Do you plan to open a jet ski rental business? If so, the following guide will show you how to go about it. Anyone can make a lot of money with a rental business, especially if you don’t want to deal with the issues associated with producing goods. If you reside near a beach where people go skiing for recreation or sport, you should think about opening a Jet Ski rental company.
If you pick a good site and use good management techniques, you can make good money from this business with minimal effort. With this business, your focus is on renting jet skis to beachgoers. Keep reading to discover what you need to start a jet ski-renting business.
Steps To Start A Jet Ski Rental Business
1. Pick A Suitable Location
Finding a site that is suitable for your business is the first step to establishing a successful jet ski company. That means getting a business location is one of the most important steps because the jet ski rental industry is geographically constrained. So, you need to find a place next to a beach. However, not all places with bodies of water are profitable.
The best locations for launching a jet ski rental business are those that draw large numbers of visitors and have a demand for watersports. Before investing in any particular place, it is crucial to learn about your local environment and the applicable municipal, state, and federal laws. Some water bodies are regulated by state and environmental laws, while others are not good for water sports. Even if the region you have identified is perfect for water sports, double-checking with the local authorities is still a good idea.
2. Choose A Business Name
You should be very creative when picking a business name since the name you pick creates a perception of your business and the services you offer. So, select a name that depicts your mission, services, or objectives in a few words. The business name you choose for your jet ski rental business becomes your business identity.
Your business name lasts the entire lifetime of your business. For this reason, you should pick a memorable and meaningful name that represents your brand. Choose a catchy, unique, and short name that is easy to spell and remember. With this kind of business, it is a good idea to include keywords such as “jet ski rental” or simply “jet ski” in your business name.
Also, your chosen business name should not limit you from future expansion. In this context, don’t pick a location-based name if you hope to expand your business someday. When choosing a name, brainstorm two to three possible business names. Then, check those names against the list of business names registered by the state. Once you confirm that a name is available, you can register it.
3. Obtain Necessary Licenses And Permits
A business license gives a company permission to operate in a particular area. There may be a need for multiple licenses in certain places and some businesses. Additionally, licenses vary from one nation or state to another. Therefore, you must first determine the license requirements in your country and business location. A watercraft business, zoning permit, and business license are a must in most cases for a jet ski rental business. Depending on your location, you may also need to acquire a maritime transport license.
The license and permit requirements vary from one country, state, or city to another. So, check the respective websites to know how to acquire the necessary licenses and permits. For example, select the most suitable structure for your business when applying for a business license. Each state or nation has different kinds of company forming options. In the United States, for instance, you can choose to register your jet ski rental business as a partnership, corporation, Limited liability company (LLC), or sole proprietor.
Before opening your business, you must have the necessary permits and licenses. Otherwise, you risk severe fines or possibly business closure. Furthermore, registering your jet ski rental business is the prerequisite to opening a business bank account, raising capital, paying taxes, and so on.
4. Open A Business Bank Account
Running a business requires opening a separate bank account from your personal account. With a business account, you can manage your business money properly and keep it separate from your personal finances. In other words, your personal and company funds should always be kept separate. Subsequently, customers will make payments to your jet ski rental business using a business bank account. That is more professional than having clients write checks or send money in your name. With a business account, you will have an easy time when it comes to receiving money from investors or creditors. Otherwise, banks and investors will be reluctant to send business-related money to your personal account.
Of course, you should first register your business before you can open a business bank account. If you wish, you can also acquire a business credit card for your business. A credit card can also help you to distinguish between personal and company finances. You can apply for a business credit card through your bank or credit card company. In most cases, the credit card issuer will ask for certain information about your company when you apply for a business credit card. This information includes the name of your jet ski rental business and your address. In addition, your bank may ask you to submit certain personal data such as your social security number and so on.
5. Register For Taxes
Every country requires all businesses within its jurisdiction to pay tax on their income. The form of a business determines how it pays taxes. Companies do not make direct payments of sales tax on the services and products they sell or offer. However, if a company is based in a place with a state income tax, you will have to have a sales tax collection system.
Before you can pay taxes for your jet ski rental business, you need to register it for taxes. In the end, you will get a tax identification number, which is also known as the Employer Identification Number (EIN). Almost every country allows businesses to register for taxes online. Simply visit the website of your tax agency and apply for the EIN. If you have registered your jet ski rental business as a sole proprietorship, you don’t need to apply for a tax identification number. Instead, you pay taxes using your social security number.
6. Develop A Business Plan
A business plan is a strategic and important tool for jet ski rental businesses. It helps entrepreneurs to concentrate on the specific business procedures and activities for their company to succeed. A strong business plan also enables them to meet both short- and long-term goals. You should strive to create a strong business plan that is easy to understand and clear. Even your best business ideas might only be useful if you develop and eventually implement a well-thought-out plan. Remember that having a solid business plan is crucial if you want to secure financing from institutional lenders and investors.
To come up with such a plan, you should have a good understanding of your business strategy and market. A business plan acts as a roadmap that you can follow. It should include an executive summary that summarizes the entire plan. It also should include your company overview, which provides the history of your company. Then ensure to include an overview of the jet ski industry. You should conduct market research to know different aspects of your industry, including its size and trends. Customer analysis, marketing plan, budget, management team, operation plan, and competitive analysis are other elements that feature in a business plan.
7. Secure Funding For The Business
Any business needs funding at some point. Businesses that are already operating must fund expansion and working capital, while startups must cope with startup costs. When starting a jet ski rental business, you have several funding options. But only some funding opportunities are good for you and your business. Some pose a greater risk than benefit to your business, especially if it becomes less successful than you had projected. For example, you could cost your business by defaulting on a bank loan. Similarly, you could end up having a rift between you and your friends or family after failing to pay back the money they loan you to do business.
It’s extremely normal to decide to take on some debt, but your financing alternatives will depend on several aspects. Your business and the amount of money you need will determine where and how you seek cash. Your team, market opportunities, performance, and age of your jet ski rental business play a big role. As a result, you should be specific in your strategy and funding search. The method you use to fund your business should match the company’s demands. Besides borrowing from family, friends, or a bank, you can self-fund your business or leverage crowdfunding platforms to secure finances. You can also seek funding from the government or approach private investors and convince them to fund your business.
8. Get Business Equipment
It would be best if you had some essential equipment to launch your jet ski rental business. Jet skis should top the list of equipment you need to purchase or hire. Others are a trailer for carrying jet skis, a boat ramp or dock, and a place to store the jet skis. To simplify launching and retrieving jet skis from water, you should consider acquiring a jet ski lift.
Depending on the type and manufacturer, the cost of a jet ski typically ranges from $4000 to $15,000. Considering you need several of them, you might consider buying new jet skis expensive. Well, you can opt to acquire secondhand jet skis. But you might spend quite a lot on repair and maintenance, depending on the condition of each jet ski. In addition, you should purchase safety equipment.
9. Invest In Security
Giving the keys to your jet skis to customers whom you may not know much about comes with a host of risks. After investing in acquiring pricey equipment, you don’t want to lose your investment to ill-minded strangers. That is why you should invest in a security system that helps to track your jet skis. Deciding on a comprehensive security system when launching a jet ski rental business provides you peace of mind and safeguards your equipment. In addition, you need to protect your customers by helping them know the areas they shouldn’t cross.
Geofencing tools and tracking equipment ensure the security of occupants using jet skis. You reduce the possibility that your tenants may unintentionally transgress by mapping out areas they should avoid and informing them about them. You may set up several geofences in water regions where you want to avoid your jet skis to go using a tracking system. You can easily secure your equipment. Simply contact a company that offers asset tracking services. They will install waterproof GPS tracking devices on your jet skis that will help you know where your equipment is anytime.
10. Insure Your Business
Any ski rental business may face happenings such as accidents or damages resulting from natural disasters. These are unexpected occurrences that are hard to prevent. However, by insuring your business, you can guard yourself and your jet ski rental business against associated losses. An insurance plan that covers all of your equipment is the best option. Collaborating with an insurance company that offers short-term rider insurance coverage is also a good idea. You may need different types of insurance to run a jet ski rental company based on the state of your business.
Here are examples of the insurance covers you need to take into account:
- Commercial property insurance: Insurers offer this type of insurance to cover your business property against damages that result from vandalism, theft, or fire.
- Auto insurance: This insurance covers your vehicles against theft or damage.
- Staff compensation insurance: This is necessary when you have employees. It ensures you’re your workforce against accidents and injuries. This may also cover lost wages or medical expenses.
- Professional liability insurance: With this insurance cover, you can protect your jet ski rental business against professional negligence claims.
It is worth noting that some insurers require that you have some industry experience. The majority of insurers won’t offer you any insurance coverage if you don’t have some experience with the industry.
11. Build A Strong Team
Any successful business has a solid team working behind it. This concept holds for both local startups and global corporations. A team enables a company to develop, scale, and prosper in utterly impractical ways for just one individual to accomplish alone. Hiring the proper individuals who share your objectives, are goal-oriented, and appreciate the hierarchical structure most firms need is the first step in building a successful team. Even the most creative business owners need a team to get from an idea to realizing success. Therefore, look for qualified people to help you run the daily operations of your jet ski business. The number of people you need will depend on the projected business size. In addition, ensure to work with at least some skilled and experienced individuals. Also, you should contact people you can trust to run your business, even when you are not around.
12. Market And Publicize Your Business
Your jet ski rental business needs marketing to succeed. Marketing takes many forms, and you should not settle on just a single channel. Today, you can market your jet ski rental business both offline and digitally. There are several inexpensive methods to advertise your company offline. You may consider actively collaborating with other travel-related companies. You may get in touch with hotels and resorts in your chosen location and ask them to put your banners and adverts in their lounges. Tour guides can also help you popularize your business. Additionally, identify areas where people look for local information. Ensure that people can locate your business there.
The most common digital marketing tools are a website and social media channels. A professional website gives prospective clients details about your jet ski rental services, the background of your business, and how to get in touch with you. It’s crucial to keep in mind that how your website appears and feels will impact how people perceive your business. So, investing is creating a responsive website to give your business the online exposure it deserves. Also, create social media profiles for your business on Facebook, Twitter, LinkedIn, or other social media. Potential customers can locate and communicate with your jet ski rental business through social media pages.
Starting a jet ski rental business can be much easier when you know the steps. These steps help you understand what you need to do every step of the way to start and run a successful business. Consult local and national authorities to know the requirements or terms that apply to your specific location.