Monday, August 16, 2010

The Components of the Motorsports Biz Model

So just how does the Motorsports Business Model work? It has four basic components. Ownership, Crew, Equipment and Sponsorship. They aren't equally weighted. At times, a team's success is based more on one than the other three. But if you are in this gig for the long haul, you need all four.

Here are the basics of the four and I'll post more in depth on the topics this week.

Equipment: It isn't easy trying to work on all four parts equally. The equipment side is of course limited by funds. We have a long list of small parts, big ones too, that we need. Dumpster diving trips to Charlotte are extremely lucrative and other teams will gift you stuff to help you get going. We've been pretty fortunate in that department. We are almost to the needing the big stuff. Which means big $$$. Which means sponsor. But that is later.

Our crew consists of Zeke, the crew chief, and Scott who was a fairly decent tire changer in his day, and an assortment of our former ARCA series racing friends.

Sponsorship is a tough one. Most development teams package a series' races together and sell them all inclusive to a driver who provides her/his own funds or sponsors. That is the direction we'd eventually like to go in.

As far as ownership, well, we think we're great. We also know our limitations and are willing to pay for what we can't do. After working for an assortment of teams, we have a preference for how we'd like things done. The big thing we've learned is don't spend what you aint' got. And go prepared.

Tomorrow in depth. Donations accepted.

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