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Race Team Organization: The business of racing

by Projekt9    

Let's begin by stating that many a seasoned or even some relatively new racers are privy to all the key elements and business-like tasks that make up a racing program. This is written for those who may not know or realize what is involved in creating and running a successful racing program. It is not just about the on-track results. Sooner or later, if you are un-professional appearing, and un-organized, it will become a sticking point, and may likely have a negative impact on your ability and your overall program. Whether you are an amateur club racer, or a national professional, if you race, then make no mistake about it, you are in the "Racing Business"

The Business of Racing is a far more involved endevour then the actual on-track racing you will do. It encompasses everything related to, and absolutely everything about your racing program. From the on-track competing to all the paperwork involved in keeping a database of records and information.

This is why it is very important and consequently, it is also why it becomes an effective tool to be structurally, and logically organized. The scope of this organization may include creating, and producing documents, taking notes, and keeping records of EVERYTHING. The scope will vary in range depending on how involved your program is, but even if its just a hobby, you should still follow a professional approach. The scope should and may include some or all the following processes and sub-processes:

Racing Plan (aka- Business Plan, or BP)

Mission Statement

Race team structure/Architecture/History

Strategic Goals and Objectives/Operational outlines

Methodology/Statement of Work (SOW)

Itemized budget, financial, and expense ledgers

Marketing/Promo outlines (Web site, Proposals, Press releases, Newsletter, ect)

Risk Management/Contingency plans

Supplier lists/Parts ordering records

Parts/Equipment inventory

Sponsor knowledge-base

Contracts

Race reports/Sponsor updates

Mid-season/Year end analysis

Year end review/Assessments

Year end ROI (Internal & External)

Rider/Driver data

Machine data

Equipment/R&D evaluation

Track data

Just as your on-track racing has high demand, being organized initially takes time, a fair amount of effort, and absolute diligence. But, once all is in place, it will be relatively easy to maintain an effective level of organization.

You should think of your racing operation as your own business. Run it just like a corporation, whether it is one single person, You doing everything, or a team.

This task driven process may help you in many ways. The process will make you commit to a certain standard. It may re-enforce academic and creative thoughts, cultivate structured habits, and a business type environment for your racing program.

Another added benefit is you will have readily available information and data that you can access and retrieve at any given time. Ultimately it will give you an edge because you will be prepared, knowledgable, and more focused about your program.

This approach may not be for all, and you can certainly use what processes fit your needs best and also customize any of the processes to fit into your own program. Furthermore, there is nothing wrong with applying this approach, and if anyone thinks or tells you so, just smile and know that you will be far more ahead in the racing game, and its many aspects over your skeptic competitors. Whether you race for fun, or race for a living taking a systematic, business style approach can only help you in your racing endevours. If nothing else, it will instill some discipline and possibly some small degree of new learning.

Next in part II, a further in-depth discussion of some processes and sub-processes that may be a part of your racing program organization. Again, these are only one aspect of racing, and may not seem like an integral part, but in the overall scheme, it is one
aspect that is of vital importance.

ORGANIZATION:
THE BUSINESS OF RACING: PART I I

In this edition, lets look at some of the tangible processes and sub-processes more in-depth. Your Business/Race Plan is basically the blueprint for your racing program. In this plan you would list and outline each of the processes you choose to be included. Here is an example of what you may include:

Business/Race Plan (BP)

Executive Summary: An overview of basically the Who, What, Where, When, and Why of your racing program.

Mission Statement: Your statement should be short, yet explain what it is you are about, and your purpose. **(This also helps to re-enforce and maintain positive outlook throughout the year)

Team Operations/Architecture/History: A list of the personnel, equipment, job titles, tasks/responsibilities, and a history/performance summary.

Strategic Goals & Objectives: List exactly what your short-term and long-term goals and objectives are. How you will attempt to achieve your target performance. All and any deliberate and purposeful actions related to all of your on and off-track endeavourers regarding your racing program.

Marketing/Promotional & Advertising outline: Here is where you can get creative, and you can also decide how much you get involved to get your name and/or your sponsors out there' to the public. There really is no end or limit to how much marketing and promotional work you can do. From press releases, newsletters, logos, imprinted merchandise, photos/posters, free give-aways, contests, raffles, Web site/Internet, fan clubs, ect. But, it has to be cost effective for you, i.e. don't exceed the cost of capital meaning you don't want to spend more on your marketing and advertising than you will re-gain back from sponsors. This is one area where you shouldn't put out more than you will receive. Advertising? Sure, everytime you are at the track, or in a public appearance, you are advertising for yourself and/or your sponsors. Be neat, courteous, and professional appearing. First impressions are the most lasting and important.

Financial/Budget outline: List what you have to spend, in what specific area's. What you might project in spending and keep an expense(s) report for everything you spend. You can set up separate expense sheets, one for your fixed costs, and one for your variable costs. MRO (Maintenance, Repairs, and Operational) costs for example are variable, Fixed would be your intial one-time purchases, such as machine, equipment, license, ect. Use a ledger for your financial outline or you can use an Excel spreadsheet templates.

Strengths, Weaknesses, Opportunities, & Threats - aka SWOT: List your strong points, and all of your weak area's. Opportunities could be for potential sponsors in a new market area, or putting yourself in a position for a better ride, or just improving your performance. Threats come in various forms and degrees, but in this case are more likely internal than external. What I mean by that is your competitors (external) are not necessarily a threat. But, rather (internal) running out of financing, or lack/loss of equipment, or a loss of personnel, or some other crippling factor that threatens to prevent you from implementing and executing your plan. You may also want to offer a counter statement for each point, how you can improve upon your strengths, or how you plan to address and attempt to curtail the weaknesses. How many opportunities you can create, and how to you will lessen the impact and defend against the possible threats.

Risk Management/Contingency plans: There are four key points to assessing and managing risks. An effective risk management/contingency plan requires the following; Identify the risks, quanitfy the risks, plan for risks, monitor and manage the risks. To adequately analyze the potential risks, you'll need a plan. The best time to perform an initial risk analysis is just before beginning your program. Although, don't make the mistake of thinking that risk analysis is a one-time task. You should re-evaluate the plan and your risk analysis from time to time throughout the season and whenever a decisive change from the BP and/or your program occurs. Having a contingency plan is also a good idea in case some factor forces you to deviate from your intial plan. Some may call this a disaster recovery plan. Do you have back-up machinery and equipment? Alternate means of transportation to the tracks? Enough spare parts to last the season? You get the idea here. The idea of having a plan will hopefully enable you to follow through on any commitments or contractual agreements you might have. If you don't, then there is no need for this step.

These 8 sub-processes are some examples of what may or may not be included in a BP. You can have as many or as little as you want that are applicable to your program.

SOW - Details how the racer/team is expected to accomplish the defined tasks and deliverables stated. This should also further explain the Who, What, Where, When and Why of your program in detail.

The scope: This should explain what the Statement Of Work will contain. The required effort of the program and all components associated with it. Such as personnel, the required logistics, and required support - financial, and/or structural

Standard Operating Proceedure: aka SOP: Outline your standards and proceedures for your operation.

Methodology: Defines the process of how you will attempt to accomplish your stated goals and objectives. How you will go about implementing, executing the tasks and providing the deliverables - i.e. the desired end result.

ROI: At seasons end, you should prepare a detailed summary of all the expenses and costs and determine what Return On Investment your program has made for you and/or your sponsors. Hopefully it will be on the plus side! *Side note: a Return On Investment will not always or necessarily be in the form of direct cash. Positive ROI can be in-direct, as in potential customers, potential sales, successful advertising, ect. But you must be able to identify, measure and verify your ROI.

Mid-season/Year-end review and analysis: Review and assess your strategy, your performance, your expenses, and your results. Identify any problem area's, and re-plan and make changes if necessary. Determine the key points of any successes or failures, and examine the Why's of each area.

Data Gathering/Record Keeping
Another area of key importance is Data Gathering/Record Keeping. You should take notes, make observations and and keep detailed records of the following:

Rider/Driver

Machine

Equipment

Track

Race data

Performance

Results

All of this is equally important to establishing baselines and having a collection of notes and records that you can access to reference, assist you and learn from. You should set-up individual logs (electronic and/or hard copy) or notebooks for gathering, and recording your specific areas of data. This data will become invaluable, and a vital source from which you will be able to draw upon from event to event and for the future of your racing program. Don't discount or take for granted the worth of this process, it could save you time, money and could be the difference between a solid finish, perhaps standing on the podium or DNF'ing. Be organized, be prepared, be knowledgable, and you will most likely be successful.

This document was prepared by p9 Group/Level9 Media. It contains confidential and/or proprietary information. Any distribution or copying of the contents of this document, in whole or in part, requires the express written permission of p9Group/Level9 Media.

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