Starting up a single-seater race team

[Frosty11]

How would you start up a single seater racing team and what sort of costs would you need to pay?

[andrewc]

cars
engine leasing (if engines are leased)
premises
tools + equipment
staff
trucks / vans / trailers
spare parts
insurance
experience
=lots

Depends on the cars and the level you are running at...

[EastonNeston]

Costs will vary at different levels, but for a team running in F Renault you would be looking at stat up costs approaching £500,000, including working funds to cover costs until money from drivers &/or their sponsors arrive.

As someone said in the F3 thread, if you took this idea to 'Dragons Den' you wouldn't get a good response.

[PRS RH01]

Originally Posted by Frosty11

How would you start up a single seater racing team and what sort of costs would you need to pay?

it depends on what you have done before is it a team based around you driving or managing .
What class of car your thinking of .
Your question is to open .
Most people start in a lower formula club level such as my own Classic Formula Ford learn the art make contact then move up to say National Formula ford than year three buy Ron Dennis out !
Tell us your thoughts and between all on here we will answer your questions.
Im at Race Retro if you fancy a coffe and a chat look me up.

Peter

[RPD Motorsport]

As said before - very dependent on what you want to do!

Club Team (Mono, F4 etc)
You could be set up for as little as £30k to run yourself with a car and trailer, the basic tools you need and run it with friends

National Championships (Formula Renault, F3 National etc)
Expect to spend between £250,000 and £500,000 to set up a 2-3 car team. This is seldom considered when people think of the cost of a teams budget - they just think of running costs, not wages, overheads, a fair (but in motorsport small!) profit margin ect.

It goes up from there really - but it is seldom something people do! It normally starts from a number of people who are experianced with other teams/have the correct design knolage (that you need as you move up) who set up to run a driver.. The team then expands taking on more drivers before moving to the next championship.

Why do you ask?

[Icarus_nz]

Find a driver with a massive bag of money and unbridled faith in you.
Cut your cloth according to the budget.

DO NOT PUT ANY OF YOUR OWN MONEY INTO THIS VENTURE

[JNWRF01]

some of your numbers sound crazy. Set up costs are operational costs are very different.

To set up a nice BARC Renault team - work on £30k for cars / £20k for nice truck and kit (lets be honest - most BARC teams are no where near this) / and to set up the workshop - well most of your kit lives on the truck - and having a load of Dura cabs to look nice for sponsors is a load of B/S - you can use second hand kitchen units to store stuff!!

Biggest issue is premises rent/insurance/rates - labour is pretty cheap (decent BARC guys c£150 a day)...

So overall - count on say £50k tops to get going - and prob a few grand a month overheads to turn the lights on and off..

We ran a successful F4 team in 2008 on this basis - two good cars + nice truck and premises at Snett - so prices may have changed a bit - but prob not too much.

[JNWRF01]

saying all that - if any pro team makes more than say 10-15% margin - I would eat my hat!!

[Paradise City]

Originally Posted by Icarus_nz

Find a driver with a massive bag of money and unbridled faith in you.
Cut your cloth according to the budget.

DO NOT PUT ANY OF YOUR OWN MONEY INTO THIS VENTURE

Is it a thought to start out with a modest driver management company? Scout out the karting scene for potential starlets, get acquainted with the players further up the ladder, build up your bank of marketing experience and learn the joys of working 36 hours a day? Then think of something bolder re. team.

Just putting that suggestion out there.

[Redracer77]

Originally Posted by JNWRF01

some of your numbers sound crazy. Set up costs are operational costs are very different.

To set up a nice BARC Renault team - work on £30k for cars / £20k for nice truck and kit (lets be honest - most BARC teams are no where near this) / and to set up the workshop - well most of your kit lives on the truck - and having a load of Dura cabs to look nice for sponsors is a load of B/S - you can use second hand kitchen units to store stuff!!

Biggest issue is premises rent/insurance/rates - labour is pretty cheap (decent BARC guys c£150 a day)...

So overall - count on say £50k tops to get going - and prob a few grand a month overheads to turn the lights on and off..

We ran a successful F4 team in 2008 on this basis - two good cars + nice truck and premises at Snett - so prices may have changed a bit - but prob not too much.

You would struggle to get 2 cars for £30k. Most good cars will be going for £25k each in BARC spec so I would think start up costs for 2 cars would be close to £100,000. I have seen on twitter some teams quoting £30k for a season in BARC....Not sure how those numbers at up as entrys, testing fees and tyres must be close to that.....

I wouldnt do it as a means to making money......you might scratch a living at that level but I am sure there are better ways to spend £100k if you have it!!

[JNWRF01]

BARC Ren with good team is £75k +VAT + testing. So lets say you make £10k a car - for £20k worth of investment - not exactly a business model is it!