Upgrade to enjoy this feature!
Vital MX fantasy is free to play, but paid users have great benefits. Paid member benefits:
- View and download rider stats
- Pick trends
- Create a private league
- And more!
Only $10 for all 2024 SX, MX, and SMX series (regularly $30).
By the way, i don't intend for the real estate development point to turn into it's own argument, I'm just using it as a point. I know there are probably people on both sides of that here so we can save that for another thread, haha.
Run it like a business and charge what it takes to do it right. If what you can charge isn't enough to cover costs to do it right and make it worthwhile to you for the effort you put in, then be real about that. If you run it as a membership and the upfront buy in is dissipated by mid year, then you're not charging enough.
Consider whether you want (or can accommodate) a lot of riders. If you can't, do you live in an area where you can limit the numbers and attract people who are willing to pay and have the means to pay a higher admission. Some people may pay a premium to avoid the chaos of more wide open spots
Consider selling advertisements or sponsorships. Consider allowing someone to bring a "ride day" parts and accessories business on site, for fee or free, or food trucks, etc. Be creative about ways you might leverage additional revenue around the track operations.
Try to be reliable in when you're open and have an updated website that tells people when you're not.
Setting it up as a corporation to shield yourself from personal liability won't necessarily shield the property from loss, and you need to adequately capitalize the business to enable it to compensate someone "wrongfully" injured. Court's usually will ignore the corporate form if it's determined that the owner didn't fund the business adequately to deal with the risks foreseeable for the type of venture. That exposure and issue is generally met with insurance, unless you're prepared to self-insure in 7 figures.
Don't scrimp on flaggers and safety. That's part of doing it right. If your clients won't pay what it costs to have those basic safety elements, then it's not worth doing (and in fact those are the folks who, if you cut corners, are most likely to bite back if something goes wrong.
The Shop
So the OP wants to set up a ( practice ) track and maybe cover his costs. And everyone has many valid points, chief of which are safety and liability. So why do we expect more from a paid facility? Isnt there an intermediate level of facility where people accpt the risk and conditions for a lower cost? Or can we balme the lawyers or the one in a thousand litigous mxer?
I own a handful of residential rental properties. Made up my mind in my mid 20's that I wanted to get into that business. Everyone said don't be a landlord.......don't do it......no money in it.....people will rip you off............................I did it anyway.
I'm not Donald Trump, but between my 4 rentals I currently have I own 200,000$ in properties that other people paid for (renters) and I profit 1200$ a month......and I feel like I'm just now getting good at it.
Research for 5 mins what people would tell you about being a land lord and you will see tons of horror stories.......mostly from people who never did it or people who weren't smart enough or resilient enough to figure it out.
"Go confidently in the direction of your dreams, live the life you have you have imagined." Henry David Thoreau
Pre-sell your track memberships before taking ownership. Be completely honest and open about your intentions, that if you get enough traction you will launch the venture, and if not you will refund them 100%.
Lots of people will tell you they will support it, but words are cheap, especially from motocrossers. Asking for real money in advance is a true way to gauge the viability of the enterprise. If someone says they won't pay you until it is an actual operation, odds are they wouldn't buy a membership anyway. In the real world, people PRE-ORDER shit all the time. If you want to run such a business you might as well get used to asking people for money.
I know that corporations routinely lease space that isn't even built yet......This is a little different.
Been helping at tracks.since I987, over 500 events... Started.running.my own in 1994... Over 400 races and countless practices......
if you seek knowledge start with that burning feeling on your face from truth bitchslapping you...... Learn.to like it...
The idea is obviously to return the funds if he can't drum up enough support. There are a number of crowdfunding sites available that can facilitate such a thing and protect the customer's investments. Funding goal not reached = money returned.
Pit Row
Post a reply to: I need input from anyone involved with a moto track and finances