If you’ve ever been on a jet ski, you are aware of the unparalleled feeling of soaring over the lake while feeling the wind in your hair. Jet skis are one of the most well-liked subsectors of the $30 billion recreational boating market. Because of this, sales of personal watercraft rose by 8% in 2020. You could launch a jet ski rental company, take a piece of this expanding industry, and make a nice career while making others happy.
However, you can’t just get on a jet ski and go off across the sea. To be successful, one has to understand the workings of the company.
because it may be quite profitable to establish a jet ski rental business. You can achieve enormous success if you work diligently and plan well. The secrets to starting a profitable jet ski rental business are explained here. Importantly, finishing your business plan is a vital step in launching a jet ski rental business. Fortunately, you have everything you need in this step-by-step manual to start your own business.
How Much Can You Earn From A Jet Ski Rental Business?
A jet ski rental costs, on average, $85 for an hour. After gasoline and maintenance, your profit margin should be around 80%.
In the first year or two, you might earn close to $150,000 annually by renting two jet skis every day for five hours each on 175 days of the year. If you use an 80% margin, you would make close to $120,000 from this. When your fleet of jet skis reaches six, you might need to hire one or two people, which would lower your profit margin to about 50%. You would earn close to $225,000 with an annual income of nearly the staggering $450,000.
Is Jet Ski Rental Business Profitable?
Industry analysts predict that the global market for watersports will expand gradually with a CAGR of more than 5% by 2021. The surge in popularity can be attributed to the governments of many nations placing a greater focus on water sports.
According to a Statista analysis, more than 3.2 million individuals in the United Kingdom alone engaged in water sports.
In fact, a few of nations have specialized regulatory agencies for water sports that are tasked with organizing and marketing the activities both domestically and internationally. Such elements will boost interest in water sports, which will subsequently fuel market expansion in the ensuing years.
The watersports industry’s main source of earnings is the United States of America. The region’s growing popularity of water activities and greater awareness of the need of living a healthy lifestyle are primarily responsible for the expansion. So, for company owners looking to launch an outdoor venture, renting jet skis is a highly lucrative business to start.
Steps To Start Jet Ski Rental Business
The following are the six steps to launching a successful jet ski rental business:
1. Analyze The Location
One of the most important steps in beginning a jet ski rental business is to do this. All places with bodies of water are unsuitable for this enterprise. You have to be aware of that region’s potential.
It has been discovered that the best locations for launching this business are those that draw large numbers of visitors and have a healthy demand for watersports. Before investing yourself in any particular site, you must, however, review the local, regional, and environmental legislation.
2. Business Plan & Financial Analysis
Making a company strategy is the second most crucial step after choosing the location. The following components are required in your business strategy for renting jet skis.
- Executive Summary
- Company and Financing Summary Products and Services Overview
- Strategic Analysis including current research
- Marketing Strategy
- Plan for Personnel
- Financial Plan Monthly Financials and an Expanded Financial Plan
- A sample PowerPoint presentation for a private placement memorandum for banks, investors, or grant organizations!
3. Obtain Proper Licenses
Specific licences and licenses are required for this kind of operation. Additionally, it differs from state to state. Therefore, you must first examine the license concerns. Additionally, you must register your business in order to get the right license.
Select the appropriate business structure for your operations. There are several possibilities for starting a corporation in every nation and state. You can register your business as a sole proprietor, LLC, corporation, or partnership, for instance, if you live in the United States.
You will also require a business license. Additionally, all American firms employing a trading name are required to file a DBA, or Doing Business As, registration. In addition to becoming a sole owner, you must have a Federal Tax ID number.
4. Procure Equipment
You must now purchase the jet ski and additional safety equipment. The jet ski is undoubtedly expensive. Depending on the type and manufacturer, the cost typically ranges from $4000 to $15,000. Although buying a used car might save you a lot of money, we don’t advise it. Actually, there are several maintenance and repair difficulties with used cars.
It is best to get autos from reputable manufacturers. Kawasaki (Jetski), Bombardier (Sea-Doo), Yamaha (WaveRunner), Honda (AquaTrax), Polaris (Sealion), and Arctic Cat are some of the most well-known jet ski manufacturers (Tigershark).
5. Cost Analysis & Pricing
These are the most crucial elements in effectively operating a jet ski rental company. The expense needs to be adequately analyzed. Think about the storage area first. Actually, the cost of real estate in coastal communities is greater than average. You should take that into account.
You must also consider the cost of gasoline, maintenance, and insurance. You can provide riders insurance in addition to insurance for the car. And in such situation, you must carefully determine the pricing.
It is preferable to set the price a little higher. You can therefore present discounts and promotions. Also keep in mind that while the cost of fuel is changeable, the cost of your ticket is fixed.
6. Promote Your Jet Ski Rental Business
Promotion is necessary for every business to succeed. The same is valid for the jet ski rental industry as well. There are several free methods to advertise this company. You might also think about actively networking with other travel-related companies. You may get in touch with hotels and resorts to ask them to put your advertisement in their lobby. Additionally, the most valuable resource is a tour guide.
The travel agencies that plan package tours or sight-seeing excursions may also provide opportunities for building a business network. Additionally, you must pinpoint the areas where consumers look for local information. And make sure they can locate you there.
You may want to think about purchasing a franchise of a well-known brand rather than launching your own jet ski rental company. The popular jet ski franchise options are listed below.
List Of Profitable Jet Ski Rental Franchise Opportunities
Along with creating your own business, you may also think about becoming a franchise partner. It is advised to start a franchise if you are a total newcomer to this field. And in that case, you may look into a number of currently open franchise possibilities. For your convenient reference, we have included 4 jet ski rental franchise options below.
A) Invert Sports Llc
For more than 18 years, Invert Sports LLC has offered its clients and groups of all sizes top-notch recreational equipment rentals and guided excursions. The reason Invert Sports rental and charter has remained a leader in the business is the mix of excellent equipment including boats, jet skis, ATVs, snowmobiles, water sports education, and private leisure trips of all sorts.
B) Aloha Watersports
Aloha Watersports not only offers the widest range of watersports activities in South Florida, but also makes use of cutting-edge technology, invests in ongoing training for staff members, and upholds stringent standards and practices that go above and beyond industry standards and legal requirements.
C) Jet Ski Safari
JETSKI Safari is a tested business strategy that is enjoyable to run independently in a resort setting. The majority of jet ski rentals are run by operator-owner teams without support from or awareness of corporations. You may get immediate problem solving and product backups from JETSKI Safari. The organization would be more than delighted to assist you in finding solutions, whether the problem is mechanical or an HR issue.
D) SeeDoo
You may want to think about starting this business if you want to build a distribution firm in the jet ski rental sector. It’s really satisfying to work as a BRP dealer. If you are selected, you will work for a firm that actually operates globally. BRP produces goods across four continents and exports to more than 16 nations.
Finally, it is important to note that the company does more than just buy cars and rent them out. The effectiveness of the company strategy and its efficient execution are crucial to its long-term success. As much as you can, try to educate your clientele. Give them several safety pointers. Mention the maximum distance that they can cover. And make it plain to them that you care about keeping them safe. You will undoubtedly have a lot of fun while making a lot of money from your jet ski rental business.
