Should I buy an existing go-kart track or start one?
Neither choice suits everyone. Buying gives you land, approvals, a fleet and customers, but you inherit what is worn. Starting gives you a clean design but needs suitable land, municipal approval and time. Compare how long you can go without income, then ask a lawyer and the municipality what a new track would need.
Go-kart tracks need a lot of land and a patient neighbourhood, which is why this decision is harder than it is for an indoor venue in a rented unit. Your choice may turn on land and time. Can you find and secure a suitable site, and can you carry costs until the first customer drives a lap? Write down what you can and cannot wait for before comparing options.
Land and approvals
A new track starts with a site that suits noise, traffic and use. Ask the municipality what a track would need, and ask a lawyer to explain it. Approvals can take time and may fail, so do not commit money first. An existing track may already have its place settled with neighbours and the municipality, but confirm that it does and that it transfers to you.
Fleet, track and time
Building means designing a circuit, laying the surface, building barriers and buying a fleet before earning anything. Buying means taking a track that already runs, but its karts and surface may be near the end of their life. Check both against the points in what to check before buying a go-kart track. Ask yourself which risk you can better manage.
Customers and group bookings
An existing track may come with repeat visitors, birthday parties, corporate groups and local reputation. Ask to see booking records and learn how much depends on the current owner. A new track has no customers or reputation yet. For a comparison from another venue, see buying a trampoline park or opening a new one.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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