"If you want to get to know somebody a little bit better, the cardinal rule is to have a meeting, and golf is the natural vehicle for doing that." Golf courses, Smith says, are a perfect venue for gaining leads, firming up deals, maintaining vendor relations and resolving board-related matters.
Full Answer
Why do business on the golf course?
There’s probably no better place in the world to conduct business than on the golf course. Business executives all over the world know that sharing a common frustration with their golf game promotes the perfect environment for business talk. More partnerships and businesses have been changed on the golf course than you could ever imagine.
Why do real estate developers sell golf courses?
Real estate developers knew that they were in the business of building, not operating, golf courses, so they sold or gave away their interest (and liability) in the clubs. Often developers sold shortly after closing all the homes in a community and moving onto another location and another new course.
Who pays the price of a golf course?
No matter the outcome, homeowners will be the ones who pay the price, either by finally supporting the course and the club in their backyard or by the loss in the value of their homes. Forbes Real Estate Council is an invitation-only community for executives in the real estate industry. Do I qualify?
What do you need to know before buying a golf club?
Homebuyers looking for a property within a golf community must know the real costs of owning there and being an active, participating member of the club before buying and plan for monthly dues to the club as part of the cost of homeownership. For HOAs struggling with a closed or failing club, be proactive.
Why are business deals done on the golf course?
Almost all the executives surveyed (93 percent) said playing golf with a business associate was a good way to establish a closer relationship. More than a third said some of their biggest deals were made on a golf course.
Is business done on the golf course?
It's no surprise that a lot of business is done on the golf course. Golf provides the player with an enormous opportunity to build huge networks of friends. From those small circles, you get to know more and more people. You can just show up at a club and get a game.
Do golf courses actually make money?
The most common income streams are green fees, membership fees, pro shop sales, and food and beverage sales. While increasing membership fees or green fees might seem like a good way to increase revenue, it might put off more golfers than the additional income earned.
Why do they have ponds on golf course?
Many golf courses use their ponds as water retention devices that the irrigation system pulls from nightly. If it weren't for the ponds, the water bill of a single golf course could easily cost hundreds of thousands of dollars over the course of 12 short months.
Why do CEOs play golf?
A whopping 90% of Fortune 500 CEOs play golf, and 80% of executives say playing golf enables them to establish new business relationships. Although only 20% of all golfers are female, 50% of executive women who play golf say being able to talk about golf allows them to be more successful.
How do golf businesses make money?
How to Make Money Playing GolfGet a Job as a Golf Pro. If you generally enjoy the game of golf and think you could handle a career in the industry, becoming a golf pro is a great choice. ... Play in Golf Tournaments. ... Place Friendly Bets with Your Friends. ... Become a Mystery Shopper. ... Get Sponsorships/Become an Influencer.
Why are golf courses so expensive?
Why is golf so expensive? Golf is costly due to the high cost of quality golf clubs, accessories, course fees, memberships, and the amount of golf that is played. Golf clubs are made from quality materials meant to last a lifetime, and courses often require membership, the cost of which reflects the club's exclusivity.
What is the profit margin on golf clubs?
After all expenses, the best golf retailers rarely profit more than 2-3% of the total cost of a club. However, as a whole, we can say that around 33.33% of the cost of a golf club is the markup from the retailer.
How much can you make owning a golf course?
Golf Course Owners make between $30,000 to several hundred thousand dollars per year. However, golf course owners sometimes will lose money if the course has a bad year. Overall, the golf course industry is very volatile, and there is no guarantee that money will be made.
How do golf courses get balls out of water?
Crewmembers stand on the ground at opposite ends of the pond and guide the roller by pulling on a wire connected to it. If the roller gets stuck in mud or rocks, one of the crewmembers goes underwater to free it. After they have combed the pond, crewmembers pull the roller to the ground and pop out the golf balls.
What is the water on a golf course called?
In other words, "casual water" is water on the golf course that isn't meant to be there by design. Casual water can be anywhere on a golf course outside the water hazard, which is now called the "penalty area." If there's water somewhere in the "general area," then it's casual water or temporary water.
Are golf course ponds toxic?
Farms and golf courses use a variety of chemicals and pesticides that can kill fish and other aquatic animals if sprayed near or in water. Sometimes the chemicals -- even those properly applied -- can be flushed into a canal or pond as run-off during a torrential rainstorm.
What should the end result of a golfing occasion be?
In summary, the end result of a golfing occasion should be to have fun, even when your business colleagues are present. Be mindful of the behaviors you demonstrate while golfing, and the experience may lead to some of the most treasured times of your business and personal life.
What is the best way to build camaraderie in golf?
Wagering is integral to golf, and is a good way to build camaraderie. Accept and embrace it. Keep it the wager friendly and the stakes low. The most common side bets include the Nassaus (3 bets for the round—the low score on the front 9, on the back 9 and on the full 18 at $2 each).
Keep Score Like Your Preacher is Sitting Next to You
When I first started golfing, I got to where I could shoot about 100 fairly quickly. For the next, 6-12 months I continued to get better at golf, but I kept shooting 100. What was happening? Well, my 100 early in my “golfing career” was about the most dishonest 100 you’d ever seen.
You Are Not the Scorekeeping Police
As an addition to the above tip, you are not the score police. I do not care if you have spent hours studying the PGA rulebook and you know all of the penalty rules. If someone you are playing with wants to fudge the numbers and kick their ball around, let them do it. Don’t sneer at them or make any comments either.
Etiquette Before All Else
This should go without saying, but that never seems to be the case with things. You need to make sure that you 100% understand basic golf etiquette and that you follow it to a T whether or not anyone else in your group is. Additionally, don’t correct someone who is not following etiquette rules even if it is negatively impacting your game.
Be Jelly and Go with the Flow
I love peanut butter and jelly sandwiches, so I try and use them in my analogies as much as possible. When you’re on the golf course looking to advance your business dealings, you need to be ready to go with the flow. You need to be like jelly— not so rigid that if things are different than you’re used to, you can’t adapt.
Getting Better Does Help
You probably are already aware of this, but getting better at golf is certainly going to help, but maybe not for the reason you think. Honestly, most people I’ve played with didn’t care if I was good or bad at the game.
Conclusion
I’d say we covered quite a bit today, and hopefully, this helps you to be more prepared for your next golf business outing. Sometimes getting tips from someone that is more around your level can be better than getting advice from an expert or a professional.
Melanie Meik Follow
I have been trawling through articles online and reading as far back as 12 years ago about the links between golf and business deals.
Kevin Browning
Absolutely a great place to create and build better relationships for business. Keeping it casual and friendly and above all not about work makes for a better in the office relationship when work comes around. Opening the door to opportunities to network is how you cast a wider net and the golf course is a great tool in that endeavor.
Brad Norwood
Great article! We do lots of business before and after the golf course. However, the course is a great tool to use. There's nothing like a relationship built through the game of golf.
Rich O'Brien -Golf Writer
Good article. I believe the best strategy is to get to know someone on te golf course and if a mutual friendship develops see if there is an opportunity to do business in the future. That is the purpose of our Charleston Golf Network that we are launching in the spring.