Are you about starting a luxury yacht charter company? If YES, here is a complete sample yacht charter business plan template & feasibility report you can use for FREE.
Starting a business that lets you spend your days on a luxury yacht, cruising to exotic locations, and hanging out with “the rich and famous” is without doubt an interesting and appealing business. Although there are many advantages of starting and managing this business, especially when your passion rests with the sea and boats, it is still a business that needs careful consideration and excessive planning.
One of the first things you need to do is to research your customer and know them. This will help you determine the yacht to get and even how best to market your business. If you plan to service companies for corporate meetings at sea, you will have to get a high-end yacht with enough cabins to accommodate all guests (and their families) plus a large board-room type setup.
The boat you need for this sort of customers will differ from what you need when you choose to target a family that wants to spend the day celebrating their parents’ wedding anniversary or a couple that wants complete privacy for a romantic honeymoon get-away. In this business, your boat needs to meet the exact requirements of your customers or they’ll take their cash elsewhere.
You also need to note that different jurisdictions have different requirements for charter businesses. Crossing borders can complicate matters, the more reason you have to make sure you know where your potential clientele wants to travel.
You should also create a service or product that will set you apart from your competition. In the united states, there are thousands of yachts of different sizes and class available for charter around the world. These yacht charter businesses all claim to be “the best”, so you need to create a characteristic that will get your target market away from your competitors.
Also if you are new in this business, it is advisable you develop a mentoring partnership with an established, trustworthy business. Leverage everything they have to share – their expertise, network of contacts, customer base, etc. so you don’t spend all your time “reinventing the wheel”.
Pro-actively expand your network of trusted business advisors to include areas such as hospitality, tourism, catering, agriculture and import/export trading. Employ qualified and experienced crew and treat them well. Your boat’s crew can make or break your venture. Running a yachting business is a rewarding way to earn a living, but it is a lot of hard work.
A Sample Yacht Charter Business Plan Template
1. Industry Overview
According to industry reports, the global yacht charter market is expected to earn a US$14.987 Bn by the end of 2025. Report also has it that the industry market is estimated to expand with 7.2% CAGR during the period between 2017 and 2025.
The market was value at US$8.123Bn in 2016. With regard to growth rate, experts believe the motor yachts sector will attract more revenue into the market due to their availability, ease of use, and high occupancy space. But when it comes to consumer type, the market for yacht charter is seen to gain more revenue from retail consumers due to the growing number of ultra-high net worth individuals.
Note that the Asia Pacific Market is expected to grow at a Faster Rate due to Rise in Disposable Incomes. Reports have it that the hectic lifestyles of consumers all over and their rising disposable incomes which instigate them to take some time off their routine life and go on a leisure holiday will help increase the demand in the industry. Other than absolute relaxation, it also offers amazing adventures and a variety of destinations with all comforts.
In this modern era and with the advent of technology, clients can now easily book yachts, which has resulted in a positive surge for luxury yachts, which further adds to the benefit of the yacht charter industry at a larger scale. Note that the global market for yacht charter is expected to be dominated by Europe in 2018.
Within the period of 2017 to 2025, the European region is still expected to continue its dominance owing to the growing number of high net worth individuals. Aside Europe, Asia Pacific is also expected to grow at an alarming rate due to better and improved quality of yachts and its availability and the rise in disposable incomes of people.
The Middle East and Africa is also expected to witness progressive step in the years to come with a CAGR expansion of 7.8%. Countries in this region which are more likely to offer lucrative opportunities in this region are Dubai and Brazil.
Statistics has it that the high Cost of Yachts during Peak Time affects the Growth of industry Market. Even though the yacht charter market has grown in popularity over the years, challenges like cyber security threats may negatively affect the growth in the overall market. However, increase in disposable income is likely to boost up the market in the coming years.
2. Executive Summary
Home at Sea, LLC is a new business in Saint Petersburg, Florida that will provide yacht and houseboat charter services. We plan to create a competitive Business model for luxury yachts and vacation houseboat rental all over Tampa Bay in Florida.
Instead of purchasing yachts and houseboats, Home at Sea, LLC plans to offer rentals to families and young couples of small (up to 6 persons) yachts and houseboats on loan from existing owners. Our aim is to offer vacationers other services to compete with luxury yacht and vacation houseboat companies.
We at Home at Sea, LLC understand that finding the “right” boat is very important in this business because the “right” boat will attract the type of clients who are interested in renting it. From our detailed analysis, we were able to find out that most new entrants in this business view buying a yacht or a houseboat like buying cars.
Boats are an investment of passion, but are subject to one’s perception of beauty which might not be the same as what you clients need. We understand this and we have planned our process and business very well to meet the demand ahead.
We at Home at Sea, LLC expect our business to become profitable in its second year and quite profitable in its third, as the owner and founder, Donald Merchant, expands the offering to over 25 yachts and houseboats. Note that our rates will be on the low end for the market, starting at around $5000 a day during an off season. Our business location is unique for this sort of business.
St. Petersburg is the second-largest city in the Tampa Bay Area, after Tampa. Joined with Clearwater, these cities comprise the Tampa–St. Petersburg–Clearwater Metropolitan Statistical Area, the second-largest in Florida with a population of around 2.8 million.
This city is located on the Pinellas peninsula between Tampa Bay and the Gulf of Mexico, and is connected to mainland Florida to the North.
Note that with an average of some 361 days of sunshine each year, and a Guinness World Record for logging the most consecutive days of sunshine (768 days), it is nicknamed “The Sunshine City”. This city has long been a popular retirement destination owing to its good weather and low cost of living. Although in recent years the population has moved in a much more youthful direction.
3. Our Products and Services
Our yacht and houseboat charter services will differ because all our yachts and houseboats will be under contract from their owners and not purchased brand new. Our basic rental rates will depend on the specifications of a specific boat and the season.
Our seasonal rates are based on peak usage times at Saint Petersburg. We plan to make sure our Prices are competitive with other small yacht and houseboat rentals in Saint Petersburg. Our services for yacht and houseboat owners include:
- Renting out the yacht or houseboat when it is not in use by the owner to create an additional revenue stream
- Providing basic maintenance and upkeep of the yacht or houseboat (basic standards must be met by the owner)
- Providing insurance and proper licensing to rent out the yacht or houseboat legally and limit the owner’s liability
- Scheduling commercial vehicle inspections as required by the state
- Providing moorage for the yacht or houseboat
4. Our Mission and Vision Statement
- Our vision at Home at Sea, LLC is to build a business that provides our target audience with a stress free way of charting private yachts and houseboats from anywhere in the world.
- Our mission at Home at Sea, LLC is to provide competitively priced luxury yachts and vacation houseboat rentals for families and couples to enjoy. Our aim is to offer families and couples the balance of relaxation and excitement they seek by providing options for activities to suit both individuals and groups.
Our Business Structure
Home at Sea, LLC offers luxury yachts and vacation-houseboat rentals to large families. It’s important to state that Home at Sea, LLC was registered legally in September 2018 and will launch in 2019 upon funding. This unique business was founded by Donald Merchant, a newly retired sailor who just relocated to Florida after fifteen years as a sailor.
Donald Merchant registered Home at Sea, LLC as an LLC and he will retain 100% of the company and will source a loan to make up additional required capital. We also hope to build a dedicated workforce who will make sure that they satisfy our customers.
Our services we believe will be exemplary and our employees will be well trained. We will employ professionals and skilled people to occupy the following positions;
- Chief Executive Officer
- Company Cashier
- Customer Service Executive
- Boat Captain
- Boat First mate
- Chief engineer
- Boat Bosun
- Boat Deckhand
- Boat chef
- Boat Stewardess
5. Job Roles and Responsibilities
Chief Executive Officer
- He will oversee all other executives and staff within the organization.
- Charged with meeting with board of directors and other executives to determine if company is in accordance with goals and policies.
- Tasked with directing the organization’s financial goals, objectives, and budgets.
- Responsible for enforcing the organization’s guidelines on a day-to-day basis.
- Will preside over quality control.
- Hire, train, and terminate employees.
- In charge of developing and implementing strategies and set the overall direction of the organization.
- Charged with providing visionary and strategic leadership for the organization.
- Tasked with collaborating with the board of directors to develop the policies and direction of the organization.
- Will make sure the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.
- Direct staff, including organizational structure, professional development, motivation, performance evaluation, discipline, compensation, personnel policies, and procedures.
- Tasked with preparing financial reports, budgets, and financial statements for the organization
- Tasked with financial forecasting and risks analysis.
- Tasked with developing and managing financial systems and policies
- Tasked with administering payrolls
- Ensures compliance with taxation legislation
- Tasked with all financial transactions for the company
- Is the internal auditor for the company
Customer Service Executive
- Tasked with welcoming clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Makes sure that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
- Charged with managing administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ service and promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
- Maintain boats and equipment on board, such as engines, winches, navigational systems, fire extinguishers, and life preservers.
- Read gauges to verify sufficient levels of hydraulic fluid, air pressure, and oxygen.
- Resolve questions or problems with customs officials.
- Signal passing vessels, using whistles, flashing lights, flags, and radios.
- Perform various marine duties such as checking for oil spills or other pollutants around ports and harbours, and patrolling beaches.
- Compute positions, set courses, and determine speeds, by using charts, area plotting sheets, compasses, sextants, and knowledge of local conditions.
- Direct and coordinate crew members or workers performing activities such as loading and unloading cargo, steering vessels, operating engines, and operating, maintaining, and repairing boat equipment.
- Inspect vessel to ensure efficient and safe operation of vessel and equipment, and conformance to regulations.
- Maintain records of daily activities, personnel reports, ship positions and movements, ports of call, weather and sea conditions, pollution control efforts, and/or cargo and passenger status.
- Signal crew members or deckhands to rig tow lines, open or close gates and ramps, and pull guard chains across entries.
Boat first mate
- Assist in navigating and maneuvering vessel.
- Cleans and maintains vessel.
- Assigns crew to tasks.
- Supervises and performs routine shipboard maintenance as required.
- Launch and recover submersibles.
- Carry out captain’s orders.
- Work with chefs, stewards, engineers, and deckhands.
- Act as second in command if captain is incapacitated.
- Plan the day’s work and activities.
- Solve problems that come up.
- Maintain deck log.
- Run safety drills.
- Train, direct, and supervise personnel in ship’s maintenance duties in all activities relating to marlinspike, deck, boat seamanship, painting, upkeep of ship’s external structure, rigging, deck equipment, and boats.
- Act as petty officer-in-charge of picket boats, self-propelled barges, tugs, and other yard and district craft.
- Maintain in good working order the yacht’s electrical and mechanical systems
- In charge of engines, generators, refrigeration, air conditioning, heating, water supply, desalination, cooling, Jacuzzi, bathroom fixtures, toilet systems, basic plumbing, inverters, lighting systems
- Managing the loads, inform crew members about the yacht’s demands and limitations
- Tasked with isolating a problem and if a permanent solution is not available, to invent a temporary solution
- In charge of Firefighting and prevention
- In charge of parts inventory control
- Planning the daily work schedule under the supervision of the first mate and assigning the required work to the appropriate members of the boat crew.
- Seeing that the work assigned to the crew is realized to the end
- Maintaining the deck of the yacht ; tasks involve chipping, painting, buffing etc. and overall maintenance of the deck
- Maintenance of the windlass of the boat to ensure its optimum performance during stations. Also, to perform repair work on board as required
- Being thorough with the firefighting aspects of the ship and ensuring that other deck crew are thorough as well
- Responsible for the ship’s deck stores, paint locker, Bosun store and other such areas as assigned to the Bosun by the first mate
- Being the connect between the officers and the crew with regard to shipboard work
- Sweeps and washes decks, using broom, brushes, mops, and firehose.
- Lowers and man’s lifeboat in case of emergencies.
- Stands steering watches or lookout watches while underway.
- Moves controls or turns hand wheels to raise or lower passenger or vehicle landing ramps or kelp-cutter mechanism.
- Loads or unloads material from barges, scows, and dredges.
- Paints lifeboats, decks, and superstructure of vessel, using brush.
- Lubricates machinery and equipment.
- Splices and repairs cables and ropes, using hand tools.
- Examines cables that holds vessels in tow and tightens cables to ensure vessels are snug.
- May tour decks during watch to caution passengers engaged in unsafe practices, and ensures departure of passengers at end of voyage.
- Provisioning of all food items
- In charge of Food safety and storage standards
- Adhering to budget
- In charge of Galley and food inventory
- Tasked with Galley safety and sanitary standards
- Management of other galley staff
- Responsible for the smooth operation of the boat’s interior department, this means being adept in the arts of housekeeping services, laundry procedures and wardrobe management, food and beverage service, clean up, and entertaining.
- Responsible for directing, motivating, and training the lower-ranked stews (2nd, 3rd, and so on)—if any are on board.
- Providing valet services and overall guest care.
- Protecting, maintaining, and caring for valuable interior items and surfaces, such as artwork, silks, china, crystal, linens, fine woodwork, and marbles
- Collaborating with the boat chef regarding meal service for the guests
- Creative planning and quality service of theme dinners and occasional guest parties
- Keeping all interior storage areas organized, orderly, and maintained
- Writing and updating all interior manuals and guest-information documents
- Maintaining and displaying knowledge of international etiquette and protocol
- Assuming full responsibility for certain on board safety tasks (as assigned by the first mate) in an emergency.
6. SWOT Analysis
Our plan at Home at Sea, LLC is to bring innovation and good advertising strategies with us into the industry. We plan for success and we hope to achieve it, we plan not to leave any stone unturned all through our planning process, as we hope to avoid crisis that will affect our business progress.
We hired the services of Richmond Business Consultancy and Turning Point Techs to help us conduct a detailed SWOT Analysis that will describe in very explicit words our chances in the industry. Explained below is the summary of the said SWOT Analysis conducted on behalf of Home at Sea, LLC.
Our SWOT Analysis noted that our strength in this business lies in our plans to maintain the upkeep of the rental boats and to maintain the luxury accommodations. This will help us attract clients due to the neatness of our yacht and houseboats and also make owners keen to let us manage their resources.
Our other strengths in the industry include the wide variety of activities and services we plan to promote and our seasonal pricing which will encourage year-round utilization of our boats.
According to the SWOT Analysis, our major weakness in this business will be the time it will take owners and customers to trust our services. Being a new business will surely count as a disadvantage to us, but we will create unique marketing and promotion activities for our business.
According to the SWOT Analysis, the yacht charter market is driven by growing inclination towards luxury cruising worldwide.
This is further complemented by the consistently increasing number of high net-worth individuals globally. In 2017, reports have it that the number of high net-worth individuals worldwide increased by nearly 8% to a record-breaking 16.5 Mn. This represents a promising user base for yacht charter companies.
The threat facing us in this business is the needed capital to start Home at Sea, LLC. Even without buying yachts or houseboats, this industry is capital intensive. Also the different requirements for entering different cities in this business can become a hindrance for us.
7. MARKET ANALYSIS
- Market Trend
From our research, we were able to note that the general yacht charter market is quite consolidated in nature with major companies such as TUI Marine (including Sunsail, Le boat and Footloose), Dream Yacht Charter and Kiriacoulis among others gripping the majority of market share.
Note that these companies primarily have their operations in Europe and North America. In case of Asia Pacific, the region is home to a large number of regional yacht charter companies serving limited number of countries, making the market quite fragmented in the region.
Reports attribute this to low popularity of yacht chartering in the current scenario. But with the rising popularity of yacht chartering in Asia Pacific, companies are striving to increase their presence in the region. Apart from geographic expansion, companies also focus on increasing their vacation packages for multiple destinations.
One other thing we noted is the prominent strategy adopted by yacht charter companies. They continually strive to improve the yachting experience for their users.
Note that with the growing popularity of yacht chartering, users are now more attracted to luxury cruising that provides numerous facilities and superior experience. That is why some yacht charter companies are investing on improving facilities such as online booking, internet connectivity and improved hospitality on board.
8. Our Target Market
Home at Sea, LLC plans to focus on families with children and young couples at the lower end of the market, with each of our yacht and boat sleeping at least 6, a couple or family will be very comfortable on these boats. We at Home at Sea, LLC plan to avoid the older couples market.
By avoiding the market for older couples, there is more leeway as to the type of boat that can be rented and marketing can be more focused. Below are the audiences we plan to target at Home at Sea, LLC.
- Young Couples
This group would be aged within 21 to 39; young couples without children always search for romantic getaways as well as high-energy activities (ski boats, hiking, diving, etc.).
Although some may be rich enough to rent a luxurious yacht or a houseboat with all the extras, some also have to stretch to rent a basic boat. This group finds it hard to afford a large yacht or a houseboat, but they may be able to use smaller ones with fewer amenities.
This group includes Couples or individuals with children. They tend to need a mix of relaxation for parents and high-energy activities for children. They may also require creature comforts for the children, such as entertainment centres, which couples can do without on a trip or vacation.
We also plan to keep our services open to large families. Other families are less inclined to do this and more interested in being alone with their nuclear unit.
Our competitive advantage
Our Competitive Advantage in this business is the experience of Donald Merchant, who can bring the experience he accumulated from the different locations he visited as a seasoned sailor. This will be manifested in the marketing, sales experience, and operation of the business. We believe that the effect of this advantage will be a high customer retention rate.
We plan to make our clients feel that the yacht or the houseboat, as the case may be, is “theirs”. We believe this will make our marketing and sales efforts to be reduced due to the lower expense of keeping an existing customer than finding new ones. This will build the customer retention rate to 65% from the second to third full years of operation.
9. SALES AND MARKETING STRATEGY
- Sources of Income
We at Home at Sea, LLC plan to make money by arranging yacht trips and houseboat charter on behalf of families and young couples that are seeking to travel for both business and pleasure. The cost of each trip differs from $5,000 for placement on a small yacht to more than $240,000 for the rental of a full sized yacht transporting a very large number of people.
We at Home at Sea, LLC has already begun to source yachts and houseboats companies that we will use as we advance in business operations. For arranging a yacht or houseboat charter, we at Home at Sea, LLC will receive a 15% commission deducted from the cost of each boat.
10. Sales Forecast
Home at Sea, LLC has been well positioned right from foundation to bring success and innovation into the industry. Our direct cost of sales includes post-rental cleaning (generally $250 per boat) and basic amenities (shampoo, soap, tissue paper, etc.) to stock the boats for each rental ($40 per rental).
Note that these costs are expected to grow with inflation as well. Other costs of sale include gas and ice which is anticipated to cost 9% of sales as each rental will start with a boat fully stocked with both.
An additional 20% of sales will be payment to the yacht and houseboat owners. Also note that the cost of sales would be higher, but the boat owners will benefit from free moorage, maintenance, and discounted services at Home at Sea, LLC.. Our sales forecast is outlined below;
- First Fiscal Year: $1,768,000
- Second Fiscal Year: $3,217,000
- Third Fiscal Year: $9,065,000
- Marketing Strategy and Sales Strategy
Our marketing strategy at Home at Sea, LLC will focus in on the target markets of families and young couples. Our marketing materials will show families and couples having fun together, both together and in separate activities (water skiing, fishing, slides, hiking, camping, swimming, using the spa, etc.).
Immediately we launch, images will be provided by the manufacturers of the yachts, houseboats and other sources, as they will not yet be photos of actual customers using Home at Sea. Our marketing techniques include:
- Local advertising in Florida vacation and travel magazines
- Website creation and promotion
- Direct mail to travel agents across the U.S. and Tampa Bay tourism
- Partnerships with travel agents. These will be sought over time, not expected until year 3 or later
- The marketing to vacationers will also be seen by owners, alerting them to this opportunity to rent out their boats.
11. Publicity and Advertising Strategy
Our publicity plan at Home at Sea, LLC is to use direct mail and television advertising to generate sales. We have contracted Turning Point techs business to spearhead our marketing and publicity strategies which will be our lifeline in the industry.
We also have additional promotional plans aside from the contract we have with our publicity partner. Below are the publicity strategies we plan to execute in-house;
- Print advertising and article publishing
We hope to print our advertising program which will include advertisements in local newspapers and local journal publications like the St. Petersburg Magazine. We also plan to write feature articles on services provided.
- Design and use a significant business colour and uniform
We also plan to have a distinctive colour that can only be attributed to our business.
12. Our Pricing Strategy
One of our business objectives at Home at Sea, LLC is to create a reputation in the industry by building our business offering as a viable alternative to existing yacht and houseboats charter services. We also plan to get the confidence of customers and create our business to be acknowledged for providing superior customer service.
Our pricing system at Home at Sea, LLC will be based on what we know and believe is obtainable in the industry. Our basic rental rates will depend on the specifications of a specific boat and the season. Our seasonal rates are based on peak usage times at Saint Petersburg. We plan to make sure our prices are competitive with other small yacht and houseboat rentals in Saint Petersburg.
- Payment Options
Setting up a good, reliable and diverse payment system is one of the traits that attract customers to a business. We at Home at Sea, LLC plan to bring payment options that will make the payment for the service we offer very easy for our customers.
We have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
- Payment by via bank transfer
- Payment via POS machine
- Payment via online bank transfer
- Payment via mobile money
- Payment with cash
13. Startup Expenditure (Budget)
We at Home at Sea, LLC plan to invest in the establishment of an office/small store at an existing marina (with light renovations, adding signage, office equipment, furniture, setting up Internet and phone, shelves and displays.) We believe that the marina where Home at Sea, LLC will set up will have docking space for 3 yachts, 3 houseboats, 3 skiing boats, courtesy ramps, gas and ice, and other basic facilities.
We will also pay for legal consultation for the business and all other business agreements, building permits from local authorities, a business license, and motor vehicle rental permits.
The rent for our marina space for one month of set-up before launch is at $25, 000 per month. The security deposit of one year is part of current assets. Have it in mind that insurance will be liability both for the marina usage and the boats when in use by Home at Sea renters.
To limit liability, the renter (captain) must be at least 25 years of age and have a valid driver’s license. All our yachts and houseboats will not be purchased, but will be provided by current owners under contract with Home at Sea, LLC to provide use of the boats for up to 90% of the year, including some use during peak periods.
These owners are provided with a share of revenue as well as moorage and maintenance on their boats. The cash we need to startup Home at Sea will us through the first year’s losses until we have achieved the scale needed to support our self with positive cash flows. We have analysed the market and have decided on how we plan to spend our startup fund.
- The Total Fee for Registering the Business in St Petersburg – Florida – $750.
- Legal expenses for obtaining licenses and permits – $3,000
- Marketing promotion budget – $500,000
- Cost for hiring Business Consultant – $20,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $254,000
- Cost of accounting software, tracker software apps, CRM software and Payroll Software – $6,000
- Cost for leasing standard office facility and marina- $300,000.
- Cost for facility remodelling – $70,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, fuelling, maintenance, payments of bills et al) – $250, 000
- The cost for Start-up inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching an official website: $600
- The cost for our grand opening party: $5,500
- Miscellaneous: $10,000
From our detailed analysis above, we will need an estimated $1,500,000 to start Home at Sea, LLC successfully excluding the cost of buying or leasing a yacht.
Generating Startup capital for Riding Emirates Inc.
Home at Sea LLC was founded by Donald Merchant, a newly retired sailor who just relocated to Florida after fifteen years as a sailor. Donald Merchant registered Home at Sea, LLC as an LLC and he will retain 100% of the company and will source a loan to make up additional required capital.
We also hope to build a dedicated workforce who will make sure that they satisfy our customers. Our services we believe will be exemplary and our employees will be well trained. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Generate part of the startup capital from friends and other extended family members
- Generate funding from getting a business loan from our bank
Note: We at Home at Sea have been able to raise $1,000,000 from the personal savings and family soft loans of Mr Donald Merchant. We are at the final stages of acquiring a substantial $500,000 from our bank, and we believe that aside from our services that will generate fund, we will be attracting investors in no time.
14. Sustainability and Expansion Strategy
Home at Sea, LLC sales will be managed entirely by Donald Merchant. He will receive reservation requests from interested customers, approve them by email, respond by phone to answer specific questions and get businesses through partnerships with travel agents.
We believe that this will include offering a discount to travel agents so they can bundle the rentals with travel packages and entice their customers.
We also believe that our sales to a large extent will depend on the online reservation request from our clients. The website will prepare customers with a great deal of information so they are better informed before reserving. It’s also important to state that our founder, Donald Merchant, will be paid a base salary and compensated for sales through the profits of the business.
Although he will have the authority to change our service prices, but will use this at his discretion as not to bore our clients with unnecessary changes (i.e., off season or last-minute bookings).
We believe that higher rates for holidays and certain weekends in the spring, summer, and fall will balance out discounted dates in our calendar. We plan to establish concrete relationships and understanding with yacht and houseboats owners.
Donald Merchant will contact owners directly to advertise the services of Home at Sea, LLC to these “suppliers.” Note that this work and networking will begin well before the business’s launch in order to have a roster of at least three yachts and three house boats to rent for the first year.
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress