4 Steps to Outsmart Competition in an Afluent Area with Optimal Investment
Make sure you’re starting your go-kart business the right way in 4 steps
So, you’re interested in building a go-kart or entertainment center business … And we’re here to help you every step of the way and co-create your track with you!
We’re not only a go-kart track provider but we also guarantee a personal approach and advising with over 80 go-kart tracks in our portfolio. As there are no two identical 360K go-kart tracks, we first have to get to know you, your wishes, and your venue situation to be able to plan, produce and build the go-kart track of your dreams.
Here’s where the first step – Business Advising and Planning – comes to play.
1) First, we need to get to know you
We’re here to follow or lead – whatever you need the most. We’ll schedule an online meeting and we’ll set a strong foundation upon which your new go-kart track will be built.
Besides getting to know you, we need to get key information about your venue and the stage of the process you’re currently at. Be prepared to provide information like:
- Do you already have a vision in mind, or are you looking for inspiration?
- Do you know your target audience?
- Do you have a location and what it’s like?
- Do you have financing secured?
Once we’re done with the call, our team of experts can start preparing for step two.
2) Business model & program scheme development
Next, we’ll guide you through the process of choosing the right business model and program scheme. Although this may sound vague at this point, we’ve done it for every single client and we know exactly how to do everything needed so your go-kart arena or entertainment center becomes the go-to entertainment hub in your area!
Here’s what the process will look like:
Market research
While we can’t conduct the market research for you, we won’t leave you high and dry. We’ll teach you exactly how to conduct thorough market research as you need to be able to do it on your own. First-hand information like this is crucial to be able to drive your business forward for years to come.
You need to know your competition as well as your audience and your environment.
EXTRA TIPS:
💡 The city should have a population of at least 250.000 people
💡 The go-kart track should be located in a neighborhood with a good income
Main target audience selection
After thorough market research, you’ll be able to define the demographics and economics of the population in your area.
This is extremely important as we can use it to pinpoint your exact target audience. Having a strong definition of your target audience allows you to proceed with choosing the perfect business model and program scheme that best caters to their wants and needs.
Business model & program scheme selection
Based on your target audience, we’ll select the perfect business model together. You can choose between Kids, Fun, and Thrill tracks and pick the one your visitors enjoy the most. Besides the track, we’ll advise you on which entertainment attractions pair best with your new go-kart track as the anchor attraction.
Our goal is not only to provide you with the go-kart track but also to help you maximize your revenue potential by diversifying revenue streams within your entertainment center or go-kart arena.
Although we don’t sell go-karts or the timing system, we can offer first-hand recommendations on where to get what you need at the best price possible. Not only that, we can also offer some information about the financing possibilities.
3) Sample with financial benchmark preparation
After we’ve determined all the needed information from the first two steps, we’ll go through our 360K archive and try to find an existing project that’s as close to your needs as possible. We’ll send you a rough sample so you could get the first idea of what your new track will look like and what kind of a budget you’ll need for it.
How do we prepare the sample and calculate the indicative budget needed & indicative revenue potential?
Calculating the indicative budget needed
Depends on:
- Track length
- Single-level vs. Multi-level track ratio
- Number of go-karts
- Size of the space
- Additional options (platforms, LED theming, grand stairs …)
- Installation (supervisors vs. turnkey)
Our single-level tracks start at 100.000€ and our multi-level tracks start at 450.000€
Calculating the indicative revenue potential
Taken into consideration:
- The average occupancy rate, based on the industry practice
- Track capacity of the sample
- Ticket price based on your location
- Operating hours and days per year
- An average number of tickets sold per hour
DID YOU KNOW that average tickets sold per hour is from 60 and all the way to 90?
Indicative budget needed + indicative revenue potential = financial benchmark
4) Trajectory of your business development
Once the first three steps are done and we have all the most important venue information and architectural plans, we can proceed. Our track design experts will prepare a Design Concept with the personalized track, thus initiating the design phase in your journey towards your new go-kart track.
According to the Design Concept document, we’ll prepare the Trajectory of your business development, including:
- Project execution timeline
- Offer for the execution of the track
- Revenue potential estimate
Upon your request, we can go into more detail regarding the financial projections and do a 5-year cashflow simulation projection.
Completing the 4th step means the end of phase one: Business advising and planning.We’re now ready to proceed to phase two together.
Ready to discuss karting business with us?
Book a free business advising and planning consultation with our business specialist at your earliest convenience!
Click the link below to pick the preferred date and time for the free consultation.
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