How to Start a Racetrack

A racetrack provides racing enthusiasts and gear heads a place to live their dreams of auto racing glory. You can choose to buy an existing track, or build your own. Your racetrack can exist as a dragstrip, road course, standalone business, or as part of a larger entertainment complex, or a private auto racing club.

Learn how to start your own Racetrack and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Racetrack Image

Start a Racetrack by following these 10 steps:

  • Plan your Racetrack
  • Form your Racetrack into a Legal Entity
  • Register your Racetrack for Taxes
  • Open a Business Bank Account & Credit Card
  • Set up Accounting for your Racetrack
  • Get the Necessary Permits & Licenses for your Racetrack
  • Get Racetrack Insurance
  • Define your Racetrack Brand
  • Create your Racetrack Website
  • Set up your Business Phone System

We have put together this simple guide to starting your Racetrack. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
  • Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is very important. Read our detailed guide on how to name your business . We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your Racetrack?

Business name generator, what are the costs involved in opening a racetrack.

If you are building your own racetrack, paving costs for a four lane track will be approximately $200,000 per mile . Other costs include gravel runoffs, tire walls, banking curves, landscaping, and any elevation changes. Other costs include land, construction costs, mechanical and electrical work, equipment, amenities, and legal fees

What are the ongoing expenses for a Racetrack?

Maintaining the pavement will be your largest concern. Pavement has a limited life cycle, and no one wants to hit a pothole at 125 miles per hour, so you will have to hire a road crew and build facilities for their equipment. You will also need insurance.

Who is the target market?

The target market for a stand alone racetrack will be mostly males between 18 and 60. Should you choose to run an entertainment complex, this audience would expand to families with children and the general public.

How does a Racetrack make money?

Racetrack owners can enjoy several sources of revenue ranging from track fees, car rentals, concessions, and safety equipment rental. Memberships of $60,000 per year are possible. You may find yourself renting out the entire track for a substantial fee as well.

Rates vary depending on the popularity and quality of your racetrack. The per day rental rate can range from $5,000 to $50,000.  Most racetracks offer open days with driver education schools that instruct your customers on how to race safely. Some tracks charge over $200 for a day of racing (with an extra charge for instruction).

How much profit can a Racetrack make?

Depending on the size and scope of your operation, profit can vary. It’s important to remember you will be making significant amounts of money from the crowd and peripheral services offered at your racetrack. 

How can you make your business more profitable?

Since customers are key to your success, providing excellent customer service will be vital. To implement excellent customer service, you need to know what you are selling inside and out. Be aware of the most frequent questions customers ask and how to answer them in satisfying ways.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Racetrack is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Racetrack business. Learn more about licensing requirements in your state by visiting  SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a Racetrack

Racetracks have many options for promotion and marketing. Racetracks draw crowds and partnerships with existing car dealers, and auto parts stores can increase them. Sponsored track days, sponsored races, and car club meets can be useful promotions as well. Designing a viral marketing campaign that speaks directly to your potential customer can be helpful as well. Provide excellent customer service, and you will have loyal customers for life who will refer your business to family and friends.

How to keep customers coming back

Build a functional and attractive webpage. Most people use the internet when they want to find a product or service. So, simply owning a website is no longer a recommendation; it’s a necessity. An original looking website with a functional design is crucial in achieving this. If your webpage is interesting to your audience and meets their needs, they will explore more and want to do business with your company.

Marketing a racetrack can be an expensive but lucrative transaction. While a racetrack may seem like an obvious attraction, making sure consumers understand what services you actually provide and when events are taking place is important to your success.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

Owning a racetrack can be a profitable business for anyone with a background in auto sales, auto repair, retail auto parts, hospitality, or anyone with a love for racing and a passion for business and people.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a Racetrack?

What happens on a typical day at a racetrack? A typical day owning a racetrack involves reaching out to potential clients and sponsors to help fund your expensive entrepreneurial endeavor. You will be creating budgets, scheduling your calendar full of events, checking in with technicians, and generally overseeing the day-to-day maintenance of a racetrack.

On days when you have events, you may find yourself running around from spot to spot putting out fires. If you are an established brand or have a large competent team under you, you may find yourself enjoying your day observing the fruits of your labor and watching a race.

What are some skills and experiences that will help you build a successful Racetrack?

Owning a racetrack would be great business for anyone with knowledge of the auto industry (parts, service, and labor) and a solid retail background. Managerial experience can be beneficial as your business experiences growth.

What is the growth potential for a Racetrack?

Racetracks have an excellent potential for growth. With several support businesses being necessary (fuel, racing fuel, auto parts and service) you will have many options to expand to better serve your customers' individual needs. Your racetrack can also become an event destination.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a Racetrack?

You should consider purchasing an existing track. Although most entrepreneurs want a fresh start building their own track from the ground up, it would be in your best interest to acquire a track that already had regular revenue and proven operations. Buying an existing operation will allow you to avoid the trial and error phase. Do not forget the option of joining a franchise. Joining a franchise can help avoid failure.

How and when to build a team

Building a good team of knowledgeable people will be crucial to your growth. Due to the multifaceted nature of this business, experts in several fields will be necessary, so build your team as early as possible.

You may simply want to be the investor in a racetrack as well — providing the funding but leaving the day to day in the hands of someone else. In a case like this, managers you can trust will be critical in order to run your business successfully.

Useful Links

Further reading.

  • How Much Does It Cost to Build a Race Track

Have a Question? Leave a Comment!

Get Your Race Tracks Business Essentials Today!

Foster growth with 250+ time-saving, business-specific templates. Swift designs, easy tools, all in one place.

Revving Up Your Race Track Dream

Imagine the roar of engines, the smell of rubber on asphalt, and the sheer excitement that only a race track can bring. Starting your own Race Tracks business is not just about feeding the need for speed; it's about creating an electrifying community space where passion meets pavement. It's about understanding the market, knowing what racers and spectators want, and delivering it with a bang. You've got to be all in - heart, soul, and throttle. From securing the perfect location to ensuring you have top-notch safety measures in place, every detail matters. It's a high-speed, adrenaline-fueled venture that requires not just investment but an undying passion for the sport.

red car on gray asphalt road during daytime

The Real Talk on Initial Investments

Listen up, folks. Starting a race tracks business isn't for the faint of heart. It's not just about having passion; it's about having the right amount of capital to get your dreams off the ground. We're talking about purchasing land, laying down the track, securing permits, and all that jazz. It's a hefty sum upfront, but if you're smart and strategic about it, you can navigate these waters.

Navigating Zoning Laws and Regulations

And then there's the red tape - oh boy! When you're looking into how to start your race track, zoning laws and regulations are like that annoying friend who's always gatekeeping the fun. Each area has its own set of rules about what you can or cannot do. This means diving deep into legalities and potentially hiring experts to guide you through. It might be a headache, but understanding this maze is crucial for your track's success.

pack of wolves sleighing on snowy ground

Building a Brand That Stands Out

You gotta make some noise in this space if you want to stand out. Think about what makes your race track unique. Is it the location? The technology? The events you're planning to host? These are not just selling points; they're your brand identity. Carve it out meticulously because in this game, brand recognition is everything.

Creating an Unforgettable Customer Experience

Alright, so you've built it. But will they come? Your customers need more than just a track; they're after an experience that'll keep them coming back for more. From the moment they step onto your property to the end of their day, every touchpoint needs to scream quality and excitement. This is where attention to detail pays off big time in creating loyal fans.

photo of gray vehicle wheels

Mastering Marketing Tactics

We live in a digital age, my friends. If your marketing strategy isn't up to par, you're going to struggle. Utilize social media platforms to reach your audience and create engaging content that resonates with racing enthusiasts. Don't forget traditional marketing efforts as well; sometimes, a physical flyer or billboard in the right location can work wonders. Balance is key here; know your audience and how best to reach them.

Boost campaigns with 250+ editable templates. Save, reuse, and wield design tools for business growth.

Finding Your Niche in Competitive Waters

The race tracks industry is crowded - no doubt about that. But guess what? There's always room for someone who can bring something new to the table. Identify gaps in what existing tracks offer versus what customers want but aren't getting. This is not just about being different; it's about being ruthlessly relevant to your target market.

a gray sports car driving down a road

Maintaining Safety Standards

Safety isn't sexy, but it's absolutely critical. One major accident can not only put lives at risk but also torpedo your business faster than you can say "pit stop." Regular inspections, investing in high-quality safety equipment, training staff thoroughly - these should be at the top of your priority list always. Remember, a safe race track is one that customers trust and feel comfortable returning to.

Leveraging Technology for Efficiency

Last but definitely not least - tech is your friend here. Whether it's cutting-edge timing systems or online booking platforms for races and events, technology can streamline operations and enhance customer experiences significantly. And when you need promotional materials designed quickly and efficiently without breaking the bank - check out Desygner. Their platform is a game-changer for creating professional-grade marketing materials that capture attention and drive engagement.

## **The Significance of "How to Start" for Race Tracks Business**Starting a business, especially in the competitive and thrilling world of race tracks, is like getting behind the wheel of a high-powered sports car. You're at the starting line, your heart's pounding, adrenaline coursing through your veins. But here's the kicker - how you start can determine whether you're going to take home the trophy or just eat dust. ### **Laying Down the Rubber: The Foundation**First off, let's talk about laying down the right foundation. Starting with clarity and vision is absolutely critical. A well-thought-out plan is like having the best pit crew in the world. It ensures that every aspect of your business - from operations to marketing, from customer experience to safety measures - is running as smoothly as a finely tuned engine.### **Fueling Up: Financial Planning**Next up, fueling your venture correctly with solid financial planning! This part is exhilarating because it's where many entrepreneurs feel the burn of their passion truly igniting into action. A robust financial plan acts as your nitrous oxide, giving you that extra boost when you need it most, propelling you ahead of competitors who might have skimped on their preparation.### **The Green Light: Launching with Momentum**Now, let's talk about launching with momentum. A race tracks business that starts with a bang - with promotions, partnerships, and an exceptional opening day event - sets the pace for its operational life cycle. It's not just about making noise; it's about resonating with your audience, creating unforgettable experiences that turn first-time visitors into lifelong fans. That's how legends are made.### **Navigating the Turns: Flexibility and Adaptation**Adaptation and flexibility are what allow you to navigate those tight turns without losing speed. In business terms, this means being open to feedback, ready to pivot when necessary, and always looking for ways to innovate and improve. It's about staying ahead of the curve (pun intended) and never letting complacency take over.### **The Victory Lap: Positive Outcomes of a Stellar Start**So why does all this matter? Because starting right leads to unimaginable success. We're talking increased revenue, brand recognition that spreads like wildfire, community engagement levels that make competitors green with envy, and customer loyalty as strong as steel.A race track business that kicks off on the right foot enjoys smoother operations, fewer initial hiccups, and a reputation that can make it a landmark in its region or even internationally. It becomes more than just a place for races; it becomes a destination--a place where memories are made, where every visit feels like stepping into an epic saga of speed and excitement.In conclusion, "how to start" isn't just important; it's everything in the race tracks business. It separates those who dream from those who triumphantly cross the finish line. So strap in, focus on that start-up strategy with all you've got because believe me, when you do it right, the rewards are nothing short of spectacular.

coupes on rack track

Revving Up Your Entrepreneurial Engine: The Finish Line

As we cruise down the final stretch of our journey on launching a successful race tracks business, remember that the roar of success is not just for those with the fastest cars but for those who are steadfast, strategic, and passionate about their venture. It's about understanding your market, laying down solid groundwork, and always staying ahead of the curve.

Innovation and adaptability are your best allies. In a world that's constantly shifting gears, being able to pivot and embrace new technologies will set you apart from the competition. Remember, it's not just about the track; it's about creating an unforgettable experience for your patrons--something that keeps them coming back for more.

Marketing is your loudspeaker to the world. Utilizing modern tools and platforms can help amplify your message, reaching audiences far beyond your local circuit. Here are key takeaways for steering your business to victory lane:

  • Understand your audience and tailor experiences to match their expectations.
  • Embrace innovation in both construction and event planning.
  • Foster community engagement through social media and local partnerships.
  • Never underestimate the power of exceptional customer service.
  • Diversify revenue streams with merchandise, food services, and corporate events.
  • Maintain high safety standards to protect patrons and employees alike.
  • Leverage digital marketing strategies to boost visibility.
  • Use Desygner for crafting professional-looking marketing materials effortlessly.

To catapult your race tracks business into the limelight, integrating innovative design solutions like Desygner can be a game-changer. Providing an easy-to-use platform, it empowers you to create stunning visuals that capture the essence of your brand and attract more visitors to your track. Start designing today and see how Desygner can accelerate your marketing efforts to full throttle.

low angle photography of track field

Unlocking the Secrets to Marketing Your Race Tracks Business

__placeholder_related_content_2__

Captivating Content Creation for Your Race Tracks Business

UNLOCK YOUR BUSINESS POTENTIAL!

Get every material you need for your business in just a few clicks

race track business plan

It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $20,000,000 for the development of a race track while showcasing the expected financials and operations over the next three years. Race Track, Inc. (“the Company”) is a New York based corporation that will provide customers with a massive race track that will be available for most dog/horse racing that will be operated on site. The Company was founded by John Doe.

1.1 Products and Services

The primary revenue center for the business will come from the ongoing gambling revenues as well as admission fees to racing events that are sponsored through the Race Track. The business will generate tertiary revenues from the sale of VIP seating in the facility. The business will generate secondary revenues from concession sales, product sales, and other products that are distributed through the Race Track. The third section of the business plan will further describe the services offered by the Race Track.

1.2 The Financing

Mr. Doe is seeking to raise $20,000,000 from an investor(s). Mr. Doe expects to sell a 50% equity interest in the business in exchange for the requisite capital. The tentative terms of this agreement can be found in the second section of the business plan. The financing will be used for the following: • Development of the Company’s Race Track location. • Financing for the first six months of operation. • Capital to purchase FF&E for the Race Track.

1.3 Mission Statement

Race Track, Inc.’s mission is to become a well known racing facility destination for residents living within the Company’s targeted market.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the sports management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals that are interested in racing for attendance to events held at the Race Track facility.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Race Track, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Race Track requires $20,000,000 of equity funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, the Company is seeking to sell a 50% equity interest in the business for the requisite capital sought in this business plan. The investor(s) will also receive a seat on the board of directors and a regular stream of dividends starting in the first year of operation. Please reference the Company’s private placement memorandum for more information regarding the specifics of this investment.

2.4 Management Equity

After the requisite capital is raised, Mr. Doe will retain a 50% ownership in the business.

2.5 Exit Strategy

The Management has planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, race track industry maintains a moderate risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings. The second exit scenario would entail selling a portion of the Company via an initial public offering (or “IPO”). After a detailed analysis, it was found that the Company could sell for twenty times earnings on the open market depending on the business’s annual growth rate and strength of earnings. However, taking a company public involves significant legal red tape. Race Track, Inc. would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934. The last exit scenario would involve the use of a private placement memorandum to raise capital from private sources. This is also a significantly expensive process that requires the assistance of both an experienced securities law firm and an investment bank. Funds would be raised from private equity and merchant banking sources in exchange for a percentage of the Company’s stock.

3.0 Products and Services

Below is a description of the services offered by the Race Track.

3.1 Gambling and Admission

As stated in the executive summary, the primary revenue center for the business will come from the ongoing sale of tickets as well as gambling revenues from people placing bets on horse and dog races at the Race Track.

3.2 Concessions

The secondary revenue stream for the business will come from the ongoing sale of concessions as it relates to events that are held at the Race Track facility. This revenue center will ensure that the business remains profitable and cash flow positive at all time.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the race track industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. This may have an impact on the Race Track’s ability to secure a positive cash flow and profits.

4.2 Industry Analysis

Within the United States, there are approximately 12,261 general sports and race track complexes that operate on a for profit basis or a not for profit basis. Each year, these businesses generate approximately $20 billion of revenues while providing jobs to more than 312,000 people. Annual payrolls in each of the last five years have exceeded $8 billion. This is a mature industry, and the expected future growth rate is expected to remain in lockstep with that of the general economy. Due to the high costs associated with developing a Race Track– the associated costs with developing this facility should generate a very high return on investment.

4.3 Customer Profile

The Race Track average client will be an upper middle class man or woman that frequently enjoys horse/dog racing. Common traits among clients will include: • Annual household income exceeding $75,000 • Will spend $100 on visiting the Race Track. • Lives within 60 miles of the Race Track facility.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Race Track, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.

5.1 Marketing Objectives

• Engage a broad based public relations firm targeted towards people living within the target market.

• Establish relationships with the local community of the target market.

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

5.2 Marketing Strategies

Management intends to use a qualified advertising and marketing firm to help the Race Track reach its intended audience of people living in the Company’s targeted market. This campaign will include the use of traditional print and media advertising as well as the Internet. Direct advertising campaigns will be of significant importance to the Company as the business is offering its services to a specified group of middle and upper income people. Timely coverage of the Company and its race track facilities will be further directed through ongoing press relations, news releases and feature stories targeted at key professional communities and other media outlets. Publicity activities will be designed to generate ongoing coverage about the Race Track in targeted media by providing writers and editors with newsworthy releases, features, stories, briefs, and visual material for their columns and stories. In depth coverage may also be obtained about the Company by hosting in-house interviews to be conducted by our company spokesperson, John Doe.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• Race Track, Inc. will have an annual revenue growth rate of 16% per year.

• The Founder will acquire $20,000,000 of equity funds to develop the facility.

• The Race Track property will have an annual appreciation rate of 6% per annum.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. Attending a dog/horse race is a luxury and during times of deleterious economic conditions, the business may have issues with its top line income. However, the Company is targeting its services towards racing enthusiasts who are less swayed by difficult economic climates. Additionally, the high margins generated by the business will ensure its continued profitability despite moderate decreases in revenue.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

  • Skip to content
  • Skip to navigation

race track business plan

Top Stories:

  • Louisiana-Bred Manama Gold Punches Kentucky Oaks Ticket
  • Saudi Cup Brings Opportunity to Torres at Oaklawn Park
  • HIWU Drops Clenbuterol Allegation Against Englehart
  • The Wine Steward Back to Work at Gulfstream for Maker
  • Living Magic Reappears in Cincinnati Trophy
  • France's Maryline Eon Wins Saudi Jockey Challenge
  • Magic Millions Perth Sale Concludes With Record Gross
  • Q&A: Lukas Reflects on Honor of KY Derby Museum Award
  • Lukas Receives Derby Museum Lifetime Achievement Award
  • Ferguson's Homebred Spirit Dancer Tackles Neom Turf Cup
  • Eclipse Award-Winning Photographer Barbara Livingston Gifts Jim Raftery’s Turfotos Collection To Keeneland Library
  • NHC Introduces ‘Silver Sunday’ Contest at NHC
  • ‘Daddy Joe’ Celebration Week at Taylor Made
  • Upcoming Lexington Events Hosted by Light Up Racing
  • Defunded Owner Hopes to Reward Horse’s Fans
  • Maryland Thoroughbred Industry Renaissance Award Finalists Announced
  • The Kentucky Oaks Top 10 For Feb. 22
  • T.I.P. Announces 2024 Shows and Championships
  • Mystik Dan Confirmed for Arkansas Derby, Catching Freedom Possible
  • Napravnik Returns to Fair Grounds for Fourth Annual New Vocations Day at The Races

You are here

  • Estimated Training Costs
  • Your First Thoroughbred

Develop a Business Plan

  • Select Your Advisors
  • Purchase Options
  • Insurance Options
  • Sales Integrity Program
  • TOBA Seminars & Clinics
  • Horse Country Tours
  • FAQ for Owners
  • Pedigrees and More
  • Industry Terminology
  • Industry Groups

Buying a Thoroughbred racehorse is not a complicated process. But like many new matters, there needs to be enough planning and thought process beforehand to be sure you understand your goals, budget, timelines and overall objectives.  The best way to accomplish this is to develop a business plan. It doesn’t have to be a complicated plan. A simple document that establishes key elements of your horse ownership will do the job.  But many new Thoroughbred owners forget that their ownership should be approached as any business and having a plan is critical to your success. Manage your equine investments as you would manage any other investment or business activity, including exercising good, sound business judgment.

race track business plan

  • Lay out your objectives from the start

Establish your budget

Lay out your timetable

Decide where you plan to race & what type of racehorse you plan to own (colts, fillies, classic runners, claimers, etc)

Evaluate your ability to invest at the level you prefer and if you have any doubts about your ability to participate at this level, scale back. You can always move up once you learn more about the game.

Identify how & where you will purchase your racehorses

Decide if your horses will be insured

Select a qualified advisor(s) that understands your objectives.

Always establish what fees (if any) your advisor(s) charge for their services

Be rational not emotional and remember Thoroughbred ownership is a business

race track business plan

© 2019 The Jockey Club Information Systems, Inc. & Thoroughbred Owners & Breeders Association , Inc. All rights reserved.

Use and/or viewing of this site is subject to  Terms & Conditions . View Our Privacy Policy .

Search form

ProGuidez.Com

How to Start a Race Track Business

Launching a successful racetrack involves careful planning and execution. This comprehensive guide covers vital aspects, from selecting an optimal location and securing permits to designing a competitive track. Discover key strategies for promoting events, ensuring safety, managing finances, and embracing technology. Unleash the thrilling world of racing with these actionable insights.

race track

Location Planning for Your Race Track

Choosing a strategic race location.

The ideal race location integrates both convenience and excitement. Proximity to urban centers ensures accessibility for participants and spectators. Simultaneously, the surrounding landscape should offer a thrilling backdrop, enhancing the overall racing experience.

Assessing Accessibility for Race Participants

Accessibility is paramount for attracting a diverse range of racers. Analyze transportation networks and ensure that the race track is easily reachable by road, offering convenient logistics for participants hauling their vehicles.

Evaluating Environmental Factors for Racing

Consider the impact of the environment on racing activities. Factors such as climate, terrain, and natural surroundings contribute to the overall ambiance and challenge of the track. A careful assessment ensures that the location aligns with the desired racing experience.

Analyzing Local Race Track Zoning Requirements

Navigating zoning regulations is crucial. Work closely with local authorities to understand zoning requirements and restrictions. Compliance ensures a smooth approval process and sets the groundwork for a legally sanctioned race track.

Ensuring Adequate Parking for Race Attendees

Parking facilities are often underestimated but are crucial for attendee satisfaction. Ensure ample, well-organized parking to accommodate both participants and spectators. A positive first impression contributes to the overall success of racing events.

Securing Necessary Permits and Licenses for Racing

Understanding race track licensing procedures.

Research and understand the licensing procedures specific to racetracks. This involves obtaining permits from relevant authorities, often related to safety standards, noise regulations, and environmental impact assessments.

Obtaining Local Government Approvals for the Race Venue

Work closely with local government bodies to secure approvals for your race venue. This involves presenting a comprehensive plan that addresses safety, environmental impact, and overall adherence to local regulations.

Complying with Safety Regulations for Racing Events

Safety is non-negotiable in racing. Implement safety measures that exceed standard requirements. This includes well-designed barriers, emergency response plans, and stringent regulations for both racers and spectators.

Securing Environmental Permits for Race Track Construction

Environmental impact assessments are often mandatory. Obtain the necessary permits by demonstrating how construction and ongoing activities will minimize ecological impact. Embrace eco-friendly practices where possible.

Meeting Insurance Requirements for Race Activities

Insurance is a critical aspect of risk management. Work with insurers to develop comprehensive coverage for potential liabilities, accidents, and damages. Adequate insurance not only protects the racetrack but also instills confidence in participants and sponsors.

Designing and Building a Competitive Race Track

Collaborating with race track design experts.

Engage professionals with expertise in race track design. Their insights can optimize layout, turns, and straights to create a track that challenges racers while ensuring safety. A well-designed track enhances the overall appeal of the racing venue.

Incorporating Safety Features in Race Track Layout

Prioritize safety in the track layout. Implement runoff areas, barriers, and emergency exits strategically. The goal is to provide a challenging course while minimizing the risk of accidents and injuries.

Utilizing Advanced Materials for Race Surface

The quality of the racing surface is a key factor. Invest in advanced materials that provide optimal grip and durability. A well-maintained track surface not only enhances the racing experience but also contributes to the longevity of the facility.

Implementing Technology for Race Timing and Scoring

Embrace technology for precise race timing and scoring. Automated systems enhance accuracy, providing real-time data for racers and spectators. This not only adds a professional touch but also contributes to the overall competitiveness of the events.

Ensuring Accessibility for Racers with Disabilities

Design the racetrack with inclusivity in mind. Ensure that facilities are accessible to racers with disabilities. This may involve ramps, accessible viewing areas, and accommodations that cater to a diverse range of participants.

Developing a Comprehensive Race Event Calendar

Planning a diverse race schedule.

Diversify the race schedule to cater to various racing disciplines and preferences. Include high-stakes championship races, endurance events, and family-friendly races. A varied calendar ensures a broad appeal, attracting different segments of the racing community.

Incorporating Different Racing Disciplines

Appeal to a wider audience by hosting diverse racing disciplines. From traditional circuit races to off-road events and drag racing, offering a mix keeps the racing scene dynamic and accommodates enthusiasts with varying interests.

Organizing Championship Races for High Stakes

Elevate the profile of your racetrack by organizing championship races. These high-stakes events attract top-tier racers, generate excitement among spectators, and establish your venue as a premier destination in the racing community.

Hosting Family-Friendly Racing Events

Foster a family-friendly atmosphere by organizing events that cater to a broader audience. Family-oriented races, accompanied by entertainment and activities for children, create a welcoming environment, encouraging attendance and community engagement.

Collaborating with Racing Federations for Accreditation

Seek accreditation from racing federations to enhance the credibility of your events. Partnering with established organizations adds legitimacy to your races, attracts professional racers, and provides access to broader racing networks.

Promoting Your Race Track and Events

Creating a dynamic race track website.

Establish a professional and user-friendly website that serves as a central hub for information. Include details about upcoming events, race results, and facilities. A well-designed website enhances the racetrack’s online presence and serves as a valuable resource for enthusiasts.

Leveraging Social Media for Race Promotion

Harness the power of social media platforms to reach a broader audience. Engage with the racing community on platforms like Facebook, Instagram, and Twitter. Share captivating content, updates, and behind-the-scenes glimpses to build anticipation and foster a sense of community.

Partnering with Local Businesses for Cross-Promotion

Forge partnerships with local businesses to mutually promote each other. Collaborate with automotive shops, restaurants, and hotels to create special promotions or discounts for race attendees. Cross-promotion enhances the visibility of both the racetrack and local businesses.

Implementing Email Marketing Strategies for Race Updates

Build a mailing list and implement targeted email marketing campaigns. Regularly update subscribers on upcoming races, special events, and exclusive offers. Email marketing provides a direct channel of communication, keeping the racing community informed and engaged.

Designing Eye-Catching Race Posters and Flyers

Invest in visually appealing promotional materials for local distribution. Eye-catching posters and flyers can attract attention and convey essential information about upcoming events. Strategic placement in automotive shops, community centers, and local businesses maximizes visibility.

Ensuring Safety Protocols for Racers and Spectators

Implementing emergency response plans for race incidents.

Develop comprehensive emergency response plans to address various scenarios, from on-track accidents to medical emergencies. Efficient and well-executed response plans contribute to a safe environment and demonstrate a commitment to participant well-being.

Providing Adequate Medical Facilities at the Race Track

Ensure the availability of onsite medical facilities equipped to handle racing-related injuries. Collaborate with medical professionals and emergency services to establish protocols for rapid response and effective medical care during events.

Conducting Safety Briefings for Racers and Pit Crews

Mandatory safety briefings are crucial for racers and pit crews. Emphasize track-specific rules, emergency procedures, and safety protocols. Regular briefings instill a culture of safety and responsibility among participants, contributing to accident prevention.

Installing High-Quality Barriers for Spectator Protection

Invest in top-tier safety barriers to protect spectators in key viewing areas. These barriers serve as a crucial line of defense in the event of on-track incidents. Prioritize spectator safety to create a secure and enjoyable race-watching experience.

Collaborating with Local Law Enforcement for Event Security

Establish strong ties with local law enforcement agencies to enhance event security. Coordinate security measures, traffic control, and crowd management to ensure a safe environment for all attendees. A visible law enforcement presence also acts as a deterrent to potential issues.

Managing Finances and Budgeting for Racing Operations

Creating a detailed race track business plan.

Develop a comprehensive business plan that outlines the financial structure, revenue projections, and operational expenses. A well-defined plan serves as a roadmap for financial success, aiding in securing funding and making informed business decisions.

Identifying Potential Revenue Streams Beyond Race Events

Explore additional revenue streams to supplement income from race events. Consider offering driving experiences, hosting non-racing events, or providing facilities for testing and tuning. Diversifying revenue sources helps mitigate financial risks associated with relying solely on race events.

Budgeting for Race Track Maintenance and Upgrades

Allocate funds for regular maintenance and continuous improvement of the racetrack. Budgeting for track resurfacing, safety upgrades, and facility enhancements ensures the longevity and competitiveness of the venue, contributing to a positive experience for participants and spectators.

Negotiating Sponsorship Deals for Race Funding

Forge strategic partnerships with sponsors to secure funding for races and ongoing operations. Negotiate sponsorship deals that align with the values and target audience of both the racetrack and the sponsor. Successful sponsorships contribute to financial stability and event success.

Monitoring and Controlling Race Operating Costs

Implement robust financial monitoring systems to track operating costs and identify areas for optimization. Controlling costs without compromising safety or event quality is essential for maintaining profitability and long-term viability.

Building Relationships with Racing Communities

Engaging with local motorsports enthusiast groups.

Actively participate in and support local motorsports enthusiast groups. Attend meetings, sponsor events, and collaborate on initiatives that strengthen ties with the local racing community. Building relationships fosters goodwill and enhances the racetrack’s standing within the community.

Establishing Partnerships with Racing Teams

Forge partnerships with racing teams to create mutually beneficial arrangements. Offering incentives such as discounted track time or exclusive events can attract professional teams, elevating the prestige of your racetrack and fostering a sense of community.

Hosting Networking Events for Racers and Fans

Organize networking events that bring together racers, fans, and industry professionals. These events provide opportunities for networking, collaboration, and the exchange of ideas. A connected racing community contributes to the overall success and vibrancy of the racetrack.

Collaborating with Racing Schools for Skill Development

Partner with racing schools to provide educational opportunities for aspiring racers. Hosting training sessions, workshops, and certification programs not only attracts new participants but also contributes to skill development within the racing community.

Participating in Motorsports Conferences and Expos

Attend and actively participate in motorsports conferences and expos. These events provide a platform to showcase your racetrack, network with industry experts, and stay abreast of emerging trends. Participation contributes to the racetrack’s visibility and credibility within the broader racing community.

Investing in Technology for Enhanced Racing Experience

Implementing advanced race timing systems.

Invest in state-of-the-art race timing systems that provide accurate and real-time data. Precise timing enhances the competitiveness of races and provides valuable insights for racers and spectators. Stay at the forefront of technology to maintain a cutting-edge racing experience.

Incorporating Live Streaming for Remote Viewing

Enable live streaming of races to reach a global audience. Embracing online platforms for broadcasting races not only expands the reach of your events but also enhances the overall viewing experience for fans unable to attend in person.

Introducing Virtual Reality (VR) Experiences for Race Fans

Explore virtual reality (VR) experiences to engage fans in new and immersive ways. Virtual tours of the racetrack, interactive simulations, and VR-enhanced events can create additional excitement and attract a tech-savvy audience.

Using Data Analytics to Improve Race Track Operations

Harness the power of data analytics to optimize race track operations. Analyze participant data, track usage patterns, and spectator feedback to make informed decisions. Data-driven insights contribute to better planning, resource allocation, and overall efficiency.

Integrating Mobile Apps for Race Updates and Notifications

Develop a mobile app to provide racers and spectators with real-time updates, event schedules, and notifications. A user-friendly app enhances engagement, fosters a sense of community, and serves as a valuable tool for delivering timely information.

Sustainable Practices in Race Track Management

Implementing eco-friendly construction practices.

Opt for eco-friendly construction materials and practices during the initial development of the racetrack. Minimize environmental impact by considering sustainable alternatives and adhering to green building standards.

Incorporating Renewable Energy Sources for Power

Explore the integration of renewable energy sources, such as solar or wind power, to meet the energy demands of the racetrack. Investing in sustainable energy solutions contributes to environmental conservation and reduces the carbon footprint of the facility.

Recycling and Waste Management at Race Events

Implement comprehensive recycling and waste management programs during race events. Encourage participants and spectators to reduce, reuse, and recycle. Minimizing waste not only benefits the environment but also showcases the racetrack’s commitment to sustainability.

Promoting Green Transportation Options for Race Attendees

Encourage eco-friendly transportation options for race attendees. Implement initiatives such as carpooling, shuttle services, or partnerships with electric vehicle charging stations. Promoting green transportation aligns with sustainability goals and reduces the environmental impact of race-related travel.

Supporting Environmental Initiatives within the Racing Community

Actively support and participate in environmental initiatives within the racing community. Engage in tree-planting programs, conservation efforts, or partnerships with environmental organizations. Demonstrating a commitment to environmental stewardship fosters goodwill and sets a positive example within the racing industry.

Below are some frequently asked questions (FAQs) related to starting and managing a racetrack, along with their respective answers:

1Q: How do I choose the ideal location for my racetrack?

A: Consider proximity to urban centers for accessibility, assess environmental factors, and ensure a strategic location with a thrilling backdrop for an enhanced racing experience.

2Q: What permits and licenses are required to start a racetrack?

A: Obtain licenses related to safety, noise regulations, and environmental impact assessments. Work closely with local authorities to secure approvals for your race venue?

3Q: How do I design a race track that is both challenging and safe?

A: Collaborate with race track design experts to optimize layout. Prioritize safety features such as runoff areas, barriers, and emergency exits. Utilize advanced materials for a high-quality racing surface.

4Q: What should be included in a race track’s business plan?

A: A comprehensive business plan should outline the financial structure, revenue projections, operational expenses, and strategies for sustainability and growth.

5Q: How can I diversify revenue beyond race events?

A: Explore additional revenue streams such as driving experiences, non-racing events, and facilities for testing and tuning. Diversifying income sources helps mitigate financial risks.

6Q: How can I engage with the local racing community?

A: Actively participate in motorsports enthusiast groups, establish partnerships with racing teams, host networking events, and collaborate with local racing schools for skill development.

7Q: What technology should I invest in for an enhanced racing experience?

A: Implement advanced race timing systems, incorporate live streaming for remote viewing, introduce virtual reality experiences, use data analytics for track operations, and develop a mobile app for race updates.

8Q: How can I make my racetrack more environmentally friendly?

A: Implement eco-friendly construction practices, incorporate renewable energy sources, establish recycling and waste management programs, promote green transportation options, and support environmental initiatives within the racing community.

9Q: How do I ensure safety for racers and spectators during events?

A: Implement emergency response plans, provide onsite medical facilities, conduct safety briefings, install high-quality barriers for spectator protection, and collaborate with local law enforcement for event security.

10Q: How can I effectively promote my racetrack and events?

A: Create a dynamic website, leverage social media for promotion, partner with local businesses for cross-promotion, implement email marketing strategies, and design eye-catching posters and flyers for local distribution.

fine wedding photography

Homesteading.

Homesteading

The Ultimate Guide To Building An Equestrian Business

August 10, 2022.

race track business plan

Hi, I'm Paige, half of the duo behind Fairway Stables™

This website is the one I've been searching for, for years; a compilation of knowledge on all things horsemanship, including practical advice on how to start an equestrian business. No matter your experience level with horses or homesteading, I hope this is a place you can get lost in, and learn something along the way - we welcome everyone from vets, to lifelong ranchers, trainer, to nonprofits contributing.

Categories 

Homesteading equine law equestian living horseback riding.

Starting a business in general is an exciting, daunting, and stressful experience. It’s thrilling to take risks and follow your passion, but you may get anxiety about whether you have what it takes to make a business successful.

This is especially true of equestrian businesses . Many owners get into the horse business for love of horses and the sport, forgetting that they need to run a business properly to succeed. Find out everything you need to know to start your equestrian business off right.

Table of Contents

  • Overview of Equestrian Businesses
  • Size of Equestrian Industry
  • Equestrian Industry Worth

Glossary of Equestrian Business Terms

  • Equestrian Business Ideas
  • What to Consider Before Starting an Equestrian Business

How to Start an Equestrian Business

Growing your equestrian business.

building an equestrian business

What Is an Equestrian Business? A Brief Overview

There’s no strict definition for an equestrian business. An equestrian is a person who rides a horse. As an adjective, equestrian can refer to anything related to horseback riding.

A business is an activity or enterprise entered into for profit. Put those together and you get an equestrian business.

Equestrian businesses can be anything that focuses on horses or horseback riding, including businesses that house or train horses, care for horses, show horses, or breed horses. It may also include the businesses responsible for managing facilities, pasture, waste removal, and more.

How Big Is the Equestrian Industry?

In the US, there are roughly 158,000 equestrian businesses and no major companies.

Each business represents a small portion of market share (<5%), While a third of US households have a horse enthusiast, only 1.3 percent own a horse. The remainder participate in horse activities or enjoy horse events.

How Much Is the Equestrian Industry Worth?

The equestrian industry is worth $122 billion and created 1.7 million jobs in the US. There’s not only direct contribution with economic activity that occurs in the horse industry itself, but also the positive ripple effect into other economic activity outside of the horse industry.

Horse Ranch

A ranch is a large farm used for raising animals, such as cattle, sheep, or horses. A horse ranch focuses specifically on horses.

Generally, a stable can refer to a building that houses horses or an establishment where horses are kept and trained.

Equestrian Facility

An equestrian facility is a facility designed to accommodate, train, or compete with horses. Based on their use, an equestrian facility may be referred to as an equestrian center, stables, riding hall, barn, livery yard, boarding stable, or ranch.

A stud farm is a term used in animal husbandry to indicate a facility for selective breeding. While stud comes from Old English and means a “herd of horses or place where horses are kept for breeding,” the modern use of the term refers to a stallion that’s currently used for breeding. Stud farms may be full breeding operations or purely stud service.

Boarding Stable

Also known as a livery yard or livery stable, a boarding stable is a facility that houses and cares for other people’s horses for a fee.

Riding Stable

A riding stable is a facility that houses horses for equestrian activities. Though separate from a boarding stable, the two may be combined. A riding school or academy may also be called a riding stable.

Barn is a colloquial term for a stable or equestrian facility. Barns are located on farms and hold equipment, grain, and sometimes horses or cows, but they’re distinct from a stable.

Farm is a catch-all term for activities related to agriculture. Though technology is reserved for food production, “farms” may include feedlots, orchards, and ranches. Properties with horses aren’t typically referred to as a horse farm (with the exception of a stud farm). The purpose and use of the facility determine which term is preferred.

21 Equestrian Business Ideas

Let’s take a look at several equestrian business ideas that can help you turn your passion into profit.

Boarding/Livery

For many horse owners or enthusiasts, keeping a horse at home isn’t an option. They still want to ride, however, so they look into a boarding or livery facility.

Generally, a boarding stable charges a monthly fee to house a horse and provide for its needs. Boarding stables offer different options for board, and the monthly charge depends on factors like pasture or turnout, location, amenities, on-site trainers and instructors, tack storage, and more.

Typically, boarding stables offer the following fee options:

This includes all the necessities for the horse, plus a stall with full turnout. Full board is the most time- and work-intensive, since owners leave all the work to the facility – they clean the stalls, feed the horse multiple times a day, and take it in and out to pasture. For a busy adult equestrian or the overwhelmed parents of a child rider, this is an ideal option.

Some boarding facilities also offer additional services for a fee, such as lessons with a qualified instructor, access to indoor or outdoor riding arenas, trails, or equipment use. Owners may have to pay for specialized feeds and supplements, grooming, blanketing, and similar services.

Typically, veterinary care and farrier care are the financial responsibility of the owner. Some facilities will maintain the same veterinarian and farrier for the entire facility, while others will allow owners to bring in their preferred professionals. For a new horse owner, having vetted and qualified professionals offers peace of mind, but an experienced equestrian may prefer their own veterinarian and farrier.

Partial Boarding

Partial boarding is essentially a timeshare with a horse. In this situation, the owner shares the use of their horse with another person in exchange for cheaper boarding fees. This arrangement may be used for owners with horses that are docile enough to be “school” horses, or lesson horses, but it may also be beneficial for a busy adult with a horse that’s suitable for another rider.

In this arrangement, both parties split the boarding costs. For example, if board is typically $500 per month, but the horse is used for lessons, the owner will only pay $250. This does involve a contract agreement to ensure that everyone is protected, which may outline how often the horse may be ridden, whether the rider can bring their own equipment, and who is responsible for farrier and veterinarian services.

Pasture Board

Pasture board can be an economical option for an owner and convenient for you. If you have land, you permit the horse to live outdoors year-round with feed, water, and a simple run-in shelter. The work and maintenance is minimal compared to a full boarding facility while giving you income from your land.

Depending on the climate, pasture board may offer additional services like blanketing in cold weather, either included or for a fee. Pasture board also requires you – or your staff – monitor the horses outside to ensure they’re cared for properly.

Pasture board is appealing for its low fees, though horses get less attentive care in this arrangement. This is ideal for occasional riders, retired older horses, horses that prefer to roam, and horses with medical conditions like recurrent airway disease (heaves).

In addition, someone with well-bred show horses or breeding horses typically want minimal turnout alone to avoid potential injuries or blemishes that affect the horse’s appearance, such as bite marks or cuts.

Self-Care Board

Self-care board is basically renting out only the facility and amenities but leaving the actual care to the owner. The horse gets a stall and access to turnout, but the owner must provide their own feed and bedding, muck out the stall, feed and water the horse, and bring it in and out from the pasture. They also handle their own arrangements for veterinary and farrier services.

For people who live near the stable, self-care board is a convenient and economical solution. They get to take a hands-on approach to their own horse’s needs, even if they don’t have land. Sometimes, groups of riding friends will take a self-care board arrangement and handle the care of each other’s horses in shifts to make chores more practical and convenient.

The downside of a self-care board is that owners don’t have schedule freedom or flexibility. They are responsible for their own horse’s care at all times and have to make arrangements for vacations or other obligations. As the facility owner, you can offer care for an extra fee when the owners are unavailable to care for their own horses.

Short-Term Boarding

If you have a facility with extra space, short-term boarding provides accommodation for horses if owners are traveling or moving. Short-term and overnight boarders can add income to an existing boarding facility and make up for empty stalls.

Many boarding facilities offer multiple types of short-term boarding with different fees, such as one-day, one-week, or one-month boarding. The traveler may supply the feed and buckets, but the facility handles the stall, bedding, turnout, and care.

Short-term boarding can be beneficial in many ways and boosts the exposure of a stable, but it’s important to have the right setup. Traveling horses can present a disease or injury risk to the other boarders, which is why owners need to supply buckets. There should be stalls and turnout that are separate from the long-term boarding clients.

Retirement Boarding

In many ways, retirement boarding is similar to a nursing home for elderly humans. Owners who no longer compete or ride – or ride only occasionally – can enjoy the benefits of boarding in a quieter facility than a competition stable. In addition to older horses, these facilities may board horses that have been put out of commission due to injury.

Retirement boarding may be structured as a full-service, partial, or self-care boarding arrangement. All the horse’s needs are cared for, including veterinary and farrier services, but in a low-key environment.

Additional Arrangements

When it comes to boarding, just about any arrangement you can imagine has been done. Some stables may work out reduced rates for owners who are willing to take on some chores, such as mucking out their own stalls. Some may offer work-exchange or working-student arrangements, which is when equestrian students do barn chores in exchange for reduced board or free lessons or training.

If you choose to offer these kinds of flexible arrangements for boarders, it’s important that all the responsibilities of both parties are outlined in the boarding contract. Those who don’t hold up their end of the arrangement will have to pay full board – or whatever the penalty is according to the contract.

Training and Instruction

Often combined with boarding facilities, training and instruction is another option for an equestrian business. Many equestrians will choose a boarding facility based on the option of an on-site instructor or horse trainer.

There are numerous paths to becoming a professional horse trainer or riding instructor. You don’t need a degree or certifications, in most cases, but you do need something to establish yourself as an authority. Typically, horse trainers and instructors have a track record of success in prominent horse show circuits or reputation for training champion horses.

If you don’t want to train or instruct yourself, you can hire an on-site trainer and instructor for your boarding clients. Ideally, the trainer and instructor should be specialized in a discipline, such as hunter/jumper or cutting.

Another option is subcontracting. In this arrangement, you may or may not provide an on-site trainer, but if you get a rider who prefers to work with their own trainer, they can pay for the use of the amenities like the indoor or outdoor arena.

In addition to on-site staff and subcontractors, many boarding facilities will bring in big-name trainers for clinics. The trainer has run of the facility for the time they’re scheduled, and students can book appointments for lessons. This is helpful for the riders, since the trainer comes to them, and they can work in the environment in which they and their horses are most comfortable.

Breeding Operation

Breeding horses is a diverse facet of equestrian business. Not for beginners to the horse world, breeding takes a lot of time, passion, and a gift for selecting solid breeding stock . Like breeding other animals, care must be taken to ensure that the foal crop is free of genetic illness and that the most desirable traits are passed through the generations.

Horse breeders are not “backyard breeders” bringing together their two mutts to sell the puppies. While that may happen, horse breeders usually focus on one pure breed and specialize in specific purposes like barrel racing, flat racing, or show jumping. They know the pedigrees of the stock inside and out, as well as what makes a horse a champion in their respective discipline.

In addition, breeding requires skill and comfort around horses. Both stallions and mares in heat can be difficult to handle, and a lot goes into the care or the breeding stock and bringing up the foals.

There are a few ways to approach a breeding operation, from boutique breeders to studding services to full-scale breeding operations. Many breeders get started by realizing an opportunity with their winning stallion or mare, or simply having a good eye for superior horses.

Full-Scale Breeding Operation

A breeding operation may be full-scale with on-site stallions, mares, and foals, as well as the necessary breeding areas and equipment. This is a big undertaking, since you’re providing land and stalls for your breeding stock and the foal crop.

One of the advantages to a full-scale breeding operation is that you can start small, however. Just a stallion and a few mares with a stable and some land can grow over the years to become dozens of horses on hundreds of acres.

Most full-scale breeding operations have their own breeding stock that’s either already owned or purchased (the latter is more expensive!). Owners may hold back some foals for future breeding, meaning they’re not offered for sale, while the others are sold for profit. These operations may also bring in new mares or stallions to diversify the crop over the years.

Usually, a full-scale breeding operation will use hand-mating and artificial insemination for their own breeding stock. They may offer stud services for artificial insemination, or they may bring an outside mare for studding.

One main difference between a breeding facility and other types of horse facilities is that it’s set up for breeding. There’s plenty of land and space for not only the current horses but the future ones as well. These facilities also have areas for hand-mating and insemination, veterinary equipment, studding, and separate pastures for individual stallions, mares, and weanlings or yearlings.

With purebred horses, there may be an additional registration process with the breed registry. The process can vary, but horses may be eligible for registration and branding that allows them to compete in breed-specific competitions and increases their value.

Some owners maximize profits by studding out their champion stallion, giving them income without running a full breeding operation. When a champion racehorse or show horse finishes its career on a high note, the owner can use that notoriety to offer the horse’s semen for a fee.

They simply offer the material to impregnate the mare, and the mare’s owner is responsible for the rest. Because the work involved in studding is less intensive than a full breeding operation, people may keep and stud a stallion at a riding or boarding facility instead of a dedicated breeding ranch.

Some studs can command fees of thousands of dollars for semen, and a male horse produces enough to pair with over 100 mares. Of course, if the stud produces a bunch of duds, the fee can plummet – it’s a gamble.

Mares have long gestation periods – typically 11 months – which is a long period to be out of commission. Pregnancy also carries risk that can lead to loss of life or loss of use. Some owners who want to breed their mare prefer to avoid this risk by using a surrogate mare, or recipient mare.

The time period in which a mare can carry a foal safely and successfully is also limited. If the mare can’t take time off of showing for breeding, surrogacy allows for multiple pregnancies from different mares in a given year while she continues to show. It also allows the mare’s owner to breed her to multiple stallions at the same time to produce a range of foals.

Reproduction is done through artificial insemination with an embryo transfer, sperm injection, and semen freezing, shipping, and storage. It’s a long process, but comparatively shorter than having a mare out of the show circuit.

The mare’s owner is responsible for the stud fee and associated costs, the cost of artificial insemination, and the veterinary care for the mare.

Also, like a stud, the surrogate mare may be part of a larger breeding facility or simply kept at a boarding or riding stable. For owners of mares that aren’t suitable for breeding or showing at a high level, surrogacy is a way to make use of their optimal breeding years.

Riding Clinics

Riding clinics are intensive training sessions that take place with a qualified equestrian instructor or trainer. Typically, these clinicians have an accomplished equestrian career in a specific discipline that qualifies them to command a high fee for training sessions.

If you’re a trainer or instructor yourself, you can provide clinics on a travel tour. Students would book appointments in advance to ensure that your time, travel, and expenses are worthwhile. In fact, some of the biggest-name trainers often have waiting lists, applications, and cut-off dates to book lessons.

With this arrangement, you would pay for use of the facility and its amenities for your clinic. Often, the students who attend will be from the same facility, but they may also travel to attend. For accomplished equestrians, this can be lucrative.

Conversely, if you own a riding stable or boarding facility, you can offer clinics. It will not only make your facility more appealing to clients, but it gives you an extra source of income. The catch is that you would need to seek and find the right opportunities.

When you bring in clinicians, it’s important that they teach the discipline that appeals to most of your clients. There is some overlap, such as a show jumper participating in a dressage clinic, bringing a clinician in English equitation won’t be appealing to a stable full of barrel racers.

Tourist Ranches

Tourist ranches, also known as dude ranches or guest ranches, are a type of vacation property that has horses for guest use. These are all-inclusive experiences that combine hospitality and horsemanship.

Dude ranches have been around since the 19 th century. Tourists enjoy the pioneer experience and nostalgia without risking their health and welfare. Many began in the West and offered activities to indulge in the “cowboy” life, but now, they come in a wide variety.

Ranches run the gamut from romantic Wild-West cattle ranches to luxurious resorts with top-notch amenities like tennis courts and heated swimming pools and spas. The beauty of them is that you can make the ranch what works best for you and the location.

For example, some ranches offer adventure experiences like hiking, whitewater rafting, cattle herding, target shooting, and fishing. Others operate similarly to a luxurious resort, but include horses and horse-related activities like trail rides. In either case, they include cabins or other accommodation for guests on the property, as well as services like dining and housekeeping.

These destinations are particularly appealing to families with kids. Often, activities are designed to keep the kids entertained, such as campfire sing-alongs and petting zoos. Many ranches have themes that inform the whole experience, such as ranches that allow guests to participate in antiquated activities like churning butter or milking goats.

The different types of guest ranches may include:

Working Dude Ranch

These types of ranches are working cattle or sheep operations. Horseback riding excursions may be reserved for those with experience with cowhorses, though some ranches may offer different excursions based on skills and experience.

This is the most authentic of the ranch experiences. Visitors expect – and want – hard work and hands-on activities. Assisting in herding cattle, grooming horses, and mucking stalls may be part of the experience.

A basic dude ranch of guest ranch caters to visitors looking for horseback riding. These are the more romanticized Wild-West ranches that teach guests the “cowboy” life and allow them to take part in iconic experiences like lassoing, driving cattle, and camping out with horses under the stars.

Generally, visitors are looking more for activities directly related to cowboy culture and fantasy, not necessarily general ranch chores or menial labor. They want to ride and rodeo, not muck stalls.

Resort Ranch

Resort ranches are the luxury ranches that offer upscale accommodations and amenities. The overall style may be frontier or working ranch, but the rooms, amenities, food, and entertainment are more like a luxury resort or cruise.

Typically, resort ranches offer a more diverse array of activities and facilities. Along with the expected ranch amenities, they may have a pool, fitness center, spa, childcare facility, fine dining, a bar, and an entertainment venue. This is more of a “glamping” ranch experience than a true frontier west experience.

Hunting Ranches

Though less common, areas with desirable game may have hunting ranches. They operate similarly to a working ranch or dude ranch, but they include hunting in the activities separate from the horseback riding.

Depending on the location, the hunting may include elk, moose, bears, or deer. Some ranches may offer captive-bred exotic game for trophy hunters, such as antelope. The high tag fee and hunting guides support the care and proliferation of a rare or threatened species.

These are the basic types of ranches, but they may combine elements of each other or offer something unique. Ultimately, the common thread is horseback riding. Whether it’s an organized trail ride, lessons, or a cattle drive, guest ranches center the experience around the horses.

There’s a lot to consider when starting a guest ranch, however. Depending on the location, it may only be able to operate seasonally. You also have to simultaneously run a hospitality business and an equestrian business.

Horse-Related Adult Retreats

Wellness or nature retreats are popular among adults. Whether focused on meditation, yoga, getting in touch with nature, women-only, or any other type of theme, these adult retreats may include equestrian activities.

The retreat may be reserved for experienced riders or beginners, but they have a theme that informs all of the activities. Journaling, meditation, life-coaching training, group therapy, nature walks, creating vision boards, and beach yoga are among the types of activities that retreats offer.

As far as the equestrian activities, it depends on the experience level of the participants. A retreat may teach basic horsemanship for beginners to horse yoga to advanced activities like team penning and barrel racing.

Like running a dude ranch, starting an equine retreat for adults means balancing the demands of a horse business and a tourist experience.

Horse Rescue

A horse rescue is a non-profit organization that cares for abused, starving, or abandoned horses. Like other rescues, horse rescues are often no-kill, volunteer-based organizations that provide a safe environment for horses, care for their basic needs, and educate the public about their welfare.

Running a horse rescue or shelter may be born of passion, but it needs to be approached like a business. Horses are expensive to care for, especially in a rehabilitation environment, and the IRS has specific requirements for non-profit status and donations.

Another aspect to consider is that rescues are run as non-profits, so the profitability isn’t widely known. Generally, these are not lucrative businesses.

Horse Leasing

Horse lovers may dream of having a horse of their own, but it’s not an option for every equestrian. For riders who are just starting out or lack the ability to buy a horse of their own, leasing a horse is an excellent alternative.

If you own a horse suitable for another rider, leasing gives you income for the privilege of allowing your horse to be ridden. You maintain ownership, care, and financial responsibility for the horse, but you’re giving a rider a chance to learn and prepare for eventual horse ownership.

For the rider, they essentially “rent” the horse and take on fewer financial responsibilities – think of it like renting an apartment vs. buying a home. If they decide they no longer want to ride or they move, they’re free of the responsibility of selling or relocating the horse.

This is an ideal arrangement for beginner riders. If they bought a horse, they may outgrow it or lose interest in the sport. Leasing acts as a “stepping-stone” in their riding career.

There are numerous types of horse lease arrangements:

Partial Lease

A partial lease, or half lease, provides the privilege of riding a horse on certain days of the week. The owner still has riding privileges, so both parties are basically “sharing” the horse. With this arrangement, the horse typically remains on the premises instead of being moved to another facility.

Most partial leases offer the ability to ride three or four days a week for a fixed monthly fee. The expenses for veterinary care or farrier services may be split, or they may fall on one party. These arrangements typically run month-to-month, rather than a long-term contract.

With a full lease, only one rider has the privilege of riding the horse. This is the closest to horse ownership for the rider, since they can choose when and how often they can ride without working around another’s schedule.

Some full lease arrangements permit the rider to move the horse to a different facility, while others require the horse stay on the owner’s premises. Full leases also come with more responsibilities and costs, such as veterinary or farrier fees and horse insurance. Still, when it comes to making decisions about care, the owner is in control.

Other Lease Arrangements

Like boarding, leasing can take on many forms. Facilities may work with lesson leases to use horses for students instead of a partial board arrangement. Quarter leases are also an option for casual riders who only want to ride a few times a week and don’t want to pay for unused riding time.

No matter the arrangement, it’s vital that all aspects of the lease are in writing. A lease is similar to other types of rentals, so the arrangement should include the terms to protect both parties.

Stable Merchandising

If you already have a breeding, riding, boarding, or training facility, merchandising is a great way to bring in extra income and boost brand exposure.

Stable merchandise is branded gear with the stable’s logo and brand colors. Prominent equestrian facilities often sell branded merchandise like zip-ups, custom dress shirts, hats, tote bags, notebooks, tank tops, socks, saddle pads, and travel mugs. These products are relevant and practical for the client and promote the facility for minimal cost.

Professional Equestrian

A professional equestrian is an elite career . The competition can be fierce, but a rider with the skill, talent, and qualifications can make a solid income. You can work from your own facility, or your business could be your personal brand.

Professional equestrians are paid to ride and show other people’s horses. If you’ve ever watched a competition, you may notice that some riders compete multiple times or in multiple events with different mounts. That’s because they’re paid to show an owner’s horse.

Owners want the best riders for their horses. They want the horses to get noticed and develop a name for themselves, which comes into play when they try to sell or breed them. Sometimes, older owners no longer ride, but they want their horse to compete and pay a professional to showcase them.

Professional equestrians also train and teach. Usually, a professional equestrian does a combination of all three, but within the same discipline or related disciplines. Professionals also have experience in other aspects of horse care and management.

The biggest challenge with becoming a professional equestrian is building your personal brand. You have to compete at high levels and win to make a name for yourself and cultivate a demand for your riding and training skills.

Horse Transport

Investing in a horse trailer, and a truck to pull it, and learning the ins and outs of driving the outfit is overwhelming to many horse owners. Offering horse transport services can be a lucrative business.

Horse owners may need transportation to shows, but you also have the option of offering long-distance hauls for owners who are moving or showing on the national level. Owners may need transportation to university veterinary hospitals or when they’re transferring to a different facility as well.

Keep in mind that the requirements to transport a horse a few hours away are vastly different from the requirements to transport them across multiple states over long periods. For example, horses on long-distance trips need a trailer with a box stall and frequent stops for water and stretching. You may also need to develop a network of short-term boarding facilities for overnight stops.

Transporting horses doesn’t take as much horse knowledge as some other types of horse businesses. The start-up costs can be significant, however, especially if you’re trying to get multiple outfits. You’ll also need liability insurance and written policies about how horses will be handled, what happens in the case of injury, and how clients will be notified about transportation status.

Local laws and regulations apply to horse transport in a state, city, and county, however. It’s important to speak with an attorney to ensure you’re doing everything by the book.

If you own a riding stable or boarding facility, you can invest in trucks and trailers to transport your clients to shows or veterinary appointments. This is usually an additional fee that can provide extra income during the show season, and you could offer your services to other horse owners in the area.

Professional Grooming

Horses need impeccable grooming for horse shows, and that’s where professional grooms come in. Children and busy adults may lack the time or knowledge to groom their own horses properly and pay for professional grooming services.

Professional grooming may include specific tasks like braiding the mane and tail for shows, but some grooms perform the entire process of bathing, brushing, picking out hooves, and tacking up, only to hand the horse off to the rider. Then, when the ride is complete, the rider hands the horse back to the groom to be walked, untacked, and rinsed off before being put away.

Grooms may also have the responsibility of cleaning tack, packing supplies for a horse show, and assisting riders with barn chores at the showgrounds.

Being a professional groom has many avenues. You can be a dedicated groom for one rider and their horse – or horses – or you can work with clients within the same facility. Owners of riding stables can offer grooming services, either themselves or from hired support staff.

Finally, there’s the option to run your own grooming business. You may begin by grooming on your own, but you can scale your business by taking on more grooms to handle clients and adopting a more managerial role.

Horse Stable Cleaning Services

The chores can add up in a facility with multiple horses. Not all boarding facility owners want to handle all the chores themselves, so they hire horse stable cleaning services.

Horse stable cleaning services may include a variety of tasks, such as mucking stalls, power-washing walls, sweeping or power-washing aisleways, racking arenas, spreading manure, scrubbing feed and water buckets, and tidying up the feed room or tack room.

Similar to grooming, you can take on work for specific clients in one facility or offer your services to multiple facilities. As you grow, you can take on more clients by hiring employees and operating a full cleaning service.

Pasture and Facility Care

Horse turnout and the grounds of a stable need maintenance like anything else. If you enjoy handiwork and landscaping, pasture and facility care is an in-demand service.

Busy stable owners are inclined to pay for professionals to maintain their outdoor areas. Some of the tasks may include inspecting and fixing turnout fences, removing weeds, dragging pasture, removing rocks, and filling holes.

Within the facility, this service may include identifying and repairing plumbing problems, fixing damaged stalls or doors, replacing worn fittings, and fixing cracked or damaged concrete. You may also be asked to update or install features or amenities.

Stable maintenance workers may stay at one facility or they may offer services to multiple facilities in the area. As with grooming and stable chores, you can expand by hiring more people to serve more clients.

Manure Removal Services

Facilities that have neither the land nor equipment to spread manure may hire a manure removal service to take care of waste. This is out of the purview of most local waste management services.

Manure can pile up quickly, so manure removal services are a must for both residential and commercial horse facilities. You can provide regular pickup or on-call pickup to haul manure away.

Along with the business requirements, waste removal may require additional state and local licensing or permits.

A tack shop can be a viable business on its own or a valuable revenue stream for a boarding or riding stable. This is essentially a retail store, so you have plenty of options for how to approach it.

Ultimately, it depends on your clientele. Boutique tack shops with high-end products and branded merchandise can do very well with brand loyalty, while a large and diverse tack shop offers a range of products to suit everyone.

You could also offer used or consignment pieces, such as used saddles and pre-owned show jackets or boots, to help clients save on products and give their old stuff new life.

In addition, you can travel to nearby shows with just a few limited necessities. It’s inevitable that a rider will forget a ratcatcher, hoof pick, or hair ribbon, causing a panic for their parents. Having these basic essentials in stock at the showgrounds almost guarantees sales and builds your brand over time.

What to Consider When Starting a Business in the Equestrian Industry

Like any business, starting an equestrian business is a big undertaking. There’s a lot to consider before you make the leap. You have to act like a business owner, not a horse enthusiast .

Time Commitment

Small business owners work 50 or 60 hours a week . You may be excited at the idea of spending your day around horses, but remember that a lot of the work involved in running an equestrian business won’t actually be spent on the horses.

An equestrian business is still a business. Much of your time will be spent handling work that’s more or less the same with every business – accounting, marketing, etc. Unless you hire or outsource that work, it falls on you.

Then you also have to take on the actual horse stuff. If you open a boarding facility, that means mucking stalls, feeding horses multiple times a day, and filling water buckets. If you open a big facility with 50 horses and minimal staff, that’s a lot of hours and balancing your workload and personal life.

Equestrian businesses need multiple contracts to operate legally. Without them, you and your business may not be protected.

Operating agreements: LLCs need to have operating agreements that determine how distributions and losses are shared, how the business is managed and taxed, and more.

Website contracts: If you have a website, you need these contracts for legal protection – a privacy policy, terms and conditions, and clear information at the footer that links the aforementioned contracts, your copyright symbol, and a disclaimer.

Equestrian businesses may need additional contracts, including:

  • Boarding agreement: If you’re boarding animals on your property, you must have a boarding agreement with the animal’s owner that details the timeframe and general terms of the arrangement.
  • Liability release waivers: If you allow anyone to ride your horse, whether one time or for a lease or lesson agreement, you need a liability release waiver to protect you in the event of an accident.
  • Bill of sale: If you’re selling animals, a bill of sale document is necessary to outline the details of the terms of purchase, the animal’s health, and the terms of the transfer. This is essentially a proof of purchase.
  • Breeding contract: If you’re breeding, you need a stringent breeding contract that includes the parties involved, the time of breeding, the fees and expenses, any health or condition guarantees, rebreeding rights, liability clauses, and more.
  • Transport: Transporting a horse is a big liability issue. Accidents can occur on the road or a horse can be stolen, and the business needs a contract for transporting animals for someone else.
  • Employment: If you’re hiring support staff for your equestrian business, you will need employment contracts for each type of employee.

Cities and counties plan to shape the character of communities with zoning and regulations. There’s no requirement for local governments to have similar land use ordinances or planning processes, even in the same county, so it’s important for you to contact the local offices to determine the laws and ordinances that apply to a commercial equestrian property.

Local zoning ordinances and codes can apply to everything from boarding and riding horses to providing lessons and designing and building stables and buildings. Avoid headaches in the future by doing your due diligence before you get the ball rolling on your business.

Once you’ve mapped out the ideas, starting your business is much simpler. The specifics will depend on the type of business you choose, but here are general steps to starting your own equestrian business.

Know Your Market

It’s not enough to just love horses to start an equestrian business. You have to know who your clients are. Without that, you could approach everything the wrong way for the people you’re trying to attract, and you’re dead in the water.

Marketing research is crucial before starting a business. Before you begin with a business plan, marketing strategy, or shopping for horse property, do some research. Check out comparable businesses in the area and see how they operate and what their clients expect, so you can plan accordingly.

Find Your Profit Motive

Often, people get into horse businesses because they’re pursuing a passion. While that’s not entirely wrong, it’s vital to pursue a business for its profit motive. If you want to “do what you love” without concern for money, you’re talking about a hobby, not a business.

A profit motive is the desire for financial gain and maximized profits. This is motivation to innovate and take risks for economic gain.

Worse yet, if you can’t find a realistic way that you can make money with your equestrian business, you may be viewed by the IRS as a tax shelter. You could be subject to an audit, and if you can’t show how you’ll earn a profit, then it’s a hobby and things can get messy with penalties and interest. Always find a profit motive and you can avoid this hassle.

Develop a Business Plan

Many business owners venture into business without a solid business plan. The business plan may be the most important step, since this can show you if your business is destined to succeed or fail.

The business plan doesn’t need to be overly formal or designed like a presentation with fancy graphics and statistics – unless you’re looking for a significant loan or investor. It’s essentially for you to analyze your business idea, costs, and revenue to see if you can create a profitable business.

Do your research and include information like:

  • The size and location of the market
  • The competition
  • Fixed and variable costs
  • Market availability

With these numbers, you can forecast how much money your business can make against your expenses each week, month, and year.

Structure Your Business

All businesses need a well-formed business plan that includes market analysis and evaluation of income potential and likely expenses. Is there a need for your business in the current market? Will you have potential clients? Can you make your business profitable?

The more research and effort you put into this in the beginning, the more stability and security you’ll have moving forward.

You also need to determine what business structure is the best for your needs and protects your personal interests from liability. Whether you choose a sole proprietorship, LLC, or corporation will also determine the record-keeping and tax requirements .

Know Your Insurance Requirements

Whether it’s required in your state or not, insurance is a key component of an equestrian business. Horses and equestrian activities are inherently dangerous, and you may need multiple types of insurance to make sure you’re covered.

General liability insurance, or small business liability insurance, provides coverage for claims that result from normal business activities. You may also need commercial property insurance, which protects your business’s physical assets, such as a stable, from fire, burst pipes, storms, vandalism, theft, and explosions.

In addition, you may need liability release waivers . These agreements outline the risk the rider is taking when they ride your horse or ride in your facility. Depending on the type of business you have, these liability waivers may be general or specific to the activity.

Determine Fixed and Variable Costs

At the end of the day, businesses need to be profitable to succeed. Being profitable means you’ve covered all your expenses and you have money left over to pay yourself and continue putting money into the business.

To start, list all the expenses your business will have. This may be trickier than you think, especially when you consider fixed costs and variable costs.

Fixed costs will remain the same regardless of how much you produce. These include your rental or mortgage payments and insurance. Variable costs are costs that change based on the amount of output you produce. So, if you have a boarding facility and bring in more horses, the expenses you’d see change would include labor costs and feed, hay, and water costs.

Identify the Unique Selling Proposition

A lot of businesses fail because they can’t differentiate themselves from their competitors enough to get a foothold in the market. Whatever your business idea is, you have to find a way to be different.

With an equestrian facility, that can be more challenging. You could be surrounded by competitors, so think about what you have to offer that’s different. Maybe your stable caters to a different discipline, or you offer a more down-to-earth alternative to the snobbier, upscale facilities nearby.

Come up with reasons that your company is different from everyone else and why a client should give you their business. Once you have this, it can inform the rest of your marketing strategy.

Develop a Marketing and Branding Strategy

Marketing is a must in the modern business world. No matter how great your equestrian business is , without marketing, no one will know about it.

Marketing strategy starts with a goal. Sure, your overarching goal is to make money, but focus on goals for your campaigns like boosting brand awareness, getting more prospects, or increasing your audience on social media pages.

Then, consider your audience. Think about who they are and what appeals to them. If your audience is diverse, you can segment it and deliver more targeted campaigns. For example, you might take a different approach to attract kids for riding lessons compared to their parents. Creating segments ensures that you’re keeping your message tailored to the audience.

From there, develop ideas for your campaigns that reflect your brand. Start small with just a few marketing channels, such as email, social media, and paid search ads. Test and tweak your campaigns regularly to determine what’s working and find areas for improvement. Once you get the hang of it, you can scale your campaigns to more channels and broader audiences.

Also, consider marketing more than just your business. If you have a riding stable, think about marketing your instructor or trainer as well as the facility. If you’re breeding, you’ll need marketing campaigns for your studs, mares, and foals.

Once you have your business up and running, raking in clients, you can think about how you can grow your business to become more profitable.

Content Marketing

Content is a very useful and versatile tool in the equestrian industry. Horse owners and riders are always looking for information, and there’s so much to choose from.

You can promote content about your business, your background, and your employees. Some equestrian businesses are successful with highlighting professional riders or trainers in features, sharing stories about horses throughout history, or writing humorous articles about success and failure in the competition ring.

For niche businesses, the content can be a little narrower. For example, a professional grooming business could write content with tips and tricks for braiding, the new trends for horse show style, and guides for how to properly body clip a horse.

It’s important to be creative and understand what your audience is looking for. If you deal with beginner riders, it’s best to keep the content introductory and basic to support learning. If you’re working with high-level professionals, avoid simple topics like “how to tack up a horse.”

The way content promotes a business is by putting it in front of the audience in a less intrusive way than an ad. When a client searches for information in Google, such as “things to look for in a professional horse trainer,” they will see your content. If what they read offers value, they may seek out more content from you or look into your site and what you have to offer.

Over time, prospective clients come to view you as an authority. Then, when they need similar services, your business is top of mind.

Social Media

Virtually all consumers expect brands to be on social media, even an equestrian brand. Building an online following takes time and dedication, but it can have a significant impact on your sales and exposure.

Start by creating business accounts on the social media platforms that contain most of your audience. Share content regularly that’s appropriate for the platform, such as short video clips for TikTok and industry-focused articles on LinkedIn.

As people like or comment, be sure to interact with them and answer any questions they may have. You’ll increase the engagement of your followers, encouraging more shares and exposure to a larger audience.

Affiliate Marketing

Content not only benefits you with more authority and exposure, but it’s a wealth of opportunity for affiliate marketing. This type of marketing is performance-based and rewards businesses for traffic or leads they generate.

For an equestrian business, you have numerous products that you can review and promote in your content. For example, talking about a new hoof oil in a blog post about hoof care encourages visitors to click on the link, driving them to the affiliate site and earning you money in the process.

Email Marketing

Despite the rise of other marketing techniques, email marketing is still one of the most effective ways to get your message out there. People subscribe to an email list, so you have the benefit of an audience you already know is interested in what you have to share.

Your email campaigns can include promoted content or helpful tips and tricks for your clients, product recommendations, event reminders, updates, and more – it all depends on your business model.

To gain subscribers, create gated content for your site. This is high-value, downloadable content that subscribers can access by providing their name and email. It has to be something they can’t get elsewhere, however, such as an in-depth interview or case study.

Referral Program

Referral programs work a lot like word-of-mouth recommendations. You set up a program that incentivizes your clients or non-competing businesses to refer people from their network to your business. In exchange, one of both clients get a free gift, discount, or special perk.

While the incentive doesn’t have to be expensive, it must be worthwhile. Branded merchandise, a discount on services for the referrer and the referred, or gift cards are all good incentives to recommend your business to other people.

Diversification

Equestrian businesses are subject to the state of the economy. As a luxury, horses, riding lessons, or extra services may be among the first to leave out of the budget for many people in tight times.

Diversifying or expanding your services creates more opportunities for income streams and gives you some cushion for lean periods. Boarding facilities have a wealth of options to diversify, including offering short-term boarding, renting the facility for parties or events, offering transport for shows, or adding grooming or training services to the offer.

You can get creative when coming up with new income streams. Selling equestrian products, creating your own branded merchandise, affiliate marketing, leasing horses, and horse photography are all options to inspire you.

At some point, your business will grow past the point where you have time to handle everything on your own. You may want that control, but that’s a fast track to burnout and making mistakes that can harm your reputation in the long run.

If things seem overwhelming, consider hiring to support your business’s growth. You can start with stable hands or other support staff, or keep those hands-on activities yourself and outsource your boring business tasks like accounting and marketing.

With businesses like professional grooming or facility maintenance, you can grow easily and accommodate more clients by hiring employees to take on your overflow work. The biggest aspect of this is maintaining your standards across the board. You spent a lot of time building your reputation and client loyalty, so make sure your employees are up to those same standards.

Is Your Business Scalable?

Some equestrian businesses are scalable and others are not. The idea of scalability is that whether your fixed costs are high or low, if you can add a significant number of customers without increasing your costs proportionally, the business is scalable and becomes more profitable as it grows.

Boarding, training, instruction, and breeding are not the most scalable businesses. As you take on more clients, your costs for food, water, etc. will generally increase proportionally. Conversely, a boarding facility can offset these costs by having more paying tenants, which cover more of the cost of the rent or mortgage on the facility itself.

Consider if your business is scalable, and if it isn’t, how can you diversify what you offer to gain more growth potential?

Frequently Asked Questions About Starting a Business in the Equestrian Industry

Is the horse business profitable.

With the right planning and research, any business can be profitable. It’s less about horses than it is about being prepared and educated to develop the most successful business plan.

Where Can I Find Equestrian Businesses for Sale?

Real estate listings and websites often provide both hobby and commercial equestrian properties. You can search anywhere you’re looking to go and compare the information about the land size, existing structures, zoning, taxes, and more.

Are There Equestrian Business Awards?

The United Kingdom has Equestrian Business Awards to recognize small equestrian businesses and their care for animals and contributions to the economy. These awards include veterinarians, farriers, equine dentists, instructors, riding schools, grooms, and any other equine professional.

What Should You Know Before Buying an Equestrian Business?

Few types of property or businesses require as much knowledge as those related to horses. Before you buy an equestrian business, be sure to thoroughly evaluate the property and land to ensure it’s efficient and safe for horses to avoid future headaches.

Are There Equestrian Business Apps?

There are plenty of apps designed to help equestrian business owners succeed. Apps like CRIO help facility owners and managers track boarding, training, and breeding, while the Horse Report System offers performance tracking for equine athletes to monitor body condition, training, and health. Stable Secretary is a helpful tool for barn management and tracks horse health sheets, breeding records, and payments.

What Is the Definition of an Equestrian Business?

An equestrian business is a broad term that includes businesses that focus on horses, horsemanship, horse care, and equestrian sports or leisure activities.

Starting and running a business is no small feat. When you’re starting an equestrian business, you have the added legalities, care, and challenges of horses added to the mix. This may all seem overwhelming, but as long as you have the passion, y ou can make your equestrian business a reality !

Mentioned in This Post

  • The Contracts Equestrian Businesses Need
  • How Equine Liability Waivers Protect Your Equestrian Business

Leave a note

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Oklahoma Equine Laws »

« Is It Better To Buy Land as an LLC or Individual?

Browse by Category

Equestrian Living

Horseback Riding

SUBMIT FORM

To inquire into legal services, consulting services, or overnight boarding availability and options, please fill out the form  or send a note directly to [email protected]. , your message has been received, and we'll be in touch very soon.  in the meantime:.

Read our latest blog posts

Our Most Common Questions

Visit the Shop

race track business plan

Follow along on Instagram at @paige.hulse

This website is solely intended for the purpose of attorney advertising, and for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, in no way establishes an attorney-client relationship. An attorney client relationship is only formed when you have hired me individually and signed an engagement agreement. No past results serve in any way as a guarantee of future results. 

© 2021-2023 Fairway Stables, LLC DESIGN BY HB DESIGNS  |  Privacy policy | Legal Terms

Homesteading.

race track business plan

We earn commissions if you shop through the links below.  Read more

Go-Kart Business

Back to All Business Ideas

How to Start a Go-kart Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 18, 2022 Updated on February 14, 2024

How to Start a Go-kart Business

Investment range

$215,550 - $382,100

Revenue potential

$456,000 - $1,825,000 p.a.

Time to build

3 – 6 months

Profit potential

$91,000 - $365,000 p.a.

Industry trend

Who doesn’t love go-karts?! You feel like a race car driver, hitting the gas and hugging those turns — but in a controlled environment. Go-karts were booming pre-pandemic, expanding 35% from 2012 to 2019. After a downturn in 2020, the industry is now coming back strong. 

You start your own go-kart business and give people good times on the road while making good money. You could even grow your business to have go-kart tracks around the country like Pole Position Raceway or K1 Speed.

But first you’ll need to gather some information about how to start and run a business. Luckily, this step-by-step guide will push the gas pedal on your entrepreneurial knowledge and prepare you to launch a successful go-kart business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a go-kart business has pros and cons to consider before deciding if it’s right for you.

  • Tons of Fun – Have a great time every day and help others do the same
  • Growing Market – Go-karts are growing in popularity among all ages
  • Room to Expand – Add a mini golf course or driving range
  • Large Investment – Spend money on building a track and go-karts
  • Liability – Injuries could happen, so good insurance is a must

Go-kart industry trends

Industry size and growth.

  • Industry size and past growth – The US go-kart industry is worth $115.7 million in 2022 after a slight contraction during the pandemic.(( https://www.ibisworld.com/industry-statistics/market-size/go-kart-racing-tracks-united-states/ ))
  • Growth forecast – The US go-kart industry is bouncing back and expected to grow nearly 3% in 2022.
  • Number of businesses – In 2022, 179 go-kart tracks businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/go-kart-racing-tracks-united-states/ ))
  • Number of people employed – In 2022, the US go-karts tracks industry employs 1,555 people.(( https://www.ibisworld.com/industry-statistics/employment/go-kart-racing-tracks-united-states/ ))

go-kart industry size and growth

Trends and challenges

Trends in the go-kart industry include:

  • Today’s go-kart tracks are getting bigger, longer and more complicated in order to stand out and attract customers. 
  • Go-kart racing is one of the world’s most popular motorsports, with an estimated 35M people participating annually in the US alone.

Challenges in the go-kart industry include:

  • Even with today’s technology, go-karts require a lot of upkeep, creating significant ongoing expenses.
  • Lawsuits can occur if users are not properly informed of safety rules. Go-kart businesses must have strict procedures in place to mitigate potential liability.

go-kart industry Trends and Challenges

How much does it cost to start a go-kart business?

Startup costs for a go-kart business range from $215,000 to $380,000. Costs include the rental or purchase of a large space or property, such as a warehouse or parking lot. Then there’s track construction, vehicles and safety equipment, and a labor and operating budget. 

You’ll need a handful of items to successfully launch your go-kart business, including: 

  • Safety equipment
  • Maintenance tools

How much can you earn from a go-kart business?

For a high-end track, a single go-kart race should cost about $25 per person. Your profit margin after labor and overhead costs should be about 20%. 

In your first year or two, you might have 10 go-karts rented 5 times a day, bringing in more than $456,000 in annual revenue. This would mean $91,000 in profit, assuming that 20% margin. As your track becomes more popular, you might rent 10 carts for 20 races a day. With annual revenue of $1,825,000, you’d make an outstanding profit of $365,000.

go-kart business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a go-kart business. Your biggest challenges will be:

  • The startup costs of building the track, plus the karts and equipment
  • Finding a suitable space for your go-kart track

Related Business Ideas

How to Start a Go-kart Business

How to Start an Inflatable Bounce House Business

How to Start a Go-kart Business

How to Start a Paintball Field

How to Start a Go-kart Business

How to Start a Bowling Alley

Step 2: hone your idea.

Now that you know what’s involved in starting a go-kart business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research go-kart businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a go-kart business that also has a miniature golf course or a golf driving range . 

race track business plan

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as go-kart racing for corporate or family events.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your services will depend on how you build your facilities. In addition to go-kart racing, you could offer mini golf or a driving range. You could also have arcade games and offer food and beverages. 

How much should you charge for go-kart racing?

The average price for a high-end go-kart race is $25 per person. After the costs of labor and overhead, you should aim for a profit margin of about 20%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market may tend to be younger, but it’s not exclusive to young people. You should spread out your marketing to include sites like TikTok, Instagram, and Facebook. 

Where? Choose your go-kart location

Selecting the right location for your go-kart business is crucial for attracting customers and ensuring its success. Look for a spot with ample space for a track, parking, and facilities, such as a warehouse or a retail space. Consider accessibility and convenience, ensuring that the location is easily reachable by car and has ample parking.

Additionally, assess the local regulations and zoning laws to ensure compliance and obtain any necessary permits. Depending on the type of go-kart experience you plan to offer, you may also want to consider the proximity to entertainment venues, restaurants, or other attractions.

By strategically choosing the right location, you can establish a profitable and popular go-kart business that offers a fun and exciting experience for customers and stands out in the competitive entertainment industry. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

go-kart business idea rating

Step 3: Brainstorm a Go-kart Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “go-karts” or “go-kart racing”, boosts SEO
  • Name should allow for expansion, for ex: “Speed Racer’s Go-Karts” over “Kids Go-Karts”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Go-kart Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: A concise overview of the go-kart business, highlighting its key aspects and objectives.
  • Business Overview: Detailed information about the go-kart business, including its mission, vision, and core values.
  • Product and Services: Description of the go-kart products and services offered, emphasizing their unique features and benefits.
  • Market Analysis: Examination of the target market, customer demographics, and trends influencing the go-kart industry.
  • Competitive Analysis: Evaluation of competitors in the go-kart market, highlighting strengths, weaknesses, opportunities, and threats.
  • Sales and Marketing: Strategies for promoting and selling go-kart products, encompassing advertising, pricing, and distribution channels.
  • Management Team: Introduction of key team members involved in running the go-kart business, emphasizing their relevant expertise.
  • Operations Plan: Detailed plan outlining the day-to-day operations of the go-kart business, including facilities, equipment, and processes.
  • Financial Plan: Financial projections, budgets, and funding requirements for the go-kart business, providing a comprehensive view of its financial health.
  • Appendix: Supplementary materials, such as charts, graphs, and additional documentation, supporting and enhancing the information presented in the business plan.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to go-kart businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your go-kart business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

race track business plan

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

race track business plan

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
  • Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a go-kart business. You might also try crowdfunding if you have an innovative concept. At some point, if you’re doing well and set to expand, you may be able to attract angel investors or venture capital. 

types of business funding

Step 8: Apply for Licenses/Permits

Starting a go-kart business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your ____ business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Clubspeed , RaceFacer , or kartingmanager , to manage your bookings, events, invoicing, and payments.

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your go-kart business, the marketing strategy should focus on showcasing the thrill and fun of go-karting, the safety and quality of your karts and tracks, and any unique experiences or services you offer, like group events, leagues, or advanced racing classes. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

  • Professional Branding : Your branding should convey excitement, speed, and fun. This includes your logo, track signage, and promotional materials, as well as the overall aesthetic of your facility.
  • Direct Outreach : Connect with local schools, businesses, and community organizations to offer group packages or host team-building events. Participating in community events can also raise awareness of your business.

Digital Presence and Online Marketing

  • Professional Website and SEO : Develop a website that highlights the features of your track, pricing, special events, and group booking information. Use SEO best practices to rank for local searches related to go-karting, family entertainment, and group activities.
  • Social Media Engagement : Utilize platforms like Instagram and Facebook to post exciting action shots, customer reviews, and information about upcoming events or promotions.

Content Marketing and Engagement

  • Racing Blog : Share blog posts about go-kart racing tips, the latest trends in kart technology, and profiles of popular racers or events.
  • Email Newsletters : Keep your customers informed about upcoming races, league sign-ups, and special offers.
  • Video Content : Create videos showcasing the excitement of racing on your track, customer testimonials, and special events.

Experiential and In-Person Engagements

  • Racing Events and Tournaments : Organize regular racing events or tournaments to attract competitive racers and spectators, increasing foot traffic and business visibility.
  • Open Track Days : Host open track days where newcomers can try go-karting at a discounted rate, attracting a wider audience.

Collaborations and Community

  • Partnerships with Local Businesses : Partner with nearby businesses for cross-promotion. For example, collaborate with local restaurants for food deals or with entertainment centers for combo packages.
  • Community Engagement : Sponsor local sports teams or participate in community events to build brand recognition and goodwill.

Customer Relationship and Loyalty Programs

  • Membership Programs : Offer memberships that provide regular customers with discounts, special racing privileges, or points-based rewards.
  • Referral Incentives : Encourage customers to refer friends by offering them discounts or free races.

Promotions and Advertising

  • Targeted Local Advertising : Use local advertising in newspapers, radio, and online platforms to reach potential customers in your area.
  • Seasonal Promotions : Run special promotions during holidays, summer breaks, or other times when your target audience is most likely to visit.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your go-kart business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your go-kart business could be:

  • Bring the family and be race car drivers for the day!
  • Go-karts and mini golf for your next corporate event? 
  • Top-notch entertainment center with go-karts, video games and more 

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a go-kart business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in go-karts for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in go-karts. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a go-kart business include:

  • Track Workers – customer service, safety briefings
  • Maintenance Workers – maintain and repair go-karts
  • General Manager – scheduling, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Go-kart Business – Start Making Money!

If you love go-karts, you’re not alone, and you could share your hobby with others with your own go-kart business. Go-karts are coming back strong post-pandemic, and with a bit of investment and a passion to help people have fun, you could build a thriving go-kart operation, and even open tracks across the country! 

You’re up to speed on the business aspects now, so it’s time to rev your entrepreneurial engine and start your new go-kart business. 

  • Go-kart Business FAQs

Go-karts can be a very profitable venture. You’ll need a good location, appealing track design, and great service and you can be successful.

The amount of space required for go-karting depends on the size and layout of the track. Generally, a go-kart track can range from a few thousand square feet to several acres.

The disadvantages of go-karting include the potential for accidents or injuries if safety precautions are not followed, noise pollution, and the high cost of maintaining and operating the equipment. 

Effective marketing strategies for promoting your go-kart business may include creating a strong online presence through social media platforms and a user-friendly website, offering promotions or discounts to attract new customers, partnering with local businesses or event planners, and hosting special events or tournaments.

To ensure that your employees are properly trained to operate and maintain go-kart equipment, you could provide comprehensive training programs that cover safety procedures, maintenance protocols, and customer service skills. You could also require certification or licenses for employees who operate the equipment, regularly assess employee performance and provide feedback and additional training as needed.

race track business plan

fantastic info.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Go-kart Business Name
  • Create a Go-kart Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Licenses/Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Go-kart Business - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

17 Profitable Sports Business Ideas

17 Profitable Sports Business Ideas

David Lepeska

Published on July 14, 2022

Participating in a physical game of paintball and feeling the wind as you drive a go-kart offer a different kind of thrill compared to a video game. ...

45 Entertainment Business Ideas

45 Entertainment Business Ideas

Natalie Fell

Published on July 13, 2022

Let the good times roll! As entertainment outlets reopen and people gather for all kinds of celebrations, the entertainment industry is bouncingback ...

41 Outdoor Business Ideas

41 Outdoor Business Ideas

Carolyn Young

Many major American businesses depend on outdoor activities, such as The North Face or Columbia. But there are also countless smaller businessesthat ...

No thanks, I don't want to stay up to date on industry trends and news.

Financial Model, Business Plan and Dashboard Templates - FinModelsLab

Car Racing Track Business Plan

$59.00 $39.00 2 reviews

Instant Download, Editable on MAC & PC

Resources On Car Racing Track

  • Financial Model
  • Value Proposition
  • One-Page Business Plan
  • SWOT Analysis
  • Business Model
  • Description

Executive Summary

Products & services, market analysis, marketing plan.

  • Management Plan
  • Financial Plan

Target Market

Our target market consists of individuals who are passionate about car racing and are seeking a comprehensive racing experience. Our services cater to individuals looking for a thrilling and adrenaline-fueled experience, as well as those who want to improve their driving skills and techniques. Our rental services attract those who want to try out different vehicles and gears without the need for ownership costs. Additionally, our VIP experience is targeted towards affluent individuals who seek an exclusive and luxurious racing event.

Competition

Financial summary.

Key highlights of the financial plan that covers costs, sales, and profitability:

  • The initial funding required for the launch and operations of Velocity Racing is $10 million.
  • The majority of the funding will be used for building a state-of-the-art racing track facility and purchasing racing vehicles and gears.
  • The recruitment of experienced and certified racing experts will also be a cost included in the funding.
  • The marketing and promotional activities will require a significant investment in the initial stages of the business.
  • We project steady growth in sales as we establish a loyal customer base and expand our operations.
  • The profitability of the company will depend on the number of sales and efficiency of operations.
  • Our financial objectives in the short term are break-even, followed by sustained profitability in the long term.

Funding Requirements

Velocity Racing requires a total funding of $10 million for the initial launch and operation of the business. The funds will be allocated as follows:

  • $5 million will be used to build a state-of-the-art racing track facility.
  • $2 million will be allocated to purchase racing vehicles and gears.
  • $1 million will go towards recruiting experienced and certified racing experts.
  • $2 million will be used for marketing and promotional activities.

We believe that this funding will provide us with the necessary resources to create an unparalleled car racing experience that will position Velocity Racing as the leading car racing company in the US and beyond.

Milestones and Traction

With a clear vision and business goals, Velocity Racing is committed to achieving specific milestones by executing our plan effectively. The following is a roadmap of our milestones:

We will be closely tracking our progress towards achieving these milestones, ensuring we stay on target and deliver the best racing experience for our customers.

Problem Worth Solving

Car racing enthusiasts and fans often face a lack of options when it comes to experiencing high-quality racing in a safe and professional environment. Many individuals do not have access to a racing track at all or only have access to a subpar facility that does not meet their needs. Additionally, the lack of expert training and rental services for racing vehicles and gears can be a major obstacle for those looking to participate in the sport.

Velocity Racing aims to solve these pain points by providing a premium racing experience that is accessible to all individuals. Our state-of-the-art racing facility, expert training services, and rental options for both vehicles and gears will provide car enthusiasts and racing fans with the ultimate racing experience. We are committed to ensuring that our customers have a safe and thrilling experience that they will never forget.

Our Solution: Providing a Comprehensive Racing Experience

Validation of problem and solution, product overview.

Currently, the car racing industry is highly competitive, and there are several established players in the market. Competitors include NASCAR, Formula One, and various local racetracks. However, Velocity Racing differentiates itself by providing a comprehensive racing experience that includes training, track rental, and a VIP experience. Our state-of-the-art racing track with multiple racing zones provides a unique and exciting experience to car enthusiasts, which sets us apart from other racing tracks that offer a limited racing experience. In addition, our experienced and certified racing experts provide personalized training to our customers to improve their driving skills and techniques. Our rental services allow customers to experience racing without having to invest in expensive vehicles and gears. Our VIP experience provides an exclusive and luxurious event catering to the needs of high-end customers. These unique offerings make Velocity Racing stand out from the competition and provide a competitive advantage in the market.

Roadmap - Products & Services

Market segmentation.

Market segmentation is crucial in identifying potential groups of customers who share similar characteristics and preferences. This enables the business to tailor its marketing efforts and services to meet the specific needs of each customer group.

Below is a table showing potential groups of customers based on their specific characteristics:

By understanding the needs and motivations of each customer segment, the business can develop targeted marketing strategies and tailor its services to meet their expectations. This will help to capture a larger market share and increase overall profitability.

Target Market Segment Strategy

The ideal customer for our car racing track business is individuals who are passionate about car racing and seek high-speed excitement. This includes both experienced and amateur racers, as well as tourists and families who are looking for an exhilarating and unique experience. Additionally, we will target corporate clients who are interested in hosting team-building events, product launches and other corporate events.

Our marketing strategy will focus on targeting these audiences through online marketing, search engine optimization, social media, and local advertising. We will also work with local tourism organizations and event planners to attract a variety of customers from around the region and beyond.

Key Customers

Our ideal customer archetype is the avid car racing enthusiast who is passionate about the sport and always on the lookout for new and exciting experiences. They are typically males between the ages of 18-45, with high disposable income and a taste for adrenaline-fueled activities. They are also active on social media and enjoy sharing their experiences with others.

We anticipate that these customers will become our main advocates, referring their friends and family to our track and bringing repeat business. By targeting this specific demographic and providing a unique and thrilling experience, we believe we can establish a loyal customer base and generate steady revenue for our business.

Future Markets

Based on the market analysis conducted in the previous sections, it is clear that car racing tracks have a growing demand among motorsports enthusiasts. With the increasing interest in car racing and motorsports, our target market is expected to expand in the coming years.

Our business strategy focuses on providing an exceptional race track experience to our customers. By offering top-notch facilities and amenities, organizing high-quality events, and providing excellent customer service, we aim to build a loyal customer base and sustain growth in the future markets.

A crucial aspect of market analysis is identifying the potential competitors in the field. Our team has conducted thorough research to determine the possible rivals in the car racing track industry. We have compiled a table of the main competitors based on their location and service offerings.

It is evident that the competition in the car racing track industry is fierce. However, with our unique selling proposition and strategic marketing, we are confident that we can penetrate the market and carve a niche for our business.

Marketing and Sales Plan

Location and facilities, equipment and tools.

For the successful operation of the car racing track, specific equipment and tools are required. The equipment and tools can be purchased, leased or rented, depending upon the budget and preference of the business. The following table outlines the required equipment/tools, their estimated cost, and the option to buy, lease or rent.

The racing cars are a significant investment and can be purchased, leased or rented according to the business's financial capacity. Safety barriers, lap timer system, fire suppression system, and tools and equipment for car maintenance are essential equipment/tools that ensure the safety and efficient operation of the race track. These items can be either leased or rented, which can minimize upfront costs.

Management and Organization

Organizational structure.

Below is an overview of the hierarchical structure of our car racing track business:

We ensure that every employee is aware of their roles and responsibilities to ensure smooth operations. Information is exchanged through regular meetings between different levels of the organization.

Management Team

As the Car Racing Track business expands, we anticipate taking on a team of experienced professionals to lead our company. Below is a table of potential candidates for high-level management roles.

Management team gaps

Currently, there are a few positions where we do not have suitable candidates to fill those roles. These include:

  • Marketing Manager: We are looking for someone with expertise in marketing and advertising to help us promote and attract customers to the racing track.
  • Operations Manager: We need someone with experience in managing facilities, logistics, and safety protocols to oversee the day-to-day operations of the track.
  • Financial Controller: We are seeking a candidate with a strong background in finance, accounting and tax regulations to manage our financial records and ensure that we are compliant with regulations.

We are actively searching for qualified individuals to fill these positions and intend to hire them as soon as possible to complete our management team.

Personnel Plan

Running a Car Racing Track business requires a skilled and efficient workforce. The following table presents the potential positions that will be required to run the business effectively:

It is important to carefully evaluate staffing needs and qualifications to ensure that each position is filled by individuals who possess the appropriate skills, experience and personality traits required for success.

Company history and ownership

Our management and organization team has created a detailed roadmap in a table format of specific goals and objectives that we plan to achieve. These milestones will help us manage and steer our business towards success.

Key Metrics:

As a car racing track business, it is important to regularly monitor and track key performance indicators (KPIs) that help gauge the overall performance and health of your business. Below are some key metrics that you should pay attention to:

  • Total revenue
  • Ticket sales
  • Sponsorship deals
  • Concession sales
  • Number of events hosted
  • Number of participants in events
  • Customer satisfaction rates
  • Website traffic and social media engagement

By regularly monitoring these KPIs, you can make informed decisions about the operations and strategies of your car racing track business. It can also help you identify areas for improvement and make necessary adjustments to maintain and grow your business.

Financial Plan and Metrics

Sales forecast.

Below is a table showing the projected sales for Velocity Racing over the next three years:

In order to start and operate your Car Racing Track business, there are certain costs that you need to be aware of. These expenses can be broadly categorized into two areas: startup costs and operational expenses.

Startup Costs

The startup costs refer to the expenses that you need to incur in order to set up your business. This would typically include things like license fees, permits, legal fees, construction costs, equipment purchases, and marketing costs. Here is a table to give you an idea of what your startup costs might look like:

Operational Expenses

The operational expenses refer to the ongoing costs of running your business. This would typically include things like rent, utilities, salaries, insurance, maintenance, and repair costs. Here is a table to give you an idea of what your operational expenses might look like:

Keep in mind that these numbers are just estimates and your actual expenses may vary depending on a variety of factors. It's important to carefully consider your expenses before starting your Car Racing Track business in order to ensure that you have adequate funding to cover all of your costs.

Projected Profit and Loss

Projected cash flow.

Here is a table outlining the projected cash flow statement for Velocity Racing over the next three years:

As shown in the table, the projected inflow for Year 1 is $3,000,000 while the projected outflow is $5,000,000 resulting in a net cash flow of -$2,000,000. However, in Year 2 and Year 3, we expect to generate more inflow than outflow resulting in positive net cash flows. The cumulative net cash flow at the end of Year 1 is -$2,000,000, which means we have a negative cash balance. Our goal is to achieve a positive cumulative net cash flow by the end of Year 3.

Projected Balance Sheet

The following table presents the projected balance sheet for the Car Racing Track business for the next three years:

As per the table, the business is projected to maintain a healthy financial position with increasing assets and equity. A significant portion of the equity will be reinvested in the business, contributing to its growth and expansion.

Our team will consist of experienced professionals in the racing and event management industries. We will hire track marshals, pit crews, event coordinators, and administrative staff.

Compensation will be competitive, and we will offer benefits such as health insurance and retirement plans. Employees will be expected to work long hours during events, and they will be compensated accordingly.

Our employees will play a crucial role in the success of our business. They will be responsible for ensuring the safety of our racers and guests, managing event logistics, and providing excellent customer service. We will implement a comprehensive training program to ensure that our employees are prepared for their roles.

Use of Funds:

The $10 million funding will be used for building a state-of-the-art racing track facility with multiple racing zones, purchasing racing vehicles and gears, recruitment of experienced and certified racing experts, and marketing and promotional activities. The investment will enable us to provide the best car racing experience to our customers and achieve our business and financial goals.

Exit Strategy

In the long-term, we plan to execute an exit strategy that will yield the highest return for our investors. We anticipate exploring options such as acquisition by a larger racing track management company, selling the business to a new owner, or passing it along to a family member or trusted employee who can continue to manage and grow the business.

We recognize that the timing of our exit strategy will depend on a variety of factors such as market trends and company performance. Our goal is to prepare for any option and ensure the successful transition of the business from our ownership to the next phase of leadership.

Excel financial model

$199.00 $119.00 Get Bundle

Customer Reviews

Frequently asked questions.

Default Title

  • Current item: Car Racing Track Business Plan $59.00 $39.00
  • Financial Projection Model, Financial Model, Financial Modeling For Startups, Startup Financial Analysis $49.00 $29.00

ProfitableVenture

Go Kart Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Sports Industry » Go Kart Business

Go Kart Business

Are you about starting a go kart racing business? If YES, here is a complete sample go kart business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a go kart racing business . We also took it further by analyzing and drafting a sample go kart racing marketing plan template backed up by actionable guerrilla marketing ideas for go kart racing businesses. So let’s proceed to the business planning section.

Starting a business usually requires cash (startup capital) and if you have enough cash to invest in a thriving business in the united states of America, then you should consider starting a Go Kart business. The truth is that creating a business that targets children and adults as well is one sure way of making money especially if the business is laced with all that is required for them to have maximum fun.

It is important to state that, the real deal when it comes to starting a business like Go Kart business is securing a big facility that is large enough to contain not just the race tracks for the Go Karts and other fun – filled outdoor games for children, but also a restaurant, a place where parents / guardians can hangout while the wards catch funs and of course enough parking space.

Also in a location that may attract the kind of clients that would pay to make use of your Go Kart and recreational park facility. It might take you months to get an ideal facility and you just might have to even pay from your nose. So, it is better that you inform your real estate agent well in advance to help you with the search.

Moreover, starting a standard a Go Karting and family recreational facility business is akin to starting a family entertainment center and it can be expensive but you can be rest assured that you will make your money within few years of launching the business.

The fact that you are going to secure a facility big enough to accommodate the activities and services you intend offering and enough parking means that you must truly be prepared for this business. If your Go Kart and family recreational facility is of high standard and it is located close to a residential estate with loads of growing families, you will attract loads of children especially on weekends and special holidays.

The truth is that, you are expected to have interest in children and families in your area if indeed you want to do pretty well in this line of business. You should be able to convince parents and school managements, to make use of your Go Kart and recreational facility on a regular basis.

So, if you have decided to start a Go Kart and recreational park business, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business and then hit the ground running. Below is a sample Go Kart business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Go Kart Business Plan Template

1. industry overview.

Businesses that operates in the Golf Driving Ranges & Family Fun Centers industry basically provide recreational and amusement services through a variety of establishments, which includes golf driving ranges, miniature golf centers, go-kart racetracks, batting cages, family fun centers, recreational sports leagues and a host of outdoor recreational activities.

It is important to state that businesses / facilities such arcades, themed amusement parks, gambling facilities, golf courses, country clubs, skiing facilities, marinas, fitness and recreational sports centers and bowling alleys are not part of the golf driving ranges & family fun centers industry.

If you have been following the Golf Driving Ranges and Family Fun Centers industry, you would have realized that the industry exhibited revenue growth in recent time, in spite of many consumers being time-strapped. While the industry struggled with mounting competition from alternative leisure activities, such as fitness, many operators generated industry revenue growth on the basis of convenience.

For example, golf driving ranges attracted time-strapped individuals, due to golf driving ranges being more time-efficient compared with consumers playing nine to 18 holes on the golf course.

Going forward, the revenue generated in the industry is projected to grow as operators in the golf driving ranges and family fun centers continue to enhance their product portfolios and services to attract families, regardless of their reduced time allotted for leisure and fun.

The Golf Driving Ranges & Family Fun Centers industry is indeed a very large industry and pretty much thriving in some parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 53,308 licensed and registered golf driving ranges & family fun centers (Go Karts inclusive) scattered all across the United States.

The industry is responsible for directly employing about 156,658 employees and the industry rakes in a whooping sum of $11billion annually with an annual growth rate projected at 4.5 percent between 2011 and 2016. It is important to state that no establishment has a lion share of the available market in this industry.

A recent research published by IBISWORLD shows that during the past five years, the Golf Driving Ranges and Family Fun Centers industry exhibited growth due to many industry operators updating their facilities to attract consumers. This investment differentiated operators’ product portfolios from other consumer leisure activities, such as at-home digital entertainment.

The report further stated that, to attract budget-conscious consumers, some industry operators implemented coupons and discounts, which generated awareness about family fun centers and golf driving ranges as a local entertainment option.

Additionally, industry operators focused on specializing their product portfolio to attract particular demographics, such as adding bowling alleys to develop a strong customer base among families with older children.

Over and above, starting a Go Kart business in the United States of America can be some worth stressful, it requires enough cash to acquire land large enough to accommodate the kind of facility that can comfortably attract families and also cash required to equip the facility to meet the standard expected by potential users.

2. Executive Summary

Jim Rowlands® Go Kart & Fun Parks, LLC is a standard and well equipped golf driving range and family fun center that will be located in a growing community in Baton Rouge – Louisiana.

Our basic aim of setting up the business is to contribute our quota in ensuring that children cum families who reside in Baton Rouge and neighboring cities have a facility for their children to catch fun to the maximum and also to open; a facility highly suitable for family recreation and other related golf driving range activities.

We have been able to secure a standard facility in a central and easy to access location in Baton Rouge – Louisiana. The activities that will be carried out in our facility are go-karting, Batting cages, driving ranges, shooting ranges, kayaking, miniature golf courses, mountain climbing, snowmobiling, and sports clubs, teams and leagues, recreational or youth.

We are well equipped to services the whole family cum community as well as visitors. Jim Rowlands® Go Kart & Fun Parks, LLC is going to become the number one family focused recreation facility in the whole of Baton Rouge – Louisiana and we will work hard to build our facility to match the needs of the average family in the community.

Before starting the business, we conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Baton Rouge – Louisiana is the right place to open our Go Kart and family Fun Park. As a matter of fact, our major aim of starting Jim Rowlands® Go Kart & Fun Parks, LLC is to encourage families in the community to cultivate the habit of regularly going out for recreational activities.

Our golf driving range and family fun facility is specifically designed and built to take care of children as well as parents, we have active childcare services for toddlers and we have membership packages that are highly discounted for families that enrolled with or churches and schools who would want to regularly make use of our facility.

Jim Rowlands® Go Kart & Fun Parks, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Jim Rowlands® Go Kart & Fun Parks, LLC is a private registered business that is owned and managed by Jim Rowlands and his immediate family members. Jim Rowlands has a degree in Business Management coupled with over 7 years hands on experience in the golf driving ranges and family fun centers industry working for some of the leading brands in the United States of America.

Together with other team members, he will bring his experience to the table to help build Jim Rowlands® Go Kart & Fun Parks, LLC to favorably compete in the United States and in the global market.

3. Our Products and Services

Jim Rowlands® Go Kart & Fun Parks, LLC is in the golf driving ranges and family fun centers industry to provide go kart and family fun facility for residence of Baton Rouge – Louisiana and neighboring cities which is why we have been able to put up a facility that can help us achieve the goal.

We are optimistic that everyone who makes use of our golf driving range and family fun facility will definitely derive huge fun and of course value for their money.

We are in this line of business to make profits and we are going to do all that is permitted by the law in the United States to achieve our corporate aim and ambition. These are the services and amenities that will be made available to our clients in our facility;

  • Amusement and recreation services
  • Fitness and recreational sport center services
  • Registration for sports tournaments and matches
  • Golf course and country club services and memberships
  • Meals and beverages
  • Coin-operated games and rides
  • Amateur sports teams and club services

4. Our Mission and Vision Statement

  • Our Vision of starting Jim Rowlands® Go Kart & Fun Parks, LLC is to build a world – class golf driving range and family recreational facility and also to contribute our quota in encourage families that resides in Baton Rouge – Louisiana and neighboring cities to actively engage in family fun – filled recreational activities.
  • Our mission for establishing Jim Rowlands® Go Kart & Fun Parks, LLC is to create a movement in the community that supports total engagement of family in fun filled recreational activities. We want to contribute our quota towards ensuring that Baton Rouge – Louisiana produce some of the happiest children and families in the whole of the United States of America.

Our Business Structure

Jim Rowlands® Go Kart & Fun Parks, LLC is in business to become the leading private golf driving range and family recreational facility in the whole of Baton Rouge – Louisiana and we are fully aware that it will take the right facility, management and organization – structure to achieve our goal.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

Our business will not be built only for the purpose of giving our members / customers value for their money, but also, we will ensure that we make our work environment highly conducive for all our employees.

We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al. In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

  • Chief Executive Office – CEO

Facility Manager and Administrator

  • Accountant / Cashier
  • Marketing and Sales Officer
  • Go Kart Safety Instructor / Assistant (5)
  • Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Carries out staff induction for new team members
  • Responsible for operating and managing the golf driving range and family recreational facility
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Defines job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Ensures that the facility is in tip top position at all times
  • Responsible for managing food and beverage services
  • Manages membership and registration services
  • Handles equipment rentals and sales services
  • Handles other relevant facility operation

Go Kart Safety Instructors / Assistant (5)

  • Ensures that children and adults alike follow lay down safety measures when they make use of our recreational vehicles
  • Handles amusement and recreation services
  • Handles registration for sports tournaments and matches
  • Responsible for handling and giving instruction for services such as go-karting, Batting cages, driving ranges, shooting ranges, kayaking, miniature golf courses, mountain climbing, snowmobiling, and sports clubs, teams and leagues, recreational or youth et al.

Marketing and Sales Officer (2)

  • Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
  • Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents Jim Rowlands® Go Kart & Fun Parks, LLC in strategic meetings
  • Helps to increase sales and growth for Jim Rowlands® Go Kart & Fun Parks, LLC.

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for the organization
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for Jim Rowlands® Go Kart & Fun Parks, LLC
  • Serves as internal auditor for Jim Rowlands® Go Kart & Fun Parks, LLC.

Client Service Executive

  • Welcomes members and potential members / clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
  • Manages administrative duties assigned by the management in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Receives parcels / documents for the organization
  • Distributes mails in the organization
  • Handles any other duties as assigned the line manager

Cleaners (3):

  • Responsible for cleaning in and around the facility
  • Cleans up after customers and clean work area.
  • Washes glassware and utensils after each use.
  • Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
  • Ensures that toiletries and supplies don’t run out of stock
  • Handles any other duty as assigned by the facility center manager.

6. SWOT Analysis

Jim Rowlands® Go Kart & Fun Parks, LLC is in business to provide go karting and family recreational facility for families in Baton Rouge – Louisiana and also help its clients achieve their fun – filled activities for their children and at the same time to make profits.

We are aware that there are competitions in the golf driving ranges and family fun centers industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard-earned money into the business.

We know that if we get things right before starting our go kart and family recreational center, we will not have to struggle before attract loyal clients and building our membership base to a level where we can easily breakeven in record time.

We hired the services of a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Jim Rowlands® Go Kart & Fun Parks, LLC;

One of the obvious strength that will definitely stand as a plus for Jim Rowlands® Go Kart & Fun Parks, LLC is the fact that our facility is centrally located in a densely populated – residential area in Baton Rouge – Louisiana; our location is in fact one of our major strength.

We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims making use of our go karting and family recreational facility and lastly our gate fee / membership package is one of the best that anybody living around Baton Rouge – Louisiana and neighboring cities can get; it is cheap and affordable.

We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business.

The second is the fact that we may not have the financial resources required to match up with existing golf driving ranges as well as family entertainment and recreation facilities and even government own entertainment and recreation facilities in Louisiana when it comes to acquiring latest Go Karts and generating the needed hypes that can drive traffic towards our facility.

  • Opportunities:

We are centrally located in one of the busiest area and densely populated area in Baton Rouge – Louisiana and we are open to all the available opportunities that the city has to offer.

Some of the threats that are likely going to confront Jim Rowlands® Go Kart & Fun Parks, LLC are unfavorable government policies , inclement weather, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our golf driving range and family recreational facility is located.

7. MARKET ANALYSIS

  • Market Trends

The golf driving range and family fun centers industry has indeed benefited from recent marketing campaigns which is targeted towards encourage people to participate in recreation activities, as well as consumer trends toward healthy living.

Going forward, many people who are part of the baby boomers generation are expected to sign up for recreational club memberships or make use of recreation facilities in their communities, as they become more family cum health- conscious as they grow older.

However, patrons of golf driving ranges and family recreational centers are anticipated to increasingly pick up membership from less expensive golf driving range and family recreational centers as against expensive all-inclusive clubs.

The common trend in the golf driving ranges and family fun centers industry is such that if a facility is well – equipped and positioned close to a residential area or a place where people can easily access without much stress, there is the likelihood that the facility will enjoy high patronage.

Just like in other business ventures, the owners of golf driving ranges and family fun centers are always looking for ways to increase their market share; they go as far as signing deals with high schools and also religious organizations et al to make use of their facility on a regular basis.

Lastly, it is a common trend that as golf driving ranges and family fun centers grows, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people.

Little wonder some golf driving ranges and family fun centers now have other facilities targeted towards attracting adults / parents. In order words, it is very important for go karting and family recreational facilities to continue to improvise if they want to grow their business and generate their target revenues.

8. Our Target Market

The target market for go karting and family recreational facilities cuts across people from different backgrounds. The fact that people visit or register in golf driving ranges and family recreational facilities for various reasons makes marketing the business interesting.

The target market for go karting and family recreational facilities can be categorized into three various groups. The first group is the families who are looking towards creating time for children cum family hangouts and bonding. The other group of people is schools who are would want an ideal place to take students / children to during excursions or playtime et al. The last group of people is religious organizations and clubs.

Jim Rowlands® Go Kart & Fun Parks, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our go karting and family recreational center to;

  • Households and families in an around Baton Rouge – Louisiana
  • Churches and Religious centers
  • Corporate organizations
  • Travelers / Tourists

Our competitive advantage

Beyond every reasonable doubt, the golf driving ranges and family fun centers industry is indeed a prolific and highly competitive industry. Clients will only make use of your facility if they know that you can successfully help them achieve their goals or provide the enabling environment and facility for them to catch maximum fun.

Jim Rowlands® Go Kart & Fun Parks, LLC is centrally located close to a densely populated – residential area in Baton Rouge – Louisiana; this is obviously going to give us an edge amongst our competitive.

We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims of making use of our golf driving range and family recreational facility and lastly our gate fee cum membership package is going to be one of the best that anybody living around Baton Rouge – Louisiana can get; it is cheap and affordable.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups go karting and family recreational facility businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Jim Rowlands® Go Kart & Fun Parks, LLC is established with the aim of maximizing profits in the golf driving ranges and family fun centers industry and we are going to go all the way to ensure that we do all it takes to attract both individual clients (families) and corporate clients on a regular basis. Jim Rowlands® Go Kart & Fun Parks, LLC will generate income by offering the following services;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. It would be hard to create a sales forecast with a newly opened business like go karting and family recreational facility.

This is simply because the statistics that will be provided will be on a short-term basis. Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be need to help in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.

We expect to welcome a minimum of 12,000 customers i.e. 0ne thousand customers per month within our first year of operations and then in subsequent year we will grow by 25 percent on more. Below are the sales projections for Jim Rowlands® Go Kart & Fun Parks, LLC, it is based on the location of our go karting and family recreational facility and the services and products that we will be offering to our clients (members);

  • First Fiscal Year-: $240,000
  • Second Fiscal Year-: $450,000
  • Third Fiscal Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

At Jim Rowlands® Go Kart & Fun Parks, LLC, our marketing strategies will be consistent throughout the marketing mix and we will take into consideration product improvement, promotion, and price. As part of our sales and marketing strategies, we will pay attention to the promotion of our go karting and family recreational facility so as to attract families and corporate organizations to enroll and become our members.

Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families, clubs, schools and religious organizations. Parts of the marketing and sales strategies that we will adopt are;

  • Open our golf driving range and family recreational facility with a big party for all and sundry
  • Advertise our golf driving range and family recreational facility on national dailies, local TV stations and local radio station
  • Promote our golf driving range and family recreational facility online via our official website and all available social media platforms
  • Introduce our golf driving range and family recreational facility by sending introductory letters alongside our brochure to religious organizations, schools, corporate organizations, households and key stake holders in Baton Rouge – Louisiana
  • Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
  • Delivering consistent customer experiences to all our members; making our first impression count positively to those making use of our go karting and family recreational facility for the first time
  • Make use of attractive hand bills to create awareness and also to give direction to our go karting and family recreational facility
  • Adopt direct mailing coupon marketing approach
  • Position our signage / flexi banners at strategic places in and around Baton Rouge – Louisiana
  • Create a loyalty plan that will enable us reward our consistent members especially those that registered as a family or groups
  • Engage in road shows within our neighborhood to create awareness for our go karting and family recreational facility.

11. Publicity and Advertising Strategy

We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Baton Rouge – Louisiana which is why we have made provisions for effective publicity and advertisement of our go karting and family recreational facility. Below are the platforms we intend to leverage on to promote and advertise Jim Rowlands® Go Kart & Fun Parks, LLC;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based sport events and competitions
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
  • Install our Bill Boards on strategic locations all around Baton Rouge – Louisiana
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact families, corporate organizations, religious centers and schools by calling them up and informing them of Jim Rowlands® Go Kart & Fun Parks, LLC and the services we offer
  • List Jim Rowlands® Go Kart & Fun Parks, LLC on local directories / yellow pages
  • Advertise our go karting and family recreational center in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our go karts and vehicles are well branded with our corporate logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging as gate fees or membership fee in Baton Rouge – Louisiana and neighboring cities.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family, groups or a religious organization and schools. The prices of our services will be same as what is obtainable in the United States’ open market.

  • Payment Options

The payment policy adopted by Jim Rowlands® Go Kart & Fun Parks, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Jim Rowlands® Go Kart & Fun Parks, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for all our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a go kart and family recreational facility; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Jim Rowlands® Go Kart & Fun Parks, LLC in the United of America;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits – $1,500.
  • Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
  • Cost for hiring Business Consultant – $5,000.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
  • Cost of accounting software, CRM software and Payroll Software – $3,000
  • Cost for leasing facility for the golf driving range and family fun center – $250,000.
  • Costs for facility remodeling, build go karting race course and equipping the facility – $200,000.
  • Other start-up expenses including stationery – $1000
  • Phone and utility deposits – $3,500
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The cost for start-up inventory – $15,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, video games, snooker board, tables and chairs et al) – $10,000.
  • The cost of launching a website – $600
  • The cost for our grand opening party – $15,000
  • Miscellaneous – $15,000

We would need an estimate of $750,000 to successfully launch a small but standard and well – equipped golf driving range and family fun center in Baton Rouge – Louisiana.

It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a go karting and family recreational facility and also the huge amount required in securing a facility large enough to accommodate the golf driving range and family fun center.

Generating Funds / Startup Capital for Jim Rowlands® Go Kart & Fun Parks, LLC

Jim Rowlands® Go Kart & Fun Parks, LLC is a private registered family business that will be owned and managed by Jim Rowlands and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Jim Rowlands® Go Kart & Fun Parks, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to pick up membership in our go karting and family recreational facility is to equip our facility with state of the entertainment equipment and make our services affordable.

Jim Rowlands® Go Kart & Fun Parks, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring a big facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed family entertainment equipment, gym and fitness equipment , electronic appliances, office appliances and suppliers: In progress
  • Creating Official Website for the Company: Completed
  • Creating Awareness for the business both online and in the neighborhood: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with vendors and key stakeholders in the industry: In Progress

Related Posts:

  • Auto Spare Parts Shop Business Plan [Sample Template]
  • Car Parts and Accessories Store Business Plan [Sample Template]
  • Rock Chip Repair Business Plan [Sample Template]
  • Car Assembling Plant Business Plan [Sample Template]
  • Quick Lube Business Plan [Sample Template]
  • Buy Here Pay Here Car Lot Business Plan [Sample Template]
  • Slingshot Rental Business Plan [Sample Template]

BizFundingResource.com

Race Track Business Plan and SWOT Analysis

Race Track Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Race Track Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Race Track business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

UK Small Business Startups and Funding

  • Business Type
  • Business Plan for Car Racing Track

Car Racing Track Small Business Idea and Business Plan

Starting your own small business in the UK isn’t easy but having a properly developed business plan will help you achieve success.

To start a Car Racing Track business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Car Racing Track business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Car Racing Track business isn’t easy, but when done right, it can lead to a lot of success.

To help you get started, you can use the free business plan builder tool to develop your own Car Racing Track business plan.

The business plan template is very easy to use, is interactive and will quickly and easily help you create your business plan just by answering the needed questions about your small business idea.

Create your own Car Racing Track business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by UKStartups.org to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Car Racing Track small business in the UK.

When you have completed your Car Racing Track business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Car Racing Track business startup.

If you are looking to limit your startup costs when starting up a Car Racing Track small business in the UK, this free business plan builder tool will be it.

Starting a Car Racing Track business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Car Racing Track business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Car Racing Track business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Car Racing Track industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Car Racing Track businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Car Racing Track business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Car Racing Track business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Car Racing Track business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Car Racing Track business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Car Racing Track business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via UKStartups.org and through the Small Business Startup Platform as a member.

If starting a Car Racing Track business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

  • Friends Church
  • Fur Service

INSTANT ACCESS - 2024 Government Funding Options

See ALL government funding options now

This will close in 24 seconds

TheCaseSolutions.com

  • Order Status
  • Testimonials
  • What Makes Us Different

Race Track Business Plan Harvard Case Solution & Analysis

Home >> Business Case Studies >> Race Track Business Plan

Industry and Competitor Analysis

The National Hot Rod Association (NHRA) supervises the majority if drag racing events in North America. The next largest organization is the International Hot Rod Association (IHRA). All the race tracks are associated with any one sanctioning body or the other.

There are also small organizations for muscle cars and nostalgia vehicles such as Nostalgia Drag Racing League (NDRL).The National Electric Drag Racing Association (NEDRA) races electric vehicles against high performance gasoline-powered vehicles such as Dodge Vipers or classic muscle cars in 1/4 and 1/8 mile (400m   200m) races.

The Racing Industry has risenover the past five years in the United States of America. With a vast increase in media exposure to meet the demands of die hard sports fans, the industry has continually grown in popularity. The industry's continued resurgence is attributable not only to recovering levels of consumer spending, but also through the industry's recent attempts at expanding its event coverage(Racing & Individual Sports in the US: Market Research Report, n.d.).

The racing industry in the United States of America earns $19.5 billion in sales revenue. The share of Oval tracks, Motorsport Engineering, Drag Racing, Road Racing, Off Road, Karting and Auto cross accounts for 45%, 30%, 12%, 7%, 4%, 1%, and 1% respectively. The graph below shows the following: (Market Demographics, n.d.)

People who compete in auto races around the United States of America exceed 451,000 people in 1300 race tracks around the country. Most of the people compete in Drag Racing, which values up to 155,000.

(Market Demographics, n.d.)

Market Trends

The market for drag race has changed over the years. In the past, racers used to race two to three times per week but they have now become selective in the about the events they would compete. They consider factors such as fuel and payouts. Social media is playing a big role in attracting fans to the drag race tracks and companies are trying to capitalize this opportunity. National Hot Rod Association drag racing has surpassed 500,000 fans on Facebook and topped 50,000 followers on twitter(Drag Race Market Dialed in for 2014, n.d.).

It has now important in the market to convey the message appropriately. In this case, the market has moved towards social media to achieve the purpose. The biggest advantage of the social media is that fans sitting at their homes can watch the racing. Overall, the economy has picked up in the United States of America and fans want are returning to watch these races.

Competitor Analysis

As the drag race track, the company will get associated with NHRA. There are many competitors of NHRA which can pose threats for the revenue of this race track. The competitors include other associations such as NASCAR, Champ Car, Formula One, Indy Racing League, Sports Car Club of America, Grand American Road Racing Association, International Race of Champions , ARCA Racing Series, NHRA Drag Racing, National Auto Sport Association, NASA Pro Truck, U.S. Touring Car Championship, and NASA Formula TR Series. There are 1300 racing tracks in the United States and 30 race tracks in Washington alone where this new infrastructure would exist. The information related to some competitors is given below:(Racing “101”: Local & Global Racing Organizations Washington State / United States / International, n.d.)

It is an economic giant and races are held throughout the year. It is the most renowned organization in the racing industry. Attendance has doubled since 1990 and more than 6.5 million people watched individual Cup races there. According to a study, 64% of NASCAR fans have attended college while 70 percent uses the internet and 41% earns more than $ 50,000 annually.(Racing “101”: Local & Global Racing Organizations Washington State / United States / International, n.d.)

Race Track Business Plan Case Solution

            Formula One racing circuit has nearly 25 drivers and race contests are held around the world including the United States of America. The formula one car is low to the ground and it has a wing back. The sponsors of Formula One includes Honda, Marlboro, Mild Seven, BMW, Mercedes, Red Bull, Toyota, and others.It is also a famous brand of racing, with its unique venues, non-oval tracks, and worldwide involvement, providing enjoyable experience to the visitors(Racing “101”: Local & Global Racing Organizations Washington State / United States / International, n.d.).....................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Related Case Solutions & Analyses:

race track business plan

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

  • Accounting Case Solutions
  • Auditing Case Studies
  • Business Case Studies
  • Economics Case Solutions
  • Finance Case Studies Analysis
  • Harvard Case Study Analysis Solutions
  • Human Resource Cases
  • Ivey Case Solutions
  • Management Case Studies
  • Marketing HBS Case Solutions
  • Operations Management Case Studies
  • Supply Chain Management Cases
  • Taxation Case Studies

More From Business Case Studies

  • Environment Canada
  • Wind River Environmental
  • Ring Medical
  • The U.S. Health Club Industry, 2005-2016
  • Note on Techniques for Analyzing Business Problems
  • T-Mobile US
  • ABB Germany

Contact us:

race track business plan

Check Order Status

Service Guarantee

How Does it Work?

Why TheCaseSolutions.com?

race track business plan

IMAGES

  1. Rev Up Your Business with This Car Racing Track Business Plan Example

    race track business plan

  2. Race Track Infographics Template. Start Up and Business Strategy

    race track business plan

  3. Horse Racing Industry Business Plan

    race track business plan

  4. How to start a Racetrack Business

    race track business plan

  5. Car Racing Track Financial Model in Excel Pitch Ready

    race track business plan

  6. Pin on shake n bake racing

    race track business plan

VIDEO

  1. The newest addition the city's premier racing portfolio

  2. Beating Kids at Car Racing

  3. fast-track business plan by Diomond Harikesh sir in mohammadabadgohna mau

COMMENTS

  1. How to Start a Racetrack

    Ready to form your LLC? Check out the Top LLC Formation Services . Start a Racetrack by following these 10 steps: Plan your Racetrack Form your Racetrack into a Legal Entity Register your Racetrack for Taxes Open a Business Bank Account & Credit Card Set up Accounting for your Racetrack Get the Necessary Permits & Licenses for your Racetrack

  2. Ignite Your Passion: Starting a Race Tracks Business

    Arts & Entertainment Race Tracks Get Your Race Tracks Business Essentials Today! Foster growth with 250+ time-saving, business-specific templates. Swift designs, easy tools, all in one place. Try it for FREE! 26 January, 2024 Desygner Team Business Revving Up Your Race Track Dream

  3. Starting an Auto Racing Business

    Business Plan Mechanics for Auto Racing Businesses Haven't created a business plan for your auto racing business yet? You could be in big trouble. At Gaebler, we advise new business owners to keep your business plan simple. Ultimately, your business plan is intended to be a resource for you, the business owner.

  4. Write a Winning Car Racing Track Business Plan: 9 Steps Checklist

    The first step in creating a business plan for a car racing track is to conduct market research. Understand the demand for racing events and identify the target audience you'll be catering to. This will help you tailor your track's offerings to meet the needs and preferences of your customers.

  5. TheFinanceResource.com

    The purpose of this business plan is to raise $20,000,000 for the development of a race track while showcasing the expected financials and operations over the next three years.

  6. Develop a Business Plan

    Decide where you plan to race & what type of racehorse you plan to own (colts, fillies, classic runners, claimers, etc) Evaluate your ability to invest at the level you prefer and if you have any doubts about your ability to participate at this level, scale back. You can always move up once you learn more about the game.

  7. How To Start A Race Track Business

    Creating a Detailed Race Track Business Plan. Develop a comprehensive business plan that outlines the financial structure, revenue projections, and operational expenses. A well-defined plan serves as a roadmap for financial success, aiding in securing funding and making informed business decisions.

  8. PDF BUSINESS PLAN 2023

    O RACING ALBERTA BUSINESS PLAN 023˜2025 3 O n behalf of the Horse Racing Alberta (HRA) Board of Directors and Management Team, we are pleased to present the 2023-2025 HRA Business Plan. Through this plan, we identify our strategic objectives, priorities, and performance targets for this timeframe.

  9. The Ultimate Guide To Building An Equestrian Business

    Put those together and you get an equestrian business. Equestrian businesses can be anything that focuses on horses or horseback riding, including businesses that house or train horses, care for horses, show horses, or breed horses. It may also include the businesses responsible for managing facilities, pasture, waste removal, and more.

  10. Racing to Riches: Starting a Go-kart Business in 2024

    $91,000 - $365,000 p.a. Industry trend Growing Commitment Full-time Who doesn't love go-karts?! You feel like a race car driver, hitting the gas and hugging those turns — but in a controlled environment. Go-karts were booming pre-pandemic, expanding 35% from 2012 to 2019. After a downturn in 2020, the industry is now coming back strong.

  11. Craft a Winning Car Racing Track Business Plan Today

    Car Racing Track Business Plan $59.00 $39.00 ADD TO CART Refund & Terms Instant Download, Editable on MAC & PC Resources On Car Racing Track Financial Model Value Proposition One-Page Business Plan SWOT Analysis Business Model R 10/11/2022 Reuben Cool S 10/07/2022 Stephanie Begum Fine Frequently Asked Questions

  12. Go Kart Business Plan [Sample Template]

    By: Tony Martins Ajaero Home » Business ideas » Sports Industry » Go Kart Business Are you about starting a go kart racing business? If YES, here is a complete sample go kart business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a go kart racing business.

  13. Sample Horse Business Plans

    Ellen and George Smith Horsemanship will be a moderately sized equestrian facility that provides horse boarding, horse training, and riding instruction services. In the horse stable, we plan to take in 10-15 boarded horses, 5-6 horses in training, and 4-5 lesson horses. Lessons will be provided in western riding (reining, barrel racing, and ...

  14. How to Start a Slot Car Racing Business

    Best Practices: Business Plans for Slot Car Racing Businesses. A great business plan will lay a strong foundation for growth in your startup slot car racing business. The financial section of your business plan is especially relevant to funding concerns. Not surprisingly, lenders immediately turn to the financial section and use the accuracy of ...

  15. Ownership 101: Have a Business Plan

    Ownership 101: Have a Business Plan By Cot Campbell Have a business plan. I repeat: Have a business plan. But do keep in mind that the "business" involves 1,000-pound animals that...

  16. Business plan / proposal for establishing RC track

    8ight-racer. Starting the track as a nonprofit (501c3) would be very time consuming. I suggest you start it as a business and work from there. For a rc track, the cons outweigh the pros for going nonprofit. If you get ROAR insurance, EVERY person who goes on the track Must be a ROAR member, which is $30 a year.

  17. Race Track Business Plan and SWOT Analysis

    The Race Track Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Race Track business.

  18. Off-road Race Track Small Business Idea and Business Plan

    Step 1. Your business information To develop a proper Off-road Race Track business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities. What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

  19. Car Racing Track Small Business Idea and Business Plan

    Step 1. Your business information To develop a proper Car Racing Track business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities. What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

  20. Race Track Business Plan Harvard Case Solution & Analysis

    Race Track Business Plan Case Solution. Formula 1 Formula One racing circuit has nearly 25 drivers and race contests are held around the world including the United States of America. The formula one car is low to the ground and it has a wing back.

  21. Business Plan for Car Racing Track

    Starting a small business as a Car Racing Track If you're ready to start your small business as a Car Racing Track, the first thing you need to do is get started with a Business Plan for Car Racing Track. To achieve success, you must plan for it.

  22. Race Track Business Plan

    Race Track Business Plan, The Audience In A Persuasive Essay, Stewardess Resume Yachts Applicatoin, One Page Resume Format Pdf, Hubspot Cover Letter Templates, Good Finance Resume Objectives, Example Essays About Working In A Hospital 4.7/5 ...