A common reaction from someone who looks into the bookmaking business for the first time is that the expense and time involved in putting a venture like this together is beyond anyone who doesn’t have vast amount of capital available to invest. On of the common questions that rises is “How much do I need to be comfortable bankrolling my bookie business?”. While this is a basic question, there is actually a lot of nuance in it. For example, many people talk about being able to do it right away, no matter what your bankroll is. Not only is this a bad idea, but it can be financially disastrous for you in a lot of ways. This what you need to start your PPH bookie business:
Infrastructure
When you start out, the first thing that you will want to do is figure out what you need to run your bookie business with the quality that your players expect. This is a huge step, and one that can really change the landscape of the conversation. Needless to say that most bookies will find a Pay Per Head system a good starting point. If you have this type of system, then you solve a lot of the management problems in one fell swoop, and it gives you extreme clarity into your costs right away.
Cash Costs
The other aspect of bankroll management and determination is going to be the fact that most people are going to want to start right away, but when determining your bankroll, you will want to think about that same minimal group of clients and assume that they are going to bet an average amount, which you can assume based on how much you know your clients. From there, you want to assume that each one bets this average amount ($100 for this example) and assume that all of their action needs to get paid off for four weeks without any money coming in.
So if you have ten clients that all spend $100 each week, then you will need $1,000 per week to pay them off, and four weeks of ‘action’, so $4,000 to start, plus infrastructure costs. This is a conservative number, but it’s one that will put you in an excellent starting position when you begin your business.
While you will never have 100% of your action go against you, or have 100% clients that don’t pay you back for a month, this is a very safe way to give yourself some protection, and it’s a rule of thumb that you can use throughout your bookie career to ensure that you have enough cash at hand. In addition it will allow you to implement some very customer-friendly policies right away, like offering fast payouts that you might not be able to offer if you were starting on a shoestring budget. Sure, it might take a little longer for you to get into the bookie game at this bankroll starting point, but it will also maximize your chances of having a strong business from day one, and it will improve your chances of keeping your business going for years to come.
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