Learn how to start a successful jet ski rental business with a sample business plan, covering costs and return on investment.
Primarily, the jet ski is a highly sought-after water sports activity and falls under the category of adventure sports. Functionally, the jet ski is actually the label given to watercraft formed by the Japanese company Kawasaki.
While most jet skis are able to hold only one, two, or three individuals at once, some of them have been designed to fit up to four people.
It is known that a jet ski rental company can turn out to be quite prosperous. Nevertheless, the success of the business depends on the understanding of the business owner and possessing a good plan.
It is expensive to begin such a business due to purchasing the jet skis and having money available for fuel, maintenance, and marketing.
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Is Jet Ski Rental Business Profitable?
Industry experts project that the global watersports market will experience a 5%+ Compound Annual Growth Rate (CAGR) by 2021. This is due to governments around the world pushing for greater participation in water sports activities.
According to Statista, over 3.2 million people in the United Kingdom alone participated in water sports.
Many countries have regulatory divisions dedicated to water sports, which aid in encouraging and planning these activities at a local and international level. This should further drive the market forward in the upcoming years given the likely increase in participation.
The USA is a major contributor to the watersports market. This is largely due to heightened awareness of healthy living, as well as more people enjoying water sports activities.
Therefore, opening up a jet ski rental business in the industry is incredibly profitable for entrepreneurs interested in starting an outdoor business.
Jet Ski Rental Business Plan Checklist for Beginners
These are the 6 steps to launching a successful jet ski rental business:
1. Analyze the Location
Starting a jet ski rental business requires careful consideration of the potential of an area since not all places with bodies of water are suitable.
Locations known for their high tourism activity and demand for water-based activities are the perfect choices for starting a business. However, you should always verify local, regional, and environmental regulations before investing anything in a particular area.
2. Business Plan & Financial Analysis
Once you’ve chosen a location, the next step is coming up with a plan for your jet ski rental business. Your business plan should cover these points.
- Executive Summary
- Company and Financing Summary
- Products and Services Overview
- Investigating strategic approaches through current research.
- Marketing Plan
- Personnel Plan
- Financial Plan
- A Financial Plan with Monthly Reports that include Detailed Statistics
- Sample Private Placement Memorandum
- Create a persuasive PowerPoint presentation to present to banks, investors, and grant companies!
3. Obtain Proper Licenses
This kind of business requires certain authorizations and permits, which differ from state to state. Therefore, it is imperative that you look into the licensing matters beforehand. You will need to register your business in order to acquire the proper license.
When setting up your business, make sure to choose the best structure. Depending on your country and state, you can be registered as a Sole Proprietor, LLC, Corporation, or Partnership in the United States, for example.
Additionally, you’ll need a business license. In most US states, any businesses with a trading name must register a DBA. Sole proprietors have to obtain a Federal Tax ID number as well.
4. Procure Equipment
You will need to acquire the jet ski and any other items related to safety. The jet ski obviously costs a great deal, as the price could fluctuate from $4000 to $15000 depending on the design and brand.
Though you may be able to obtain a utilized vehicle for much less money, we don’t advise that option; this kind of vehicle typically asks for plenty of repairs and upkeep.
It’s wise to purchase vehicles from trusted brands. Some of the top jet ski makers are Kawasaki, Bombardier, Yamaha, Honda, Polaris, and Arctic Cat.
5. Cost Analysis & Pricing
To manage the jet ski rental business effectively, one must take into account these key elements. One must assess the costs accurately. Primarily, factor in the storage space. Generally speaking, coastal areas tend to come with a rather steep price tag for real estate–this needs to be kept in mind.
Besides counting the fuel, maintenance, and insurance expenses for the vehicles, you must also consider riders’ insurance and adjust your prices accordingly.
Price your tickets at a slightly higher rate to make room for discounts and specials. Remember that fuel prices fluctuate but your ticket prices need to remain consistent.
6. Promote your Jet Ski Rental Business
Achieving success in any business requires promotion and the same is true for the jet ski rental business. Fortunately, there are many cost-effective methods that can be used to promote this type of business.
Networking with other companies associated with travel services is also suggested as a way to increase your visibility.
You may consider having your advertisement displayed at hotels and resorts in their lounges and utilizing tour guides can be helpful resource too.
Tour operators who plan package trips or sightseeing have great possibilities to develop business connections. Make sure people can easily find information about your place online.
Besides launching your own jet ski rental company, you may want to invest in the franchise of an established brand. Here are some of the most well-known jet ski franchise opportunities:
List of Profitable Jet Ski Rental Franchise Opportunities
Aside from establishing your own company, you can also mull over launching your business as a franchise partner. If you are inexperienced in this field, it would be prudent to opt for a franchise.
For that matter, there are several possibilities at present that you can review. To help, here is a list of four jet ski rental franchises for your convenience.
a) Invert Sports LLC
For over 18 years, Invert Sports LLC has provided rental and guided tours of quality recreational equipment with superior customer service. Boats, jet skis, ATVs, and
b) Aloha Watersports
Aloha Watersports offers the widest selection of water-based activities in South Florida, plus cutting-edge equipment, extensive staff training, and compliance with regulations beyond industry standards.
c) Jet Ski Safari
By offering immediate technical support and product backups, JETSKI Safari has established itself as a successful business model that can be owned and operated independently at resorts.
Unlike the majority of jet ski rentals with no corporate assistance and expertise, JETSKI Safari gives you access to all sorts of support in the event of a human resources concern or mechanical failure. The company is always willing to help you solve any problem you may have.
d) SeeDoo
For those wanting to venture into the jet ski rental industry, a distribution business is definitely worth considering. Becoming a BRP dealer is an incredibly rewarding adventure.
When you qualify, you’ll join an outstanding transnational enterprise. BRP has manufacturing facilities on four continents and distributes to more than 16 nations worldwide.
To conclude, the business doesn’t just consist of obtaining the vehicles and putting them on rent. The long-term success of this company greatly depends on an appropriate business plan and seamless enforcement.
Make sure to give your customers as much information as you know. Provide them with multiple safety tips. Make it clear how far they are allowed to travel.
Demonstrate the seriousness of your concern for their safety; with that, you will surely gain a great deal of money from jet ski renting, all while having a blast.
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