What’s Jet ski Rental Business
You can start a jet ski rental Business. These businesses are popular with vacationers during the warmer months so that they can enjoy the water while still being mobile. For profit, this company rents out jet skis to customers over 16 by the hour. Therefore, you should consider entering this field.
How To Start a Jet Ski Rental Business?
How to start a jet ski rental business? The following is a 21-step guide to launching a successful Jet ski rental company. The renting of Jet Skis is a viable business option if you want to launch a venture in the travel and tourist industry.
Establishing your Jet Ski rental company is a good idea if you live near a beach where people often go for recreation or competition. Choosing a good spot and correctly running things is a great way to earn serious money without work. Great success is possible with deliberate preparation, efficient action, and persistent effort.
You can also read the article How much is a Jet ski? to get an idea of the cost of buying a new jet ski.
Keys to starting a jet ski rental business
In this article, you’ll find out what it takes to start a Jet ski rental business from the ground up.
1. Understand the Industry
To launch a successful jet ski rental company, you only need access to a busy beach, an in-depth knowledge of jet ski maintenance and operation, and a stable fleet of jet skis.
To get started, you’ll need to invest heavily in a fleet of jet skis, which might be prohibitively expensive. A Jet Ski is a costly investment due to its high price upon purchase, maintenance, and upkeep. A new jet ski may cost anywhere from $2,500 to $10,000, depending on the make and model, but a used one can cost you as little as half that. You should also put aside a little sum to cover maintenance and fix any problems that may arise.
Customer choices and revenue strongly influence the financial success of the Jet Ski rental company. The price of oil affects the demand for Jet skis. Higher gasoline prices raise PWC operating costs.
2. Conduct Market Research and Feasibility Studies.
The potential customers of the jet ski rental business include tourists and visitors, the middle class, young people, the elderly, and anybody else in a financial position to acquire the services of a Jet Ski rental firm.
3. Decide What Niche to Concentrate On
To facilitate clients’ travel from one point to another on the water, all subsets of the Jet Ski rental business sector are intrinsically linked. The following are some of the niches served by the Jet Ski rental industry:
- Corporate services,
- Transport Services
- Individual Services.
It’s wise to cater to many niches since doing so protects you from losing clients to rivals that provide greater variety.
4. The Level of Competition in the Industry
It’s more complicated to launch a successful Jet Ski rental company. You’ll need capital to buy PWCs, invest in their upkeep, and pay the salaries of those who’ll help you manage the firm.
Small Jet Ski rental firms may find it easier to compete with smaller enterprises rather than with bigger ones. Building relationships with local clients and forming partnerships with more significant or medium-sized Jet Ski rental firms are your greatest bet for success as a small and start-up Jet Ski rental company.
5. Know the Major Competitors in the Industry
Well-known brands are ones people have used for years and are proven to be better. Famous Jet Ski rental brands in the US are:
- Sea-Doo Spark
- Bigger Boat Midnight Express 39S Open
- Yamaha FZR
- Yamaha Waverunner Superjet
- Kawasaki Jet Ski Ultra 310LX
- Gibbs Sports amphibians quad ski
6. Decide Whether to Buy a Franchise or Start from Scratch
Buying a franchise allows you to capitalize on the efforts of others and the knowledge they’ve gained in this industry.
You’ll develop as an entrepreneur and get valuable experience by building this company from the ground up, which is something you wouldn’t get from buying a franchise. Beginning with nothing means doing a lot of work to build an audience. Even yet, more is needed to ensure that the company will thrive.
It’s a good idea to invest in a franchise if providing rental services to customers is your only goal. But before acquiring a franchise, make sure you’ve done your homework on the best franchises in the industry to figure out which one is right for you and will bring in enough money to cover the costs.
7. Know the Possible Threats and Challenges You Will Face.
There will always be highs and lows in business. As with any business, the state of the economy is one of the most significant obstacles you’ll encounter while launching and operating a Jet Ski rental company. Due to a decline in both personal spending and national income, fewer individuals will be in the market for a Jet Ski rental during a recession.
The availability of capital to launch and sustain your Jet Ski rental company is another potential stumbling block. Money is essential to getting a company off the ground, and it may decide between success and failure.
Starting a firm is complex, and it’s much more challenging to maintain profitability while acquiring the necessary permits and minimizing overhead.
8. Choose the Name for Your Jet Ski Rental Business
It is essential since your company name represents your brand. A name should be meaningful and easy to remember. Here are a few suggestions on what to call your Jet ski rental company:
- Verify that the name isn’t already in use. For this, search trademark databases and the state’s list of registered company names.
- Determine whether your preferred domain name is accessible.
- Be simple. Generally, names that are simple to spell, say, and keep straight in one’s mind fare well.
- Consider advertising. It’s essential to give your jet ski rental company a name that conveys the image you want to portray to customers.
9. Develop Your Jet Ski Rental Business Plan
Creating a business strategy is crucial when launching a jet ski company. Planning forces you to think critically about your market and company approach. In addition to serving as a guide for your firm, the plan may be used to approach investors and other potential sources of cash.
Include these sections in your business plan:
Executive summary:
This part should outline your business strategy so readers may readily comprehend your jet ski rental firm.
Company Overview:
This section describes your jet ski rental business’s history and kind. For example, do you rent beaches, marinas, or water parks?
Industry Analysis:
Here, you’ll document jet ski rental business data. Document the industry’s size and trends via market research.
Customer Analysis:
Analyze your ideal or target clients’ demographics in this area. What’s their age? Where are they? What do they value in your services?
Competitive Analysis:
Here, you’ll list your direct and indirect competitors and how to build a competitive advantage.
Marketing Plan:
Product, price, promotions, and location should all be figured into your marketing approach.
- Product: Determine and document what products/services you will offer
- Prices: Document the prices of your products/services
- Place: What is the location of your firm, and how will it contribute to more revenue?
- Promotions: To what extent will you advertise your jet ski rental business? For instance, you might select PPC ads, PR, SEO, and social media marketing.
Operations Plan:
Here, you’ll decide your day-to-day procedures. Determine your personnel requirements. In this area of your strategy, you’ll design a growth timeline highlighting future milestones.
Management Team:
This part describes your management team’s background.
The financial plan addresses questions like
- What are your projected sales and expenses for the next five years?
- What startup costs will you incur?
- How will your jet ski rental business make money?
- Do you need to raise funding to launch your business?
10. Choose the Legal Structure for Your Jet Ski Rental Business
Next, register your Jet ski rental company’s legal structure and name with the Secretary of State in each state where you operate.
Below are the five most common legal structures:
1) Sole proprietorship
In a single proprietorship, the jet ski rental owner and the business are the same legal person. Sole owners are accountable for all debts and liabilities.
2) Partnerships
Small firms often form partnerships. It’s a deal between two or more persons who wish to hire jet skis. The partners split the company’s gains and losses.
3) Limited Liability Company (LLC)
An LLC gives limited liability to its owners. It implies that LLC owners aren’t liable for company debts and obligations.
4) C Corporation
C-Corporations are distinct from their owners. There is a separate identifier for tax purposes, and it may have shareholders.
5) S Corporation
An S Corporation gives its owners limited liability protection and lets them transfer corporate revenue to their tax returns, avoiding double taxation.
11. Secure Startup Funding for Your Jet Ski Rental Business (If Needed).
You may have concluded that you need initial capital to get your Jet ski rental company off the ground.
If so, investigate personal savings, family and friends, credit card financing, bank loans, crowdsourcing, and angel investors. An angel investor is a private person who invests in startups. Typically, angel investors will put money into a jet ski rental firm if they think it has a good chance of succeeding.
12. Secure a Location for Your Business
Locating your Jet ski rental company in an easily accessible and visually attractive area is essential. You might try to find a waterfront location near a busy park or lake. Also, ensure sufficient parking for your clients when they visit your business.
13. Register Your Jet Ski Rental Business with the IRS.
The next step is to register your company with the IRS so that you may get an EIN (Employer Identification Number) (EIN).
To establish a bank account, an EIN is often required. If you plan on having workers, you’ll also need an EIN since that’s how the IRS identifies and keeps tabs on payroll tax payments.
An EIN is not often required if you are a sole proprietor with no workers. If you’re a business, you shouldn’t use your EIN but your social security number as your tax ID.
14. Open a Business Bank Account.
Establish a bank account for your Jet ski rental company. The steps are straightforward.
- Find and contact your bank.
- Collect and submit the necessary paperwork (often the company’s Articles of Incorporation, a photo ID, and a bill or utility bill showing your current address).
- Fill out the bank application form thoroughly and submit it.
- Talk to a banker about your company’s financial demands and build trust.
15. Get a Business Credit Card
To separate personal and company costs, obtain a business credit card for your jet ski rental business.
You can obtain a business credit card from a bank or a credit card issuer.
You’ll need to detail your company’s operations to apply for a business credit card. It comprises your company’s name, location, and the type of business you are running. Give your full name, SSN, and birth date, and be prepared to answer a few questions about yourself.
After getting a business credit card and getting it authorized, you may use it to make purchases for your company. You may utilize it to establish a credit history, which can come in handy when applying for loans and lines of credit for your company.
16. Get the Required Business Licenses and Permits
There is no universal list of what authorizations are required to launch a jet ski rental company. A company license, zoning permit, and boat registration are often needed. Additional credentials include a pollution prevention certificate and a maritime transportation license.
17. Get Business Insurance for Your Jet Ski Rental Business
Jet ski rental businesses have varying insurance needs depending on the state in which they operate.
For your jet ski rental company, here are several types of business insurance to investigate:
General liability insurance This includes property-related incidents and injuries. It protects against liabilities arising from accidents involving company personnel or merchandise.
Auto insurance: If your company uses vehicles, you need this in case one is destroyed or stolen.
Commercial property insurance covers property damage from fire, theft, or vandalism.
Professional liability insurance: This shields your firm against professional negligence lawsuits.
Firm interruption insurance covers lost revenue and expenditures if your business must shut down.
Workers’ compensation insurance protects against workplace injuries and accidents if you have workers. It pays for things like doctor bills and missed earnings.
Get in touch with an insurance representative, explain your company’s predicament, and wait for policy suggestions.
18. Buy or Lease the Right Jet Ski Rental Business Equipment
You’ll need a few essential tools to launch a successful jet ski rental company. You’ll need dependable jet skis, a place to launch and retrieve the watercraft (like a boat ramp or dock), a trailer to carry the jet skis, and a secure place to keep the watercraft out of the way. A jet ski lift may make it much simpler to enter and exit the water with the jet skis.
19. Hire Employees for your Technical and Manpower Needs
Jet Ski servicing requires minimal tools. To completely start your Jet Ski rental company, you will need a variety of essential pieces of equipment, including but not limited to
Due to the company’s nature, it is essential to consider a dedicated office space with a spacious yard for storing the Jet Skis. Indicating such dedication to your customers is a significant first step to gaining their trust.
This company can function efficiently with as little as 5 to 7 full-time employees. Managers, front desk personnel, accountants, and security guards may all be chosen by you. Increase your workforce’s size when the need arises during your company’s operations.
20. Develop Your Jet Ski Rental Business Marketing Materials
Jet ski rental businesses need marketing materials to attract and keep consumers. Necessary marketing materials are:
- Logo of the firm operating
- Website detailing the jet ski rental services offered, company background, and contact details for interested parties
- Accounting software for financial records and a customer relationship management (CRM) system to store and organize information about your customers
- Organizational social media profiles (Facebook, Twitter, LinkedIn, etc.)
21. Protect your Intellectual Property, its Trademark, Copyright, and Patents.
To succeed in this industry, you must secure your brand’s intellectual property rights, such as its logo, banners, and jingles. Filing for intellectual property protection is an option if you wish to safeguard your creations.
You are now ready to open your jet ski rental business. If you follow the steps above, you should be in a great position to build a successful business.
Is Jet Ski Rental Business Profitable?
According to a survey by Statista, over 3.2 million individuals in the United Kingdom alone engaged in water sports activities.
Several nations have government agencies solely overseeing water sports to advance these activities domestically and internationally. As a result, these variables will encourage more people to try out water sports, which will fuel the industry’s development over the next several years.
Most of the watersports industry’s profits come from the United States of America. The popularity of water sports has also expanded, and this factor, together with the growing interest in healthy living, is mainly responsible for the region’s economic expansion. So, starting a Jet ski rental business in the water sports segment is highly lucrative for entrepreneurs who want to create an outdoor company.
Why start a Jet Ski rental business?
Setting up a successful business is hard work, but it’s worth the effort. Starting a jet ski rental business is an excellent opportunity to make money while providing people with fun. To be a successful entrepreneur, you need to know the ins and outs of the jet ski rental business. This step-by-step guide has all that is required to begin an entrepreneurial adventure.
What Are the Costs of Running a Jet Ski Rental Business?
Jet ski rental firms vary in size. Hence operating costs vary. Among the factors that matter most are the following:
How many employees do you have
- Office rent
- Coast rent
- Utility bills
- Maintenance and repair
- Fuel costs
- Weekly advertising campaigns
- It’s essential to take all of these costs into consideration.
How Much Does It Cost to Start a Jet Ski Rental Business?
Prices for jet skis typically fall between $4,000 to $30,000. The specific cost is determined by the year, make, and model of the purchased item. To reduce startup expenses, a prospective Jet ski rental company’s owner can look into buying used jet skis from a reliable vendor.
Other costs include to start a jet ski rental business:
- Registering a business entity: ~$750
- Legal expenses for obtaining permits and licenses: ~$1,500
- Marketing campaign expenses: ~$10,000
- Insurance policy coverages (workers’ compensation, general liability, property-casualty): ~$30,000
- Accounting, CRM, and payroll software: ~$3,000
- Leasing a facility for the company: ~$20,000
- Operational costs (employee salaries, utility bills, etc.): ~$15,000
- Website creation: ~$1,000