Business ideas
8 min read

How to Start a Profitable Mini Golf Course Business [11 Steps]

Learn how to start a profitable mini golf course business with our step-by-step guide. From location scouting to marketing, we cover it all. Start today! #minigolf #businessplan #entrepreneur
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By Nick Cotter
Updated Feb 02, 2024

image of a mini golf course business
This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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1. Perform market analysis.

Starting a mini golf course business requires an understanding of the market dynamics and customer preferences. A thorough market analysis can position your venture for success by highlighting opportunities and competitive challenges. Here's how you can get started:

  • Research the local demographics to understand the potential customer base, including age groups, income levels, and leisure interests.
  • Analyze competitors in the area by visiting their courses, reviewing their pricing structures, and assessing their strengths and weaknesses.
  • Identify market trends in the entertainment and leisure industry, particularly those affecting outdoor and family-oriented activities.
  • Gauge the demand for mini golf and other similar attractions through surveys, focus groups, or social media engagement.
  • Examine the seasonality of the business in your region and plan for fluctuations in customer turnout.
  • Consider the impact of economic factors such as disposable income and consumer spending habits on leisure activities.
  • Explore partnership opportunities with local businesses, schools, and organizations to tap into existing community networks.
image of a mini golf course business

Are mini golf course businesses profitable?

The profitability of mini golf course businesses can vary greatly, depending on a variety of factors such as location, operating costs, pricing structure, customer rates, and other factors. Generally, if the business is well-managed and run efficiently, mini golf courses are profitable.

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2. Draft a mini golf course business plan.

Embarking on the adventure of starting a mini golf course requires a strategic approach and a solid business plan to ensure success. Careful planning and consideration of various aspects of the business will pave the way for an engaging and profitable mini golf course. Here are the key elements to include in your business plan:

  • Executive Summary: Provide a brief overview of your mini golf course, including the business concept, financial features, and unique selling points.
  • Market Analysis: Research the target market, analyze competitors, and identify demand for a mini golf course in the chosen location.
  • Marketing Strategy: Outline how you will attract and retain customers, including pricing, promotions, and advertising.
  • Design and Theme: Describe the course layout, themes, obstacles, and any additional entertainment features.
  • Operations Plan: Detail day-to-day operations, staffing requirements, customer service standards, and equipment needs.
  • Financial Projections: Present projected income statements, cash flow statements, and balance sheets for the first few years.
  • Risk Analysis: Identify potential risks and outline strategies to mitigate them.
  • Appendices: Include any additional documents that support your business plan, such as letters of intent, contracts, or detailed market studies.

How does a mini golf course business make money?

A mini golf course business can make money through green fees and other offerings such as food, drinks, and rental clubs. An example of a potential target audience for a mini golf course business could be families with young children who are looking for a fun weekend activity. Many people will also visit mini golf courses on special occasions such as birthdays or corporate events. Mini golf course owners can also offer specials to incentivize customers such as discounts for groups or loyalty programs for frequent customers.

3. Develop a mini golf course brand.

Creating a compelling brand for your mini golf course is essential in differentiating your business in a competitive market. Your brand should encapsulate the unique experience you offer, while also appealing to your target audience. Here are some steps to help you develop a vibrant brand identity:

  • Identify your unique selling proposition (USP) by determining what makes your mini golf course stand out. Is it themed, technologically advanced, or perhaps designed by a famous golfing personality?
  • Choose a memorable name that reflects your course's theme and USP. Ensure it resonates with your target demographic and is easy to remember and pronounce.
  • Design a logo and visual elements that are eye-catching and representative of the mini golf experience you offer. These should be consistent across all marketing materials and signage.
  • Develop a brand voice and messaging strategy that speaks to your audience. Whether it's fun and casual or refined and upscale, ensure it's used consistently in all communications.
  • Consider the customer experience from start to finish and ensure your brand identity is present at every touchpoint, from scorecards and staff uniforms to your website and advertising.
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How to come up with a name for your mini golf course business?

Coming up with a name for your mini golf course business can be a fun and creative process. To start, think of words or phrases that represent your brand and the way you want customers to feel when they come to your course. Consider the type of atmosphere you’re creating, such as if it’s family friendly, offers a competitive atmosphere for tournaments, or provides a relaxing atmosphere for all ages. Once you have a few key words in mind, play around with them to create a catchy and memorable name that resonates with your target customers. Finally, use online tools like domain searches to make sure your name is available for use in other digital platforms such as website domains and social media handles.

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4. Formalize your business registration.

Establishing a mini golf course business requires formalizing your venture to ensure legal compliance and operational legitimacy. This step solidifies your presence in the market and protects your business identity. Below is a guide to help you navigate the registration process.

  • Choose a Business Structure: Decide whether your mini golf course will be a sole proprietorship, partnership, LLC, or corporation. Each has different implications for taxes, liability, and complexity.
  • Register Your Business Name: Ensure your business name is unique, then register it with the appropriate state or local agency. This could be your Secretary of State or local county clerk's office.
  • Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
  • Register for State Taxes: Depending on your location, you may need to register for state taxes, including sales tax and employment taxes.
  • Acquire Permits and Licenses: Check with your city or county to find out which permits or licenses are required to operate a mini golf course, such as a business license, zoning permits, or health and safety inspections.
  • File Necessary Documents: Submit any required formation documents for your chosen business structure, like Articles of Organization for an LLC or Articles of Incorporation for a corporation.

Resources to help get you started:

For mini golf course entrepreneurs looking to tap into market trends, operational techniques, and strategic growth advice, the following resources are invaluable:

  • Miniature Golfer Magazine: An industry publication offering insights into trends, design ideas, and management tips for mini golf businesses. Visit: www.miniaturegolfer.com
  • The World Minigolf Sport Federation (WMF): Provides extensive resources on minigolf sport rules, course design standards, and international competition guidelines to help align your business with global standards. Explore: www.minigolfsport.com
  • Entrepreneur’s Guide to Starting a Mini Golf Business by Puttshack: A comprehensive guide that covers everything from conceptualization to operational execution, including case studies and financial planning advice. Download: www.puttshack.com/business-guide
  • Leisure Business Advisors LLC (LBA): Offers market research reports and feasibility studies specifically tailored to the mini golf sector, providing valuable data for making informed business decisions. More information: www.leisure-business.com
  • Mini Golf Solutions: Dedicated to providing advice on construction, operation, and maintenance of mini golf courses, this site includes a wealth of resources for both start-ups and established courses. Visit: www.minigolfsolutions.com

5. Acquire necessary licenses and permits for mini golf course.

Starting a mini golf course requires careful attention to legal requirements. To ensure your business operates within the law, you must acquire the necessary licenses and permits. Follow these steps to navigate the process:

  • Research Local Zoning Laws: Check with your local municipality to ensure that the land you plan to use is zoned for a mini golf course.
  • Obtain a Business License: Apply for a general business license with your city or county clerk’s office.
  • Building Permits: If you're constructing new structures or altering existing ones, you'll need to apply for building permits.
  • Health and Safety Permits: If you plan to sell food or beverages, you may need health department permits.
  • Special Amusement Permits: Some jurisdictions require additional permits for amusement businesses.
  • Accessibility Permits: Ensure compliance with the Americans with Disabilities Act (ADA) and obtain any necessary permits related to accessibility.
  • Signage Permits: If you're planning to install signs, check for any local sign ordinances and obtain the appropriate permits.
  • Insurance: While not a permit, obtaining liability insurance is crucial for protecting your business and is often a requirement for some permits.

What licenses and permits are needed to run a mini golf course business?

In order to run a mini golf course business, you will need to obtain several different licenses and permits. You will need a business license, a liquor license if you plan to serve alcohol, and any other permits required by state and local laws. Depending on the location of the business, you may also need additional permits related to zoning and safety regulations. Additionally, any employees working at the mini golf course must have the appropriate work visas.

6. Open a business bank account and secure funding as needed.

Once you've laid the groundwork for your mini golf course business, the next crucial step is to ensure your finances are in order. Opening a business bank account separates your personal and business finances, while securing funding can give you the necessary capital to launch and grow your venture. Follow these steps:

  • Research banks and credit unions that offer business banking services. Compare fees, services, and accessibility to find the best fit for your business.
  • Prepare the required documents to open a business bank account, which typically include your business formation documents, EIN (Employer Identification Number), and personal identification.
  • Consider the different types of business accounts, like checking, savings, or merchant services accounts, and choose the ones that best suit your business needs.
  • Explore various funding options, such as small business loans, investors, crowdfunding, or personal savings, to secure the capital necessary for construction, equipment, and operating expenses.
  • Develop a solid business plan to present to potential lenders or investors that outlines your business strategy, financial projections, and how you plan to generate revenue and manage expenses.
  • Keep a close eye on your business finances and regularly review your budget and financial plan to ensure you are on track and making informed financial decisions.

7. Set pricing for mini golf course services.

Setting the right pricing for your mini golf course services is crucial for attracting customers while ensuring profitability. Consider the local market, your costs, and the perceived value of the experience you're offering. Follow these steps to establish a pricing strategy that works for your business:

  • Analyze your costs - Calculate the expenses involved in running your mini golf course, including maintenance, staffing, utilities, and equipment.
  • Research competitors - Look at the pricing of other mini golf courses in your area to understand the going rates for similar services.
  • Value proposition - Consider what makes your course unique and how it enhances customer experience, which can justify a premium price.
  • Dynamic pricing - Think about implementing variable pricing for peak times, off-peak times, and special events or promotions.
  • Packages and memberships - Offer deals for families, groups, or frequent visitors to encourage repeat business and increase perceived value.
  • Seasonal adjustments - Adjust prices for seasonal demand if your location experiences fluctuations in visitor numbers throughout the year.
  • Feedback loop - After setting initial prices, gather customer feedback and be prepared to make adjustments as needed.

What does it cost to start a mini golf course business?

Initiating a mini golf course business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $270000 for launching such an business. Please note, not all of these costs may be necessary to start up your mini golf course business.

8. Acquire mini golf course equipment and supplies.

Starting a mini golf course requires careful selection of equipment and supplies to ensure a fun and engaging experience for your customers. From putters to landscaping tools, it's important to stock up on high-quality items that will endure the wear and tear of daily use. Consider the following steps to equip your mini golf course with the essentials:

  • Golf Equipment: Purchase a variety of putters in different sizes for adults and children, high-quality golf balls, and scorecards.
  • Obstacles and Decor: Choose themed obstacles and decorations to create an attractive and challenging course layout.
  • Durable Turf: Invest in high-grade synthetic turf that can withstand heavy foot traffic and varied weather conditions.
  • Lighting: If you plan to operate in the evening, install adequate lighting to ensure safety and a pleasant playing experience.
  • Landscaping Supplies: Keep landscaping tools and plants on hand to maintain the aesthetic appeal of the course.
  • Refreshment Supplies: Offer snacks and drinks by stocking up on concession stand essentials if you plan to provide refreshments.
  • Maintenance Tools: Have a set of basic maintenance tools for daily upkeep and quick repairs.
  • Sanitation Supplies: Ensure a clean environment with trash cans, recycling bins, and cleaning supplies.
  • First Aid Kit: Always have a fully stocked first aid kit available for any minor injuries or accidents.

List of software, tools and supplies needed to start a mini golf course business:

  • Mini Golf Course Turf - $3,000 - $10,000/each
  • Mini Golf Course Props - $800 - $2,000
  • Golf Clubs and Balls Set - $200-$500 (for 12 sets)
  • Tee Markers and Flag Poles -$200-$500 (for 12 sets)
  • Scorecards and Pencils Set - between $50-100 for 300 sets
  • Golf Equipment Maintenance Kit - Approximately $200
  • Garage or Shed to Store Supplies- Depending on size, ranging from $1,000 to $15,000+
  • Point of Sale System- Prices usually range from free to roughly $60 per month
  • Cash Register- Budget around $100-$300
  • Security Camera System- Prices can range from roughly $100 to over a thousand dollars depending on the quality and complexity of the system.

9. Obtain business insurance for mini golf course, if required.

Starting a mini golf course business comes with its share of risks, just like any other venture. Obtaining the right insurance can protect your investment from unforeseen events and liabilities. Here are some essential points to consider when looking for business insurance:

  • Research different types of insurance policies such as general liability insurance, property insurance, commercial auto insurance, and workers' compensation, to understand which coverages are pertinent to your mini golf course business.
  • Consult with an insurance agent or broker who specializes in recreational or entertainment businesses. They can offer tailored advice and help you navigate state and local insurance requirements.
  • Consider the specific risks associated with your mini golf course, such as property damage, equipment breakdown, injury to patrons, or business interruption, to ensure your policy covers these incidents.
  • Compare quotes from several insurance providers to find the most comprehensive coverage at a competitive price. Don't just look for the cheapest option; focus on the value and extent of protection the policy offers.
  • Review and understand the policy's terms, conditions, and exclusions thoroughly before purchasing to ensure there are no gaps in coverage that could leave your business vulnerable.

10. Begin marketing your mini golf course services.

Once your mini golf course is ready to welcome players, it's essential to get the word out and attract customers. Effective marketing strategies will differentiate your business in the marketplace and invite both locals and tourists to enjoy a unique and fun experience. Here are some practical steps to begin marketing your mini golf course services:

  • Develop a strong brand identity: Create a memorable name, logo, and theme for your course that resonates with your target audience.
  • Launch a website and utilize social media: Build an attractive website with information about your course, pricing, and special events. Use social media platforms to engage with your community and share promotions.
  • Offer opening promotions: Attract initial visitors with discounts, family deals, or limited-time offers to encourage people to try out your course.
  • Partner with local businesses and hotels: Create partnerships to promote your mini golf course through local business networks and tourist accommodations.
  • Host events and parties: Offer to hold birthday parties, corporate events, or team-building sessions to draw in groups.
  • Engage in local advertising: Advertise in local newspapers, radio stations, and community bulletin boards to increase visibility.
  • Collect and share customer testimonials: Use positive feedback and reviews to build credibility and attract new customers.
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What licenses and permits are needed to run a mini golf course business?

  • Mini Golf Course Turf - $3,000 - $10,000/each
  • Mini Golf Course Props - $800 - $2,000
  • Golf Clubs and Balls Set - $200-$500 (for 12 sets)
  • Tee Markers and Flag Poles -$200-$500 (for 12 sets)
  • Scorecards and Pencils Set - between $50-100 for 300 sets
  • Golf Equipment Maintenance Kit - Approximately $200
  • Garage or Shed to Store Supplies- Depending on size, ranging from $1,000 to $15,000+
  • Point of Sale System- Prices usually range from free to roughly $60 per month
  • Cash Register- Budget around $100-$300
  • Security Camera System- Prices can range from roughly $100 to over a thousand dollars depending on the quality and complexity of the system.

11. Expand your mini golf course business.

Once your mini golf course is thriving and you have a loyal customer base, it's time to think about expansion. Growing your business can take many forms, whether it's adding new holes, incorporating innovative features, or branching out into new locations. Consider these strategies to take your mini golf course to the next level:

  • Introduce new themes or revamp your course regularly to keep the experience fresh and exciting for repeat customers.
  • Expand your facility by adding more holes, incorporating advanced technology like augmented reality, or offering new amenities such as a cafe or arcade area.
  • Enhance your marketing efforts by partnering with local businesses, sponsoring community events, or launching targeted online advertising campaigns.
  • Consider franchising your business model to reach new markets and leverage the power of brand recognition.
  • Explore additional revenue streams by hosting birthday parties, corporate events, and other private functions.
  • Invest in customer feedback mechanisms to continually improve the player experience and adapt to changing preferences.
  • Ensure you maintain a high level of customer service and facility maintenance to encourage positive word-of-mouth and repeat visits.