How Adam Started a $30M/Year Business Renting Supercars

In this interview, Adam Olalde shares how he launched a business in an industry that didn’t exist and achieved incredible success.

How much revenue and profit does the business generate?

Xtreme Xperience has a company revenue of over $30 million.

Tell us about yourself and your business.

First of all, I did not intend to become an entrepreneur, and I think that’s the most fun part of my story. I was born and raised in Chicago and, after I graduated from Miami University, I found myself back home to pursue a sales job.

It was during this time that I was met with a unique opportunity. An acquaintance of mine was renting luxury cars in the Chicago market, which was a popular idea in other parts of the US, and I was more than happy to be a part of that. 

While I was running that business for him, I started to notice that many of my customers interested in renting Rolls-Royces and Lamborghinis weren’t one percenters or millionaires, but average people interested in experiencing the thrill of high-end cars. It was a lightbulb moment, and I realized there was a gap in the market, especially in Chicago, for automotive entertainment. The idea for Xtreme Xperience was born. 

Today, my company Xtreme Xperience is the world’s largest provider of supercar, driving, racing, and lifestyle experiences. Annually, we operate over 50 driving programs at 37 of the nation’s top racetracks with a fleet of the top supercars in the world. We also recently launched our Open Road experiences, which allow our customers to drive their favorite supercars at a dozen different locations on some of America’s most iconic roads. We’ve come a long way from our humble beginnings, and I’m extremely proud of what we’ve been able to accomplish.  

How does your business make money?

We generate revenue by selling reservations to drive our fleet of cars on racetracks and the open road. Prices vary depending on the length of experience and model of the supercar. In addition to behind-the-wheel reservations, Xtreme Xperience also offers ride-along experiences, merchandise, media to remember your experience, and gift cards for a special occasion. 

What was your inspiration for starting the business?

Our customers were always at the heart of our vision. We wanted to offer an exciting way for people to drive their dream cars without the hassle of ownership. We wanted to deliver thrilling automotive adventures without the hefty price tags and make exotic cars attainable for all.

That being said, experiences were NOT our first idea. In the beginning it was daily and weekend rentals. That coupled with other luxury concierge services is how the business began. But, as previously mentioned, it was listening to our customers’ daily calls for weddings, birthdays, and other special occasions that opened my eyes to the need.

People knew why these cars were built and I knew how our customers wanted to drive them, I just needed to find a way to put two and two together. It took six months of pivoting, offering a product, seeing how the market responded, and pivoting again until we arrived at Real Supercars, Real Racetracks & Real Instruction. Boom.

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How and when did you launch the business?

I was 25 years old and getting my feet wet in the luxury car scene, when the idea hit me to let strangers take cars we didn’t yet own and race them on racetracks. Crazy, right? I didn’t meet a single investor who said “yes” or a single person who said “this seems like a good idea,” but we did it anyway. I put everything on the line and didn’t let failure enter my mind. And you know what? It worked. 

When we first started Xtreme Xperience in 2012 we were unaware of anyone else doing what we were doing so we weren’t just starting a business; we were blazing a trail in an entirely new industry. When it came to putting Lamborghinis, Ferraris, and Porsches on a racetrack, we were in the driver’s seat all by ourselves. There were no rules, no industry regulations, and no comparable industry leaders to study. On the flip side, we had no competition but ourselves, so we defined the market and others followed.

How is the business funded? 

Xtreme Xperience was a true startup. No private equity, no venture capital. We created our experiences (for future dates) and then marketed them. As money from ticket sales came in, we went out and began acquiring the people and assets necessary to put on our show.

We started by doing that a few times, then a few dozen times, then a few hundred times, and by reinvesting, we eventually got to a place where we owned and were able to expand the show. Today we own over 70 cars nationwide and have also brought our trucking operations in-house to transport the show. 

How did you find your first few clients or customers?

E-commerce is at the heart of our marketing. All of our advertising and marketing is designed to drive customers to our website to make a reservation to drive the car of their choice at the location most convenient to them.

When we founded the business, one of the more successful e-commerce distribution channels was located right down the street in Chicago—Groupon. In the beginning, we leveraged Groupon’s reach in the local markets to which we intended to bring the show. This helped us sell over 80% of our tickets. 

As consumer buying habits, competition, and algorithms changed, the ability to solely rely on channels such as Groupon quickly began to fade and we built up our internal marketing department. Today we sell all of our tickets via internal marketing initiatives and campaigns. 

What was your first year in business like?

Our first year was a wild ride of figuring things out on the fly. Imagine starting a business in an industry that nobody even knew existed! I leaned hard on my inner circle for support – even roping in my parents to help run the pit lane.

I called my college roommate, who is now my Chief Marketing Officer, and he and his family drove in from St. Louis to help me out. I couldn’t have succeeded during that first year without my support group.

Talk to any entrepreneur and they’ll tell you, it’s true, you put aside everything for your business. Going out, holidays, paying yourself, sleep. But you’re building, and that’s the real reward. I was on an airplane every Wednesday to a new city, I would talk to customers, run pit lane, and teach safety briefings for four days straight, then rush to the airport and fly home to be in the office Monday morning to work on selling more tickets, answer phones and prepare to leave again on Wednesday. I loved every minute of it. I was young and had nothing to lose.

What strategies did you use to grow the business?

Since 2012, we’ve grown to 75 full-time employees operating in 45 markets and providing supercar driving experiences for over 400,000 enthusiasts nationwide. Getting to this point wasn’t easy, but we persevered every day and focused on the following strategies to get us where we knew we wanted to be. 

·       Listen to our customers: Although we essentially created the market, we never stopped taking notes, listening, and responding to feedback so we can continually improve. We’re constantly adapting to meet their needs and desires, whether it’s extending driving experiences, introducing new car models, or finding ways to bring the supercars they know and love out on the open road. It’s all about staying in tune with what our customers want.

·       Invest in the best tools: Equipping our team with the best resources allows us to operate efficiently and deliver exceptional customer experiences. From advanced software to state-of-the-art facilities to owning our own logistics company, we spare no expense in ensuring our operations run smoothly.

·       Provide access to the inaccessible: Some of the best ideas are born out of helping people realize their dreams, and Xtreme Xperience is no exception. We focus on providing access to experiences that were once inaccessible to many. By tapping into the aspirational dreams of our target audience, we’ve carved out a niche in the market and created a demand for our services. 

·       Create a shared vision together: From the outset, our team has rallied around a common goal and worked collaboratively to achieve it. Every member of our team plays a crucial role in driving our growth and maintaining our position as industry leaders.

·       Enjoy the journey: Building Xtreme Xperience from the ground up has been a rewarding endeavor, and we take pride in the work we do. While we’re serious about our business goals, we also make sure to have fun along the way. After all, passion and enthusiasm are at the heart of everything we do.

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What was the biggest challenge you had to overcome?

One of the greatest challenges we’re facing is navigating today’s macroeconomic uncertainty. With people unsure about their financial stability, including their income and job security, there’s a significant shift in how they manage and spend their money. This unpredictability poses a challenge for businesses like ours, particularly in sectors heavily reliant on consumer spending. The changing landscape makes it more difficult to effectively target potential customers and adapt our strategies to meet their evolving needs and preferences.

What have been the most significant keys to your business’ success?

I think there are three main factors driving our success. 

First, it’s our unwavering commitment to listening to our customers. Unlike many others in the industry, I didn’t enter this business to teach people how to chase a tenth of a second – I’m an enthusiast myself, driven by the same passion and excitement as our customers. By constantly tuning in to their feedback and desires, we ensure our offerings align with their expectations, keeping them thrilled and engaged.

Secondly, our dedication to quality sets us apart. From day one, we’ve prioritized investing in top-of-the-line vehicles, professional race tracks, and safety measures, even if it meant initially taking on significant financial risk. This commitment to excellence has paid off, as we now boast the newest and safest fleet in the market as well as a circuit of the most sought-after venues nationwide, earning the trust and loyalty of our customers. 

Lastly, our success hinges on our incredible team. We’ve cultivated a culture of enthusiasm and dedication by hiring energetic individuals who share our passion for delivering extraordinary experiences. Every member of our team is driven by the same mission – to provide unforgettable adventures to our customers. It’s this shared sense of purpose that fuels our growth and sets us apart from the competition. 

Tell us about your team.

Our team is always growing and changing! Today, as mentioned, we have over 75 full-time employees and nearly 200 additional contractors who support us through their professional driving, media, customer service, and other specific skill sets.

We are headquartered in Chicago (where I’m from) which is where you’ll find our fleet and logistics teams, mechanics and service shop, marketers, customer service and call center as well as certain operations and management staff.

We’ve also embraced remote work because not all of the best people live here in Chicago. They work from over a dozen states and meet us out in the field, at our office where the real action happens, the tracks, and open roads of our program.

How did you make the transition from side hustle to full-time?

This was never a side hustle for me. I walked away from corporate America and a six-figure income in 2011 and never looked back. When I dive in, I dive in the deep end. Success is at the intersection of preparation and opportunity, don’t let it pass you by. I live by General Colin Powell’s 40-70 Rule. We need at least 40% of the information and not more than 70%. When you’re somewhere in the middle and feeling confident, time to dive in. 

What was the turning point when you knew your business was successful?

Being a startup, there was no runway. We didn’t have a bunch of angel money and so we, as far as I was concerned, had to be profitable from day one…especially if I wanted to eat (on no salary). But it was really prior to year one that I knew we were on to something.

In year zero, when I was still running the rental operation, we hosted a marketing and customer acquisition event at a racetrack outside of Chicago. We invited a number of Chicago influencers and started spreading the word online. When a couple thousand people showed up for our first racetrack event, I knew we could do this. 

What separates your business from your competitors?

Xtreme Xperience has two categories of competition in the market:

1.     Direct competitors. While this category is small, it does exist. In the decade-plus that we’ve been in business, we have seen many driving ‘experiences’ pop up and deflate, just as quickly. What remains in the market are some small operators doing auto-x style parking lot driving events which are obviously largely overshadowed by our commitment to on-track race experience and high-speed offerings. The other direct competition that we have is located in Las Vegas at a permanent facility. For those who can’t plan a trip to Nevada to do their driving, we bring the program to you!

2.     Indirect competitors. If you weren’t specifically searching to drive a car and, rather, just something fun to do, then we compete with every concert, sporting event, or high-adrenaline experience on the market. So, what sets us apart? Ferraris, Lamborghinis, and more of the world’s best exotic cars ;). 

What advice do you have for other entrepreneurs?

First off, move fast and (try not to) break too much stuff. Perfection is an illusion, and striving for it will only hold you back. It’s okay to break things along the way – that’s how you grow and improve.

The key is to jump and build your wings on the way down. Things are not always going to go as planned. Learn from each stumble and use it as fuel to propel you closer to your goals. As long as you stay focused and determined, setbacks won’t derail you from achieving success.

We adapted the mentality that #failureisnotanoption a long time ago, and we still embody it today. There is no normal. Embrace each day’s challenges as creative opportunities. Life is a journey, not a destination!

Second, focus on what you want to achieve, not on proving others wrong. Envision where YOU need to be, and what the view looks like from the finish line, then reverse engineer how you’re going to get there. It’s easy to get caught up in trying to silence doubters but your energy is better spent on pursuing your goals.

Remember, action speaks louder than words. So, don’t hesitate to take that leap and start making moves. You’ll be surprised how quickly people start paying attention when they see you starting to produce results.

What are your future plans for the business?

Pardon the pun, but we intend to stay in and near our lane. There are still a lot of people in a lot of places in this beautiful world who have yet to experience our programs. We will continue to work on bringing safe, positive, and exhilarating experiences to the world and as we do do, we will scale our operation, incorporate new types of experiences, and, hey, who says it has to have four wheels or stay on the road?! After all, we’re called Xtreme Xperience for a reason.  

What are some of your favorite books, blogs, podcasts, or YouTube channels?

I give a copy of “Extreme Ownership” by Jocko Willink and Leif Babin to anyone who walks into my office. The book is incredible and offers insights from Navy SEALs on leadership and accountability. Its message about taking full ownership of your actions is invaluable, and I believe this mindset drives lasting success in both business and life.

Additionally, when it comes to building a successful business framework, I encourage turning to the work of Brené Brown, Patrick Lencioni, Cameron Herold, and Simon Sinek.