Before the initiation of a golf project, prior understanding of the potential financial and commercial viability of the proposed facility ensures an opportunity for greater success. The Feasibility Study, Analysis & Report have become a critical component in developing a new golf facility, helping the client to better assess the proposed product offering and to identify potential opportunities, hurdles and rewards in the development process. Basically, a credible and impartial feasibility study is essential when attempting to secure financing and/or attract potential partners; moreover, it helps in giving developers a better insight into what they are getting into and what they can get out of it. Feasibility reports are preliminary plans of action that usually address a number of primary points which are of utmost importance to the developer prior to the initiation of a project. These points and their elaborate explanations allow easy decision making and avoid unnecessary delays in the way to go about the golf project. Some of the crucial points that are taken into consideration while compiling a feasibility report are as follows:
What is the population within a 20-mile radius of the proposed site?
How many other public and private courses / golf facilities are in the vicinity?
What is the projected volume of play and fees?
What are the projected operating expenses?
Have any courses in the area failed? Why?
Are employment levels and per capita income at suitable levels?
While the study parameters will be slightly different for each type of golf facility, the key elements addressed in a feasibility study include the following:
What is the cost?
Is the project practical or impractical?
Will it be profitable (short term as well as long term consideration) ?
Will it be sustainable?
What is the market?
What are the advantages and disadvantages of the project?
What will the impact be?
What will be the effect on the environment?
What legal considerations exist?
What are the personnel, training and skill consideration?
Contents of a Feasibility Report: The specifics of a feasibility report should cover each and every aspect of the proposed project. Basically, as it has been reiterated many times before, the feasibility report helps the developer in the decision making process, therefore the content should outline every aspect whether positive or negative giving a clear view of what the developer is proposing to do. Generally speaking, a Golf Feasibility Report is drafted on the following lines:
Introduction – Explains the prospective project, About the developers and what culture they bring towards the project.
Executive Summary – It contains info on Site Factors, Demographics, Market Competition, Play Potential, Financial Summary and a Conclusion.
Project Overview - About the proposed project, its location, conceptual plan.
Market Area & Opportunity Overview – Defining the Market, Demographic Overview, Key Economic Factors, Climate, Golf Market Supply and Demand Indicators.
Golf Market Competitive Analysis - Competitive Assessment Review, Competitors Market Position.
Financial Overview - Proposed Fee Schedule, Cash Flow Statement, Fixed Expenses.
Recommendations - Summarizing all of the previous feasibility study steps, the recommendations and findings can shape the outcome of a project proposal and suggest ways to make the project better.