Executive Summary:
Palm Beach International Raceway
Multi-purpose raceway with product manufacturing and testing for tuners such as TunedMercedes.
To provide a world-class motorsports experience for enthusiasts of all levels through diverse events, including drag racing, autocross, off-road courses, go-kart racing, product testing, and concerts. Our mission is to create a thrilling environment that caters to motorsports fans and supports tuners in their mission to make the best products and calibrations.
Business Objectives:
Revenue Target: $35,200 per day
Target Market: Automotive enthusiasts, motorsports fans, car clubs, manufacturers for product testing, event promoters, international and local communities.
Services Offered:
1. Drag Racing – Test and Tune, product proving, and events
2. Autocross – Daily fee entry, race instruction, suspension tuning, and events
3. Off-road Course – Daily fee entry, offroad instruction, product proving, and events
4. Go-Kart Racing – Daily fee entry, kart rental, instruction
5. Product Testing and Demonstrations – Venue for tuners to showcase their products and host events for clients
6. Concerts and Live Events – Music festivals
Revenue Model:
To meet the per day revenue goal, we will focus on diverse revenue streams. Here’s a breakdown of daily revenue targets per activity:
1. Daily Test and Tune:
– Target Revenue: $13,500/day
– Revenue Streams:
– Entry fees for drivers: $150 per participant, aiming for 80 drivers per day.
– 4 Groups of 20
– Tuning support and datalogging provided at $1200
– Datalogging only at $300 per day
– Spectator tickets: $15 per ticket, aiming for 100 spectators per day.
2. Autocross:
– Target Revenue: $9,500/day
– Revenue Streams:
– Entry fees: $30 per lap, aiming for 300 laps per day
– Spectator tickets: $10 per ticket, aiming for 50 spectators.
3. Off-Road Course:
– Target Revenue: $7,250/day
– Revenue Streams:
– Entry fees for vehicles: $30 per lap, aiming for 200 laps per day.
– Offroad instruction $250 per vehicle, aim 5 per day
4. Go-Karts racing:
– Target Revenue: $3,950/day
– Revenue Streams:
– Go-kart rentals: $27 per race, aiming for 150 races per day
– Group or corporate events: $1,000 per event.
5. Product Testing:
– Target Revenue: $1,000/day
– Revenue Streams:
– Product testing fees: $500-1000 per day, depending on manufacturer agreements.
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Marketing Plan:
1. Branding and Identity:
– Develop a strong brand identity with a focus on thrilling motorsports experiences and tuner cars.
– Create a logo, website, and social media presence that highlights the track’s diversity of events.
– Aim for symbiotic relationship of the backers of the raceway.
2. Digital Marketing:
– Social Media Advertising: Utilize Facebook, Instagram, and YouTube to promote events and engage with a community of motorsports enthusiasts.
– SEO and Google Ads: Focus on keywords such as “race track events,” “drag racing near me,” and “go-kart racing.”
– Email & Text Marketing: Regular email updates with event schedules, promotions, and special offers for subscribers.
– Account Based Marketing: Leverage advanced CRM to individualize marketing and communication for specific accounts.
3. Partnerships & Sponsorships:
– Collaborate with tuners, local car clubs, racing organizations, and automotive manufacturers for event sponsorships and track ownership.
– Offer product testing opportunities for automotive companies (e.g., tire, engine, or car manufacturers).
– Partner with local schools, universities, and businesses for group events, corporate events, and team-building activities.
4. Events and Promotions:
– Weekly or Monthly Themed Events: Special events such as “Drift Day” “Euro Night,” or “Speed Kings” to generate excitement.
– Discounts and Loyalty Programs: Offer ticket discounts for group bookings, loyalty programs for repeat customers, or package deals (e.g., entry plus food or merchandise).
– Local Community Engagement: Host and or sponsor local car shows, sports teams, or charity events to build community relationships.
5. Traditional Advertising:
– Flyers & Cards: Place in local automotive shops, cafes, gyms, and event spaces. Utilize stylized QR codes.
– Radio & TV Advertising: Depending on budget, local radio stations and TV ads targeting motorsports fans could help boost awareness.
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Operations Plan:
1. Track Maintenance & Staff:
– Ensure track safety and regular maintenance to meet all safety regulations.
– Utilize network to identify and hire experienced track officials, security, maintenance personnel, and customer service staff.
– Offer training programs for staff on event management, customer service, and emergency response.
2. Venue Infrastructure:
– Multiple event areas: Drag racing strip, autocross course, off-road trails, go-kart track, 13,000 square foot club space.
– Amenities: Concessions stands, VIP areas, restrooms, parking spaces, retail spaces for tuners, manufacturing space for tuners,
3. Event Scheduling:
– Daily schedule: Plan events to maximize revenue (e.g., morning for testing/product testing, afternoons for go-karts and autocross, evenings for drag racing and concerts).
– Off-peak times: Use slower times for private rentals or additional testing sessions.
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Financial Projections:
– Startup Costs:
– PBIR acquisition and development and maintenance: $40,000,000, with 20% down and remainder financed.
– Initial marketing and branding: $25,000 – $50,000
– Staff hiring and training: $50,000 – $75,000
– Licenses and permits: $5,000 – $10,000
– Monthly Operating Expenses:
– Staff salaries: $25,000
– Track maintenance and utilities: $15,000
– Marketing and advertising: $5,000 – $10,000
– Miscellaneous expenses (insurance, taxes, etc.): $5,000 – $10,000
– Revenue Streams: (Daily targets)
– $35,200 per day across all activities.
– Monthly revenue: $1,003,200 (assuming 28.5 operational days per month).
– Break-even Point: Estimate the time it will take to cover the initial investment, considering your monthly revenue and operating costs. Assuming $1,003,200 of revenue per month, $250,000 finance servicing, and $60,000 of operating expenses = $693,200 net income before taxes would yield a break even in month 12 of the first year of operation.
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Risk Analysis:
– Weather-Dependent Activities: Some events, like drag racing and off-road courses, may be affected by bad weather. Implement contingency plans such as offering indoor go-kart racing or product testing.
– Competition: There may be other motorsports venues nearby. Focus on creating a unique experience with diversified events, superior customer service, and exclusive offerings to stand out. However, at this point there are no similar facilities in the area.
– Maintenance Costs: Regular maintenance of the track and equipment will be ongoing. Ensure a reserve fund is available for repairs or upgrades.
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Conclusion:
With a diverse mix of activities, targeted marketing, and a clear strategy for daily revenue generation, the race track can meet its goal of $35,200 per day while providing an exciting and engaging experience for customers. By continuously monitoring operations, maintaining high safety standards, and expanding event offerings, the track can grow into a leading entertainment venue in the motorsports industry.
