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Key Takeaways
- The estimated total monthly operational budget required to run the Mini Golf Course in Year 1 averages approximately $50,163.
- Labor (Payroll at $23,125/month) and Property Lease ($10,000/month) constitute the largest fixed recurring expenses dominating the monthly burn rate.
- Despite high initial costs, the financial model forecasts a rapid break-even point, achievable within just two months of operation.
- Founders must secure a minimum cash buffer of $479,000 to cover initial Capital Expenditures and the pre-revenue operating deficit until profitability stabilizes.
Running Cost 1 : Property Lease/Rent
Lease Cost Check
Your monthly property lease is a significant fixed drain at $10,000, demanding immediate scrutiny of the contract details. This cost anchors your break-even point, so you need to lock in favorable escalation terms now. Honestly, this number dictates how much pricing flexibility you have later on.
Inputs for Lease Budgeting
This $10,000 covers the physical space needed for your themed mini golf course and associated amenities like the snack bar area. You need the full lease document to calculate the total annual commitment and any upfront security deposits. Don't forget to factor in how the lease term length impacts your long-term capital planning.
- Review base rent amount.
- Check annual escalation rate.
- Confirm tenant improvement allowances.
Optimizing Fixed Rent
Mitigate this fixed burden by negotiating a lower initial rate or pushing for a longer initial term, maybe five years, to avoid immediate renewal pressure. A major lever is exploring a revenue-sharing agreement, where the landlord takes a small percentage above a certain revenue threshold instead of just relying on fixed rent. That defintely shifts risk.
- Push for rent abatement periods.
- Analyze percentage rent options.
- Avoid short, fixed renewal windows.
Escalation Risk
Escalation clauses are critical because they directly inflate your $10,000 baseline cost annually, often compounding the impact. If the lease includes a 4% annual bump, that adds $400 to your fixed overhead starting year two, directly pressuring your per-round profitability calculation.
Running Cost 2 : Wages & Payroll
Payroll Commitment
Your 2026 payroll commitment is fixed at $23,125 per month. This covers 65 full-time equivalents (FTEs) handling core operations like management, service, and upkeep. Know this number; it drives your required monthly revenue floor.
Staffing Load Inputs
This $23,125 covers the necessary headcount for 2026: management, customer service, and maintenance staff. Since this is a fixed monthly cost, it must be covered regardless of daily ticket sales volume. Here’s the quick math: If the average loaded wage is about $355 per FTE, ensure staffing aligns perfectly with projected operating hours.
- Management coverage needed.
- Customer service staffing levels.
- Maintenance schedule alignment.
Control Staff Costs
Managing 65 FTEs requires tight scheduling, especially in entertainment venues. Avoid overstaffing during slow mid-week afternoons or off-season months. Use part-time staff or seasonal hires instead of converting them to FTEs too early. If onboarding takes 14+ days, churn risk rises defintely.
- Use part-time for peak shifts.
- Audit FTE vs. actual need quarterly.
- Tie hiring to seasonal revenue spikes.
Payroll vs. Rent
This monthly payroll expense of $23,125 sits high on your fixed cost stack, right behind rent at $10,000. You need consistent daily traffic to absorb this cost before hitting profit. Check your break-even run rate against this single largest operational commitment.
Running Cost 3 : Utilities & Taxes
Fixed Utility Baseline
Your baseline fixed cost for utilities and property taxes is $3,500 per month. You need a budget buffer because seasonal spikes in energy use, especially during peak summer operating months, will push utility bills higher than this established baseline.
Overhead Inputs
This $3,500 covers essential, non-negotiable overhead before you sell a single ticket. It breaks down into $2,000 for monthly utilities—think lighting, HVAC for the snack bar, and point-of-sale systems—and $1,500 for property taxes. This fixed cost must be covered by your gross profit every month just to keep the doors open.
- Utilities: $2,000/month baseline.
- Property Taxes: $1,500/month.
- Total Fixed: $3,500/month.
Managing Energy Spikes
Utilities aren't perfectly fixed; energy use spikes when you run more A/C or lighting for evening events. Avoid budgeting only the baseline $2,000 utility cost. Build a contingency fund for 20% to 30% overages during July and August, which are likely your busiest, hottest months. Defintely track kilowatt-hour usage against revenue per month.
Tax Assessment Check
Property taxes are rarely negotiable, but you must confirm the $1,500 monthly projection is based on the current assessed value for your specific location. If the lease passes taxes through to you, ensure the escalation clause aligns with local assessment cycles, not just rent adjustments.
Running Cost 4 : COGS & Supplies
COGS Snapshot
Your Cost of Goods Sold (COGS) is variable and hits hard, mixing food/merch costs with course upkeep needs. Expect this line item to start around $5,115 per month in 2026 based on current revenue projections. That's a significant chunk of your gross margin you need to watch.
Variable Cost Drivers
COGS isn't just inventory; it's two buckets here. Food and merchandise costs run high at 75% of that specific revenue stream. Then, you add 15% for course supplies, like balls or minor upkeep materials. If ancillary sales dip, this cost scales down, but the 75% rate is aggressive.
- F&B/Merch revenue volume.
- Cost per unit for snacks/goods.
- Course supply purchasing schedule.
Cutting Supply Spend
Managing COGS means controlling the snack bar margins first. Negotiate better bulk pricing with your primary food vendor, maybe aiming for a 70% rate instead of 75% initially. Also, track course supply usage closely; don't overstock items that break down or get lost quickly.
- Audit vendor contracts for better terms.
- Track supply usage per round played.
- Raise ancillary prices if margins slip.
Cash Flow Lever
Because COGS is tied directly to sales volume, it offers a quick lever to manage cash flow during slow periods. If rounds drop, this cost drops too, unlike your fixed $10,000 rent payment. Defintely watch this ratio against your marketing spend to ensure volume is profitable.
Running Cost 5 : Maintenance & Repairs
Fixed Upkeep Budget
You must budget a fixed $1,500 per month specifically for routine course upkeep to maintain surface quality. This amount is separate from variable costs like turf patching or paint used for supplies. Treat this as a non-negotiable fixed overhead protecting your primary customer experience asset.
Cost Inputs
This $1,500 covers preventative maintenance, not emergency fixes or consumable supplies. It ensures the course remains playable, unlike the variable 15% allocated to Course Supplies within COGS. You need quotes for annual service contracts to lock this number down defintely for the first year.
- Covers routine upkeep only.
- Fixed monthly overhead.
- Exclude variable supply costs.
Managing Quality
Avoid the common mistake of dipping into this fund for immediate supply needs or shortfalls elsewhere. If you skip scheduled upkeep, surface deterioration accelerates, leading to massive repair bills later. Keep this $1,500 separate and untouchable for planned maintenance tasks only.
- Never borrow from this fund.
- Schedule preventative checks quarterly.
- Track reactive repair costs separately.
Asset Protection
This fixed expense is a quality control measure, not an administrative cost. If the playing surface quality drops, customer retention suffers immediately. Budgeting $1,500 monthly protects your primary asset—the course itself—from slow, expensive decay.
Running Cost 6 : Marketing & Advertising
High Initial Marketing Burn
Your initial marketing budget is set aggressively high at 60% of total revenue, translating to roughly $3,440 per month in 2026. This spend is directly tied to achieving your volume goal of 25,000 annual rounds. Honestly, watch this percentage closely as revenue scales up. It’s a big lever.
Cost Inputs
This $3,440 estimate for 2026 assumes marketing is 60% of total revenue while driving 25,000 annual rounds. To verify this, you need the projected average revenue per round (ticket sales plus ancillary spend). If revenue is lower than expected, this percentage balloons quickly. We need the assumed average ticket price to check the baseline.
Spending Control
With marketing at 60%, your Customer Acquisition Cost (CAC) must be low, or you won't make money. Shift focus to high-yield, low-cost channels like organic social media and local partnerships. Defintely track how many of those 25,000 rounds come from repeat business versus new flyers. A strong loyalty program is essential here.
- Prioritize local group bookings.
- Measure cost per acquired round.
- Bundle tickets with F&B sales.
Variable Risk
Since this marketing expense is variable, watch for revenue volatility. If revenue drops 10% in a slow month, marketing still eats 60% of what’s left, severely compressing your gross margin. Your primary action is quickly lowering this percentage by improving organic reach for those 25,000 rounds.
Running Cost 7 : Insurance & Security
Fixed Risk Overhead
Your fixed monthly overhead includes $1,350 dedicated solely to risk mitigation: $750 for business insurance and $600 for security services. These costs are non-negotiable for an entertainment venue handling public traffic and liability.
Calculating Risk Budget
These security and insurance premiums total $1,350 monthly, falling under fixed operating expenses. Insurance covers premises liability, which is crucial when families and groups are playing. Security services address premises safety and theft prevention. This amount must be budgeted before calculating break-even against the $10,000 rent and $23,125 payroll.
- Insurance: $750 per month.
- Security: $600 per month.
- Total fixed risk: $1,350.
Managing Security Spend
You can manage these necessary fixed costs by shopping carriers annually for better liability rates. For security, evaluate if contracted patrols are needed 24/7 or if monitored alarm systems offer adequate coverage after hours. Don't skimp on insurance, but shop defintely aggressively.
- Shop insurance quotes every year.
- Audit security needs quarterly.
- Bundle services if possible.
Liability Exposure
Given the physical nature of mini golf, liability insurance is your primary defense against lawsuits from slips, trips, or property damage claims. Failing to maintain adequate coverage exposes all other investments, like the $10,000 monthly lease, to immediate risk.
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Frequently Asked Questions
Monthly running costs are estimated at $50,163 in Year 1, with payroll ($23,125) and rent ($10,000) being the largest components;