Karting business plan (2020) - where to start and how much you can earn

Karting does not only refer to races in which teenagers participate. Regular clients of such centers are considered to be wealthy people who have an acute lack of adrenaline.

That is why karting as a business must be built taking into account all the subtleties and nuances.

If everything is organized correctly, the profitability of business activities will be approximately 50 percent in one year. This review will look at a sample business plan for a karting club.

What needs to be taken into account when designing routes?

The track is something that any karting center should have. It must embody the unity of opposites. From one position, the track should be organized interestingly, and from another, no one should get hurt during the races. Steep turns, bridges, narrow turns - with the help of all this you can make the route more exciting and interesting.

But don’t get carried away with extreme sports while building the route. It will be necessary to provide everything so that potential clients do not get injured. It is also worth considering that the elevation angle of such a structure on the highway as a bridge should be about five degrees.

On the highway, the vehicle is usually accelerated to 70 kilometers per hour. But it should be understood that the spirit of competition, as well as the power of a steel car, can be a good incentive to achieve higher speeds. Therefore, when designing a karting center, it is necessary to ensure that the tracks do not have too long straight sections. All this must be taken into account when drawing up a business plan for a karting club.

Features of karting and business advantages

Karting is one of the types of sports competitions on small cars - karts. A kart is different from a typical sports car. Its features are miniature and low power. You don't need a license to drive this vehicle on the go-kart track, which is why these cars are very popular among children.

Reference. The first maps appeared in the post-war period. Their creators are American pilots – veterans of World War II. As entertainment at the airfield, they organized cart races to transport bombs. Such carts formed the basis for the design of karts, which were released in 1956.

The target audience

The main feature of karting is its popularity. Among the adherents of this type of recreation there are both professional athletes and amateurs. At the same time, the age of karting fans is completely different - from children and teenagers to pensioners.

List of services

Karting clubs provide the following services:

rent a card – 10 minutes;
rent a card – 30 minutes;
rent a card – from 1 hour to a day;
mini-tournaments between visitors;
competitions for regular customers;
training for beginners;
corporate events and holidays - conditions are negotiated individually.

Advantages of this business:

Demand. It is caused by the universal popularity of a healthy lifestyle and extreme sports.
Availability. Every average Russian can afford to visit a karting track.
Lack of competition in small towns. There is no karting in provincial towns. Many people go karting to neighboring cities.
Small staff.

How much will the equipment cost?

A significant role in the proper organization of your business activities in the field of karting is the selection of equipment. With its help, potential clients can turn into international level racers. The price for one set of uniform can reach one and a half thousand rubles.

You will have to spend about 450 rubles on a helmet. Naturally, it is necessary to purchase equipment in different sizes so that each client can choose the right size set for themselves. For example, if there are about 8 karts in stock, you will need to purchase twice as many overalls in 6 sizes. There should be exactly the same number of helmets, only 4 different sizes.

Equipment

You will need several types of karts, equipment and advertising signs. The choice of karts should be approached with the utmost responsibility, since it is on them that your business is built.

The cost of foreign-made karts differs from Russian ones by almost two times, but they will also last twice as long. As an alternative, you can purchase used cards, but in this case the operating costs may be significantly higher than for new ones. Also, the service life of karts depends on the quality of the road surface.

The cost of one foreign card starts from 150,000 rubles, plus delivery costs. Set aside about 1,000,000 rubles for the purchase of equipment.

The spirit of competition must be maintained

According to experts, an important component when organizing karting is the chronometric system. It is worth understanding that such a center is entertainment on the verge of sports.

Any person will be interested in winning, overtaking, etc. Accordingly, the first and last participant will be determined based on the readings of the chronometric system. The price of such equipment will reach an average of 150 thousand rubles.

However, when drawing up a business plan for a karting club, it must be taken into account, regardless of the high cost. In addition, all expenses will subsequently pay off quite quickly.

Marketing strategy development and advertising

The marketing component is one of the main ones in the development of every business plan. The success of an entire enterprise often depends on an advertising campaign.

The advertising campaign starts even before the club opens. The target audience is studied in advance. Such analytics helps to find out how popular a business idea will be.

For advertising to be effective, it is recommended to use as many marketing tools and methods as possible.

Among them:

Outdoor advertising. This is advertising on billboards, in transport, on bulletin boards.
Advertising in print media. It works best if advertised in thematic newspapers and magazines about sports, in particular about racing.
Internet advertising. This is a relatively new, but one of the most effective advertising tools. It is recommended to use advertising in regional online publications, targeted advertising on social networks and SMM promotion. This will allow you to get maximum coverage of your target audience.

Additional promotion methods:

Competitions. For example, a karting club group is created on social networks, in which free passes to visit the club are raffled off weekly. One of the conditions for the drawing is to repost the advertising post. Advertising costs are minimal, but the returns are high.
Partnership programs. This is a common marketing ploy. Its essence: the client brings a friend and receives a good discount or an hour of free skating.
Stock. Discounts on weekdays, birthday gifts.

Purchase and maintenance of cars

The cost of a go-kart will range from 70 to 150 thousand rubles. Many entrepreneurs choose Czech cars. There is an opinion that they have the optimal ratio of quality and cost. If the track reaches three thousand square meters in area, then ideally you will need to purchase eight cars. If you have a large initial capital, you can purchase children's models. With this step it will be possible to attract the attention of parents to the institution.

Using one car will cost approximately 15 thousand rubles for one month. The main costs will go to tire maintenance. The cost of one set will be approximately 3 thousand rubles. Replacement should be carried out about twice in one month. In addition to tires, regular costs also include the purchase of fuel (grade 95 gasoline), as well as spare parts and repair kits.

Cars break down quite often. And in most cases, the clients are to blame for this. But you should understand that the entrepreneur will have to deal with the repairs directly. These are the unwritten rules of this field of activity. Therefore, the business plan for a karting club needs to be designed taking this into account.

Work format

There are several options for opening a karting track in your city.

Seasonal business option with an open-air venue.
A full-fledged indoor karting club.

If you are just starting out in this business, then it is best to choose the first option for operating this business. Its main advantage is the absence of the need for large capital investments, which allows you to quickly return the investment within 1 - 2 years and continue to work in profit. If you get involved in the construction of the center, with repairs, additional premises, heating, then the invested money will be returned in 5-6 years, which is an unacceptably long time given the economic situation in our country. The second advantage of open-air karting is mobility. Even if the business does not work in this location, you can always move to another place or city. The third advantage is the ability to close for the winter without having to pay for the maintenance of the site, which cannot be said during the capital construction of a karting club.

Personnel must be highly qualified

First of all, you will need to find a good administrator who has a calm and balanced character. The task of resolving conflict situations with clients falls on his shoulders.

The administrator who will calmly communicate with people is able not only to resolve all kinds of conflicts, but also to maintain the club’s reputation at a fairly high level.

Don't forget about hiring mechanics. Finding specialists who can service cards is not as simple as it might seem at first glance. Naturally, absolutely every mechanic can understand the cards. However, you need a specialist who has quite a lot of experience in this field.

A professional will be able not only to repair the car, but also to adjust the engine, the quality of which will determine fuel consumption and ride comfort. The owners of karting tracks have one thing in common: in order for specialists not only to work efficiently, but also to hold on to their jobs, it is necessary to ensure that wages are competitive.

Where to start organizing a karting track

To build a 700 m long route, you will need a plot of land with an area of 3-4 thousand sq.m. The road for cars must be laid with the correct turns and a sufficient number of straight sections. Typically, an amateur karting or sports club is built away from residential buildings and the city center. An old production facility or an unclaimed warehouse is suitable as a covered area.

The number of staff in the club depends on their professionalism and skills. It is ideal to find people who understand technology, can repair karts and at the same time instruct clients. If children's karting opens, then it is good that the instructors know how to get along with children.

Among the additional, but mandatory attributes, you will need to purchase special clothing for workers and helmets for visitors. Beautiful identical overalls for staff will create a positive image, and corporate symbols will allow you to recognize the club at competitions. On regular business days, the uniform allows visitors to quickly find a staff member to ask for assistance. A quality helmet made in Italy costs about $60, but there are also cheap Chinese options.

Adult and children's karting

Before laying the coating, it is advisable to equip the go-kart with a timing device. This device allows you to record your arrival time, results and display them on the scoreboard. With this attribute, it will be much more interesting for the client to visit the karting club. You can organize impromptu competitions and observe the dynamics of your own results. It will take about 80 thousand dollars to completely develop the track, with coating and all the attributes.

Cards – do we buy them or make them ourselves?

Karting must be equipped with cars. A new car costs from 1.5 to 4 thousand dollars, depending on the power. The main and most expensive part of a car is the engine. Karting frames can also be purchased domestically or imported. However, many amateurs and professionals make go-karts with their own hands. It's much cheaper and more reliable.

Before starting production, you need to determine what the future karting will be like. The basis of each technical product is a drawing, from which you need to calculate the amount of necessary materials. Metal pipes are used for frames, they are cut into parts, bent and welded. After making the main frame, you can begin to construct the motor frame, pedal control and steering assembly. All these parts are made according to the same pattern, but their sizes can be adjusted depending on the height of the person who will operate the machine.

A single-cylinder air-cooled gasoline unit is installed on the go-kart yourself. The pilot must be protected from internal combustion engines and possible burns. The braking system connects at least a pair of wheels.

A workshop that makes karting with its own hands, the presence of a gorgeous track and attentive staff, all this can become a favorite vacation spot for both adults and children. It is these components that will become the key to your unique and profitable business, with a chic name - karting.

Advertising campaign plays an important role

At the stage when indoor karting has just opened, you will need to take a responsible approach to promoting the establishment. The most effective advertising will be that which will be served through radio and men's magazines. Another good advertising move would be the organization of various competitions and championships. It will not be possible to get a lot of money from these events, but a professional movement will be formed. Accordingly, the company will be provided with a large number of potential customers.

Advantages and disadvantages

To open such an entertainment establishment yourself, it is important to find out all the pros and cons and only after weighing them, make a decision. This business idea is good for the following reasons:

Extreme entertainment at the peak of popularity.
Small costs for employees, of whom there are not many.
Relatively low rent if you rent municipal plots.

But this idea also has its negative sides. These include:

Long payback period (more than 2 years).
Seasonality of business (if the track is not covered).
The dependence of demand on the economic situation in the country, because during a crisis, they first of all begin to save on entertainment.
Large initial investment to enter this business.

What is the result?

Several possible options for designing a karting track should be given as an example. They are as follows:

Small organization. It will be necessary to lay 300 meters of asphalt, purchase three not quite new maps, spare tires, and a uniform. You will also need to pay the mechanic’s wages and build a small “shed” for the administration building. Total: the initial capital must reach at least 120 thousand rubles. The area of the premises will reach 3 thousand square meters.

Average organization. You will need about 400 meters of asphalt road, a modest building for the administration, ten cars, and not a very large staff. This option implies the presence of an initial capital of 900 thousand rubles.

Sports level organization. It is necessary to build a 900-meter-long route and an administration building. You will also need to purchase a timing system, hire mechanics and workers who will service the go-kart, design a shower, install a fountain in the lobby, etc. The initial capital in this case should reach several million rubles. The area of the premises can reach 40 thousand square meters.

Financial plan

Let's calculate the main indicators of economic efficiency of a business. Annual karting expenses according to plan:

Rent of land – 300,000 rubles.
Staff salaries – 408,000 rubles.
Insurance deductions – 122,400 rubles.
Loan payments – 540,000 rubles.
Depreciation and repair of equipment – RUB 90,000.
Advertising – 100,000 rubles.
Other expenses – 100,000 rubles.

Total – 1,660,400 rubles.

There must be a lot of potential clients

In order for absolutely all investments to be fully justified, it will be necessary to constantly expand the customer base. To do this, it is necessary to organize additional sources of income.

For example, very often you can see a bar in karting centers. Naturally, a drunk client cannot be given access to the card. However, after one glass of beer it is quite possible to do this, since there will be no traffic police on the highway. You can also open sections in your enterprise.

For example, for children. Numerous corporate events will provide the karting center with greater profits. With their help, it is possible to purchase approximately 6 thousand rubles in one hour.

However, there is one very important factor to consider. For corporate clients it is necessary to provide a very high level of service. The staff must be polite, and the restaurant on site must be clean. In this field of activity you will also need to get acquainted with event agencies. With their help, you can ensure that show programs and various events are held on the territory of the karting center. Also, with their help, a script will be developed for all kinds of holidays.

With proper organization of business activities, opening a karting club will pay for itself in about one and a half or two years.

Description of products and services

The list of services of our company will be quite wide. For small companies and amateurs, we will offer regular kart rental at a price of 250 rubles/5 min. Karting rental will be offered to corporate clients and large companies. The rental price will include: karts, driver equipment, instructor work, track rental. It is planned to set the following price level:

Until 16:00 – 4000 rub./hour, 6500 rub./2 hours, 9500 rub./3 hours
After 16:00 – 5500 rub./hour, 10500 rub./2 hours, 16000 rub./3 hours
Weekends and holidays – 10,000 rub./hour, 18,000 rub./2 hours, 26,000 rub./3 hours

In addition, for an additional fee, clients will be offered:

Personal scenarios
The work of a professional presenter
Organization of a buffet
Winners' reward system

Another service of our karting club is the “young racer” children's school. Karting lessons will be held twice a week for children aged 12 years and older. Classes will be conducted by a professional trainer, the duration of classes will be 1.5 - 2 hours. Tuition at the school will cost 2,500 rubles per month. The karting will be of an open type, which implies a seasonal operating period - from May to October. It is expected that on average about 10 corporate and 900 individual clients will visit our karting per month (30 people per day). The park's high attendance will allow it to attract a significant audience of customers from the first days of operation. One corporate order will bring in an average of 10,000 rubles, that is, revenue from corporate events will be 100,000 rubles. per month. Single races will bring about 500 rubles. per person - total revenue will be 450,000 rubles. Thus, the average monthly revenue will be 550,000 rubles.

Nuances that should not be forgotten

When creating your own karting center, you need to take into account some subtleties. They should be listed:

To maintain interest in the karting track, the shape and configuration of the tracks will need to be changed periodically.
It will be more profitable for an entrepreneur to assemble cars with his own hands rather than purchase them. If there are qualified employees, the initial capital required to open the center will be reduced by an amount equal to approximately 30 thousand rubles per card. Cars are not subject to certification. Based on this, we can say that there will be no claims from government agencies.
The cost of the karting can be reduced if some materials are produced independently. For example, a balaclava, which some clients constantly take to their home, unnoticed by the administration.
In order to get rid of the possibility of losing helmets that cost 2 thousand rubles, you need to purchase them for 500 rubles. In this case, you will need to place a guard at the exit. It is he who will make sure that no one steals anything.
The resource of one card reaches 500 hours. After this resource expires, the car will need to be sold. Otherwise, the costs of its maintenance will increase.
Car tires. This material is perfect for designing fenders. In addition, in most cases they can be provided absolutely free by the owners of repair companies, since disposal will cost more.

Taking into account all these points, as well as showing your imagination and organizational abilities, you can create a highly profitable business activity from which everyone will receive only positive emotions. We hope that this review helped you understand how to open a karting club.

Payback and profitability of business

The annual profit from the karting track is 1.7 million rubles. Expenses for rent, taxes and employee maintenance are deducted from this amount. Net annual earnings are 700 thousand rubles.

With proper business organization and stable demand for cards, it will pay for itself within a year and a half, after which it will generate net profit.

Despite the popularity of karting, this type of business still remains low-competitive, especially in provincial cities. This gives the entrepreneur the opportunity to fully master the niche.

Market analysis

Interest in karting is growing every year, and accordingly, an increasing number of participants are appearing on the market. A karting club can be found in almost any city with a population of 300 thousand or more. In this area you can find both first-class private karting tracks and quite simple ones located in open areas.

The demand for such recreation is increasing, but the market is not yet oversaturated, so the creation of a karting center is a promising area for investment.