More Golf LLC

Business Proposal

OBJECTIVE: For four LLC members to own and operate a for-profit indoor golf simulator business.  The current proposed business name is “More Golf” with www.moregolfswing.com secured as a domain.

PROPOSAL: The proposed business model is an indoor golf simulator facility that allows golfers of all skill levels to enjoy golf no matter the weather conditions, 24-hours a day, 7 days a week.  On the simulator, customers will be able to play actual rounds of golf at local and famous courses, such as Augusta National and Pebble Beach.  They will also be able to receive golf lessons through the driving range option on the simulator.  Clients will be able to book and pay for reservations using an online booking service.

VIABILITY: According the the National Golf Foundation, in 2022, 41.1 million people in the US played golf.  Of those, 15.5 million played exclusively at off-course locations such as golf simulators and entertainment venues such as Top Golf and Drive Shack; that is more than 1/3 of America’s golfers.  The 18-34 age group is the largest customer segment at 12 million, with 5.8 million playing exclusively at off-course locations.  Golf is a $26.1 billion dollar industry in the United States and there is a huge, untapped indoor golf market in Fredericksburg, Virginia.   The median household income in the US is $70,784 a year.  Our service areas of Fredericksburg ($72,293), Stafford ($119.818), Spotsylvania ($90,913) and King George ($91,847) has an average median household income of $93,717 a year.

TARGET MARKET: Our target market would be all golfers and all potential golfers in the greater Fredericksburg area.  There are numerous of outdoor courses in the area and those courses stay extremely busy during favorable weather.  However, some weather conditions force outdoor courses to close for hours or days at a time depending on severity.  In rain, wind, excessive cold or heat, this facility would provide a comfortable environment year-round.   Most golfers would appreciate access to golf during inclement weather, especially on a simulator system that allows you to putt.
For those that are new to golf and just learning how to play, this facility would allow them to learn in a controlled environment without the added pressure of maintaining the pace of play, like there is on an outdoor course.
Additionally, there are a significant number of older golfers who enjoy golf but who do not have the physical stamina to do all the walking that golf can require, especially when the course has implemented a “cart path only” requirement. 
The business would also target young people at the middle and high school level as a way to increase interest in the sport of golf and foster enthusiasm among college-bound students.  Access to a year-round training tool would help prepare students to be competitive for the many available golf scholarships that go unused each year. 

MARKETING: Our marketing campaign would include several strategies.  These would include partnering with local golf supply stores to advertise our business.  We would also utilize Facebook and Instagram to distribute information about our services, with a hyperlink to our website included.  There are also several “golfing communities” in the Fredericksburg area with neighborhood publications that we could secure advertising space in.  There is also the option to utilize advertising space on golf score cards at local golf courses.  At the location itself we would utilize flutter flags on the roadway frontage, as well as signage on the front of the building (as permitted) that could be seen from the roadway.  Finally, word of mouth from those that come and use our services and have a good experience would be extremely effective.

COMPETITORS: Our current competitors would be X-Golf, which only currently has locations in west Richmond and Chesapeake, as well as Top Golf and Drive Shack, which are also located in Richmond.  All of these locations are over an hour’s drive away.  There is a very small one room indoor golf simulator business located on Plank Rd. however it has no seating and no restroom facility. Our facility will have three rooms, consisting of a lounge and 2 separate simulator rooms.  Additionally, there will be restrooms and snack and beverage vending machines. 

PRICING STRUCTURE:   A membership model combined with a pay per hour option works best in this scenario:
• 4 hours of play per month for a $200.00 membership ($50.00 per hour)
• 8 hours of play per month for a $300.00 membership ($37.50 per hour)
• Hourly play at $60.00 per hour if customer has no membership.

FACILITIES: We have identified a location at 1329 Alum Spring Rd in Fredericksburg, VA.  The space allows for the installation of 2 simulators that can operate simultaneously.  There will also be a lounge area where clients can relax and enjoy a book, magazine or movie.  Additionally there will be snack and beverage vending machines as well as a commercial coffee machine that dispenses freshly ground coffee, lattes, and cappuccinos.
 
This location is in a highly populated area just off the busy Rte. 3 corridor located off of Interstate 95.  There is a heavy mix of retail and residential in the area that makes the location ideal.  The business is located in Fredericksburg City, which has a population of 27,982.  It is with 10-15 minutes of Spotsylvania County (pop. 143,676), Stafford County (pop. 160,877), and King George County (pop. 27,489)

MANAGEMENT: As a multi-member LLC, the organization would be member-managed.  In the state of Virginia, LLC members are excluded from Workers’ Compensation requirement.  With a member managed, internal-managed LLC structure, the members are responsible for the management and operation of the company.  Any LLC member who wanted to only contribute financially could have any other member manage on their behalf with a unanimous vote of all members.

BOOKKEEPING AND TAXES: We are proposing the use of Quickbooks Online  for the purpose of tracking expenses and revenue.  It would allow custom tracking of expenditures and revenue for compilation into monthly reports as well as year end reports.  It will also reconcile information for any necessary tax submissions and filings.   It can also be used to send membership invoices and receive membership payments.  There will be three separate bank accounts; an operating account, a tax account and a profits account.

PROJECTED EARNINGS AND EXPENSES: With both simulators operating at maximum capacity, which is approximately 540 hours per simulator, per month, the projected gross income is $52,920 per month. This is a per hour average of $49.00 per hour, based on the membership and per hour offerings.  The recurring monthly expenses are as follows:

• Rent $1,200.00
• Utilities $   300.00
• Wifi $   270.00
• Renters Ins. $     80.00
• Liability Ins. $     80.00
• Quickbooks $    100.00
• Marketing $   150.00
• Operating Capital $   700.00
• Payroll $5,040.00
• Payroll Taxes $   772.00
• Workers Comp $   100.00

TOTAL       $8,792.00

This leaves a projected net profit of $44,128 per month.