auto racing business plan

How To Write a Business Plan for Car Racing Track in 9 Steps: Checklist

By alex ryzhkov, resources on car racing track.

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

Car racing is a thrilling sport that attracts millions of fans around the world. In the US, the business potential of car racing tracks is on the rise, with the industry experiencing a steady growth rate of 5.5% per year . If you're considering starting your own car racing track, this blog post is for you. We've put together a comprehensive checklist of 9 essential steps to help you write a business plan that will set you on the path to success.

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.

Analyze the competition to determine the unique selling points of your track. Identify what sets you apart from other racing tracks in the area and use it to your advantage in your marketing efforts.

Choosing the right location is crucial for the success of your car racing track. Consider factors such as accessibility, proximity to potential customers, and the availability of suitable infrastructure. Conduct a thorough assessment to determine the ideal location for your track.

Before diving into the financial aspects, it's important to assess the financial feasibility of your business idea. Create a detailed budget, taking into account the costs of acquiring or building a track, maintenance expenses, and operational costs.

Outline your business objectives to define your track's mission and vision. Set specific, measurable, achievable, relevant, and time-bound (SMART) goals that will guide your decision-making and ensure the success of your car racing track.

Developing a marketing strategy is essential to attract racing enthusiasts and fill the stands. Determine how you will promote your events, reach your target audience, and generate excitement around your track. Consider leveraging social media, partnering with local businesses, and collaborating with racing teams to boost your track's visibility.

It's crucial to comply with all the legal requirements and obtain the necessary permits to operate a car racing track. Research the applicable laws and regulations in your state or municipality, and ensure that you have all the necessary licenses and permits in place before opening your doors.

Last but not least, create a preliminary budget to estimate your track's revenue and expenses . Consider potential sources of income, such as sponsorships, ticket sales, concessions, and merchandise. This will help you assess the financial viability of your track and plan for its long-term sustainability.

By following these 9 steps, you'll be well on your way to writing a comprehensive business plan for your car racing track. Stay tuned for more tips and insights on becoming a successful track owner. Happy racing!

Conduct Market Research

Market research is a crucial step in developing a successful business plan for a car racing track. It involves gathering and analyzing relevant data about the car racing industry, potential customers, and competitors.

Start by researching the overall demand for car racing in your target market. Look for statistics and trends that indicate the popularity of car racing events, the number of racing enthusiasts, and the potential growth of the industry. This information will give you a better understanding of the market size and potential opportunities.

Next, identify your target audience. Determine who your ideal customers are, including their age, gender, income level, and interests. Understanding your target audience will help you tailor your services and marketing efforts to meet their specific needs and preferences.

• Survey potential customers to gather insights on their preferences and expectations for a car racing track.
• Attend car racing events and engage with enthusiasts to gain firsthand knowledge of their experiences and interests.
• Connect with local racing clubs or organizations to understand their needs and potential partnership opportunities.

In addition to understanding the demand and target audience, it is vital to analyze your competition. Identify existing car racing tracks in your area or similar markets and study their business models, pricing strategies, and customer reviews. This analysis will help you identify areas where you can differentiate and position your car racing track for success.

By conducting thorough market research, you will be equipped with the necessary information to make informed decisions about your business plan, including location selection, services offered, and marketing strategies. It will also provide insights into the financial feasibility and potential profitability of your car racing track.

Define Your Target Audience

In order to effectively market and cater to your target audience, it's crucial to define who they are. Understanding the demographics, preferences, and needs of your audience will allow you to tailor your offerings and marketing messages accordingly.

• 1. Conduct market segmentation: Break down the population into distinct groups based on characteristics such as age, gender, location, income, and interests.
• 2. Analyze your competitors' audiences: Study the target audiences of other car racing tracks and similar sports venues in your area. This can provide valuable insights into the potential audience for your track.
• 3. Gather feedback from enthusiasts: Engage with car racing enthusiasts through online forums, social media groups, and local racing events. This will give you a deeper understanding of their preferences and expectations.
• Consider partnering with local car clubs or racing organizations to gain access to their existing networks of enthusiasts.
• Offer surveys or questionnaires to gather specific data on your target audience's demographics, interests, and willingness to spend on race events.
• Create a customer persona or profile to consolidate all the information you've gathered. This will serve as a reference point when developing marketing strategies.

Analyze The Competition

In order to develop a successful car racing track business, it is crucial to analyze the competition in the industry. This will help you gain insights into what other tracks are offering, identify any gaps in the market, and differentiate your business to attract customers.

Start by researching other car racing tracks in your area and beyond. Look into their race schedules, the types of events they host, and the target audience they cater to. Pay attention to their pricing structure, ticket sales, and marketing strategies. By understanding their strengths and weaknesses, you can position your track to stand out.

Additionally, observe the experiences of racers and spectators who have attended races at different tracks. Listen to their feedback and identify areas where you can improve. This could be related to track conditions, facilities, customer service, or the overall atmosphere of the track.

Once you have gathered all the information, list down the key factors that set your track apart from the competition . Determine what unique selling points you can offer to attract racers, sponsors, and spectators. This could be anything from a state-of-the-art track facility, exceptional customer service, or a diverse range of racing events.

Tips for Analyzing the Competition:

• Visit competitor tracks and attend races to experience what they offer firsthand.
• Connect with racers, sponsors, and spectators to gather feedback on their experiences.
• Research online platforms, such as websites and social media, to understand how the competition markets themselves.
• Identify any potential opportunities or gaps in the market that your track can capitalize on.
• Regularly update your analysis to stay informed about any new developments in the industry.

Determine The Location

When it comes to opening a car racing track, the location plays a critical role in the success of your business. The right location can attract a larger audience and ensure convenient access for participants and visitors alike. Here are a few key considerations when determining the location for your car racing track:

• Accessibility: Look for a location that is easily accessible by major highways or roads. This will make it convenient for both racers and spectators to reach the track.
• Proximity to target audience: Analyze your target audience and choose a location that is within a reasonable distance for them to travel. Consider the demographics and interests of your audience to ensure the location aligns with their preferences.
• Amenities: Look for a location that has the necessary amenities to support your business, such as ample parking space, concessions areas, and restroom facilities.
• Safety: Safety should be a top priority when selecting a location. Ensure the track can be designed in a way that minimizes risks and provides necessary safety measures for both participants and spectators.
• Surrounding infrastructure: Consider the surrounding infrastructure, such as nearby hotels, restaurants, and entertainment venues. These amenities can enhance the overall experience for participants and visitors, increasing the attractiveness of your track.
• Consider the climate of the chosen location and any seasonal fluctuations that may affect the track's operations.
• Research local zoning regulations and permits required for the operation of a car racing track.
• Visit potential locations in person to assess their suitability and gather firsthand information.
• Consider conducting a feasibility study to analyze the long-term viability of the location.
• Engage with local authorities and community members to discuss your plans and address any potential concerns.

Assess The Financial Feasibility

Assessing the financial feasibility of your car racing track business is crucial to determine if your venture will be financially viable in the long run. It involves analyzing the potential costs and revenue streams associated with operating the track. Here are some key steps to assess the financial feasibility:

• Estimate Startup Costs: Calculate the initial expenses required to set up the car racing track, including land purchase or lease, construction and infrastructure, track equipment, safety measures, and personnel hiring.
• Project Operating Expenses: Determine the ongoing operating expenses that you will need to cover, such as utilities, maintenance, staff salaries, insurance, marketing, and promotion.
• Forecast Revenue Streams: Identify and analyze the potential revenue streams for your car racing track, such as ticket sales, sponsorships, concessions, merchandise sales, and track rentals. Consider factors like projected attendance, ticket prices, sponsor interest, and market demand.
• Conduct a Break-Even Analysis: Calculate the estimated number of events, attendees, and average revenue per event required to cover your operating expenses and break even. This analysis will help you understand the minimum level of activity needed to ensure financial sustainability.
• Perform a Profitability Analysis: Assess the potential profitability of your car racing track by comparing the forecasted revenue and expenses. Consider different scenarios, such as varying attendance levels, ticket prices, and sponsorships, to understand the financial outcomes under different circumstances.
• Consult with industry experts and professionals to get insights into typical financial benchmarks and performance indicators for car racing tracks.
• Consider conducting a financial feasibility study or engaging a financial consultant to get a comprehensive understanding of the financial viability of your business plan.
• Keep in mind that financial feasibility is not just about profitability; it also involves ensuring that your car racing track can generate sufficient cash flow to cover expenses and meet financial obligations.

Outline Your Business Objectives

When starting a business, it is important to establish clear objectives that guide your operations and help you measure your success. By outlining your business objectives, you can create a roadmap for your car racing track and ensure that all efforts and resources are aligned towards achieving your goals.

1. Identify your financial goals: Determine the level of profitability you want to achieve and set specific targets for revenue generation. Consider factors such as ticket sales, concessions, merchandise sales, and sponsorships in order to develop a comprehensive financial plan.

2. Define your target market: Clearly identify the audience you want to attract to your car racing track. Consider demographics, interests, and preferences to tailor your offerings to their needs and desires.

3. Establish a competitive edge: Outline how you plan to differentiate your car racing track from competitors. This could include unique race events, innovative technology, exceptional customer service or any other factor that sets you apart.

4. Provide exceptional customer experience: Set a goal to deliver an outstanding customer experience at your car racing track. This can include factors such as well-maintained facilities, professional staff, and engaging events that keep customers coming back.

5. Expand your customer base: Develop strategies to attract new customers and expand your reach. This could involve partnerships with other businesses, targeted marketing campaigns, or hosting high-profile races and events that attract a wider audience.

6. Ensure sustainability: Consider the long-term viability of your car racing track. Set objectives to minimize environmental impact, prioritize safety measures, and maintain financial stability for sustained growth.

Tips for outlining your business objectives:

• Be specific and measurable with your goals: Set clear targets that can be tracked and evaluated.
• Consider both short-term and long-term objectives: Balance immediate financial targets with broader goals for growth and development.
• Review and refine your objectives periodically: As your business evolves, revisit and update your objectives to stay aligned with market trends and changing customer expectations.
• Communicate your objectives to your team: Ensure that all employees are aware of and understand the business objectives, fostering a shared sense of purpose and commitment.

Develop A Marketing Strategy

Developing a strong marketing strategy is crucial for the success of your car racing track. It will help you attract customers, build brand awareness, and drive revenue. Here are some important steps to consider:

• Identify your target market: Understand the demographics and preferences of your potential customers. Determine whether your track will cater to professional racers, amateur enthusiasts, or both.
• Create a compelling brand identity: Develop a unique identity for your car racing track that sets you apart from the competition. This includes a captivating logo, consistent visual branding, and a strong online presence.
• Establish partnerships and sponsorships: Collaborate with local businesses, racing teams, and sponsors to create mutually beneficial partnerships. This can help increase brand visibility and generate additional revenue.
• Utilize digital marketing: Leverage social media platforms, search engine optimization (SEO), and email marketing to reach your target audience. Regularly update your website and social media profiles with engaging content to keep your audience informed and engaged.
• Organize promotional events: Host promotional events such as open track days, meet-and-greet sessions with professional racers, and discounted ticket offers to attract new customers and create buzz.
• Optimize customer experience: Focus on providing exceptional customer service and a memorable racing experience. Encourage customer reviews and testimonials to build credibility and attract new customers.
• Offer special discounts or packages for group bookings or recurring customers.
• Collaborate with local media outlets to get coverage for your racing events.
• Engage with your audience through live streams, behind-the-scenes content, and interactive social media posts.

Evaluate The Legal Requirements And Permits

When starting a car racing track, it is crucial to thoroughly evaluate the legal requirements and permits that must be obtained. This step is essential to ensure compliance with local, state, and federal regulations regarding motorsports facilities.

• Research the laws and regulations:

Begin by researching the laws and regulations specific to your location. Consult with local authorities, such as zoning boards and planning departments, to understand the requirements for operating a car racing track.

• Obtain necessary permits and licenses:

Identify and obtain the permits and licenses required to operate a car racing track. This may include permits for noise control, environmental impact, land use, and safety regulations. In some cases, you may need to secure permits for specific events or races.

• Ensure compliance with safety regulations:

Safety should be a top priority for any car racing track. Evaluate safety regulations and guidelines set by organizations such as the Sports Car Club of America (SCCA) or the National Hot Rod Association (NHRA). Implement safety measures such as protective barriers, fire suppression systems, and proper signage.

• Establish liability insurance:

Car racing tracks involve inherent risks, and it is critical to have comprehensive liability insurance coverage. Work with an insurance provider experienced in motorsports to ensure you have adequate coverage that protects your business and participants.

• Consider legal counsel:

Engage the services of a legal professional who specializes in motorsports or business law. They can guide you through the legal aspects of starting and operating a car racing track, ensuring that you comply with all necessary requirements.

• Keep yourself updated:

Stay informed about any changes or updates to the legal requirements and permits for car racing tracks. Regulations may evolve over time, and it is essential to maintain compliance and avoid any penalties or fines.

• Build good relationships:

Establish connections with local authorities, community leaders, and organizations involved in motorsports. Developing positive relationships can help facilitate the permit approval process and gain support for your car racing track.

• Consult with industry experts:

Reach out to experienced track owners, event organizers, or consultants in the motorsports industry. Their insights and experiences can provide valuable guidance on navigating the legal landscape and meeting all necessary requirements.

Create a Preliminary Budget

Creating a preliminary budget is a crucial step in starting a business, particularly when it comes to a car racing track. A well-planned budget will help you determine the financial feasibility of your venture and ensure that you have sufficient funds to cover all necessary expenses. Here are some important steps to follow when creating a preliminary budget for your car racing track:

1. Estimate start-up costs: Begin by estimating the initial costs required to set up your car racing track. This may include expenses such as land acquisition, track construction, facility development, safety equipment, licensing fees, and initial marketing efforts. It's essential to conduct comprehensive research and obtain accurate quotes to create a realistic estimate.

2. Calculate ongoing expenses: Identify and calculate the ongoing expenses that your car racing track will incur. These may include personnel salaries, maintenance costs, utilities, insurance, marketing, and supplies. It's important to consider both fixed and variable expenses to have a comprehensive understanding of your financial obligations.

3. Determine revenue streams: Identify the various sources of revenue for your car racing track. This may include ticket sales, sponsorships, concessions, merchandise sales, track rentals, and any other potential income streams. Make reasonable revenue projections based on market research and industry standards.

4. Analyze cash flow: Assess the cash flow of your car racing track by examining the timing of income and expenses. Understanding when your revenue will come in and when expenses will occur is crucial for effective budget management. This analysis will help you identify potential cash flow issues and plan accordingly.

• Consult with industry professionals or accountants who have experience in the motorsports industry to gain insight and advice on creating an accurate budget.
• Consider incorporating a contingency fund into your budget to account for unexpected expenses and emergencies.
• Regularly review and update your budget as your business grows and evolves to ensure financial stability.

By creating a preliminary budget for your car racing track, you'll have a solid foundation for managing your finances and making informed business decisions. Remember, thorough research and accurate estimations are the keys to developing a realistic budget that will help you achieve long-term success in the car racing industry.

In conclusion, writing a comprehensive business plan for a car racing track involves conducting thorough market research, defining your target audience, analyzing the competition, determining the location, assessing the financial feasibility, outlining your business objectives, developing a marketing strategy, evaluating the legal requirements and permits, and creating a preliminary budget.

By following these nine steps, you can ensure that your business plan is well-rounded and strategically designed to succeed in the competitive world of car racing tracks. With a solid plan in place, you'll be well-equipped to attract sponsors, generate revenue through ticket sales and concessions, and cater to a diverse audience year-round.

Remember, the success of your car racing track ultimately depends on your careful planning and execution. Taking the time to create a comprehensive business plan will set you on the right path for a profitable and successful venture in the car racing industry.

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How To Start A Motorsport Business

Those planning on entering the exciting world of motorsports need to know these important steps.

The motorsport industry is worth millions of dollars. According to a recent survey, 8.83 percent of high-income Americans participate in motorsports. Experts believe the worth of the global motorsports market will grow to $2,181.4 million in 2028 . Looking to start a motorsport business? Here’s a step-by-step guide.

1 Create A Business Plan

Every successful business starts with a business plan. It should cover the type of business you want to run. Do you want to sell specific items, such as motorsport equipment and accessories? Or do you intend to deal with everything related to motorsports?

What’s the budget for the business? What’s the mission and vision? Is your business idea viable enough to attract lenders or investors? A good business plan will help you focus on the things you need to do to achieve your goal.

RELATED: These Are The Most Dangerous Motorsport Events In The World

2 Secure Funds

Your business model and the size of the store will determine how much funding you’ll need to start. Consider the type of inventory you intend to sell and whether you plan to sell online or operate a walk-in store. A physical store will require more money than an online one.

You can start the business with personal savings, money borrowed from family and friends, or apply for title loans online . Title loans offer quick cash, and you only need to use your car as collateral. Alternatively, you can seek funding from investors or a bank if you plan to open a bigger store selling motorsport products.

RELATED: 12 NASCAR Kids Who Outdid Their Famous Dads (And 13 From Other Motorsports)

3 Register The Business

Complete the legal processes to ensure your business operates legally. Choose a business name and check if it’s available with your county clerk before registering it.

Decide whether the business will be a corporation or a limited liability company (LLC). Fees for setting up an LLC and a corporation may vary depending on where you live. Inquire about all the business licenses and permits you’ll need in order to sell motorsport products in your area.

4 Find A Strategic Location

Some cities are more famous for motorsport activities than others. For instance, Indianapolis is known for its Motor Speedway , which ranks in the top ten worldwide. Setting up your motorsport business near such a location can boost your chances of success.

RELATED: De Tomaso Collaborates With A German Motorsport Genius To Build The P72 Supercar

You’ll need a large space to house all of your inventory if you decide to set up a physical store. Look for a space with a showroom floor and a warehouse that can accommodate all your merchandise. Also, you’ll need garage space to assemble and perform repairs on the vehicles you sell.

5 Market The Business

People will not know about your motorsport business if you don’t advertise it. Invest in digital and traditional marketing to sell your equipment and apparel. Advertise online and on billboards, newspapers, radio, and any other media at your disposal.

Develop a strong social media presence and post your products on platforms such as Facebook and Instagram. Reach out to local bloggers, join motorsport groups on Facebook, and market your business on any relevant online platform. You can also connect with prospects on gaming platforms, but you may need to spend a lot of money to get your motorsport business featured.

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 .

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.

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.

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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.

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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

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How to Start a Motorsport Business

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Many people enjoy the thrill of driving or boating at high speeds, and because of this, the motorsport business has vast potential. By opening a motorsport store, you can take advantage of selling products to this portion of the public. If you are passionate about motorsports, you can make money by working in an area that you enjoy. When opening this type of store, you will have to complete the proper steps in the process.

Determine what type of motorsport store you will have. You may want to specialize in a particular area, such as selling motorcycles or jet skis. In some cases, you may want to make an unusually large door and carry a wide array of products related to motorsports.

Create a business plan related to your motorsport business. In the business plan, include your purpose and mission statement as well as financial projections of what you expect the business to do. The business plan can help you explain your vision to lenders and potential investors.

Complete the legal aspects of setting up your business. For example, you will need to register your business name with the county clerk. You should also set up a business entity such as a limited liability company or a corporation. To set up an LLC, you will file articles of organization with your state and pay a fee. If you want to set up a corporation, you will file articles of incorporation with your state and pay a filing fee. Either one of these entities can provide you with personal limited liability. You will also need to buy a business license to sell products in your area.

Secure a location for your motorsport business. You need a commercial building that is big enough to house all of the products that you plan on selling. You will most likely need a showroom floor and a warehouse. In some cases, you may also want to have a garage space on the premises to perform repairs on vehicles that you sell. In many cases, leasing a building is the best approach so that you are not tied down to a particular location.

Acquire the inventory that you will need to sell. This may include buying motorcycles, jet skis, life jackets, tires, accessories and other items related to motorsports.

Promote your motorsports business. This will involve advertising in various places such as on billboards, in the newspaper, in magazines, on TV, on the radio and online. Use promotions to try to get customers in the door.

• Bplans: Motorcycle Shop Business Plan
• Start Up Biz Hub: Jet Ski Rental Business
• Nolo: Start Your Own Business -- 50 Things You'll Need to Do
• Examine the area in which you plan on putting your business. Not every area can support a dedicated motorsports store. Make sure that you have enough interest in the area and not much competition.
• Taking on this type of business carries with it some risk. Before you invest a relatively large amount of money, make sure that you understand the risk involved.

Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.

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Start A Car Race And Drag Strip Business - Business Ideas

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting a car race and drag strip business requires a great deal of effort, dedication, and most importantly passion .

If you're interested in how to sell car race and drag strip, or selling car race and drag strip online, you can use this page as a guide for everything you'll need to know.

Startup Costs

Successful businesses, pros & cons, marketing ideas, direct sales.

Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

According to Nielsen , 92% of people trust recommendations from friends and family.

Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

According to Oberlo , approximately 48% of the global population use social media, and the number is ever-growing.

Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

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Write Off Your Racing

A uto racing is expensive at any level. Often, a racer looks to reduce the cost by treating it as a business activity to deduct the expenses.

Racers who do this have encountered mixed results when the IRS challenges their returns. If you are going to give this a try, it’s a good idea to understand how the tax rules apply, so your racing activity stands the best chance of being deductible.

Is it a business?

If you’re Tony Stewart, there isn’t much reason to read further. Stewart-Haas Racing is unquestionably a business aiming to make money — no matter how much fun Mr. Stewart has driving in races. Large amounts of sponsor fees, purses, endorsement revenue, merchandise sales, and so on demonstrate that making money is the goal, and all legitimately deductible expenses will go unchallenged.

But for the rest of us, it’s pretty hard to see how we are ever going to make any money racing. To deduct our racing expenses, we have to justify the racing as a promotional activity for some other business we own. The question becomes whether the racing activities are bona fide business promotion expenses — or just an attempt to get the government to subsidize our hobby.

Ordinary and necessary expenses

To be deductible, auto racing expenses must be “ordinary and necessary” to the operation of the related business. But, as in many tax situations, ordinary words do not always carry their ordinary meanings, as racers need to work on their car and use equipment.

The Tax Court routinely interprets “ordinary” to mean only that the expense has a reasonably proximate relation to the operation of the business. It does not have to be something that is common among similar businesses. “Necessary” has been interpreted to mean only that the expense is helpful and appropriate in promoting and maintaining the business. It does not have to be essential — or the only way that an objective might be achieved. Both definitions are helpful.

Car dealers

One of the leading Tax Court cases is The Lang Chevrolet Company (1967), in which a Chevrolet dealer deducted the cost of racing Corvettes driven by the owner’s son Richard.

Lang Chevrolet engaged in auto racing to demonstrate the abilities of its personnel. The court saw that the dealership’s ability to modify a car into a national champion race car would give customers the confidence that the dealership had plenty of skill and knowledge to service their street cars.

This was communicated through the trophies displayed at the dealership and through media publicity that the racing generated. Racing also gave Lang Chevrolet a bit of a marketing “gimmick” that set it apart from its competition.

The IRS cried foul, saying that Lang raced because he enjoyed it. The court didn’t care, stating, “Surely Richard must have enjoyed something about racing or else he would not have risked his life every time he took a Corvette on the track.” The court added that no case had disallowed a business deduction only because the employee derived some pleasure from his work.

The IRS also argued that the company would never have raced had the driver not been the owner’s son. The court didn’t buy that either, noting that Richard had driving skill, it was cheaper to use him than an unrelated employee, and that “a Lang driving a Chevrolet easily and logically connects racing with the Lang dealerships.”

But car dealers don’t get a free pass. In another case, a car dealer’s racing was found not to be proximately related to his auto dealership business, as it did not substitute for other advertising and the costs of racing exceeded the dealership’s total advertising budget.

Murkier connections

You don’t have to have an automobile-related business to write off your racing. Another important case involved a company that designed and manufactured stencils used for quilts, arts and crafts, and clothing. The court saw great benefit from the taxpayer’s use of photographs of his race cars at trade shows where quilting products were displayed. They caught people’s eyes and gave the sales people something to talk about with potential customers.

Another case involved a metal-building constructor who made “several contacts” at the races and received “at least two contracts” from his racing activities. The actual business results justified the deductions.

Image creation

Our firm recently successfully defended an audit involving a criminal defense lawyer’s racing activities. The business purpose was that the racing bolstered the lawyer’s image among race participants and his other clients.

Here is how we sold that to the IRS:

“Perry” is a very successful criminal defense attorney. He races regularly and hard, and he wins often. He has impressed and become acquainted with his fellow racers, and he has generated actual business from them. We identified a number of actual cases on a no-name basis — drunken driving, marijuana growing, felony fraud — that involved racers or their families. That made Perry’s case similar to the metal-building constructor case.

I took the auditor to Perry’s office and showed him how Perry had incorporated his auto racing into his lawyer “persona.” Trophies, photos and posters were all over his office, where clients couldn’t miss them. That gave them something to talk about — and helped form a personal connection with potential clients. Potential clients recognized racing as an unusual activity for a lawyer, and it created a marketing “gimmick” that set him apart from his competitors. These same results were important in Lang and the quilting company case.

The very effective marketing “gimmick” was that it was Perry who drives the cars. That was what gave people reason to talk to him at the races — and to talk with him about racing in his office. Most importantly, it was what created his personal image as a fierce competitor who hated to lose — exactly the qualities that prospective clients wanted to see in their criminal lawyer.

We stressed that criminal defense work is a young person’s game. Most clients are much younger than Perry, who is in his mid-60s. Energy and stamina is a concern for these younger clients. After all, they have to pay their legal fees up front and in full, and if their lawyer can’t cut the mustard, they don’t do very well. The racing persona gives them confidence that Perry will fight for them to the end, and that he wants to win for them.

Reasonableness

Even if your racing expenses qualify as deductible, they must also be reasonable in amount. In application, reasonableness focuses on the relationship between the racing expenses and the gross revenues and other advertising expenditures of the business.

For example, in a case where a company operated five Round Table pizza restaurants, it was allowed to deduct its auto racing expenses up to the full amount of the 3% of gross revenues that its franchisor required it to spend on advertising — but not more.

Making your case fit

The key element is to clearly identify the connection between your racing and your business. Is it the spectators seeing your business name on the car? The impression your performance creates? The effect it has on your personal image? How else do they tie together?

Once you’ve identified the tie-in, then you need as much documentation as possible regarding the actual business benefits that you obtain from the racing. Being able to identify actual business transactions generated from racing is a big plus.

It is important to operate the racing in a business-like manner. Good records and good decision-making point to a business activity rather than a hobby.

Business signage on the car is also very helpful.

Use an S corporation

A useful technique is to form an S corporation dedicated to the racing activity. Your business would pay sponsor fees to the S corporation, which would own the car and bear all the racing expenses. The sponsor fees should be set so that the S corporation ends up with a small profit each year. This creates two advantages:

First, the sponsor fees are deducted on your business return as an advertising expense, which is what they really are. That doesn’t stand out as much as a large auto or racing expense on a law firm’s tax return, for example.

Second, the S corporation becomes engaged in a standalone racing business, which justifies its expenses. If it shows a minor profit, that is pretty low on the IRS radar screen.

Problems can arise when the S corporation shows losses every year — especially large ones. That raises the risk of challenge on the basis that the corporation is not engaged in the racing activity for purposes of generating a profit, colloquially referred to as the “hobby loss rule.” Under this rule, net income is taxable, but net losses are not deductible. You don’t have to have a profit every year, but a lengthy series of losses can attract inquiry.

Deducting your racing isn’t easy, but careful thought and planning can give you the best shot possible. ♦

JOHN DRANEAS is an attorney in Oregon. His comments are general in nature and are not intended to substitute for consultation with an attorney. He can be reached through www.draneaslaw.com .

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Auto Parts Store Business Plan

Start your own auto parts store business plan

Southeast Racing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.

The Market Southeast Racing Parts will be participating in an exciting, growing market. Motorsports has seen explosive growth in the USA in the last decade. It is now the fastest-growing sport in the USA. The market is worth $1.5 billion annually. A recent survey indicates that over 385,000 people have competed in organized motorsport events with even more people who have “souped” up their cars but have yet to compete in organized events. Additionally, TV coverage for motorsports has increased dramatically helping fuel growth. Lastly, the Carolinas has experienced record population growth, 25% within the last decade making SRP’s chosen location attractive.

The Organization Southeast Racing Parts is founded on the idea that maintaining satisfied customers is essential to the financial health of the organization. With this in mind, SRP will be working hard to ensure that all of their customer’s expectations are exceeded in all transactions. To maintain a presence within the racing community and close relationships to customers, Southeast Racing Parts will be an active member of the local racing scene through participation and sponsorship.

Products, Services, and Delivery SRP will be both a brick and mortar company serving the local community as well as offering a catalog with a mail order service. The catalog will be a four-color edition and subsequent editions will be analyzed to determine the cost effectiveness of publishing in this format. SRP will offer engine and chassis parts for a wide variety of cars. Safety equipment and set up equipment will also be offered. All of the popular name brands will be offered in addition to an array of generic label parts. SRP will offer coil rating services as well as scaling services for race cars.

Financials Southeast Racing Parts will be profitable from month one. Margins are forecasted to be respectable. Year one sales will be exceptional with a steady growth rate for the first five years.

Southeast Racing Parts is an exciting opportunity that combines a customer-centric organization with an explosive industry. Motorsports is becoming increasingly popular in the United States with more and more people becoming active participants. Even for those who are not true participants, it is now “cool” to have your car “tweaked out” even just for aesthetics. An investment in Southeast Racing Parts is a high growth, reasonable risk opportunity.

1.1 Objectives

• To make Southeast Racing Parts the number one destination for the purchase of entry-level/novice racing supplies in the Carolinas.
• To achieve a modest initial gross profit margin, increasing that by at least 1% per year until reaching our final target.
• To sell a substantial amount of product the first year.
• To maintain a solid growth rate per year for the first five years.

1.2 Mission

Southeast Racing Parts is dedicated to providing racing products that combine quality performance with value pricing. We wish to establish a successful partnership with our customers, our employees, and our suppliers that respects the interests and goals of each party.

Constantly striving to supply what the consumer is asking for, we will continually review what is available in the marketplace, and what isn’t. Improving on what is available and providing new products and services to the areas of need will help ensure our success in a market driven by consumer demand.

Success will ultimately be measured by our customers choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and selection.

1.3 Keys to Success

To succeed in this business, we must:

• Be an active member of the racing community; i.e., attend functions at local race tracks, attend regional and national trade shows.
• Deliver our products promptly.
• Work with our customers on a personal level, as opposed to the “What’s your customer number?” mentality of large mail order firms.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Southeast Racing Parts is a new company, which upon commencement of operations will provide entry-level oval track racers with affordable products and quality service.

2.1 Company Ownership

Southeast Racing Parts is a North Carolina corporation, subchapter S, owned entirely by Tim and Molly Jones.

2.2 Start-up Summary

Our start-up costs are listed on the following page. Major costs include computer hardware, software and setup support; rent, a telephone system, approximately office equipment and furniture, parts shelving and other warehouse equipment, leasehold improvements, and a company pick-up truck.

The company will start out with about three months’ inventory on hand. This means the majority of company assets will consist of inventory and the starting cash balance will not be significant.

You will find that we will need additional funding. The purpose of this plan is to secure financing for that amount.

Later in this plan, when you view the Projected Balance Sheet, Projected Cash Flow and the Projected Profit and Loss, you will notice that we do not show any debt or interest expense. However, by examining these same charts, you will see that we project a sufficient amount of earnings to service a debt load.

Upon negotiations of debt amount and terms, modified charts will be provided upon request.

2.3 Company Locations and Facilities

Southeast Racing Parts will be located at 123 Main Street, Anytown, North Carolina. This location will afford us good visibility along with convenient access for traveling race teams wishing to stop at our location.

Another advantage of this location is the recent announcement of a go-kart/entertainment complex, which will be located directly across the street. This complex will attract many potential customers to our immediate vicinity.

By locating in close proximity to Charlotte, Southeast Racing Parts will enjoy a large built-in customer base. The skyrocketing popularity of NASCAR Winston Cup racing in the last 15 years has only strengthened its role as the hub for most race teams and all the related businesses they’ve spawned.

The sport’s explosion has been so boundless that University of North Carolina-Charlotte researchers conducted a study of the industry to try to determine its impact. The study, completed in December 1996, found that in its surrounding counties, NASCAR racing is responsible for about 2,000 jobs producing more than $200 million in expenditures annually — figures that many in the industry consider conservative in 1998. Many of the people employed within the industry along with their children, other relatives, and friends, take up racing as a hobby.

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The Facility We will initially be leasing 3,000 sq. ft. of a new 10,000 sq. ft. building. As needs dictate, our office and/or warehouse facilities could be expanded into an additional 2,500 sq. ft.

We will be sharing this facility with another business that is also involved in racing, and their business attracts many of the local racers. In light of this, we will meet many potential customers simply because of our association with them.

This location will consist of a showroom, office space, and warehousing. All deliveries and shipments will be serviced at this location. We will also have ample parking available.

Southeast Racing Parts will sell racing products to the entry-level/novice racer. These products will include engine and chassis parts along with safety and set-up equipment. Services that we will provide include coil spring rating, along with a scaling service for race cars.

3.1 Product Description

Southeast Racing Parts will assist its customers in selecting the best parts for their application at a price that meets or exceeds their expectations. In the event of a problem, we will be there to assist and counsel the customer to a speedy solution.

We will carry or have quick access to most major lines of racing equipment. We will also carry generic “plain label” merchandise that we will market under our own performance name. Private labeling will allow us, in most cases, to greatly increase our profit margins since the procurement costs are much lower for these types of items.

Even though our target market is the entry-level racer, our product mix will be sufficient to fill most of the needs of even the most hard-core racer. With leisure time at a premium, our reputation for having needed items in-stock will save our customers both time and money. We will be open Monday through Saturday with hours yet to be determined.

Our experience has shown that most entry-level racers’ preference is for low prices. We believe we can offer products that indeed are lower in price without sacrificing the performance and safety concerns that our customers will demand. Southeast Racing Parts will provide precisely the level of service that today’s entry-level racer requires.

3.2 Competitive Comparison

Within our niche, we only have one significant competitor. They, however, do not carry engine parts, which should give us an edge in that respect.

In general, however, our competition is not in our targeted portion of the market. This competition consists mainly of these three groups:

• NASCAR Winston Cup suppliers.
• Asphalt late model chassis builders.
• National mail order suppliers.

More discussion is included later in this plan on competitive businesses.

3.3 Sales Literature

To drive sales initially, Southeast Racing Parts will utilize an existing supply catalog. This four-color catalog will have a different cover with the Southeast Racing Parts logo, phone number, etc., printed on it.

After much research, we found that the product mix in this catalog most closely resembles the needs of the consumer niche that we are focusing upon. An agreement was reached to supply these catalogs to us at no charge. This precludes the need to invest in catalog production at the outset. In turn, we will be using the catalog company as a supplier for some of the inventory lines that we carry. We have developed a price sheet to be enclosed with each catalog.

We will produce flyers in-house on an as-needed basis. These will primarily be to showcase new products and/or to advertise special sales promotions. The flyers will be distributed in the same fashion as the catalogs.

Following are planned means of catalog distribution:

• Give away in-store.
• Enclose in mail order shipments.
• Personally hand out at area race tracks.
• Distribute at local trade shows and auctions.
• Sell for $3 through local racing newspaper business card advertisements.
• Upon the release of a new catalog, we would need to check into the financial feasibility of utilizing direct mail as a means of bulk distribution.

3.4 Sourcing

This is an area that we feel we will enjoy a distinct advantage over much of our competition. Because of our past work experience in purchasing, we have a vast number of supplier contacts within the racing industry. We have good, long-term, solid relationships with many of these vendors which, in many cases, will allow us to achieve decreased cost-of-goods and/or additional terms. Many of these suppliers have already committed to special deals for us, such as waiving their buy-in requirements, additional payment terms, sales referrals, etc.

We will purchase our inventory from both regional wholesalers and direct from the manufacturers. We will use the regional wholesalers more initially because of their ability to service us faster. This will lower our margins slightly; however, we feel that the upside will be that it will allow us to turn our inventory faster. As our sales volume increases, we will shift our buying patterns away from the wholesalers and purchase more of our inventory direct, which will result in increased profits.

3.5 Technology

All computer hardware and software systems that will be utilized by Southeast Racing Parts have been carefully and diligently evaluated. We will use off-the-shelf, PC-based software for accounting purposes including AR/AP, inventory, purchasing, sales, and returns. We will start out with three workstations and expand upon that as necessary.

Many of the computer systems used in the racing industry today are outmoded and obsolete. The major suppliers are reluctant to change because of the huge capital expense to change over their systems at one time. Hence, they keep going with the old and outdated.

By choosing this software, our training costs will be reduced tremendously. Much of the software used by competitors takes weeks to learn and master. Southeast Racing Parts’s use of this software will enable a basic, computer-literate employee to learn the system in one day.

This system will speed our order entry process, assist us in sales forecasting, and allow us to give a higher level of customer service.

3.6 Future Products

We must remain on top of new products and trends. The most important factor in developing future products is market need. Our understanding of the needs in our market niche is one of our competitive advantages.

As stated earlier, we will have our own private label brand. Not only are profit margins better than name brands, but these accessories will help build name identity and awareness for Southeast Racing Parts when they are used on the race track. As our sales volume increases, this will be an area that we can expand.

Another natural area for expansion in the future would be the implementation of a website. On-line commerce is becoming an increasingly attractive option, due to relatively low cost of operation, the global reach of the medium, and the increasing security. Our business model could quite easily expand to include a form of Internet commerce in a variety of racing equipment.

Market Analysis Summary how to do a market analysis for your business plan.">

Overall it is estimated that the total retail market for hardcore racing products is $1.5 billion annually and it still continues to grow.

The only real threat to our venture would be a similar new entry to the marketplace. This opportunity may best be described as one ready and waiting for the first entrant who arrives with a well-conceived plan, sufficient industry experience, and the required capitalization.

4.1 Market Segmentation

The racing industry is in a boom period. While there are many items from various vendors available, Southeast Racing Parts has approached the market as a specialty retailer — a provider of parts and services to the entry-level racer.

Our target customer in this segment will have a wide range of racing and automotive skills, but our most important target customers are relatively unsophisticated at racing. We will be able to serve this customer well not only by offering them parts at an affordable price, but also by giving them advice that ensures they get the task done correctly, therefore improving their on-track performance.

4.2 Target Market Segment Strategy

Our segment definition is in and of itself strategic. We are not intending to satisfy all users of racing equipment, but rather those who are just starting out and those who are struggling to keep up. We can save our customers time and money, not so much within our pricing structure, but by assessing their needs and directing them toward the proper product. Racers, by nature, tend to desire a high-end product, when often a low to mid-end product will do as good as, or sometimes even a better job. By always dealing in an honest and ethical manner, we will build customer loyalty and word-of-mouth sales that many of our competitors are lacking.

4.2.1 Market Trends

Trends are in our favor. We have identified four major trends that help us:

• Motorsports in general, and circle track racing in particular, have experienced explosive growth in the ’90s. Most experts attribute this growth to greatly expanded television coverage of motorsports events. This coverage exposes many more potential participants to the sport. By focusing on affordable entry-level racing, we feel that Southeast Racing Parts will be filling a niche in the market.
• This area has experienced tremendous population growth in the past decade, approximately 25%. As racing and the local population grow hand-in-hand, it should make many more potential customers available to us.
• There are a lot of fathers dreaming their son will be the next Jeff Gordon. In fact, there are tens of thousands of serious young kart racers who have chosen this sport over baseball, football, or basketball. They’ll be the ones that fill the fields in the next decade.
• Finally, there is the aging Baby Boomer generation. Many have discharged their duties to their children, who have grown and moved on, and now there is money and time again. They turn to something they always wanted to do, or return to the sport they loved, and they go racing.

4.2.2 Market Needs

Since our target market is the entry-level racer, the most important needs are service, price, and availability, in that order. One of the key points of our strategy is to focus on target segments that know and understand these needs and are willing for us to fulfill those needs.

4.3 Industry Analysis

With expanded television coverage and an enormous base of grassroots motorsports activity, auto racing is a thriving industry, as well as the fastest growing sport in America. As with baseball, it could be argued that auto racing has grown to such popularity because of its vital grassroots foundation. Our customers will be the Little Leagues and softball leagues of auto racing. Outsiders to the racing industry must understand that racers may be the most obsessive consumers of any industry. Because of the pressure to win, they avidly purchase new technology. In most race cars, several parts will become obsolete in the course of a season, even though they function perfectly well.

Racers are hard on their investment, too. New tires might be a weekly purchase, and several engine freshening expenditures might be called for in a season. A good whack at the outside wall, and a racing retailer has a customer or two for shocks, a-arms, fasteners, hubs, and more.

Racers spend what it takes to win; they are not out merely to enjoy the ride. Any person who has spent any time at all in the racing pit has heard the guy in front of him in the snack bar line describe how he postponed a key household expense–the telephone bill or a new household appliance–to purchase a new right rear tire, or other critical racing part.

To service this sport, there are thousands of small businesses across the country skilled in the ways of horsepower and hooking it to the ground. Whether they make their money from parts or services, retailing or building engines, these businesses make it an easy and convenient matter to go racing. Without these local ambassadors of speed, it is hard to imagine the existence of auto racing in a large scale.

4.3.1 Distribution Patterns

Generally, traditional distribution channels are followed. The products are bought from distributors and/or direct from the manufacturers, who have little say in how products are marketed. As in most industries, price levels decrease as volume increases.

4.3.2 Competition and Buying Patterns

We feel that racers understand the concept of service and availability, and are much more likely to pay for it when the offering is clearly stated.

There is no doubt that we will compete much more against the large mail order outfits than against any small local suppliers. We have good indications that racers/customers would rather pay 5-15% more for a long-term relationship with a vendor providing quality service and support. To this point, the racer thinks about price because that’s what he sees emphasized by the mail order companies.

Availability is of utmost importance. The buyer tends to want immediate, local solutions to their problems and/or needs.

By positioning ourselves at the lower end of the market, we will present ourselves to consumers just getting into racing, and we will sell to a base of customers that we can grow with together.

4.3.3 Main Competitors

• (omitted to protect confidentiality)

The above are all targeted towards the professional (NASCAR Winston Cup, etc.) market. They carry a totally different product mix to service that market. Their prices are high, and their interest in selling to the entry-level market is basically nonexistent.

These are both late model chassis builders not targeting the entry-level market. Basically, they stock inventory that’s used just on their own cars. They are both located in the Anytown Motorsports Center business park which is in an out-of-the-way, hard to find location.

They are a large drag racing mail order firm that is skimming the circle track gravy. Since Southeast Racing Parts will cater to the circle track market, we believe that whatever local circle track customers they have will switch suppliers. We will have more knowledge and experience to suit their needs.

As implied in their name, they sell used parts, so in most cases they’re not usable for our target market. They also sell a limited amount of new parts; however, because of their name, most people are not aware of this. Also, they are located in an area which was described earlier as a poor location.

They are the only local competitor that we could identify that was targeting our niche. Following are what we feel are some of our competitive advantages: We feel that we are in a much better location. They utilize a black and white flyer as their main sales tool, and we will have a professional four-color catalog. Also, they concentrate mainly on chassis and safety equipment, where we will also offer a full array of engine parts.

4.3.4 Industry Participants

We are part of the Performance Racing Industry, which includes several kinds of businesses.

Speed Shops : Most of these are small, sometimes part-time ventures run from the individual’s home. Sometimes they will service a local race track; however, they usually carry a very minimal amount of inventory, and are usually operated by a racer or an ex-racer depending solely upon a small circle of friends or acquaintances as customers. They normally are short on business and marketing skills.

Engine & Chassis Builders : Typically these are well-respected firms supplying engines and chassis to the racing industry. Their customer profile lies in the mid to upper end of the market. They offer superb technical support; however, it is only available to customers utilizing their engine or chassis. They stock parts to service their engine or chassis, but are usually limited in areas areas beyond that. Normally their pricing structure is slightly above average.

Mail Order : The racing industry is served increasingly by large mail order firms that offer aggressive pricing on racing components. They are usually impersonal, and have little or no technical support available. For the purely price-driven buyer who purchases parts and expects no support, these firms offer a good option.

Others : There are many other channels through which people buy their racing parts, usually variations of the main three types above.

Strategy and Implementation Summary

Our strategy is based on serving the niche of entry-level racers well. This area is full of small race teams that can’t get products or services from the major vendors who focus only on professional race teams. Also:

• What begins as a customized version of a standard product, tailored to the needs of local racers, can eventually become a niche product that will fill the needs of similar racers across the country.
• We are planning our marketing strategy so that we can eventually reach specific kinds of racers across broad geographic lines.
• We focus on satisfying the needs of entry-level race teams.
• We focus on follow-on technology that we can take to the masses, as opposed to leading edge technology that aims at the professional race teams.

5.1 Marketing Strategy

The retail marketing strategy of Southeast Racing Parts centers on creating a corporate identity that clearly defines our market niche in terms that benefit our customer. Other specific strategies that will be used follow:

• Print Ads – Keeping the Southeast Racing Parts name in front of the customer while getting established will be necessary. We plan on running limited space ads in the local racing newspapers to keep our name and phone number in front of the consumer. We may attempt to showcase a single product in an effort to return revenue from the ad. Our past experience has been that showing measurable revenue from these types of ads is difficult. In the future we plan on utilizing Stock Car Racing magazine and Circle Track magazine (both national magazines) as a method of increasing our sales revenue.
• Press Releases – The local racing papers: The Racing News, Late Model Digest, Dirt Late Model Digest, and The Pit List have offered to run releases and/or stories concerning the opening of Southeast Racing Parts. Stock Car Racing magazine has also extended us the same offer. We will also use the above media to run new product releases.
• Race Car Sponsorship – Entry-level racers can be persuaded into running the Southeast Racing Parts logo on their race car in exchange for a token discount on purchases and/or for receiving technical support.
• Decals – We will have decals manufactured with the Southeast Racing Parts logo. We will include the decals with all of the orders that we ship. Entry-level racers in particular enjoy displaying decals on their race cars, haulers, tool boxes, etc.
• Apparel – We know several people in the area who produce NASCAR apparel. A line of premium Southeast Racing Parts apparel could be designed and produced in very short runs to reduce inventory costs. These can be sold or given away with qualifying purchases to further expose the Southeast Racing Parts name.
• Grand Opening – A Grand Opening is the most successful of any in-store promotions. With manufacturer support, a large number of door prizes can be given away while instantly building a mailing list. Loss leader pricing on a few high volume consumable products will attract in-store traffic. Vendors will subsidize loss leader pricing with a rebate or kickback. Appearances by local racing celebrities would also expose potential customers to Southeast Racing Parts.
• Trade Shows – We will exhibit at approximately four local trade shows annually. Revenue that we produce at the shows will outweigh our expenses for attending.
• Word of Mouth – By giving first-time customers great service and a fair price, the word is sure to spread. Also, the many industry and racer contacts that we already have in the area will prove to be most beneficial in spreading the word.

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful considerations of returns generated.

5.1.1 Promotion Strategy

Our most important vehicle for sales promotion will be our catalog, which is discussed earlier in this plan.

5.1.2 Distribution Strategy

Our customers will buy our products at our location. However, we anticipate a significant amount of mail order sales in order to meet or exceed our Sales Forecast. We will receive orders by mail, phone, or fax, process them immediately, and ship the goods via United Parcel Service.

In the event we are out of an item or we don’t stock it, many of our vendors have offered drop shipping as a service to us. This will allow us to keep our service at a high level, yet let us keep our inventory levels in check.

In the future, electronic commerce with a secure website will be thoroughly investigated for feasibility.

5.1.3 Pricing Strategy

Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be a good value to the racers. However, in the nearly thirty years of experience that we have accumulated in the racing industry, one message rings true: someone can always beat you on price.

Therefore, our pricing strategy is to be competitive within the various product categories, but not to rely on the selling price to overshadow the other advantages of doing business with our company. We will sell ourselves on the basis of a diverse line of quality products, that are readily available, reasonably priced, and backed up by our extraordinary customer service. The products will be checked prior to shipment and all promised shipping dates will be met.

We will strive for a modest gross profit margin, increasing that steadily by year four.

5.2 Sales Strategy

Because Southeast Racing Parts is a new entity, we understand that we will have to prove our company’s worth to racers in order to earn their respect and business.

Most importantly, we need to sell our company, not necessarily the products. We will need to push our service and support capabilities.

5.2.1 Sales Forecast

The following table and related charts show our present sales forecast. We are projecting sales to grow at steadily for the next three years.

Our seasonality, as shown in the chart, is a factor in the racing industry. We will tend to sell much better in the period January through June, while sales trail off in late summer and fall.

Management feels these forecasts are highly attainable.

When Performance Racing Industry completed its annual survey, the resulting figure for total number of racers was 385,000. Within the survey they also found that 150,000 of those were oval track racers. The survey also showed $1.5 billion in annual retail sales for all segments, with 48% of that total ($720 million) derived from the oval track segment.

By dividing that number ($720 million) by the number of oval track racers (150,000), the average annual retail purchases of oval track racers equals $4,800. From our past experience, we believe that each customer we have would spend on average 25% of that figure ($1,200) with our company. Finally, by dividing our first year sales forecast ($350,000) by $1,200 (average annual customer purchases), it shows that we will need 292 customers to support the sales forecast numbers. We believe, by and large, that these are realistic and attainable numbers.

5.3 Strategic Alliances

We have the ability to build strong strategic alliances with many of our suppliers, some of which are listed below.

• (omitted to protect confidentiality). They will set us up as a Warehouse Distributor (W.D.) without the buy-in requirement.
• (omitted to protect confidentiality). They will do “whatever they can” to help us succeed. Possibly supply us with a show car to display in our showroom.
• (omitted to protect confidentiality). They will set us up as a W.D. without the buy-in requirement.
• (omitted to protect confidentiality). They will set us up as a W.D. and could also be persuaded into extending us special terms.
• (omitted to protect confidentiality). They will set us up as a W.D. and help out as needed with additional terms.
• (omitted to protect confidentiality). They have set us up as a dealer and will drop ship when needed.
• (omitted to protect confidentiality). They will work with us by drop shipping direct to our customers and also by acting as a “paper” warehouse so that we may order direct from the manufacturer for a nominal billing fee.
• (omitted to protect confidentiality). Could be persuaded into giving us extended dating on our initial stocking order.
• (omitted to protect confidentiality). They will supply us with used testing equipment at no charge. They have indicated that they would also extend special terms and/or dating on initial stocking order.
• (omitted to protect confidentiality). They will supply us with their 94-page 4-color catalog at no charge.
• (omitted to protect confidentiality). They will set us up as a direct W.D. without the buy-in requirement. Will also assist us in marketing their products in this area.

The following two local warehouses will help us immensely in keeping our own inventory levels in check, while still giving our customers fast service:

• (omitted to protect confidentiality).

Approached properly, these vendors and many others will assist Southeast Racing Parts in becoming a force in the marketplace.

5.4 Milestones

Sample Milestones topic text.

The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

We are a small company owned and operated by Tim and Molly Jones, husband and wife, as a Subchapter S corporation.

Tim Jones – President Tim will be the main salesperson. He will also be responsible for shipping and receiving, inventory management, and the marketing and promotion of products. Tim will assist with record keeping and cost containment.

Molly Jones – Corporate Secretary Molly will maintain the company records and be in direct communication with the accountant and other advisors. She will also be in charge of the computer system and perform all of the desktop publishing for the company. She will assist as needed with sales, shipping and receiving, and customer service related issues. In addition to her regular duties, Molly will be doing Internet marketing from her office at Southeast Racing Parts. We anticipate that 20 hours every week will be dedicated to this marketing. The revenue that will be generated by this is reflected in the Sales Forecast.

The initial management team depends on the founders themselves, with little back-up. We plan on hiring additional personnel as the need for them arises, and as we have the ability to pay them.

6.1 Management Team

Tim and Molly not only have the desire to succeed, but will bring a wealth of knowledge and experience to the Southeast Racing Parts team. They have nearly thirty years of combined experience in the racing industry and have both performed nearly all facets of daily operations for a racing business. Following is a synopsis of their abilities and accomplishments:

Tim Jones (40) – President (background omitted to protect confidentiality)

Molly Jones (29) – Corporate Secretary (background omitted to protect confidentiality)

6.2 Management Team Gaps

We depend on professionals, particularly our CPA, for some key management help. We have retained a local CPA to help us with financial and business management questions since we don’t have a strong background in those areas. Also, we are short on experience concerning human resource issues; however, we plan on utilizing our network of business associates to advise us when the need arises.

6.3 Personnel Plan

The cornerstone of the personnel plan is to maximize productivity and minimize the labor burden on the company’s operating expenses. As we grow, we expect to see steady increases in our personnel to match the increases in sales.

Financial Plan investor-ready personnel plan .">

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Car Racing Track Small Business Idea and Business Plan

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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

• Trade School
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Home  »  Partnership Opportunities  »  Motorsports Marketing

Why Sportscar Racing?

Sportscar racing gathers the highest profile of individuals looking to leverage b2b and networking opportunities in one of the most affluent environments in professional entertainment., building a business case for motorsport sponsorship & experiential marketing.

With luxury offerings such as Executive hospitality, trackside team access, exhilarating high-speed driving experiences, and exclusive high-end wine dinners, deals are no longer made in the boardroom. The Racers Group creates lifestyle experiences designed to captivate your audience, making it the networking tool of choice for the business elite.

The Racers Group will show you how to incorporate highly effective VIP and “bucket list” experiences into your marketing mix, building an internal business case for leveraging sportscar racing sponsorship and field activation for lead generation, Account-Based Marketing (ABM) and even employee engagement.

Motorsports is Undergoing Transformation

In the past, motorsports roi was largely represented as a form of client entertainment and paid media (200mph billboards) where metrics were measured in fuzzy ad impressions. those days are gone. sponsors today focus on tying the investment back to roi, and revenue, as their very livelihood (funding) depends upon it. trg has hired seasoned brand marketers onto their payroll to “talk the language” of measurable marketing and more importantly – design activation that generates business results for sponsors and clients., engaging corporate events, trg transforms routine corporate events into memorable experiences., leverage the exclusive brands, our racecars, drivers, hospitality, and simulators to spice up your conferences, seminars, press events, team building exercises, product launches, award ceremonies, and executive retreats, just to name a few., click here to get started, building a motorsports marketing strategy using trg.

• Review your company’s current year business plan as well as its strategic 3 or 5-year plan to identify key Management-by-Objective (MBO) themes.
• Schedule some ideation time to brainstorm how a motorsports sponsorship and activation strategy can help deliver on those corporate objectives.
• Identify stakeholder groups: for each corporate objective, there will be stakeholders that are responsible for delivering on them. Typically, there are four stakeholder groups that are obvious places to start
• (i) Marketing is responsible for generating demand and converting demand into quality leads,
• (ii) Sales is responsible for converting Leads into Opportunities, and Opportunities into closed revenue,
• (iii) HR is responsible for attracting, developing and retaining top talent as well as overall employee engagement, and
• (iv) Corporate Social Responsibility is responsible for company initiatives relating to environmental and social well-being (similar functions exist for community outreach tied to giving to charity and nonprofit initiatives).

A well-crafted business case will illustrate how the investment in a motorsports sponsorship will help each stakeholder group reach its business goals for which they are "on the hook."

Identify the decision makers/influencers:.

• For each of the stakeholder groups, identify who owns the budget and decision-making authority.
• For each individual on the list, assess whether you have a positive relationship or whether you need to invest time to build one.
• Find out what it is important to them and what makes them tick as you are going to need to convince them to make a behavioral change from what they’ve been doing.

Understand the baseline:

For each stakeholder group, identify their current state of play….

• programs they are currently executing
• program budgets
• historical performance

Specifically, if HR invests in entertaining top recruits or rewarding employee engagement, find out how the program works, the funding behind it, and how success is measured. Similarly, if Marketing invests in events or Sales invests in client entertainment, find out what they are doing, budgets, etc. as you will need to contrast what they are doing today (tactics, metrics) with your proposed motorsport marketing program (tactics, forecasted metrics)

Quantify the WIIFM (“what’s in it for me”) benefits for each stakeholder in easy-to-understand language. Busy executives just need the bottom line. Use creative mockups, add videos, and visuals to help stakeholders visualize what the at-track and in-market experiences would look like and to make an emotive connection.

Also, be clear about the role of each experience and the KPIs you intend to use to measure performance. By aligning your motorsports proposal to corporate objectives, stakeholder motivations (WIIFM), and applying KPIs to track impact to revenue, you increase your chances of gaining approval for a pilot program. Again, people are visual so use graphics mockups, live props, or race team provided video footage to illustrate how the experience would unfold.

Pitch Your Plan

Involve stakeholders in the process by working one on one with them to give a sense of collaboration and engagement. This enables you to detect sales objections early and develop a response before pitching to a broader audience. It also enables you to build consensus along the way. Of key importance will be cooperation from the stakeholder groups to record the assisted-attribution data necessary to track the effectiveness of each VIP/bucket list event and the cumulative impact on reaching business objectives.

Be prepared to internally sell a pilot program (a few VIP events or sponsored race weekends) as a form of “show & tell” to help decision makers and their staff become comfortable with how experiential marketing would work at scale. Once the executive decision makers experience an event first-hand and observe the sales networking, executive conversations, relationship building, other components working together it should become very clear that this is far more than high-speed billboards.

WHY VIP EXPERIENCES ARE ESSENTIAL FOR ACCOUNT-BASED MARKETING

Trg’s activation assets include on- and off-the-racetrack experiences with high-end luxury race cars. over 20 years of building relationships with business partners have yielded dozens of valuable alliances formed from connections made at a trg event..

If you are a B2B marketer, you have been on a roller coaster for the past decade in search of the “secret sauce formula” for attracting high-quality leads to feed the sales pipeline. Like changing fashion trends, MarTech startups like to tell us that our current approach is broken so they can introduce their new tool as the solution to better leads. So now we turn our short attention span to ABM.

The End of Outbound Marketing Was Over-Hyped

In the late 2000’s, the inbound marketing movement (led by Hubspot’s Mike Volpe) declared “outbound marketing is dead” and inbound marketing was the methodology of choice for smart marketers to build a quality lead pipeline. Following Mike’s declaration was an onslaught of content marketing books, workshops, and speakers declaring that “marketers are now storytellers” and that marketing departments should be structured like publishers to support lead nurturing, SEO, etc.

While there is no doubt that inbound marketing and content have a role to play in B2B marketing, marketers that abandoned their outbound marketing efforts soon realized that putting “all their eggs in the inbound basket” was a mistake.

Jon Miller (former Marketo founder and then Engagio CEO) surprised many on a recent ABM webinar when he described his own lead generation revelation while CEO of Marketo. Jon shared that while inbound marketing worked well for lower-value, shorter sales cycle leads it did not work for high-value, longer sales cycle enterprise accounts. Thus, Marketo turned to an outbound strategy — namely, ABM to build relationships and close enterprise accounts. Jon went on to say that VIP experiences are an essential part of a successful ABM strategy to engage executive decision makers. Jon – we couldn’t agree more.

How VIP Experiences Fit Into an Account Based Marketing Strategy

Marketers that we talk to seem to think that ABM is largely an exercise in IP-targeted personalization (website, digital display ads). While these are important tactics within an ABM strategy, they are only a small part of a much bigger picture. ABM blends both inbound and outbound marketing techniques and some of the most powerful include “old school” techniques such as personalized correspondence (direct mail) and intimate executive gatherings to engage high-level decision makers.

Since the goal of ABM is to support account-based selling efforts a key component must be connecting salespeople to executive decision makers. While digital tactics are effective early in the buying cycle, creating deeper engagement with executive level decision makers requires more than clever digital ads and intriguing white papers — it requires relationship building.

Trust is a prerequisite for closing a sale and trust is a process — not an event.

When competing for the attention of executive decision makers, an invitation to dinner, a golf outing or sporting event simply isn’t compelling enough to justify their time as these are readily obtainable/accessible. To capture their attention, you need to offer a “bucket list” experience available to an exclusive few.

This 2-minute sizzle reel highlights some examples of VIP experiences created for brands by Aston Martin Racing North America.

Whereas high attendance events are appropriate for engaging early stage prospects, narrowly attended VIP/bucket list experiences are recommended for later-stage Opportunities. The fact is that unless the executive decision makers and budget owners are engaged — your sales team is unlikely to close the sale. Securing the attention span of these executive decision makers is incredibly difficult and that’s why your event strategy MUST evolve beyond overused golf outings, dinners, and sporting events. Ask yourself this: how many executives making $300K (or more) struggle to golf, dine, and attend sporting events? The TRG VIP experience typically is not available to the general public…it is truly a bucket list experience that appeals to a broad audience.

Use Case Example: Small Group Executive Gatherings

One of the use cases where we see a lot of brands struggle is to attract executive decision makers to small group dialog such as a C-level breakfast, executive round tables, etc. An approach we’ve tested at The Racers Group to support Tech companies is to offer a bucket list VIP experience as an incentive for attendance. For instance, a format we’ve used is as follows: executive round table/briefing (9am to 11am), catered lunch (11:30am – 1pm), VIP race car driving experience (1pm to 4pm), and private wine reception (4pm to 6pm).

Another example includes private wine dinners with executives where high touch interaction with racing celebrities, race car displays, and luxury experiences can add intrigue. In several instances, C-level executives have hosted private dinners at their home and we’ve set up an Aston Martin Racing display out front – complete with race cars displayed in their driveway.

Stealing the Show: Trade Shows and Conferences

Another area where marketers face a steep challenge is attracting and engaging executive decision makers to trade shows, conferences and large-audience events. With big spenders like Marc Benioff hiring rock bands for Dreamforce conferences, how do the rest of us compete?

So how do important brands actually get busy executives to attend the conferences and take meetings with brand sales teams instead of sending their lower-level staff? The answer lies in offering the executives a unique VIP experience that they cannot buy/obtain to create a tipping point of curiosity. This is essential as part of an ABM strategy.

We designed a bucket list VIP experience for clients to consider that include renting the a local sports car track for their respective conference dates. The strategy included three components:

• (i) wrapping Aston Martin race cars with messaging that reinforced their conference theme (e.g. speed, business agility),
• (ii) race cars drivers interacting on the show floor, and
• (iii) pro drivers in six Aston Martin Vantage GT4 race cars waiting at the Las Vegas Motor Speedway for high-speed VIP driving experiences.

As a result, clients are offered an opportunity to integrate a premium brand (Aston Martin, Porsche, & Lamborghini), reinforce their brand messaging (speed, agility), create buzz on the conference floor (and with media/influencers), and deliver private experiences for executive decision makers at target ABM accounts.

How it Works:

Rewarding prospect behavior with vip access.

Target ABM customer/prospect executives would receive a VIP backstage pass (shaped in a silhouette of the #007 Aston Martin race car) for a private shuttle ride from the conference center to the speedway where a wrapped/branded Aston Martin race car awaits. The VIP guest could experience a high speed lap on the road course and access an optional driving lap with HD video capture as a keepsake.

Activation: Clients that signed up for actual product trials could then have the Aston Martin race cars displayed on their corporate campus and host a “Top Gear” style autocross in their parking lot for employees or key customers — all captured via photos, video and social media.

This is just one of many concepts that can be used to create ABM sales momentum in the latter stages of a buying cycle to engage executive decision makers.

If your ABM strategy does not include VIP/bucket list experiences to engage executive Leads and Opportunities, perhaps it should.

Why vip experiences are key to closing b2b sales, each race weekend, trg designs a focused 4-day program of private wine dinners, vip race hospitality, networking receptions, structured executive introductions, and optional race car driving experiences. season after season trg delivers to companies representing wealth management, property & casualty insurance, saas software, cloud technology, and other sectors. these firms have seen the benefits of vip experiences as well as the connections and business opportunities forged in a setting that is simply impossible to duplicate via digital touchpoints such as digital advertising, email nurturing, social media, etc., the missing component for converting crm opportunities to sales.

We were talking with one of the VIP guests at the season opening race whose credentials include successful executive marketing roles with Dell, Rackspace, and other technology firms. He is a car guy and was asking how a technology company might “go beyond stickers on the car” to connect motorsports VIP experiences to revenue. We began to share some simple truths that Tech CMOs know to be true about long lead-time, enterprise sales:

Digital marketing is effective for reaching lower-level members of the buying committee who gather information, evaluate vendor alternatives, and make a recommendation to senior executives. However, it is less effective in engaging senior level executives (ask yourself this: how many C-level exec’s are clicking through PPC ads at 10pm).Lead nurture databases are also typically comprised of the Managers or Directors that represent the “information gatherers” but often lack the executive decision makers that control the budget decision (ask yourself how many C-level executives opt-in to email lists and content offers).

Outbound appointment tactics such as invitations to golf outings, dinners and sports events typically fail to engage executive decision makers as they have been used by vendor sales reps for decades (ask yourself how many executives making $500K+ struggle to eat/golf wherever they want)

So how do modern marketing and sales organization build relationships with executive decision makers to convert CRM Opportunities into closed sales?

Enter "bucket list" VIP experiences.

Cutting through the noise to engage executive decision makers.

Despite spending handsomely on marketing technology many companies are still struggling to convert Opportunities into closed revenue because their digital obsession has crowded out the human factor.

At the end of the day, people approve purchase orders and personal relationships dictate who wins the business.

View upcoming events, we shared with our executive guests that vip motorsports experiences, and in particular sportscar racing, are powerful because they have several advantages over golfing, dinners, and sports tickets for engaging executive decision makers:, participant vs. spectator.

Sportscar racing put VIPs in the middle of the action by integrating them with the actual race team (meals, strategy sessions, car setup, pit lane), putting them behind the wheel (driving race cars on private tracks), and enabling unique in-market activation (driver/car appearances, driving experiences on corporate campuses).

Sensory experience

Unlike a dinner meeting or whispering on the fairway at the US Open, sportscar racing engages the senses with high-impact sights and sounds and invites connection at a primal level. There is no equal to the sensory experience of driving a race car at 150mph or feeling the visceral rush of 30 exotic super cars rushing past you on a race track.

Lifestyle aspiration

Sportscar racing features exotic cars that successful people aspire to own. Luxury brands such as Porsche, Aston Martin, Bentley, Ferrari, McLaren, and Lamborghini represent the very best in automotive technology, design and lifestyle — thus, people are drawn to them and they add to the exclusiveness of the VIP experience.

Networking reach

Unlike a dinner or sports luxury box, sportscar racing offers unparalleled networking. Whereas you wouldn’t sit down at a stranger’s dinner table in a restaurant or walk into a stranger’s luxury box and begin handing out business cards, you can access multiple business networks at track and in-market.

Intimate business setting

Unlike large sporting events and even NASCAR races, the down time between practice, qualifying, and the races results in lots of time for dining, drinks, and conversations in private meeting rooms, luxury RVs, and VIP hospitality tents. Real business conversations and deals get done.

Spouse-friendly setting

Unlike sports stadiums or large motorsport events (NASCAR), sportscar racing often takes place in “destination” settings (Monterey, Sonoma, St. Petersburg) and offers a wide range of recreational activities, including luxury hotels with spas and nearby vineyard tours. The track side experience is also a more intimate atmosphere where wives can relax.

HOW FORWARD-THINKING COMPANIES USE TRACK & RACE DAY EXPERIENCES

Best practice use of vip motorsport experiences go beyond “stickers on a car” to drive engagement at each stage of the customer journey to support sales pipeline and revenue goals. consider bringing your best clients, partners, or prospects to some of the most exhilarating road race tracks in north america. spend a full day of instruction with trg’s expert staff and drivers complete with: technical data, photos, and videos for each participant. itís an experience you and your guests will never forget., customer acquisition.

Securing valuable “face time” with executive decision makers for high-value Opportunities, especially those that have “stalled” (not responding to sales person). Also effective as part of ABM strategy and MDF initiatives to generate new leads or close pending Opportunities with channel partners.

Customer retention

Relationship building with high-value accounts prior to contract renewal to avoid churn. This is critical for cloud/hosting, SaaS, communications, professional services, and related subscriber business models (CLTV).

Sales incentives

Rewarding direct and indirect sales channels for reaching sales objectives (driving experiences, team/car appearances, etc.)

Events/Trade Shows

Reward event attendees or key accounts that take meetings during trade shows with a VIP driving experience at-show in a race car (“Top Gear” autocross in parking lot, nearby on-track experience, show floor demo, etc.)

Entertainment platform for attracting new channel partners or top talent (HR).

Employee engagement

Rewarding employees who exhibit desired behaviors or refer talent.

And perhaps the best part is the assisted attribution can be tracked via CRM.

A Few Success Stories

While we have a lot of work to do to continuously perfect our field/experiential marketing efforts, we do have a few data points from recent race seasons that suggests our approach is working for major brands., case studies: field / experiential marketing:.

A Fortune 500 wealth management company shared with us that they generated over $50 million in new business and a pipeline approaching $300 million after a single race weekend program with the TRG’s Aston Martin Team team in 2015. It represented a 400% ROI and they are doubling their 2016 investment in VIP experiences.

An LED lighting company was introduced to a single automotive dealership network ($4B in revenue) to retrofit their dealership and parking lot lighting – a sales opportunity representing a 500% ROI on their first year sponsorship.

The TRG’s Aston Martin Team team has struck a business relationship with Mexican billionaire Carlos Slim to help US companies expand their revenue opportunities in Mexico and Latin America by associating with the Aston Martin Racing program.

If your brand is looking for out-of-the-box ways to engage executive decision makers, consider re-introducing the human factor to your digital marketing and use bucket list/VIP experiences to engage your best buyers and customers.

HOW VENTURE CAPITAL AND PROFESSIONAL CORPORATIONS CAN CLOSE MORE DEALS

If you are a principal at a venture capital or private equity firm you’ve likely noticed lately that the playing field has gotten crowded — REAL crowded.

You used to be able to track the “usual suspects” (competitor firms) when competing to attract new portfolio companies but now you are losing deals to unknown funding sources. Attracting and retaining top talent was somewhat routine. You even had a reliable process for attracting new money into your funds. So what happened?

The Balance of Power is Shifting

Thanks to a lack of willingness to normalize interest rates and an overheated stock market, the smart money is now searching for new places to invest. Not only are more private funds popping up, but more angel investors are operating in the background too — happy to remain “on the down low” out of conspicuous eye of the big dogs. Ditto for companies seeking funding — they have more choices than ever for funding and have more leverage in shaping their terms. Life has changed considerably in the last few years for fund managers and partners.

In our conversations with VC firms the principals share that (like most), they have three primary goals:

• (i) attract new money,
• (ii) add new/quality companies to their portfolio, and
• (iii) grow the value of their existing portfolio companies.

As a smaller VC fund, they shared how all three had become challenging.

Many firms lack a truly unique way to engage entrepreneurs and investors to cut through the clutter and accelerate their deal pipeline. Enter VIP experiences.

Successful People Desire Exclusivity

We’ve been fortunate to work with multiple private banks (with Tech practices) and private wealth management companies over the past 18 months to construct VIP experiences that have helped them accomplish all three goals outlined above.

The way to engage successful people is to offer them something they cannot easily obtain. Exclusivity fuels intrigue and thus a willingness to engage. Successful people are drawn to being able to access privileges designed for the elite few (think American Express Centurion card).

Nobody remembers the score of the ball game they attended at the last vendor event, but people do remember driving an Aston Martin race car on a professional race circuit followed by private wine tastings, business networking, and a custom menu dinner experience with the race team. You are not selling vacuum cleaners whereby two tickets to a 49ers game is going to impress — so go big and play to win.

Testimonials

Ideas for getting started.

If you are a VC or PE firm seeking fresh ideas to use in recruiting/entertaining new money investors or new portfolio companies, explore our network of affiliates and the activations they have utilized (here) to strengthen relationships with both current and prospective clients.

Imagine delivering a Porsche, an Aston Martin, or Lamborghini race car to the corporate office of your next portfolio company prospect and hosting a “Top Gear” style fast lap competition for the employees in their parking lot.

The benefits of a VIP experience partnership with The Racers Group extends to not just the VC or PE firm – but also growing their portfolio companies. Your portfolio companies gain access to a menu of VIP experiences to close more deals and recruit/retain top talent: 20+ VIP race hospitality weekends (IMSA, PWC series), private track days in 40+ markets in the US & Canada, private team wine dinners and business networking, trade show appearances & on-site driving experiences, “Top Gear” style fast lap competitions in-market, sportscar rallies and celebrity VIP events, and more. Everything is customized to support the sales & marketing efforts of the portfolio companies.

LUXURY LIFESTYLE DINING AND EVENTS WITH ADOBE ROAD WINERY

TRG’s first class hospitality is enhanced through a symbiotic relationship with its sister company Adobe Road Winery. Adobe Road Winery, based in Sonoma County is a highly acclaimed small-lot boutique winery, producing memorable wines from some of the most revered vineyards in California. Since its commercial launch in 2000, Adobe Road has played an integral role in the marketing and promotion of The Racers Group’s relationship building and hospitality events. Similar to a world-class racing team, operating an award winning winery requires preparation, passion and dedication.

Adobe Road hosts winemaker’s dinners and tasting events in conjunction with most race events, and in other key markets around the United States. From years of relationship building, The Racers Group and Adobe Road have special access at the finest restaurants and event venues on the North American racing circuit, like quiet bistros in Carmel, brash steakhouses in Austin and glamorous seafood restaurants in South Beach. The Racers Group’s partners benefit from these relationships, gaining access to some of the most unique venues in the country while creating excellent memories for their clients and guests.

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Go Kart Business Plan [Sample Template]

By: Author 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 . 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

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Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

• Brake repair
• Powertrain repair
• Muffler & exhaust repair
• Heating repair
• Electrical system repair
• Wheel alignment and repair
• Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

• Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
• Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
• The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Auto repair shop build-out: $100,000
• Equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

• Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
• Has begun negotiations to purchase the warehouse that will become the shop.
• Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
• Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

• Individual vehicle owners
• Delivery drivers
• Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

• Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
• Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

• Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.

Publications

The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

• Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
• Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
• Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
• Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.

Milestones:

Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of vehicles serviced per month: 450
• Average fees per month: $15,000
• Overhead costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, auto repair business plan faqs, what is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.

• Auto-Portability Providers Racing to Close Retirement Plan Gap

For decades, both the federal and state governments have been working to tackle the coverage gaps in our retirement system. In the race for retirement readiness, dark horses like state plans with mandatory adoption requirements, automatic IRA arrangements, auto-enrollment, and auto-escalation of contributions have been central themes. One of the biggest remaining gaps, however, is “leakage” that occurs when people take their funds out of tax-favored retirement plans for purposes other than retirement. These funds are often not used for emergencies or taken out of the account because of need. Indeed, the most significant proportion of leakage occurs when people leave jobs and, because of “friction” (unfamiliar processes and procedures), fail to roll over funds to another tax-deferred plan or IRA.

Section 120 of the Secure 2.0 Act created a prohibited transaction exemption that allows compensation to be paid to “automatic portability providers” (APPs) to help stop such leakage. APPs can facilitate the automatic transfer to a new employer’s plan of employee assets that have been forced into safe harbor IRAs following employee termination. The detailed conditions under which such force-outs into safe harbor IRAs may occur remain the same as prior to the Secure 2.0 Act and still must be satisfied.

This February, however, the Department of Labor proposed regulations that, by way of implementing Section 120, would enable the additional transaction out of the safe harbor IRA to a new employer’s plan, including compensation to the APP assisting an employee/IRA owner. Once a safe harbor IRA is funded, an APP would query other record-keepers continually to find any data matching that of the employee and thus locate the new employer’s plan. When such data is found, and where the new employer has allowed, the APP can automatically roll existing safe harbor IRA funds into that employee’s account at the new employer’s plan.

Saddle Weights for APPs . Under the proposed rules, in addition to disclosure and operational requirements, APPs would need to acknowledge their fiduciary status in writing and would be subject to fiduciary duties. Unlike the existing rules for safe harbor IRAs, the proposed rules provide no fiduciary safe harbor for rollovers to a new employer’s plan by an APP. If an APP doesn’t meet its fiduciary responsibilities, there could be regulatory or civil action against the APP.

Plan Sponsors Also Weighed Down . Moreover, according to the DOL, the decision of an employer to participate in an APP program would constitute a fiduciary act. Where the current regulation for force-out rollovers to safe harbor IRAs provides fiduciary relief for a sponsor in the selection of an IRA provider and the selection of default investments for the IRA, no such safe harbor exists for APP selection by an employer or for the employee’s new employer in allocating rollover dollars into the new plan. The new employer would also be required to disclose the program, including any fees and expenses, to employees in its summary plan description. Because of the lack of fiduciary relief, employers that allowed the transfer of assets into their plans via an APP transfer would also need to review the transaction to ensure the assets were correctly invested into the asset allocation selected by the participant or, if none exists, into the default investment option of the receiving plan.

Overall, the DOL had a real opportunity to encourage auto-portability. Instead of making it a fast track, however, the track is muddied with additional burdens and risks for both employers and APPs. The DOL could have created a safe harbor similar to the one for force-outs to safe harbor IRAs, thus allowing transfers into a new employer’s plan based on “negative consent” by the employee and without subjecting employers and APPs to fiduciary scrutiny, so long as certain prescribed conditions were met. However, the regulation proposed has come up at least a furlong short of the finish line. Under the circumstances, it is unlikely that auto-portability will be widely adopted in this current incarnation.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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