special discounts for annual subscriptions.
- Free testing of golf equipment.
- Following the opening of Greek Golf Training Centers, print and radio media will be used to promote both the facility and the equipment.