HOW TO START A GO KART BUSINESS

The go karting business is booming globally. If you are thinking about opening a karting center, you are already one step closer to developing a very lucrative and profitable business. According to the most up-to-date statistics, in recent years the karting industry has been shown to have grown around 5.7% generating profits of about $120 million just in the United States of America alone.

Based on these statistics, Ferkart wants to help all entrepreneurs who have the idea of starting and/or opening a business that generates fun, joy and unforgettable experiences for all customers. We can collaborate with all customers regardless of the project step they are currently in. Having over 10 years of experience, we will guide you in the right path to great success.

To develop a successful go-karting track, the first thing is to identify the different types of businesses that exist and which audience we want to target.

6 Project Steps to Start a Go Kart Business Successfully

Choosing the type of track: Go karting tracks can be Indoor or Outdoor. Amateur or professional. Family-oriented entertainment centers or Competition-oriented karting tracks, etc. This will undoubtedly be one of the fundamental parts to be considered when developing a karting project.

Once the type of track has been identified, there are essential steps to be taken to ensure the proper development of the project.

1) Project location: This refers to the study of the place where the project is intended to be carried out. There are several factors that will determine a prime location such as:

1. City or city center location
2. Transportation availability
3. Foot traffic
4. Size of the premises
5. Rent/cost of acquiring the premises

2) Feasibility, sustainability and study of the location: After choosing the perfect place, whether it is purchased or leased, it is essential to carry out a study of the demographics and economy within the area. This will help you get an idea of how many customers could visit and/or purchase the products and services that will be offered.

3) Complete project design: This step carries vital importance since it requires the complete study of the project. It involves the following:

1. Track design according to the space and layout of the business.
2. Design of secondary areas such as the cafeteria, office, point of sale, workshop, gift shop, complementary activities, etc.
3. Choice of all equipment and accessories.
4. Obtaining 3^rd party quotes
5. Licensing and documentation

For legal terms, we consider it appropriate to put yourself in the hands of professionals such as lawyers or consulting firms. The legal steps to follow are:

1. Creating a company
2. Obtaining licenses, permits and insurance both on site and in operation
3. Have commitment sheets (waivers) that customers must sign prior to racing

Once this stage of the project is completed, it will be possible to have a much more realistic idea of the appearance of the business and the costs of construction and operation. In addition, it will be possible to estimate potential business income.

Notes:

At this stage you may search for potential investors and/or financial institutions to apply for project funding if necessary.

If the person who carries out this project is not familiar with the karting sector, it is essential they seek advice and do not cut corners to save on budget. By making this mistake not only you risk the safety of the site, but also hinder the return of investment and reduce the maximum income potential. Contact us to obtain a project according to your needs that ensures its full potential and success.

4) Project execution: Once the study has been carried out and considering that all aspects have been covered and accepted, the execution of the project must begin. This step consists of the following:

1. Civil works
2. Paving the track
3. Installation of all components (protective barriers, modular structures, pit lane, race control, workshop, etc.)
4. Paint and other decorative aspects
5. Installation of music equipment, lights, etc.

5) Staff training: It is important that a karting center has qualified and well-trained personnel to offer the most professional service and ensure the safety of all drivers. For this step, we have designed a specific training for each of the following employees:

1. General Manager
2. Director of Marketing and Social Media
3. Cashiers
4. Track managers
5. Track marshals’
6. Workshop mechanics
7. Maintenance manager

6) Opening: This is the moment when you decide to open to the public and start operating the business. It is imperative to get the local newspapers and arrange a press release if possible. In addition, we suggest holding a launch event with discounted rates or free food / tickets to help spread the word.

FREQUENTLY ASKED QUESTIONS

• What is the approximate cost to carry out an ideal go karting business project from scratch?

The approximate cost is something that is determined by the type of go kart project you seek. A big project will require more protective barrier, more karts, more staff, etc. Therefore, this would convert into a higher running cost. On average, a karting project featuring the latest technological advances, can start as low as $800,000 and reach up to $2M.

• What items and/or accessories should you invest in for a go kart business?

The most important elements of a successful go kart track are the go karts themselves, followed by the track layout and design. For this reason, it is recommended to research before choosing a reputable brand that will deliver a product that exceeds your expectations and will require minimum maintenance in the long run. A fun track with sharp turns and straightaways to build speed will always keep a customer engaged.

• How long would it take to obtain ROI for a go kart track business?

Based on experience we know that an investment to create a karting center is not relatively low. However, the ROI is remarkably high. A project that has invested over $1,500,000 could receive the ROI as early as 1-2 years.

• What kind of pavement is ideal for a go kart track; asphalt or polished concrete? What about the special paint?

As a rule of thumb, the ideal pavement to use on a go kart track is ASPHALT. We have a special formula specially designed for the use on go karting tracks that will give the best grip thus increasing its safety. Choosing the wrong pavement can lead to serious problems that can affect the operation, increase maintenance costs, and hurt the income projection.

We understand that sometimes it is not possible to apply asphalt due to the location of the go kart track project (shopping centers or premises at different levels) where the machines that work with asphalt do not have access. In this case it is important to be cautious when choosing the asphalt substitute.

On the other hand, there are special resin paints that are becoming more popular and guarantee a good grip for the go karting activity. Furthermore, we can also provide information on applying polished concrete properly to create an ideal grip on the track.

• Is it necessary to have previous experience to start a go kart business?

The short answer is NO. It is true that all the prior knowledge always helps, although with our advice and training, anyone can be qualified to run a go kart track business.

• What is the minimum area needed to develop a go kart track?

It all depends on the type of project being carried out to get an idea of the space that is needed. However, to carry out a profitable go karting project it is recommended to be somewhere in between 2,500 m2 – 5,000 m2. The space may be lower if there is extra height where second track levels can be implemented therefore adding more length and optimizing the space to its full potential.

• What is the ideal go kart track length?

This question is often confusing. Some believe the greater the distance the greater the profitability of the project. This is totally false. A track must be dynamic to get the drivers to repeat. The length will not affect the perception of the drivers.

For indoor tracks, it is suggested they should have a length between 300m (28 seconds/lap) and up to 500m (48 seconds/lap.)

For outdoor tracks, it is ideal to have a greater size (both wide and long) and may reach up to 1000m or 1200m lineal (70-100 seconds per lap.)

• How many go karts should I run per race? And how many go karts should I purchase?

The number of karts that should run per lap and total amount to own are determined by the design, size, and layout of the track. A popular choice for a lot of indoor tracks is usually 24 electric adult karts. This setup allows you to keep 12 units charging while 12 units are racing, maintaining the battery levels always fully charged guarantees a seamless operation.

• How long does it take to complete a go kart track project?

After the design step, you can usually estimate the completion time of the project accurately. The time usually ranges between 3 to 5 months depending on the size, complexity of the project and location.