Do you want to start a jet ski rental business and want to know the cost breakdown? If YES, here are 12 factors that affect the cost of opening a jet ski rental business.
The Jet Ski Rental industry consists of businesses that engage in renting out different types of jet skis basically for fun or for tournaments. Operators in the Jet Ski Rental industry vary greatly in size, ranging from large operators with a fleet of sizes and models, to single jet ski owner-operators.
It is important to state that the Jet Ski rental business can be restricted to a certain area – areas close to the seashore and beach. Starting a jet ski rental business is one of the easiest ways to start out as an entrepreneur especially if you can’t afford to go through the challenges involved in the production of goods.
So, if you live around any beach where people either ski for fun or for sports, then you should consider starting your own Jet Ski rental business. The truth is that you can make cool cash from this line of business with little effort if you are well positioned and you have the right jet skis available for rent.
Establishing a Jet Ski rental business can expensive for a small-scale owner because Jet Skis are truly expensive, and also maintenance cost and even fueling can also be expensive as well. Jet Ski is majorly imported from Japan because Kawasaki and Yamaha happen to be the major manufacturer and they have the largest market shares in the industry.
If you are looking towards opening a jet ski rental business, one of the major things your need to know as regards the business is the locations that is ideal for such business. Jet Ski rental can only be restricted to a certain geographical area, which is why before starting this type of business, you must ensure that you are in a place where this type of business thrives.
The jet ski rental industry is very open to any aspiring entrepreneur who has the required capital and business exposure and they can indeed make good money from the industry.
Estimated Cost of Opening a Jet Ski Rental Business
When it comes to starting a standard jet ski rental business, one is expected to spend the bulk of the startup capital in purchasing different types of jet skis and equipping a storage facility.
Aside from that, you are expected to acquire licenses and permits, maintain and fuel your skis, and pay your employees and utility bills. In view of that, here are the key areas where you are expected to spend your startup capital on if you want to start a jet ski rental business;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the jet ski rental business in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant including writing a business plan – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $46,000.
- The cost for shop remodeling (construction of security locks, racks and shelves) – $10,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory (purchasing different types of jet skis and watercrafts and maintenance kits and tools) – $150,000
- The cost for counter area equipment – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost of purchase and installation of CCTVs – $2,500
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- The cost of opening party – $3,000
- Miscellaneous – $5,000
From the rough estimate as listed above, you would need a minimum of two hundred and ninety – two thousand, nine hundred and twenty USD ($292,920) to establish a small – scale but standard jet ski rental business in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers to go to the market or directly contact suppliers of the brand and types of jet skis they want to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Factors That Influence the Cost of Opening a Jet Ski Rental Business
The Brands and Number of Jet Skis You Are Starting With
A major factor that will determine the overall cost of opening a jet ski rental business is the number and brand of jet skis you intend starting the business with. For example, a brand-new Yamaha 2020 BASE MSRP(US) with the capacity to accommodate 3 to 4 passenger cost $6,899.00.
If you are going to be starting with 10 of this jet skis, it means that you should budget a minimum of $60,899.00. If decide to start with fairly used jet skis, it is going to cost you far less but you might have to spend more on maintenance in the long run.
Please find below 2022 Jet Ski Prices for your guide
- Make Model MSRP
- Yamaha EX Deluxe $8,999
- Sea-Doo GTI 90 $9,099
- Yamaha VX-C $9,149
- Yamaha EXR $9,499
The Choice of Location
Another major factor that will determine the cost of opening a jet ski rental business in the United States of America is where you want to locate the business. In business, location is key part of what determine the success of the business.
The truth is that the location you choose to open your jet ski rental business determines if you will be issued the required business licenses and permits. Government officials must first inspect your facility to be sure that it is located in the location zoned for such business.
Please note that in the United States of America, zoning violations and citations can be very costly for a business. It is always preferable to make sure you comply with all the zoning and land use laws before you choose a location for your business.
The Required Licenses and Permits
In the United States of America, you cannot open a business without first applying for the mandatory licenses and permits. Of course, you would need; building license, zonal permits, and signage permits amongst others. These license ad permits cost money and it will influence the overall cost of opening a jet ski rental business in the United States of America.
Please note that there may be several inspections you must pass before you can be issued your licenses and permits and this will also cost you money. In order to get the overall cost of licensing and permits associated with opening a new jet ski rental business in the United States, we will advise that you reach out to your city council or state government.
The Type of Facility
The type of facility you want to run your jet ski rental business from is also a major factor that will determine the overall cost of opening a jet ski rental business in the United States of America. As regards the facility, you have the options of renting, leasing or designing and constructing your own jet ski rental facility from the scratch.
With renting and leasing a facility, you only need to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your jet ski rental business facility from the scratch.
It means that you will buy the land or a property and construct and equip the jet ski rental facility to fit into the standard you have in mind. You will agree that you are going to spend way more when compared to people that rent or lease a facility.
Additional Services Offerings
Another key factor that will determine the cost of opening and operating a jet ski rental business in the United States of America is the additional services offerings of the business. The fact that there are no one mold fits all means that jet ski rental businesses are designed to offer additional services.
For example, a jet ski rental business may decide to go into the servicing and maintenance of jet skis and watercrafts. This means that they will have additional facility, equipment and staff members to handle this aspect of the business. In essence, some of the additional services you are going to be offering will cost you more.
The Cost of Hiring and Paying a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document, a marketing plan and strategy, comprehensive SWOT analysis for the business.
An attorney will help you with registering the business, drafting contract documents and offer you all the legal expertise that will help you start the business on the right foundation. Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening a jet ski rental business in the United States of America.
The Cost for Branding, Promotion and Marketing
The cost for branding, promoting and marketing your business is yet another key factor that will determine the overall cost of opening a jet ski rental business in the United States of America. Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing.
As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction of the industry. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your jet ski rental business.
The Cost for Furnishing and Equipping the Business
Another very important factor that will determine the cost of opening a jet ski rental business is of course the cost of furnishing and equipping the jet ski rental facility. As expected, before you can open a jet ski rental business, you should get:
Security locks, flat screen TVs, sound system, DVD players, Satellite dish and decoder, office furniture (table, stools and sofas), drawers and cabinets, telephones, filing cabinets, office equipment (cash register, security, CCTV, ventilation, signage), amongst others. All these will cost money and it will influence the overall cost of opening a jet ski rental business in the United States of America.
The Cost of Insurance
The cost for paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a jet ski rental business in the United States of America.
In the United States, you can’t operate a business without having some of the basic insurance policy covers such as liability insurance, and general insurance et al that are required by the industry you want to operate from. Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your own jet ski rental business.
The Cost of Registering the Business
The cost for registering the jet ski rental business is yet another cost that will influence the overall cost of starting the business.
Although, the cost of registering a business and obtaining all the needed documents that will give you the leeway to operate is affordable, but it will no doubt add to the overall cost of opening a jet ski rental business in the United States of America.
11. Cost of Recruiting and Training Your Staff
The fact that you are opening your jet ski rental business as a new business means that you are expected to recruit and train your staff.
The training will help you sell the corporate culture of your organization to the new employees. It will cost you money to hire expert trainers that will help you train and bring your new hires up to speed and that will add to the overall cost of opening a jet ski rental business.
12. The Cost of Purchasing Uniforms for Your Employees
Another factor that will determine the overall cost of opening a jet ski rental business in the United States is the cost of purchasing and customizing uniforms. Your staff and of course security personnel are expected to have uniforms. All these uniforms will cost you money which is why it must be part of your budget.
These are some of the factors that will determine the overall cost of opening a jet ski rental business in the United States of America.
Please note that there are other factors not listed above that will sure influence the overall cost of opening your jet ski rental business which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide and info as it relates to the unique factor in your location.