Go- Kart track business

[MrGoKart]

Good evening,
I was just wondering if you could give me our opinions on setting/ buying a go- kart track business. If so, how much do you think it is reasonable to pay for a trading business with full assets. After doing some research, I found out that it would cost around 300k to set up a venue from the scratch and then you need to target your customers. Or in simply words i think its more worth to buy a working business than building one.
I would really appreciate our opinions.

[vdn]

Yes, buying a working biz would be easier and hopefully you'd be tapped into existing awareness of the business.

Teamsport went around buying up Indy tracks, like the incredible one in Warrington.

I don't think it's an easy business. There's big insurance I believe and keeping the karts in half decent order isn't easy when you get stag dos ramming each other for fun.

Where would your business be ideally? Any competitors nearby?

[Simbu]

I'm a regular visitor to a TeamSport track. Their success seems to be dependent on catering well to both one-off visitors (stags, corporate events etc) and their regulars. Their Grid Club membership is good value for money and is a key aspect of me and a couple of mates being regular customers. They offer a mix of relaxed social type events and competitive events. I go for the social events.

The staff build a good rapport with their regular customers and help us improve, giving advice to improve performance etc. Our local track make a point of taking good care of their karts too.

I think they are potentially quite lucrative if you can stomach the capital investment and can develop a loyal base of regular customers. Getting your track onto the seasons of competitive championships would also help if you're looking to set up something more "professional".

[MrGoKart]

Thank you for the above answers.
The thing that is bothering me the most now is what is a good price for a working business?

[BigBen]

MrGoKart said:

Thank you for the above answers.
The thing that is bothering me the most now is what is a good price for a working business?

Surely that is totally dependent on how much money it currently makes.

[Wacky Racer]

The first thing to consider when buying any business is ask yourself why are they selling it?

Of course there may be genuine reasons such as ill health or retirement, but I would always be sceptical.

[200Plus Club]

Surely the next step will be EV carts anyway rather than smelly lawnmower engines ?

[fiatpower]

200Plus Club said:

Surely the next step will be EV carts anyway rather than smelly lawnmower engines ?

I hope not. My local Teamworks karting uses EV carts and I thought it was crap compared to a normal petrol egine.

[MrGoKart]

Ev is the future anyway,the con is that these type of karts are quite pricy.
i wont be really bothered for the reason of selling as Ive got my own plan for action.
I still dont know what the market for this business is, do you think something between 100- 200k can buy me a decent playground?

[BigBen]

MrGoKart said:

Ev is the future anyway,the con is that these type of karts are quite pricy.
i wont be really bothered for the reason of selling as Ive got my own plan for action.
I still dont know what the market for this business is, do you think something between 100- 200k can buy me a decent playground?

Again it depends. If they make £1,000,000 profit per year then no, if they scrape between a loss and a 20k profit then maybe.

If it is a freehold site and the land could be houses then no.

[RedAndy]

Buying a site would be much easier than starting a new one. There's a reason most are indoors- NOISE. The Council doesn't like noise. VERY hard to get planning permission for motorsport venue. Not impossible, but expensive for all the noise reports n appeals you'll have to do.

[Frimley111R]

Fill your boots! Been discussed many a time on here...

https://www.pistonheads.com/gassing/topic.asp?h=0&...

https://www.pistonheads.com/gassing/topic.asp?h=0&...

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Frimley111R]

fiatpower said:

200Plus Club said:

Surely the next step will be EV carts anyway rather than smelly lawnmower engines ?

I hope not. My local Teamworks karting uses EV carts and I thought it was crap compared to a normal petrol egine.

I race at 2 Teamsport locations and one has petrol engines and one has EVs. TBH they seem almost identical when you're racing, same power and you just don't miss the noise oddly. Weird standing around the pits and karts racing around and you don't notice!