Dano762
PR Addict
Let's build and run a new motocross business, PitRacer's Bigdeal Motocross (PRBMX).
We can simulate running it for a couple of years and see how rich we get.
We can pretend we have no competition from other tracks for riders or race date conflicts. We can also pretend the day we open we have big attendance and don't have to work for years to grow our product, reputation, and customer base. Of course nobody will ever say anything bad about us on SocialMedia to drive customers away.
I am an optimist and this is going to be a big, big success. I can smell retirement and selling for a huge profit when we get worn out from the long days.
First we need a business plan to get the money to start. Unless we have a bunch of money saved we probably need a loan to start the business and I bet banks are jumping on the chance to finance a motocross track business.
List the initial costs, ongoing costs, estimated federal, state, and local taxes, insurance, employees, etc.
Next list the money we make from practices, races, gate fees, concessions, and any other way we can make money. How many races can we hold a year and how many practice days can we have.
We can do some math and build a pro forma income statement. I know there are enough business owners on PitRacer to advise us.
Getting Started costs
Get these numbers filled in and we can estimate our profits over a couple of years.
We can simulate running it for a couple of years and see how rich we get.
We can pretend we have no competition from other tracks for riders or race date conflicts. We can also pretend the day we open we have big attendance and don't have to work for years to grow our product, reputation, and customer base. Of course nobody will ever say anything bad about us on SocialMedia to drive customers away.
I am an optimist and this is going to be a big, big success. I can smell retirement and selling for a huge profit when we get worn out from the long days.
First we need a business plan to get the money to start. Unless we have a bunch of money saved we probably need a loan to start the business and I bet banks are jumping on the chance to finance a motocross track business.
List the initial costs, ongoing costs, estimated federal, state, and local taxes, insurance, employees, etc.
Next list the money we make from practices, races, gate fees, concessions, and any other way we can make money. How many races can we hold a year and how many practice days can we have.
We can do some math and build a pro forma income statement. I know there are enough business owners on PitRacer to advise us.
Getting Started costs
- Upfront Cash
- Land purchase (maybe your lucky and have the right amount of land in the right place)
- Track design fees (can't build a crappy track and get roasted on Social Media)
- Tractors, Skid Steers, Watering Trucks, etc.
- Initial construction
- Do we need a building, bathrooms, camping spaces, and other things - don't want a Sh#thole
- Water and sewage installation fees
- Power installation
- Legal Fees (incorporation, disclaimers, etc.) we will pick an LLC over an S-Corporation
- What else?
- Mortgage loan payment
- Small business loan payment
- Equipment loan payments
- Ground maintenance
- Track maintenance
- Insurance
- Taxes
- Employee costs (wages, social security, health care, ??) how many do we need
- Utilities (water, electric, garbage, etc.)
- Equipment Maintenance and fuel
- What else?
- Do we have to pay the AMA to run a race?
- Practice riders fees
- Race entry fees
- Gate Fees
- Concessions
- Accessories and supplies???
- What else?
Get these numbers filled in and we can estimate our profits over a couple of years.
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