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Entrepreneurship in Motorsports

Every Motorsports business, including the one you are creating in this class, started as a small business.

Enzo Ferrari was not initially interested in the idea of producing road cars when he formed Scuderia Ferrari in 1929 in Modena, Italy. He just wanted to build and race cars. The entire business was focused on motorsports until it built its first road car in 1947.  Since then, Ferrari has built some of the world’s most dynamically capable, recognized and sought-after sports and supercars — and continues to do so today. 

 

The industry relies on thousands of small businesses with less than 500 employees and entrepreneurs who innovate, design, develop and manufacture prototypes, materials, components, transmissions, engines, and software.

The teams themselves start as small businesses with leadership, management, and specialists.  All of these businesses sell products and/or services to others in the industry.

DID YOU KNOW?

THE U.S. HAS GROWN IN
LARGE PART DUE TO SMALL

BUSINESSES.

RACING IN THE U.S.
HAS IT'S ORIGINS

IN SMALL BUSINESS ​​

99.9%
OF BUSINESSES
HAVE 0-499
EMPLOYEES

THERE ARE LESS
THAN 
1,000 BUSINESSES
WITH MORE THAN 10,000

EMPLOYEES

SMALL BUSINESSES
EMPLOY HALF OF ALL

NON-GOVERNMENT
WORKERS AND CREATED
65% OF ALL JOBS
OVER THE PAST SEVEN
YEARS.

IN THE PROHIBITION
ERA, WHISKEY WAS
DISTRIBUTED BY FEARLESS

DRIVERS WHO COULD
OUTRUN POLICE

THE BOOTLEGGERS WHO

EMPLOYED THOSE DRIVERS

WERE, IN EFFECT, RUNNING
A SMALL BUSINESS.

What is an Entrepreneur?

Entrepreneurs:

  • Identify wants and needs of those in society

  • Create businesses to fulfill these wants and needs

  • Do new things or do old things in new ways, improving the system of business

  • Look at all the ways that a product or service can be helpful to others, and ask the question, “What is so special about this product or service?”

  • Research how many people would want the product or service ("market demand")

  • Know how to produce the product or service, or knows someone who does

  • Figure out how to get their products or services to customers

 

Starting your own business can be an exciting and rewarding experience that offers numerous advantages, such as the ability to be your own boss, set your own schedule and make a living doing something you enjoy. However, becoming a successful entrepreneur requires sound planning, creativity, hard work, and patience.

For more information on Entrepreneurs, along with several case studies on Entrepreneurs in Motorsports, check out our RESOURCES page!

Creating a Business Plan

Before you execute all of the ideas you have created with your team, you will complete an exercise to determine the feasibility of starting your business: the Business Plan.  During this section of the course, you will also receive feedback on your Plan from an industry expert and mentor.  This consultation should provide you with better insight on how to proceed with and complete your business plan.

You can use our road-map below to help you get started.
 

Each component of the Business Plan is essential for strong execution. So, be thoughtful and intentional with your responses.

BUSINESS PLAN COVER PAGE

  1. Team/company Name

  2. Branding

  3. Date

 

OVERVIEW OF THE BUSINESS ("EXECUTIVE SUMMARY")

  1. High-level description of the project and its goals

 

TEAM PROFILES

  1. Name

  2. Age

  3. Role

  4. Quote on personal passion and the project or team

 

OBJECTIVES AND BUDGET

The Business objectives

  1. The car and budget

  2. The track and budget

  3. The event and budget

 

MARKETING AND SPONSORSHIP

  1. Sponsorship plans

    1. Who and how much

    2. Car sponsorship

    3. Event sponsorship
       

  2. Marketing plan and activities

    1. Online

    2. Offline

 

TRACK MANAGEMENT

  1. Locating and securing a track for the Soapbox Derby Race

  2. Logistics plan

  3. Race Day plan

 

CAR DESIGN AND BUILD

  1. Design plan

  2. Build plan

 

SWOT ANALYSIS

  1. Key Challenges (weaknesses and threats) and strategies/responses to those challenges

  2. Key Opportunities and how to leverage them

 

FINAL PLANS

  1. Final summary

  2. Review of responsibilities, tasks, and their delegation amongst the team

What is a SWOT Analysis?
 

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The purpose of conducting a SWOT analysis is to help you consider and evaluate the impact your decisions before taking action. If used properly, this analysis tool will help you improve strengths, eliminate weaknesses, create new opportunities, and manage potentials risks and threats. Consider using this tool throughout the curriculum to evaluate your business ideas.

 

It's important to remember that any Strengths and Weaknesses you identify should be internal and, as a result, are factors and circumstances that you can directly and greatly influence and/or control. The Opportunities and Threats you identify should be external factors and circumstances that you have little to no control over, since they exist outside of your business.​​​

Entrepreneurship in Motorsports Document and Worksheet

Strengths could include items like:
  • Your expertise and specialization

  • Creating new markets and delivery models

  • Alternative ways to execute

  • Innovative ideas

  • Incorporating a social responsibility component to the business model

Weaknesses could include items like:
  • Lacking industry knowledge and experience

  • Ineffective marketing strategies

  • Inconsistent product quality

  • Limited variety of products and services

  • Inexperienced or incompetent leadership and management

Opportunities could include items like:
  • Innovative research that can benefit your industry

  • Partnering with industry experts

  • Increase in demand for the types of products/services you sell

  • Access to international markets

Threats could include items like:
  • Research and development to which you don’t have access

  • Competitive pricing from competitors

  • Competitors with more industry and business experience

  • Troubled economy

Tips for a Successful Business Plan