Do you want to start a jet ski rental company? If YES, here is a 20-step plan on how to start a jet ski rental business with no money and no experience.
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.
20 Steps to Starting a Jet Ski Rental Business
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.
There are other little challenges that come with this business. Some of the challenges include, getting an appropriate business license, getting the right location, keeping your cost low, etc. 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 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 the 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
Frequently Asked Questions
How Much Can You Earn From A Jet Ski Business?
You will agree that no one can conveniently state the amount a jet ski rental owner is expected to earn if you do not know the size and capacity of the business and the number and types of jet skis they have available for rental. A jet ski rental business that has only a handful of jet skis is expected to make far less than a jet ski rental that has several brands of jet skis up for rental.
What Are Some Creative Jet Ski Business Ideas?
- Jet ski manufacturing
- Jet skis sales
- Jet skis repairs and service center
- Inshore/coastal jet ski rental services
- Offshore jet ski rental services
- Tournament jet ski rental services
- Commercial jet ski rental services
- Sale of jet ski related products and tools
What’s It Like To Run A Jet Ski Rental Business?
Starting and running a 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.
How To Start A Jet Ski Rental Business?
- Write Your Business Plan
- Register Your Business
- Rent a Showroom (Office Facility)
- Acquire Jet Ski (Watercrafts) and other Safety Gadget
- Hire Competent Instructors
- Create Effective Maintenance Schedule
- Market and Advertise Your Business
What Are Some Unique Jet Ski Business Names?
- Garry Williams® Jet Ski Rental Company
- Blue Berry® Jet Ski Rental, Inc.
- Double TEE© Jet Ski Rental, Inc.
- Sky Fly® Jet Ski Rental, LLC
- Red Star™ Jet Ski Rental, LLC
- Nath Fred & Co™ Jet Ski Rental, LLC
- Kimberly McKesson© Jet Ski Rental, LLC
- Florida Craft® Jet Ski Rental, Inc.
- Bethel O’conor© Jet Ski Rental, Inc.
- Bruno Anderson& Sons© Jet Ski Rental, Ltd
How Much Is A Jet Ski Worth?
The cost of Jet skis ranges from $5,000 to $20,000, making them a much cheaper option than boats. However, the prices listed are the cost of a new jet ski. The cost of used jet skis could vary considerably based on features and how much the previous owner used them on the water.
How Much Are Jet Ski Rentals In Miami?
In the Miami Beach and Biscayne Bay area, you won’t be able to find any good-quality jet ski rental for less than $100. Expect to pay between $100 (with coupons) and $130 on average.
How Do You Choose A Name For Your Jet Ski Business?
Generally, when it comes to choosing a name for a business, jet ski business inclusive, it is expected that you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually, it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
Can You Rent Out Your Jet Ski?
Sure, you can rent out your Jet Ski.
What Does Jet Ski Rental Insurance Cover?
Jet Ski insurance covers liabilities. The specific types of liability protection include: Third-party liability for bodily injury; Pays for the injuries you cause to others due to an accident when operating a personal watercraft. Third-party liability for property damage covers the damages you cause to the property of others (but not your own).
How Do Jet Skis Make Money?
Jet Skis businesses make money from several services and some of them are;
- Inshore/coastal jet ski rental services
- Offshore jet ski rental services
- Tournament jet ski rental services
- Commercial jet ski rental services
- Merchandise sales of jet ski related products and tools
Can You Rent Jet Skis At Lake Tahoe?
Yes, you can rent Jet Skis in Lake Tahoe however, Drivers Licenses are mandatory for all jet ski rentals.
What Kind Of Fuel Do Jet Skis Use?
Jet skis primarily use regular unleaded gasoline and premium gasoline. This is largely dependent on the specific model and manufacturer of the jet ski.
Are Jet Skis Worth It?
Sure, jet skis are worth purchasing. This is because jet skis are simpler and easier than a boat. A Jet Ski is smaller and often easier to maneuver than a boat. You can do tricks – You can flip, spin, and do many more tricks then a boat could ever do. Prices are also good in the winter.
How Long Do Jet Ski Engines Last
As a rule of thumb, the 2-stroke jet ski engines last around 200-300 hours, while the 4-stroke jet ski engines last around 300-500 hours. But have it in mind that these numbers depend on factors like maintenance, usage, and many others.
Is A Jet Ski Rental Business Profitable?
A jet ski rental business is a highly profitable business. However, the profitability of the business depends on the entrepreneur’s knowledge and the right business plan.
How Much Does It Cost To Start A Jet Ski Rental Business?
The cost of starting a jet ski business is dependent on a lot of factors, but usually, the price varies from the $20,000 to $100,000 and above and this is depending on the engine type, model and brand of jet skis you intend starting with.
Why Rent A Myrtle Beach South Carolina Jet Ski?
Jet skiing is a very popular water activity in Myrtle Beach. You will be provided with full safety and rule breakdown to make your ride safe and fun! In Myrtle Beach, Jet skis can accommodate 2 per rental, 30 minute and 1 hour rides available. No reservations are required.
How Much Does It Really Cost To Own A Jet Ski?
Usually, the price varies from the $10,000 to $17,999 depending on the engine type, model and brand of the jet ski.
How Much Are Jet Ski Rentals In California?
You’ll spend around $100 with a daily $400 average.
How Much Does It Cost To Make A Jet Ski?
Typically new jet ski’s range from $5,000 to $20,000 depending on the quality, style and features equipped on the jet ski. But the table below will give you a guide on how much it cost to make different types and brand of Jet Skis
- Make Model MSRP
- Sea-Doo SPARK 2up 60HP $5,499
- Sea-Doo SPARK 3up 90HP $6,799
- Yamaha EX $6,999
- Sea-Doo SPARK 2up 90HP iBR $7,199
What Age Can You Drive A Jet Ski By Yourself?
Operators of personal jet ski (watercraft) must be at least 14 years of age. Operator must be 15 years old and meet ID and education requirements or 16 years old or older with a valid motor vehicle drivers license to operate a motorboat with a motor greater than 10 hsp.
Should You Buy A Used Jet Ski?
It depends on you finance and of course the condition of the used jet ski.
How Much Are Jet Ski Rentals In Panama City Beach?
Rental pricing: $60/half hour or $90/hour, one of the lowest prices for jet ski rentals in Panama City Beach. Each jet ski can seat up to 2 people.
Do Jet Skis Lose Value?
Yes, jet skis lose value. As a matter of fact, statistics show that jet skis depreciate by 22 percent in the first year after having been purchased from a new dealer, and then eight percent per year after that.
Do You Need A License To Rent A Jet Ski In California?
Yes, depending on your age. Operators of motorized vessels in California need a California Boater Card, if they are 35 years of age or younger. The Boater Card is required to legally operate any motorized boat, including Personal Watercraft such as a jet-ski or sea-doo.
How Far Can A Jet Ski Go On A Tank Of Gas?
In general, a jet ski can go somewhere from 75-150 miles on a tank of gas. Again, these numbers could vary widely depending on several factors like the jet ski’s performance, curb weight, fuel capacity, or the weather conditions.
Why Are Jet Ski Rentals So Expensive?
Jet Skis rentals are expensive because Jet skis are typically built to withstand the rigors of daily use on the open water. Factors used to determine the various price points across ranges and brands include performance, build quality, and additional features. Among the high end is one which costs as much as $20,000.
How Much Does It Cost To Replace A Jet Ski Engine?
According to SBT, the largest supplier of remanufactured watercraft engines in the world, these are some of the ranges you should see for a jet ski engine: Sea-Doo engine start at around $600 and go up to $3,000. Kawasaki engines start at around $600 and go up to $2,700.
Is 50 Mph Fast For A Jet Ski?
Jet skis can reach speeds of 40 to 70 miles per hour, with speeds of 50 MPH considered average. Many jet skiers report that riding at this pace is more than sufficient enough for speed lovers.
What Is The Most Reliable Jet Ski Brand?
The most reliable Jet Ski on the market is the WaveRunner FX. The WaveRunner is a model that is created by Yamaha, and it is technically not a Jet Ski. These terms WaveRunner and Jet Ski are often used interchangeably, but only the Kawasaki brand makes the Jet Ski.
How Many Years Does A Jet Ski Last?
All manufacturers make their jet skis to last 10 years, and at 30 hours a year, that is 300 hours.
How Much Does A 2022 Jet Ski Cost?
A new jet ski typically costs around $5,000 on the low end of the spectrum, but higher end jet skis can cost close to $20,000. The cheapest jet ski currently on the market in 2022 is the Sea-Doo Spark, and the most expensive is the Kawasaki Ultra 310LX.
How Much Does It Cost To Rent A Jet Ski For A Day?
For around $600, you can rent the jet ski for the 24-hour period. While you cannot ride after dark, there is still a lot of light in the day to have as much fun possible. Taking a look at these amounts, it means the average hourly jet ski rental is around $90, with a daily rental average of $500.
Is It Bad To Leave A Jet Ski In The Water?
Not really. This is because you can leave a jet ski in the water overnight if it’s unavoidable. Alternatively, it’s not recommended you leave it in the water for a longer period, as it may incur a different form of damage. That’s why every owner’s manual recommends you remove the jet ski from the water every day.
Are Jet Skis Expensive to Maintain?
Somewhat. This is so because the average jet ski gets about 30 hours of riding a year meaning that you can expect to burn 120-300 gallons in a year. Depending on gas prices you should expect to spend $300-600+ annually. Ongoing maintenance is another cost that will need to be accounted for.
Is Saltwater Bad For Jet Skis?
Yes. Saltwater can cause damage to your PWC. Even the backwaters near the ocean may have a high salt content that can corrode your vessel. You’ll need to consistently care for your PWC any time you use it in these environments. Thorough cleaning is key after a ride in saltwater.
How do you clean a Jet Ski after salt water?
Start the PWC engine and let it idle, then immediately start the flow of water through the hose. Follow your owner’s manual, instructing you to idle for 90 seconds to 3 minutes. Turn off the flow of water, then shut down the engine. Disconnect the water hose and replace the cap over the flush fitting.
How Much Does It Cost To Rent A Waverunner?
The cost of renting a Waverunner depends on location, quality, and hidden costs. But the short answer is that on average, jet ski rentals cost between $80-$100 per hour.
Which is better Seadoo or WaveRunner?
If you are a total beginner and don’t want to invest, pick a low-end Seadoo. If you want a more comfortable jet ski with a good balance between comfort, performances and price, then Yamaha Waverunners should be good for you. If you want the fastest jet ski, then Kawasaki lines will have what you are looking for.