Industry sector: Leisure

Golf driving range: Cash sales

'Cash sales' means all income generated from your main driving range activities that is received at the time you provide the service. While many of your customers will pay you in cash, particularly if you use coin-operated automatic ball dispensing machines, remember that Cash sales can also include:

  • debit and credit card payments
  • cheques, if you decide to accept them

It is very likely that most of your sales income will be in cash, certainly the money taken in the range. If you have other aspects to the business besides the range, such as a golf equipment shop, then you are more likely to receive card payments as well. You may also decide to allow shop customers to pay you by personal cheque, although many retailers no longer accept this type of payment.

If you plan to offer other services, such as a café or a golf equipment shop, it is a good idea to carry out some extra research into these individual sectors.

To estimate the level of sales that your driving range business will achieve you need to consider a number of things:

Type of business

Think about the following:

  • who will your customers be and from how far away will they be prepared to travel to your range
  • where will your premises be - you might already have secured the land or you might need to find a suitable site. Consider if you will you need professional help with obtaining planning permission if you're starting the range from scratch
  • how many bays will the site accommodate
  • what your opening hours will be. The terms of your planning consent may specify when you can open
  • what will your pricing policy be (don't forget you must be able to cover your costs, overheads and drawings). Will you offer discounts and special offers, for example discounts on quieter days or for regular customers

Your services

To maximise your potential sales income and to make your range as attractive as possible to customers, you may decide to offer additional services such as:

  • club hire - to customers without their own equipment
  • tuition
  • golf equipment sales
  • café or restaurant facilities, or food and drink vending machines

The number of services you plan to offer will affect both your start-up and ongoing costs - for example if you decide to run a shop and a café you may need to employ several full time members of staff whereas a driving range with automated ball dispensers and no other facilities may only require one or two people.

Level of demand

Although you may be open for long hours it's unlikely that you will be equally busy every hour of the day, every day of the week. You will need to think about when demand is likely to occur and what you might do to attract people during quieter times.

To help with your decisions, click on the checkpoints for guidance. Once you have worked out a Cash sales figure add it to the relevant field in your cash flow forecast.