Do you want to start a profitable jet ski rental business? Find here, how to make money with a jet ski with a business plan guide including cost and ROI.
Basically, the jet ski is a popular water sports activity. Additionally, it comes under the adventure sports segment. Actually, the jet ski is the brand name of a Japanese personal watercraft manufacturing company Kawasaki. A single jet ski can carry 1, 2, or 3 persons, though four-passenger models exist.
A jet ski rental business is highly profitable. However, the success of the business depends on the entrepreneur’s knowledge and the right business plan. Starting a jet ski business is expensive. Apart from the cost of the skis, you will need to have finance for fuel, maintenance, and advertising.
Is Jet Ski Rental Business Profitable?
According to industry experts, the global watersports market will grow steadily with a CAGR of more than 5% by 2021. The increasing emphasis on water sports by the governments of various countries has resulted in the rise in popularity.
In the United Kingdom only, more than 3.2 million people participated in water sports activities according to a report from Statista.
Actually, several countries have exclusive regulatory bodies for water sports that focus on promoting and organizing the sports in the country as well as globally. Such factors will increase participation in water sports, which will consequently drive the growth of the market in the coming years.
The United States of America is the major revenue earner for the watersports business. Mainly, the growth is attributed to the increased awareness of a healthy lifestyle and a rise in the number of water sports enthusiasts in the region. So, starting a jet ski rental business in the water sports segment is highly lucrative for entrepreneurs who want to start an outdoor business.
Here are the Steps to Start Jet Ski Rental Business
Here are the 6 steps to starting a profitable jet ski rental business:
1. Analyze the Location
This is one of the most crucial aspects of starting a jet ski rental business. All the locations that have water bodies are not suitable for this business. You must understand the potential of that particular area.
It is found, that places that attract a lot of tourists and have a sound demand for watersports is the ideal place for starting this business. However, you must check the local, regional, and environmental laws before investing yourself in any specific location.
2. Business Plan & Financial Analysis
After finalizing the place, the second most important aspect is crafting a business plan. Your jet ski rental business plan must include the following aspects.
- Executive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis including current research
- Marketing Plan
- Personnel Plan
- Financial Plan
- Expanded Financial Plan with Monthly Financials
- Sample Private Placement Memorandum
- PowerPoint Presentation for Banks, Investors, or Grant Companies!
3. Obtain Proper Licenses
This type of business demands specific permissions and licenses. And it varies from state to state. So, you must check the licensing issues first. And for obtaining the proper license you will need to register your business.
Choose a proper business structure under which you are going to operate. Every country and state provides different company forming options. For example, if you are in the United States, you can register your business as a Sole Proprietor, LLC, Corporation, or Partnership.
Additionally, you will need a business license. And in most of the states in the USA, all businesses using a trading name must register a DBA Doing Business As. Other than a sole proprietor, you will need a Federal Tax ID number also.
4. Procure Equipment
Now you will need to procure the jet ski and other safety accessories. Definitely, the jet ski comes at a high price. Generally, the price varies from $4000 to $15000 depending on the model and brand. Though you can buy a secondhand vehicle at much less cost, we don’t recommend that. Actually, secondhand vehicle comes with a lot of maintenance and repair issues.
It is better to buy the vehicles of reputed brands. Some of the most popular jet ski manufacturing companies are Kawasaki (Jetski), Bombardier (Sea-Doo), Yamaha (WaveRunner), Honda (AquaTrax), Polaris (Sealion), and Arctic Cat (Tigershark).
5. Cost Analysis & Pricing
These are the most important factors in running the jet ski rental business successfully. You must analyze the cost properly. First of all, consider the storage space. Actually, the real estate nearby coastal areas come at a comparatively higher price. So, you need to consider that.
Additionally, you must evaluate the fuel expenses, maintenance, and insurance cost. Apart from vehicle insurance, you can also provide riders with insurance too. And in that case, you will need to fix the pricing very carefully.
It is better to fix the price slightly high. So, you can offer discounts and offers. Also, remember that the fuel price is flexible but your ticket price is not.
6. Promote your Jet Ski Rental Business
To get success in any business, it needs promotion. The same holds true for the jet ski rental business too. There are many low-cost ways of promoting this business. Additionally, you can consider intensive networking with other travel-related businesses. You can contact the hotels and resorts for displaying the advertisement in their lounge. Additionally, tour guides are the most important resource too.
The travel operators who arrange package tours or site seeing may also have potential corners for establishing the business network. Moreover, you must identify the things where people search for getting information about the place. And ensure that they will find you there.
Other than starting your own jet ski rental business, you can also consider buying a franchise of a reputed brand. Find below some of the popular jet ski franchise opportunities:
List of Profitable Jet Ski Rental Franchise Opportunities
Apart from setting up your own company, you can consider starting the business as a franchise partner also. If you are an absolute beginner in this industry, then it is advisable to start a franchise. And in that case, you can check several franchise opportunities that are available currently. Here, we have provided a list of 4 jet ski rental franchise opportunities for your ready reference.
a) Invert Sports LLC
Invert Sports LLC provides high-quality recreational equipment rentals and guided tours for over 18 years with superior service to its customers and organizations of all sizes. The combination of quality equipment including; boats, jet skis, ATVs, snowmobiles, water sports instruction, and private recreational tours of all types with customer service excellence is the reason Invert Sports rental and charter has remained a leader in the industry.
b) Aloha Watersports
In addition to providing the most diverse menu of watersports activities in South Florida, Aloha Watersports utilizes the latest equipment and high-tech industry innovations, provides ongoing training for our team members, and adheres to strict standards and practices that surpass industry guidelines and government regulations.
c) Jet Ski Safari
JETSKI Safari is a proven business model that is fun to own and manage all by yourself in a resort environment. Most jet ski rentals exist as an operator-owner set up with no corporate backup and knowledge. JETSKI Safari offers you instant troubleshooting and product backups. Whether it is an HR issue or a mechanical issue, the company will be more than happy to help you solve the issues.
If you want to start a distribution business in the jet ski rental industry, then you can consider this business. Being a BRP dealer is a very rewarding experience. If you qualify, you will be part of a truly international company. BRP manufactures on four continents and distributes in more than 16 countries.
Finally, we must mention, that the business is not only procuring the vehicles and putting them up for rent. The long-term success of this business highly depends on the proper business plan and smooth implementation. Try to educate your clients as much as you know. Give them plenty of safety tips. Mention how much distance they can travel. And clearly, show them your seriousness about their safety. Definitely, you will earn a lot of money from your jet ski rental business with a lot of fun.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.