Go Karting Business Plan

7/23/2019 Go Karting Business Plan

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Business Analysis

Go Karting in association with a Family Entertainment Centre is a highly profitable industry

that has been growing rapidly over the past few years in India. We plan to open a Go Karting

Circuit along with a Cafe and a Family Entertainment Centre in the city of Kolkata. Due to

the current lack of a proper Go Karting Course in the city, we feel that the time is ripe and the

city is ready to experience the pleasures of ‘Kart County’.

We will primarily provide two kinds of Go-Karting services in the form of Pro Karts Family

Karts while we will have a fully operational Cafe to cater to all of the refreshment needs of

our customers and a Family Entertainment Centre to ensure our customers have a good time

outside the Karting Circuit.

We believe that the amalgamation of the thrill of the Go Karts, the delight of our Family

Entertainment Centre and the culinary delicacies of our Cafe will ensure our customers will

keep coming back for more.

Market Analysis

The Go-Karting industry in India has taken off in the last 8 years with multiple Go-Karting

Circuits opening up over 13 cities across the country. Kolkata has lacked a Go-Karting

Circuit for the last five years and we hope that ‘Kart County’ can satiate the demand. The

Target Market for our venture will range from teenagers to adults but we will primarily try to

attract individuals between the ages of 15-35. The only direct competition we face in regard

to the services we provide is the Go-Karting Circuit at Nicco Park but we believe that ‘Kart

County’ will strive regardless of our competition due to the holistic experience we provide asa business. There are also various Family Entertainment Centres like Smaash, Super Bowl

and Nicco Park that provide ancillary competition and coupled with the services ‘Kart

County’ will provide we believe that the entire family entertainment industry will grow as a

whole. Cross marketing with any or all of these businesses in Kolkata is not only very likely,

but extremely desirable. The city’s development as a family destination for an enjoyable day

outing will only benefit from the addition of a top-notch Go-Karting Circuit like ‘Kart

County’.



Operating Plan

‘Kart County’ will be located in an unused factory in Tangra which is located before ITC

Sonar and Science City.‘Suraj Constructions’ has been contracted to provide design and

construction management expertise. In this capacity, they will be responsible for the overall

site plan, including parking design, clubhouse architecture, landscaping, septic and drainage

issues, and presentation of the site plan for the Planning Board, Government of WB, they

will bring together the experts they need in order to develop a well-integrated plan that allows

for future growth potential. ‘Suraj Constructions’ is working closely with Premier

Amusement Developers on placement and requirements of the go-kart track in the overall site

plan. Once Planning Board Approval is received, ‘Suraj Constructions’ will begin the

construction phase of the project. They will be responsible for the coordination of all

subcontractors on the project and ensuring that the project remains on schedule and on

budget. Regular reviews of the project during the design and construction phases will be

conducted.

We will purchase Insurance to mitigate the risk of any damages that may occur in the future.

In addition to this we will initiate a mandatory rule for all participants of Go Karting that they

must sign a consent form and a liability waiver before they partake in the Go Karting course.

The operation will run for 12 hours per day on weekends and holidays while for weekdays it

will run for 10 hours per day. Timings will be altered to suit the demand on special occasions

and holidays.

The following is a summary of our Operations and Maintenance Schedule for the Go Karts:

Daily:

a) Check the lubrication oil in the sump. Tap up necessary. Keep the fuel tank full. The tank

should be fitted in completely with clean petrol at the end of the day’s work.

b) Check the tyre pressure. The pressure must be at least 18 psi.

c) Clean the engine at the end of day’s work, if there are any leakages, dust will collect at

the leaky spots during next day work. Such leakages should be attended properly.

Every 50 kms:

a) Inspect fuel lines, throttle operation, brake shoe, wheels and tyres, etc.

b) Adjust throttle operation, carburetor, valve clearance, etc.

c) Clean the carburetor, air cleaner, spark plug, etc.



Every 250 kms

a) Lubricate the braking system.

b) Check all bolts and nuts.

Every 500 kms:

Replace fuel filter

Every 750 kms:

Thoroughly clean out the fuel tank and refill fresh fuel. Knock out soot from the exhaust

silencer.

Remove the cylinder head and de-carbonize.

Every 1000 kms:

Adjust carburetor Replace spark plug.

The following table compares various Go Karting businesses throughout India and shows us

how Kart County will be uber competitive in regard to it prices:

BASIS OF

DISTINCTI

ON

Kart County SMAAASH

(Mumbai)

Hydrabad GoKarting

Grips GoKarting(Bangalore)

Guargoan GoKarting

WEEKDAY

CHARGES

350 600 500 540 500

WEEKEND

CHARGES

500 800 600 600



The above circuit is a prospective model of the circuit we intend on having for Kart County.

Marketing Plan



‘Pongo’ is a mascot that will be part of much of

the marketing of the facility. He will appear on

the sign, advertisements, website, shirts, and

company literature. Pongo our mascot will be

the centrepiece for our marketing campaign.

Marketing for ‘Kart County’ can be thought of broadly in three segments:

1. Awareness of the facility.

2. Special Events and Promotions.

3. Social Media Promotions.

Awareness of the Facility

Evenings and weekends, when the utilization of the facility will be at its highest (often at

100% utilization) is the purpose of this marketing effort. This is the time that will be largely

filled by people coming in with families to enjoy an hour of quality family time, and to get

outdoors. In order to drive up utilization during these hours, the direct population in the city

and must be aware of its existence.

This will primarily be accomplished through newspaper advertisements in local papers. In

addition, radio advertisements and the distribution of pamphlets will also be used. This will

be most important during the first season. Once people know of the existence of the center,

this advertising will turn into a reminder that the center is available and what activities are

offered.

In addition to the targeted advertising, other campaigns will include money off coupons that

will be made readily available through a number of outlets: cross marketing with area

Children (below 13) Teenagers (13-18)Adults (18 & Above)



businesses and attractions, newspaper coupons, restaurants, cafe’s, internet websites like

coupondunya.com, etc.

A Grand Opening event is part of the package that ‘Kart County’ provides. This event is

specifically designed to raise awareness of the facility immediately.

Once again, this marketing program is intended to maximize the course utilization during the

hours that will normally be very busy: weekday evenings and weekends. Most of the money

for this type of marketing will be spend during the early part of the season and taper down

over the length of the season.

Special Events and Promotions

The truly successful businesses know that the key is to maximize the utilization of the facility

during the normally slower periods. This is essential Monday through Friday from 10am until

4pm (tourist markets will have different peak and slow periods). The amount of utilization

during these 30 hours per week can be the difference between a nicely profitable business and

a tremendously profitable business. The industry experiences about a 35% utilization over a

full season and many operators do not promote these slower period hours as much as they

should. ‘Kart County’ marketing will look extensively at increasing the course utilization

during these key hours. While awareness and reminders that the facility exists is important, it

becomes less so as time goes on. This type of marketing, on the other hand, will always be

very important.

We are planning a number of segments to this marketing. We will carefully observe the

effectiveness of each program and change or replace as necessary. Some of the initial

concepts are:

• Birthday Parties: Busy parents have little time to organize parties for their children,

but there is a great deal of peer-pressure to have fun, exciting parties. ‘Kart County’will offer an all-inclusive party package that will relieve the parents of this burden

while making a special day for their child and friends. A Party Coordinator will ensure

that all the children have fun and the event proceeds smoothly.

• Corporate outings: Many companies have summer outings for their employees to

show their appreciation. While large companies tend to do large events, like renting

out an amusement park for a day, small and mid-sized companies have fewer options.

‘Kart County’ will do a direct mail campaign to area businesses and offer the facility

for such occasions. These will be worked out on a case-by-case basis, but willessentially allow a company to have full use of the facility for a Thursday afternoon



outing. They would have exclusive use of it from noon until 4pm. The party may be

catered. We would work out a flat-fee arrangement with the company for such an

event.

• Cross-marketing with area businesses: There are several businesses in the immediate

area that offer additional target market oriented products and services. It is believed

that ‘Kart County’ will not steal sales from these businesses, but in fact will enhance

them. The area will become a target market destination, where people can spend a full

day enjoying the outdoors. We will look to work with these other businesses and

provide cross-marketing opportunities; free games, dollar-off coupons and the like.

• Special Events: From time to time, a special event may be held. One such event

already planned is Christmas in July. For a 10-day period in July, ‘Kart County’ will

be all decked out in Christmas decorations and lights. This will make enough of a

difference that people will be interested in playing again if they had already played

earlier in the season. Repeat business is important, and events such as this will help

ensure that.

Social Media Promotions

We will utilize various tools from Social Media to promote ‘Kart County’. Marketing

campaigns will be conducted through Facebook, Twitter and Instagram to entice people tocome and try out the next big thing in the City. We will also have quizzes on facebook and

Twitter where we shall give out vouchers which can be used at ‘Kart County’ to the winners

of the quiz. We will initiate a tie up with Red Bull and the Budh International Circuit to

promote our venture on their social media sites.

It is believed that these types of promotions will help increase the utilization of the facility

during the normally slower periods. If even marginally successful, ‘Kart County’ should

enjoy a very high average season utilization.

Financial Summary

The total investment required to start ‘Kart County and run it for a year is approximately

1,74,25,000. This includes site purchase, site design and construction, Go-Karting course

design and build, equipment purchase, and working capital. The financing for the initial

startup costs will come from Private Investors (20%) and from commercial bank financing



(loan 80%). A new worth and collateral statement that will be offered by the ‘Kart County’ to

secure the bank financing will be explained in the detailed summary.

The projected Return on Investment (ROI) of more than 27% during each of the first three

years clearly warrants this level of overall investment. Additional activities in subsequent

years will be financed from operations.

SWOT Analysis

Strengths – Our strengths lie in practically having no direct competition in the go karting

market. Having our circuit centrally located ensures that it is feasible for people from all parts

of the city to come and enjoy the pleasures of ‘Kart County’. Our maintenance costs over the

long term will be minimal while our Return on Investment (ROI) will be substancial over the

long term and will cover our initial investment in the next 8-12 years depending on the

popularity of our venture.

Weaknesses – The only major stumbling block is the heavy initial investment expenditure but

with an innovative business model we believe that we can end making this venture

successful in the years to come.

Opportunities – With the substantial growth of our local environment with the coming up of

new projects like the JW Marriott Hotel and ITC Sonar II will ensure that due to our location

we will have a head start in comparison to our direct and ancillary competition. We can also

strike at the underutilized market for family entertainment in the city to ensure that this

market grows in the future.

Threats – Our biggest threat is the practical experience and brand value of a well established

company like ‘Smaash’ which has recently opened an outlet in the city for familyentertainment and is looking to expand its business operations with the inclusion of Go-

Karting.

Documents

Go Karting Business Plan