If you intend to start a travel and tourism business, one business you should consider is the Jet Ski rental business. A rental business is a very lucrative business for any start-up entrepreneur especially when you don’t want to go through the challenges involved in the production of goods.
If you live close to a beach where people visit to either ski for fun or for sports, then you should consider starting your own Jet Ski rental business. You can indeed make cool cash from this line of business with little effort if you choose a suitable location, and with sound management practice.
The Jet Ski Rental business is all about renting of jet skis to beach-goers during warm seasons. This business makes a profit by renting jet skis to individuals over the age of 16 on an hourly basis. So, if you have sufficient passion, then you might want to venture into this business.
The Jet Ski rental business 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, basically where there is a beach.
17 Steps on How to Start a Jet Ski Rental Business
Table of Content
- 1. Understand the Industry
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide What Niche to Concentrate On
- 4. Know the Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 6. Know the Possible Threats and Challenges You Will Face
- 7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- 8. Choose a Catchy Business Name from the ideas Below
- 9. Discuss With an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed With ideas & Strategies
- 17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
1. Understand the Industry
A Jet Ski rental business is a very promising business with a wide prospect for growth. All you need to start this business is a coastal location that attracts people, have an in-depth understanding of a jet ski’s maintenance and operation, and also know about some reliable jet skis.
Setting up a Jet Ski rental business is quite cost-intensive, as you will need to startup with a fleet of jet skis. Jet Ski is expensive to buy, maintain and retain. If you are purchasing a new jet ski, you can get it at a price range from $2,500 to $10,000, depending on the brand and model, whereas a second-hand Jet Ski can cost half that much. You also need to set aside a little amount for repairs and to ensure the machine works perfectly.
Customer preferences and income directly influence the financial performance of the Jet Ski rental business. The nation’s economy directly affects the business too. This business struggled during the period of recession as demand for Jet Ski plummeted and had a slow recovery. The rise in oil prices also plays a major role in the demand for Jet Ski. This is because the cost of operating the personal watercraft increases with higher fuel price.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic compositions of those that need the services of a Jet Ski are tourists and travelers that want to enjoy a time out on the waterfront. It is also a means of water transport. Others that might require the services of a Jet Ski rental business are the working class, young adults, senior citizens, and all those that are financially able to hire the services of a Jet Ski rental business.
3. Decide What Niche to Concentrate On
The niches that are within the Jet Ski rental business industry are closely related as it all has to do with ensuring customers move from one place to another on the water. Some of the areas of specialization in the Jet Ski rental business are as follows;
- Transport services
- Individual services
- Corporate services
- Leisure services and any other related services
It is advisable to offer more than one niche as it ensures you won’t be left behind by your competitors who may gain more customers by offering more areas of specialization.
The Level of Competition in the Jet Ski Rental Industry
Starting a Jet Ski rental business is not an easy venture. It is capital intensive to purchase the Personal Water Craft needed to start the business. Apart from needing money to pay for personal watercraft rentals, you would also need money for maintenance and also employ personnel to run the business with you.
While small Jet Ski rental companies might find it quite easy competing with smaller Jet Ski rental businesses, they may find it difficult doing so with larger Jet Ski rental companies. As a small and start-up Jet Ski Rental Company, your best shot at thriving in the business is building a relationship with your local customers and also partnering with medium or larger scale Jet Ski rental companies.
4. Know the Major Competitors in the Industry
Well-known brands are those that people have used over time and are certified to have performed better than other brands. Well-known brands in the Jet Ski rental business in the united states are as follows:
- Kawasaki Jet Ski Ultra 310LX
- Bigger Boat: Midnight Express 39S Open
- Yamaha Waverunner superjet
- Gibbs sports amphibians quad ski
- Yamaha FZR
- Sea-Doo Spark
Before venturing into this type of business, you need to carry out a feasibility study. There are many factors you need to consider so that you won’t fail in the business. One of the most important factors to think about is how to distinguish your business from others based on strategies you intend to put in place.
You would need to draft strategies that would enable you get a share for your business by carving out a specific area of specialization, or ensure that your unique selling point is attractive enough to make your customers notice you. To achieve this, you would have to draft a business plan that would make you see clearly whether the Jet Ski rental business is viable or not.
Another thing to consider before starting this business is your source of finance for start-up. This is important because most major financial institutions will likely lend to already established and successful Jet Ski rental businesses than a start-up business. This means your business plan must be interesting enough to convince the lending institution.
Another thing to consider is your business location; ensure you get adequate space for the personal watercraft you intend to use for the business, a place that is also convenient for your staff and customers to access.
5. Decide Whether to Buy a Franchise or Start from Scratch
For this kind of business, you might benefit more from buying a franchise so that you will benefit from the prior work of others and their lessons learned.
Starting this business from the scratch will help you grow and learn more as an entrepreneur, and will give you the experience that a franchise would not give you. When you start from the scratch, you will have to do a lot to get customers. This still doesn’t guarantee that the business will succeed.
If all you are concerned about is offering rental services to people and you don’t intend going for other technicalities, then you should consider buying a franchise. However, before you buy any franchise, ensure you carry out a thorough research on the top companies offering such services and which would be best suited for you and would also generate the needed revenue.
6. Know the Possible Threats and Challenges You Will Face
There is really no business without its ups and down. One of the major threats and challenges you would face when starting or running your Jet Ski rental business is bad economy. A bad economy often leads to lower disposable income and per capita income, leading to fewer people needing the services of a Jet Ski rental.
Another challenge that you might face in starting your Jet Ski rental business is getting the required finance to start up or maintain the business. Finance is a vital part of any business, and the lack of finance can lead to you being unable to kick start your business or it could also determine if your business will be successful or if it will fail. Your business location can also pose another challenge to the business as a poor location would inconvenience your customers and it would likely affect your business adversely.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
The nature of the Jet Ski rental business is unique and you can’t afford to start the business with just any type of legal entity. Jet Ski rental owners usually go for Limited Liability Company (LLC). The LLC is largely popular due to the fact that it comprises of the partnership and corporation legal structure, so both benefits could be enjoyed.
Incorporating an LLC to a Jet Ski rental company will benefit you in the aspect of flexibility and taxation. Also, with LLCs, you get limited personal liability. Choosing an LLC will also make it easier for you to file your tax returns as a partnership, sole proprietorship or corporation. This is because the U.S government doesn’t recognize the LLC under a federal tax classification.
As a start-up business with little resources, you could start off as a sole proprietorship and gradually increase to an LLC for the benefit of your business.
8. Choose a Catchy Business Name from the ideas Below
When it comes to choosing a business name, you should be creative because the name you choose will create a perception of what your business entails to your customers. If you are considering starting your own business, here are some interesting names that you can choose from;
- Action Craft
- Coastal Craft
- Dusky Marine
- Free Spirit Yacht
- Global Marine Specialties
- Hacker Craft
- MasterCraft Jet Co.
- Maverick Boats
- Motion Marine
- Seabreeze Charters
9. Discuss With an Agent to Know the Best Insurance Policies for You
Insurance is a very important aspect of a Jet Ski business. Not having insurance or the correct type could adversely affect your business, as insurance protects you from unforeseen circumstances. You need to carefully study all your insurance options; you can also meet with a professional insurance agent that would guide you on the best policies suitable for your business.
Some of the basic insurance policies you will need to consider when starting your own Jet Ski rental business include;
- Liability Insurance
- Personal Accident Insurance
- Personal Effects Coverage
- Workers’ Compensation
- Collision Damage Waiver
- General Liability
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
To thrive in this business you need to protect some of your hard-earned intellectual property rights like your business logo, banners, jingles and other things that people can use to impersonate your business and rip you off your profit. If you want to protect your intellectual properties, then you can go ahead and file for intellectual property protection.
11. Get the Necessary Professional Certification
If you decide to run a Jet Ski business in the United States, you would need to have a professional certificate. Asides the certificate, you would also need to ensure that you find out from your state about the requirements needed to start a Jet Ski rental business.
12. Get the Necessary Legal Documents You Need to Operate
There is the need for all businesses to have certain legal documents for them to be able to operate well. Listed below are some of the legal documents that are required to successfully run a Jet Ski rental business in the United States of America;
- Certificate of Incorporation
- Contract Document
- Operating Agreement
- Insurance Policy
- Business Plan
- Business License
- Offer Letters
13. Raise the Needed Startup Capital
The importance of finance in a business cannot be overemphasized, and it is equally important in the Jet Ski rental business. No business can start or continue without finance. The Jet Ski rental business is not an easy one, and so raising capital might not be so easy.
This is why it is necessary to prepare a solid business plan. Your business plan helps you to attract investors while also pointing you to likely sources of revenue generation. Some of the ways to generate finance for your Jet Ski rental business include;
- Approach investors with your business plan
- Apply for loan from banks
- Approach specific investors
- Raise money from venture capitalists
- Finance the business from personal finance and sale of properties
14. Choose a Suitable Location for your Business
The location you choose for your business is very important for an entrepreneur who intends to start up a Jet Ski rental business, as it can affect the growth of the business. There are many other issues you would need to consider when choosing a location for your Jet Ski rental business.
Asides from the location of your Jet Ski rental business, your business too will experience success when you lease facilities you can afford.
This is not the type of business that you can decide to run from your home, except you don’t wish to expand your business beyond your local neighborhood or you want to have only one Jet Ski to run the business. However, if you intend to run a standard Jet Ski rental business, then you need to set up your business in a place that will favor it.
Take note of the type of facility you get. It should be one that can allow you to expand comfortably. This is why you need a comprehensive business plan to explicitly explain to you how the business is expected to grow. In choosing your location, your client’s interest must be placed first. You need to consider where your clients will be coming from to hire the Jet Ski for their own use.
15. Hire Employees for your Technical and Manpower Needs
There really isn’t much equipment needed to start your Jet Ski rental business as your Jet Skis are the main equipment necessary for your business growth. Since the Jet Skis are the main equipment, it is not advisable to buy them fairly used as the cost of maintenance could be more than the cost of buying new ones in the long run.
Other equipment needed are the light work tools for Jet Ski maintenance. Some of the equipment you would need to fully launch your Jet Ski rental business include:
- Safety tools
- CCTV Security
- Maintenance tools
- Filing Cabinets
The nature of this business might restrict people from operating this business from their homes, and so an office facility with a large yard for parking the Jet Skis must be taken into consideration. This shows your clients that you are serious about the business.
You don’t require too much staff to run this business as you can run this business effectively with just 5 to 7 people. You can appoint yourself as the manager and include a management staff, front desk officer, accountant and security officer. You can gradually add to the staff number when the need arises in the course of the business.
The Service Delivery Process of a Jet Ski Rental Business
The process of delivering rental service to clients/customers depends solely on the customer’s need at that particular time. The processes involved range from providing regular rental services to providing them with premium rental services depending on their choice and pay. Other processes involve customer satisfaction and providing other essential services.
16. Write a Marketing Plan Packed With ideas & Strategies
For any business to make profit and grow there must be a sound marketing strategy in place. Marketing ensures that you advertise your products and services beyond your neighborhood in order to generate more sales and make more profit. Every marketing strategy should be able to utilize all conventional and unconventional method to be able to make a profit.
If your Jet Ski rental business is medium or large scale, you can always bid for contracts when the opportunity presents itself. Running a large-scale Jet Ski rental business means that you can partner with smaller companies within your niche; this would give you wider reach, and also help you create brand awareness for your company.
Some of the marketing ideas and strategies you could employ for your Jet Ski rental business in the United States include;
- Promptly bidding for contracts from corporate organizations and relevant government agencies
- Ensuring that the affected clients know about your business by sending brochures as well as introductory letters to them
- Employing word of mouth marketing
- Use direct marketing
- Making use of your official website to engage your customers, and allowing them to carry out their bookings
- Ensuring that the social media – Facebook, Twitter, LinkedIn, Instagram, are well utilized to generate traffic to your website
- Advertising your business in relevant magazines and newspapers
- Ensuring that your business is listed in local directories
- Advertising your business in online directories
- Pasting your notices on boards and places close to your target market
17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
The strategies needed to boost the awareness of your brand while creating a corporate identity for your Jet Ski rental business would ensure that your business improves and becomes a household name when it comes to Jet Skiing in the country. If you intend starting off with running a large scale Jet Ski rental business, then you might consider using some of these tips to boost your brand.
Some of the strategies that could be employed in promoting your business and boosting your brand awareness are:
- Ensuring that you promote your business on your website
- Communicating and offering incentives through social media platforms such as Facebook, Instagram, Twitter, etc.
- Using the testimonials of your satisfied customers to get potential customers
- Making use of referrals to gain new customers and increase brand awareness
- Using mass mailing approach to get the attention of potential customers
- Advertising your Jet Ski rental business in places like traveler’s magazines, local newspapers, radio, television stations, as well as other means of communication
- Taking advantage of online directories