For many, it’s hard to beat a relaxing day on the water. People travel worldwide to experience iconic oceans, rivers, and lakes. The high demand has led entrepreneurs to contemplate how they can enter these business waters.
What do you need to start a boat charter operation? How much work is necessary before you can begin your maiden voyage?
Here’s how your next entrepreneurial expedition can set sail.
The first step in charting boats is to research. This phase should entail finding a location, scouting competition, reviewing local regulations, and other crucial tasks. Now is an excellent time to enter the boat chartering business in most areas. Experts say the global recreational boat market will grow 6.5% between 2023 and 2028, leading to a market value of nearly $26 billion.
Determining your business’s location is crucial because it will significantly affect your niche. A warm-weather site will let your customers comfortably water ski, swim, and surf. However, a colder climate will suit wildlife watching and fishing. Choose your locale based on your desired niche and what locals and tourists enjoy doing.
Formulate a business plan
Your research will be only one part of your business plan. This roadmap tells investors your plan for the next year, five years, and beyond. Don’t take this step lightly because it can be a make-or-break factor in getting others on board. Creating a plan makes your investors feel more confident in your financial feasibility. While they seem intimidating, business plans are more manageable when you break them down. Here are the most essential things to consider for your boat chartering endeavor:
- Executive summary: The executive summary outlines your boat chartering business and the fundamentals, including your location, staff, and services.
- Market analysis: The market analysis will tackle the boat chartering industry on macro and micro levels. What is the outlook for the next decade? What makes your local competition successful?
- Finances: How much funding will you need to get started? How will those needs grow in the next five years? Tell your investors how you’ll use your funds and handle debt if necessary. You’ll need to demonstrate stability and cash flow with your financial projections to give investors a return on investment (ROI).
Obtain proper licensing
Next, organize your paperwork to ensure your boat chartering company operates legally. Among your first steps is obtaining a business license from the appropriate state or local authorities. They cost an average of $50 to several hundred but can quickly turn into thousands of dollars, depending on the state. Therefore, finding a business-friendly location that won’t require so much capital is crucial.
Additionally, you’ll need fishing licenses, boat registration, and special licenses for your location. For example, Louisiana businesses need a fishing guide license when operating in saltwater bodies.
Hire a talented staff
Most boat charting businesses won’t need many employees, but finding experienced and enthusiastic workers is crucial for your operations. They should be able to handle the following tasks:
- Maintenance: Your boats and equipment will need constant care to run smoothly. Regular hull maintenance your boat improves fuel economy and longevity to save money over time.
- Service: People go on boat outings for the experience, and your captains make it special. Find enthusiastic staff who will entertain guests and provide top-notch customer service.
- Media: The modern business landscape requires companies to have a solid social media presence. Research shows over 5 billion people use social media, so find employees who can contribute to your online presence through YouTube, TikTok, and other platforms.
Find a suitable dock
Once you have your boats and employees, you must find a suitable dock. Locations in popular tourist areas may be expensive, but your customers must find your business readily. Find the best port for your needs — even if it means selecting a remote location. Ensure your dock is within reach for your targeted customers and provides a safe experience.
Starting a boat charter business
While starting a business brings challenges, satisfying customers and their aquatic cravings is worth the hassle. These five steps are what you should expect in starting a boat chartering business. Additionally, you’ll need to develop a creative name and secure funding from investors. Then, you’ll be ready to set sail.
With a specialized focus on personal success and self-improvement, Jack Shaw’s articles provide actionable steps and valuable wisdom to ignite personal growth. Jack is the senior writer of the lifestyle publication Modded and has also been published in Hella Wealth, Skills You Need, Big Ideas for Small Business and more.
© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.