How much does it cost to start a jet ski rental business? Is a jet ski rental business profitable? How to put your Jet Ski for sale? You might be asking these questions about jet ski rental services. Let’s discuss these ideas in details.
Do you love water sports activities and want your hobby to become your profitable business? If Yes, stay with us. We are going to study all aspects of starting a Jet Ski rental service and earn a handsome amount of money in a short span of time.
Entrepreneurs know that all the adventure, luxury and water sports activities are very expensive!
To begin with, let’s know the brief history of Jet Ski. A Japanese heavy industry manufacturing company Kawasaki made a personal watercraft in 1972 and named it as Jet Ski. So, basically, Jet Ski is a brand name which generically represents any type of personal watercraft use for sporting and recreational activities these days. Usually, a Jet Ski can carry up to 3 people. The weight limit on a jet ski ranges from 350 to 600 pounds.
Why Start a Jet Ski Rental Service?
Whenever you plan to start a business, you look at the investment and profit margins. A jet ski rental service is a highly lucrative business. However, we all know that the success of a business depends on the right time, skills and a perfect business plan. Although starting a jet ski business is costly but it pays off. What you need to do is make a good strategy for advertising and marketing!
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The main components that will cost you some money are Skis (Purchase costs), fuel costs, weekly maintenance and advertising of Jet Ski rental services. The return on investment is great in this business idea. Always keep the contingency plan for future as you might need to put your jet ski for sale anytime. This will avoid heavy loss in case the business doesn’t work for you.
Jet Ski Rental Business — Market Overview
Aspiring entrepreneurs find a great idea that always has a market gap. Same is the case here in this business venture. According to the industry experts, the global water sports equipment market has showcased a substantial growth in the last ten years and the demand has increased up to 7 percent recently. The recent marketing of water sports has helped the industry grow big in a short time. Watersports are considered one of the most luxurious sports ever. America has accounted for the largest share in this industry and in the UK more than over three million people participated in the water sports activities last year.
The good thing about this business is that it is being promoted and organized by different governments around the world. This makes it one of the exclusive adventurous activity people love to participate in. As the involvement of ruling governments increases the trust level this will consequently drive the growth of the market in the coming years.
The United States of America is generating most of the revenue of the watersports business. This is just because of the available resources and awareness among the people. There are a lot of people who love this sports but they cannot afford to own a Jet Ski. So, starting a jet ski rental business in the water sports segment is highly lucrative for the entrepreneurs who are looking for an outdoor business idea.
List of Well – Known Brands in the Jet Ski Rental Industry
Some of these popular 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
Let’s make a plan!
Starting Jet Ski Rental Business – Startup Plan
So, now we are going to know more about the essential aspects of Jet Ski business. Let’s dig into it. You know, geographic location plays an important role in the success of any business. Some of the ways to generate finance for your Jet Ski rental business include;
- Approach investors with your business plan for getting investment
- Apply for a loan from local banks to start your business
- Approach special investors for funds
- Raise money from venture capitalists to launch your idea
- Finance the business from personal finance and sale of properties
Analyze the Location for Jet Ski Business
This is one of the most crucial aspects of starting a jet ski rental business. We need two things for our business to grow, the first is tourists and the second is environmental. These two factors are basically correlated. You must understand the potential of a particular location for the Jet Ski rental service. It is found, places that attract a lot of tourists and has 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.
Business Plan — Jet Ski Rental Service
After finalizing the location for your business, the second most important thing is crafting a perfect business plan. Your jet ski rental business plan must include the following aspects.
- Executive Summary of Jet Ski Business (How to Write the best Executive Summary? See Examples. )
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis including current research
- Marketing Plan for Jet Ski Rental Service
- Personnel Plan
- Three Years Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- Sample Private Placement Memorandum
- PowerPoint Presentation for Banks, Investors, or Grant Companies!
- Get Permits and Obtain Proper Licenses
These luxury sports businesses demand several permissions and licenses to operate. In the United States, these rules and regulations vary 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. 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
Now, Let’s talk about the business model and company set up!
Make a Perfect Business Structure
You need to make a business structure under which you are comfortable to run your Jet Ski rental service. There is always a unique company structure in different parts of the world. Every country and state provide different company forming options. For example, if you are in the United States, you can register your business as Sole Proprietor, LLC, Corporation, or Partnership. Additionally, you will need a business license.
Get Equipment for Jet Ski Business
This is the equipment procurement time for your sporty venture. You will need to procure the jet ski and other essential safety accessories. Know the jet ski comes with a very high price. Usually, the price varies from the $10,000 to $17,999 depending on the engine type, model and brand. Though you can buy the pre-owned vehicle at much lower cost. But you need to know that pre-owned Jet Ski comes with a lot of maintenance and repair requirements.
Tourists love branded Jet Ski services, so it is better to buy the vehicles of well-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). The best thing about these branded vehicles is that you can put your jet ski for sale if you don’t like it. The cost would not go much down as compared to other low-quality manufacturers in the market.
Cost Analysis And Pricing
How much would you earn from Jet Ski business? It depends on so many things like area, city, and storage available. You must analyze the cost properly. First of all, consider the storage space. In fact, the storage buildings nearby coastal areas come with a comparatively higher price. So, you need to consider that.
Note that, you must assess the fuel expenses, maintenance expense, and insurance cost. Apart from the vehicle insurance, you can also provide the riders with insurance too. And in that case, you will need to set the pricing very thoughtfully.
It is advised to adjust the price slightly higher. So that, you can offer special discounts and promotional offers on some occasions. Also, remember that the fuel prices are flexible, but your ticketing price is not.
Market your Jet Ski Rental Business
Marketing is very important for the success of any business venture. In today’s era, we have social media marketing which drives millions of visitors through advertisements. This kind of marketing should be done for jet ski rental business. There are many low-cost opportunities for business promotions. You can reach the hotels and resorts for displaying the advertisement in their lounge. Additionally, tour guides are the most important sources for ‘word of mouth’ advertisements.
The travel agents who arrange package tours or site seeing may also be a potential corner for establishing the business network. Social trends are very helpful in promoting businesses. Reaching the right people on right time is the only requirement for this business.
Other than starting your own jet ski rental business, you can also consider buying a franchise of a reputed Jet Ski brand. Let’s discuss some of the popular jet ski franchise opportunities that can be availed anytime!
Jet Ski Rental Franchise Opportunities
Want to be a part of the branded company with some investment in Jet Ski business? If you don’t have enough time for setting up your own company, you can think of starting the business as a franchise partner. Some of the experts suggest that if you are a beginner in this business industry, then it is recommended to start a small franchise. You can check many franchise opportunities that are available in your desired locations. Here, we have provided a list of top jet ski rental franchise opportunities.
1. Invert Sports LLC
Invert Sports LLC provides high-quality sporty equipment rentals and guided tours. The equipment includes; boats, jet skis, ATV, snowmobiles, water sports instruction, 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.
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2. 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.
3. 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 may consider this business. Being a BRP dealer is a very fulfilling 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.
Business Name Ideas for a Jet Ski Rental Business
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;
Seashells and Crafts
Free Spirit Yacht
Global Marine Specialties
MasterCraft Jet Co.
Your Sporty Friend
To summarize things up, we must consider that the Jet Ski business is not only getting the vehicles and setting them up for rent. The long-term accomplishment of this business depends on the proper business plan and good implementation. Interaction with clients and following standard operating procedures would ensure the safety. In this Jet Ski rental business, you will earn a lot of money from your hobby with a lot of fun.
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