Go-karting has now become a daily activity of the young generation and some families, therefore to meet their entertainment needs, we present to you this article which will serve as an educative model to help you start your go-kart business in South Africa.
So, we entreat you to keep reading because the next chapters of this article carry detailed information on how to start your go-kart business.
Go-karting has been the playground where many people test their driving skills and organize a driving competition among families and friends.
The business is a very lucrative one even though it is capital intensive to start and manage. Therefore you have to be financially sound to venture into the business.
The information that follows is detailed on what you’ll need to commence, operate, and manage your go-kart business in South Africa.
Table of Contents
What You Need To Start A Go-Kart Business In South Africa
Below are the basic requirements you’ll have to meet before you can commence with your go-kart business:
1. Business Plan: build a business plan that covers every aspect of your business. Your business plan is your foundation. It determines your success and failure.
Therefore, it is important to draw a business plan that falls within your financial capabilities of implementing.
2. Location: learn to spot a good location for your business, a big land size that is spacious enough to hold business structure and customers
3. Target Market: know the prospective customers, what they want and why they want that kind of service. After knowing your target market, choose what you can offer to make them feel comfortable patronizing you
4. Type of Go-Kart Business: the type of go-karting business you choose is very important, so knowing your target in the market will help you decide whether to go with an indoor truck go-kart business or a family outdoor go-cart business
5. Go-Kart Vehicle: run your business with quality but affordable vehicles. Choosing the best vehicles cut down maintenance cost
6. Develop Package Plans: strategize package offers, monthly, three months, six months, or yearly packages which are affordable to keep customers coming back for your service
7. Price: choose good pricing for your service, not too low or high, to keep the business running and customers coming
8. Business Name: choose a catchy business name that is easily memorable, it must be catchy enough that whenever friends and family think of entertainment, your business name is what keeps ringing in their ears
9. Business Registration: register your business with the Companies and Intellectual Property Commission (CIPC)
Register for tax with SARS
10. Business Bank Account: Open a business bank account to help track the financial status of the business
11. Business Bookkeeping: keep records of every expense you make, make good accounting to know how your business is doing
12. Business Insurance: get a good insurance policy for your business to assist and cover up in times of loss
13. Hire Staff: this is not an individual business. You’ll need more hands in managing many aspects of the business, such as the finances, vehicle servicing, track servicing, and many others
14. Branding: building a good brand that stands tall among already existing go-kart businesses is the best. Your brand should be able to compete with other businesses in the entertainment industry when that is achieved. You’ll be attracting customers from every corner of the country
15. Business Website: build a business website to showcase your services, offers, packages, and your business as a whole.
The business website also serves as a form of advertising your business, so the website must be well presented with quality pictures.
16. Advertisement: efficiently advertise your business, think of how you can reach out to many people, and the right way to communicate your business.
Social media, local newspapers, SMS, words by mouth, business cards, and flyers will perform a very efficient advertisement for your business.
How Much Does It Cost To Start A Go-Kart Business In South Africa
The startup cost of the go-kart business differs depending on the type of business you choose to run. Going in for the indoor go-kart service is capital intensive because of the cost involved in building tracks in addition to the cost of vehicles.
But be prepared to invest over R1 million as startup capital for a go-kart business, and the cost of managing and running the business is also high, so it is advisable to be financially grounded before you take the necessary steps to start your business.
Is The Go-Kart Business Profitable In South Africa
Due to the high startup cost, the competition in the business is low, therefore setting up a go-kart business in South Africa means you are going to win a lot of customers to your business.
With many customers, your profit soars higher, and therefore if you are fully grounded to start a go-kart business, then you are venturing into a profitable business that can give you about 50 – 60% of your invested capital in the first year of business operation.
Best Places To Start A Go-Kart Business In South Africa
These are some of the best places to set up your go-kart business in South Africa:
1. In middle-class cities
2. High paying cities
3. Near tertiary institutions
4. Recreational centers
5. Near Parks
6. Near high ways
How To Make A Go-Kart Business Successful In South Africa
The following are some of the factors to consider to help build a successful go-kart business:
1. Good maintenance of business including structures, vehicle tracks, and many others
2. Affordable pricing
3. Good customer relationship
4. Good staff relationship
5. Good communication skills with staff and customers
6. Reasonable packages
7. Hard work and determination will win you a handsome profit
8. Effective advertisement will attract many customers
Challenges In The Go-Kart Business In South Africa
Below are some of the challenges in the go-kart business in South Africa:
1. Capital intensive to start
2. Go-karting accidents
3. Inexperienced customers
4. High cost of maintenance
Benefits Of Setting Up A Go-Kart Business In South Africa
In South Africa, the government and the public benefit a lot from the go-karting business, and some of the benefits include:
1. A successful go-karting business comes with an overwhelming business
2. Generates income to the government through taxation and importation of vehicles and parts
3. Job creation
4. Serve as an entertainment playground for families and friends
That is the information we can share on how to start a go-kart business in South Africa.