Hi everyone. Im a recreational driver with a few skip barber classes under my belt. I'm bumping this thread because I found it as I was doing research for a university business presentation. Our goal was to build a private racetrack and offer a driving experience similar to other performance driving schools, but do this using a vehicle called the Carver One for our school. (youtube for carver vehicles if you havent seen, its really crazy)
Anyway, our track was about 2.5 miles, roadcourse, very bare boned as far as supporting facilities (not for large sanctioned events). We found a land parcel right next to las vegas motor speedway that is auctioning for 7.9 million right now.
We also came up with some great numbers that Im here to share with you. One great resource is from a private racetrack patent document we found. There is lots of other stuff there, but if you want to read there is some interesting parts. just enter http where the X's are in this link.
Here is a few copy and pastes from our slides. Where you see the goofy looking copy and paste from the spread sheet, many of those costs are amortized over 5 years and 30 years for the track construction.
# Legal, Zoning ($30,000)
# Surveying, Grading and Preparation - $325,000
# Paving bids of $2.0 and $2.3 million - $2.6 projected
# Raw paving materials are cheaper in Vegas, this is disregarded in our projections.
Maintenance and track staff ($2M 1 time initial cost, $860,000 annual)
* 24 hr. security -2 officers
* Spotters, Flagmen, Groundskeepers
* 1 Fully Trained Medical Staff Member
* transport suburban, road sweeper, equipment and fire truck
* Sales staff/Office Staff
* 2 full-time instructors
# Vehicle Fleet – 10 Carvers ($380,000)
# Vehicle Maintenance - 15% of each vehicle
Cement Pouring Exp (Amort 5 years) 520,000.00
Zoning/Surveying Exp. 355,000.00
Vehicle Fleet 380,000.00
Vehicle Maintenance 53,250.00
Building Expense (Amort 4 Years) 40,000.00
Vehicle Rental 80,000.00
Initial Fixed Cost (Amort 8 Years) 250,000.00
Land Expense (30 Year Amort.) 263,333.33
Admin & Supplies 10,000.00
General Maintenance 50,000.00
Total Expense 3,151,583.33
Net Income (Before Taxes) 27,416.67
Net Income 17,820.83
Just better than breaking even. When we spoke about some cost differences and where we estimated high and on safe side, we were making the case that wed get about 1/2 million + from revenue (20 minute, full day, 3 day carving classes).
BTW, we nailed the presentation, professor said we didnt have to take the final, as of a few hours ago I am done with college, so ya, a bit of a brag post here. We really killed the presentation though, so trust me that some of these number are pretty solid. There i certainly some weaknesses such as insurance, legal stuff and more medical staff, but this should be a good good first post here IMHO.
Modified by lumpfink at 11:28 PM 7/28/2009