Wondering how to start a jet skis rental business? We take you step-by-step from start to success.
Jet Ski Rental Operation Startup Costs
Jet skis have become ubiquitous features of the American beach scene. Although jet ski rental can be a great business opportunity for certain types of entrepreneurs, the financial dimensions of launching a jet ski rental business can spell disaster for other entrepreneurs, especially those who have unrealistic profit expectations.
From the outset, you'll need a minimum fleet of five or six jet skis to have a shot at a profitable business venture. You'll also need a beachfront rental location costing thousands of dollars per season and the number of jet skis you can rent will be limited by the amount of frontage you lease.
When you include the cost of PFDs, insurance, maintenance equipment and other startup expenses, the bottom line is that you'll need at least $80k to get your operation off the ground. And if your location isn't a year-round travel destination, you'll need to do enough business in five months to cover a year's worth of costs.
What's It Like to Run a Jet Ski Rental Business?
Many entrepreneurs assume a jet ski rental business is an easy way to turn a profit while enjoying the benefits of daily beach life. In reality, jet ski rentals are grueling business models that place high demands on owner-operators.
During peak rental season, plan on spending nearly every waking hour at the beach. It's a dawn to dusk, 7 day a week lifestyle for several months a year. When you aren't actively renting jet skis, you will be repairing them and handling back office tasks like accounting, marketing and recordkeeping.
Before you take the plunge, we recommend augmenting your business plan with an annual operation plan that clearly describes daily operations and your strategy for keeping up with the rigorous demands of running your jet ski rental startup.
Avoiding Personal Liability in a Jet Ski Startup
Liability is a real concern for jet ski rental business owners. No matter how careful you are to instruct renters in the proper use of your jet skis and safety equipment, someone will inevitably get hurt while racing across the waves on one of your vehicles. When that happens, you need to make sure your business and your personal assets are protected.
A robust insurance policy is the best way to defend your company from litigation. But to protect your personal assets, you may want to consider launching your startup with a business structure other than a sole proprietorship. Limited liability companies (LLCs) and other business structures avoid personal liability and inoculate your personal assets from legal vulnerabilities.
How to Write an Effective Jet Skis Rental Company Business Plan
Business plans play a central role in the strategic formation of a startup jet skis rental business.
A solid business plan should include verifiable industry data. Fudging the numbers is the equivalent of sabotaging your jet skis rental business's strategic interests.
Instead, commit to creating the most precise business plan possible. If you're still not convinced, consider what the experts say about business plan writing.
Consider the Competition
Prior to launching a jet skis rental business in your area, it's a smart move to find out how strong the competition is. Use the link below to generate a list of competitors nearby. After following the link, enter your city, state and zip code to get a list of jet skis rental businesses in your area.
It's important to be aware of what the competition is doing. Take the time to visit the competition to properly assess their strengths and weaknesses.
A Good Source of Advice
If you are interested in starting a jet skis rental business, be sure to speak with somebody who is already in the business. If you think owners of nearby jet skis rental businesses will give you advice, think again. Why would they want to educate a future competitor?
However, an entrepreneur who owns a jet skis rental business in a different city can be a great learning resource for you, after they realize you reside far away from them and won't be stealing their local customers. In fact, they are often very willing to share startup advice with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
How does one quickly and easily locate a jet skis rental business entrepreneur in a different locale who can assist you?
It's easy. Here's a link you can use to find a mentor outside of your area.
Tips for Buying a Jet Skis Rental Business
It's fairly common for jet skis rental business entrepreneurs to gain entry through a business acquisition.
An acquisition isn't necessarily a bed of roses. You'll need to thoroughly evaluate the factors involved with buying a business. First and foremost, it's important to make sure the business is the right fit for your personal and professional goals.
Once you have determined that the jet skis rental business is an appropriate match for your goals, you will need to skillfully negotiate on price and perform a thorough due diligence process before you finalize the deal.
Franchising May Be a Better Way to Go
Your chances for avoiding failure in business greatly improve when you franchise and benefit from the prior work of others and their lessons learned.
Before you consider starting a jet skis rental business, you would be wise to assess whether franchise opportunities in your space might be the right move for you.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
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