Starting your go-kart track can be as fun as it is overwhelming. A lot of people dream of owning a go-kart track, creating fun for families and excitement for thrill seekers.
But where do you start?
What are the costs?
What about the size?
What about the go-karts?
AHHHH!
The good news is, with proper planning and guidance, you can navigate the little-known insider secrets to launching a go-kart business. In this article, I’m going to break down the process, step by step.
Steps to Start a Go-Karting Business
Launching a go-kart business does not just mean putting up some tracks and getting some karts; it’s a strategic endeavor that requires real planning. A lot more goes into it than you probably realize. Below, I am going to outline every step you need to know when it comes to starting and operating a go-kart business.
Business Planning
- Market research: First, know your audience. Who are they? What do they like? Look at the demographics in your area and study your competitors to see what they do. Do you want to be family entertainment, competitive racing, or both? This research will help you decide how to model your business.
- Business Model: Will your track be inside or outside? Will you cater to people who want to come in and race for fun or those who want to race for competition? Figure this out, and it will help you define your brand and attract your customers.
Location and Space Requirements
- Site Selection: The best go-kart track locations are those with foot traffic. You want to be in a place where lots of people can see you, ideally near a shopping mall or a tourist attraction.
- Space Needs: To have a good go-kart track, you need between 20,000 and 60,000 square feet. You also need room for parking, barriers to keep people safe, and a place for people to hang out while waiting on their race. A snack bar is also a great idea.
Legal Requirements
- Licenses and Permits: Before you open for business, make sure you have all the licenses and permits you need, including local business licenses and any special amusement permits for running a go-kart track.
- Insurance: You need insurance because you’re going to have a bunch of people racing around on go-karts, and sometimes they crash.
Track Design and Construction
- Track Type: Design your track to be fun yet safe. Your track could be an oval or something more elaborate with turns and elevation changes.
- Safety Features: Install safety barriers, signs, and monitoring systems to protect your customers and yourself.
Equipment Purchase
- Go-Karts: Buy go-karts that are durable, easy to maintain, and right for your target market, whether that’s kids, adults, or both.
- Maintenance Supplies: Stock up on spare parts, helmets, fuel, and tires so you can keep running every day.
Staffing
- Hire people to help you run your track. You’ll need track operators, customer service people, and mechanics.
- Train your people on safety and customer service.
Marketing Strategy
- Promote Your Kart: Use social media, local advertising, and community events to get the word out. Offer memberships so people will come back.
- Memberships vs. Single Passes: Offer both memberships and single passes to cater to different people.
Operational Management
- Customer Experience: The customer experience is everything. Ensure your customer service is great and that your track is awesome.
- Financial Management: Keep track of everything you’re spending and everything you’re making. Hire an accountant or use accounting software.
By doing these things and thinking about everything, you can make a lot of money and have a lot of fun doing it!
Can I Make Money from Karting?
Yes, the go-kart business can be quite profitable if you do it right. Here’s how:
- Annual Earnings: If you run a good go-kart track, the amount of money you make will depend on your location, how you run your track, and how well you keep customers coming back.
- Industry Growth: The go-kart industry is growing. The U.S. market is worth about $120 million a year, with a 5.7% growth trend—good news for you.
- Ride Fees: The main way to make money is by charging people to race. Most charge between 5 USD to 10 USD per race.
- Membership Packages: Another way to make money is by selling memberships.
- Additional Services: You can also earn by selling food, drinks, and t-shirts, and by hosting birthday parties and corporate events at your track.
Profitability Strategies
- Attracting People: Offer great customer service, create a safe environment for people to race, and market your track to stand out from your competitors.
- Safety: Ensure your track is safe. It’s good for customers, saves you money on insurance, and keeps your business running smoothly.
- Pricing: Adjust prices based on peak times and seasons. Charge more during busy times of the year and lower prices when things are slow.
If you have a good business model, you can make a lot of money in the go-kart business.
How Much Does It Cost to Open a Go-Karting Place?
Starting a go-kart business costs a lot of money. Here’s the breakdown:
Building Costs: Constructing the track can be expensive.
Insurance and Permits: You must have insurance and permits to run a go-kart track.
Maintenance: Keep the karts running and the track in good shape. You also have to pay employees and spend money on marketing.
How Much Space Is Needed to Start a Go-Kart Business?
To have a good go-kart track, you need between 20,000 and 60,000 square feet. You also need room for parking, barriers, and a place for people to hang out while waiting for their race.
Small Tracks: For a kids’ track, you need about 3,500–4,500 square feet.
Big Tracks: For a thrill or complex track, plan on 18,000–25,000 square feet.
Conclusion
Starting a go-kart track is a fun adventure filled with opportunities and challenges. With proper planning, market research, and a focus on customer experience, you can build a successful and profitable business. Your go-kart track can become a place where families, racers, and tourists all come to have fun.
