Are you planning to become a jet ski entrepreneur and earn plenty of money by leasing the machine? Well, today is the time when you can learn some great tips to actually have a brighter tomorrow.
Is Jet Ski Rental Business Profitable?
A typical rental business on a jet ski can be more profitable than you can imagine. Hard to believe but the owners can reap up to $1000 profit per day which makes them rich enough to fulfill their dreams. Somehow, you need to be very careful and considerate while starting such a business. In this guide, I am going to discuss every small and big thing regarding how to start your own jet ski rental business and become successful as well.
Steps To Start Successful Jet ski Business
When you want to run a jet ski business, it is very important to do thorough background research. Reading about the previous entrepreneurship and top jet ski models is the basic thing required. Apart from that, you should have a mindset to continue being on the same track for quite some time even when you get no return in the beginning. Self-confidence and determination are the two most important ingredients for a successful jet ski business.
Start Your Jet Ski Rental Business Today – A Guide to Getting Started
This guide not only lets you get started with the jet ski business but also helps you to discover the insight very easily. I have much experience with the phenomena and that is why I am advising you on something very valuable.
Every person who wants to generally begin with a jet ski business can easily manage the majority of the things based on the guide & advice mentioned here.
How to begin a jet ski business?
The Point is not only to begin the jet ski business but also to reap success in it. Keep in mind the following points and you are never going to face failure.
Think of a genuine business name
Give a nice name to your jet ski rental business depending on the region you dwell in. The name should be captivating enough and must be advertised in such a way as to rank higher in search engines. Choose the related keyword and also put a lot of descriptions about jet ski models.
The worst is to name your business according to your personal name. It should have important keywords like affordable, premium, best, jet ski company, or something like that which attracts the customer’s attention…
Analyze the Location
Location plays a major role when you are about to start your own jet ski rental business. It is important that the place should have water reserves, lakes, rivers, ports, or any other place which can be a nice spot for jet skiing. The place should have enough tourists and customers to attract them.
You must understand the potential of that particular area. Do a survey and ask for the people’s opinions about your business. You should also check whether there are other competitors in the area you are planning to start this business.
Know your potential customers
It goes without saying that people who can afford to purchase a jet ski would never come to you. Your business either caters to the ones who have a low affordability rate or the outsiders. When you offer jet skis for lease at a set location at the correct price, it is clear that people who want to avoid the hassle of storage and parking are choosing a rented watercraft.
Generate customer-centric offers
A good and successful business never fails to impress and attract customers. The first and foremost target of any business should be to acquire plenty of customers no matter what. Even when you have low profits initially or something goes off from your own pocket, never mind plunging into the process of customer acquisition. Here is what you can follow –
- Stick to offering tours where you can reduce the insurance premiums.
- Offer Self ride and approve the route where you can mark everything in a GPS tracker.
- Provide a multi-day trial pack.
- You can offer guidance and a Self-tour pack.
- Run an online business.
Any business that is approachable round-the-clock is more successful than one operating for only a limited number of hours. When you create a jet ski rental website, you get bookings round-the-clock from the customers. You may have to spend a little extra money to create a website and then keep it ranking well. However, everything is going to pay you off when your business runs successfully. You can even try to set up your own website by learning things online nowadays. Just a few clicks can help you to manage things magically.
You can also get in touch with your competitors to know how they have managed to establish an online rental website. Find out what others are doing and this is going to be your guiding light in some or the other way. Choose a very differentiated color, scheme, branding, and logo from what already exists.
Pay attention to the business structure
Find out whether you want to keep the business bootstrap or if it needs to accumulate funds. Talk to a lawyer or an expert accountant in your country. Do enough research because finances play a very important role in making a business successful. It is only when you know how to raise the initial funds, the final outcome will be in your favor.
If you actually have the potential to handle everything yourself, there is nothing wrong with starting up a bootstrap business where everything depends on one proprietor. Invest up to $1000 in the jet ski business and maintain bookkeeping to keep things going ahead.
Get government approval
Sometimes, the process of governmental approval takes months and even years. The final factor in deciding whether you will be able to begin your business or not depends on the fact of approval. The police are going to closely monitor your butt in business and acquire details like:-
- Your operating hours
- The Insurance coverage you have
- Risk Assessments
- Police Procedures
To be very straightforward, the less you get into legal matters and proceedings, the easier it will be to handle things. Make sure that you keep all your documents and orientations well-prepared before plunging into anything like this.
Acquire insurance
You just cannot ignore the fact that acquiring business insurance is a must when starting a rental business. The insurance companies try to secure the jet ski owners as they are less experienced and serve others. Any sort of misfortune is handled by business insurance which is not very hard to find.
Purchase the best jet ski fleet
It is time to purchase your own jet ski fleet and then finally give a kickstart to it all. Do research about different models you should keep in your collection and the amount of discount you can get on them. Also remain well aware of dealership servicing maintenance and other important details.
You need to have a full collection of both powerful and basic jet skis to serve all the purposes. There are going to be customers from all walks of life and you should exactly know how to serve them well. Keep a couple of extra jet skis so that they can be used as rescuers in awful situations.
Which are the best jet ski models for a rental business?
- Yamaha VX deluxe
- Sea-Doo GTI 190
- Yamaha VX Ltd
- Sea-Doo GTI 130
- Yamaha eX series
- Sea-Doo Spark
You can also keep a couple of fishing equipment and swimming options in case you think you are going to get customers of that type.
Get your first customers
After you have done all the hard work and the venture is just about to begin, do not mind doing some advertisements on Instagram and Facebook to get attention. There are many people wanting a rental jet ski nowadays. You can get some quick customers from the social media pages. Announce the launch of your business and keep the initial offer price low.
Thorough marketing
Your marketing needs to be very strategic and substantial to capture the best customers. Keep your propaganda ongoing over social media pages and do not forget to update your website blog from time to time. Click pictures and upload them to keep building your customers and supporting them.
How much does it cost to start a jet ski rental business?
The cost of starting a jet ski rental business varies greatly and depends on many factors, including the size and location of your business, the number of jet skis you plan to rent, any necessary permits or licenses, and the cost of insurance.
Generally, you can expect to pay anywhere from a few thousand dollars for a small business to tens of thousands of dollars for a larger, more comprehensive business. Over her, we will consider cost based on United States/Canada.
| Initial Cost Incurred | Range | Average |
|---|---|---|
| Name Registration formality | $100 – $150 | $125 |
| License & Permit formality | $150 – $300 | $225 |
| Business Cards, brochures | $200 – $300 | $250 |
| Website development | $1500 – $3500 | $2500 |
| Purchase Jet skis | $12000 – $35000 | $25000 |
| Rental Space | $500 – $1300 | $800 |
| Essential Accessories | $500 – $1200 | $800 |
| Insurance Expenses | $150 – $400 | $250 |
| Trailer | $1500 – $2200 | $1800 |
| Total | $16,600 – $44,350 | $31,750 |
Setting up a jet ski rental business requires a significant initial investment. The cost of registering the business with the necessary authorities ranges between $100 to $150 on average, while licencing and permit formalities will cost between $150 to $300 on average. Of course, the largest cost is incurred for the purchase of jet skis, which will cost between $12,000 to $35,000 each on average.
How much can you earn from a jet ski rental business?
If you are looking to start a jet ski rental business, you should consider the average price of a jet ski rental to be around $90-$100 per hour. This will give you a 75% profit margin after factoring in fuel and maintenance costs.
For example, if you start off with three jet skis for four hours per day for 180 days of the year, you can earn nearly $195,000 in revenue and $145,000 in profit. If you expand your rental fleet to six jet skis, you’ll need to hire an employee or two, but this will reduce your profit margin to 50%. Even so, you can still earn close to $390,000 in revenue and $195,000 in profit annually.
Absolutely! Jet ski rentals can be a highly profitable business. In addition, jet ski rentals can be used to attract tourists to local businesses, increasing visibility and potential profits. With the right marketing and customer service, jet ski rentals can be a great way to generate more revenue.
Final words
Starting a jet ski rental business is definitely very hard and full of challenges. Nothing is going to give returns in one day. It requires several years of blood and sweat to finally become your own boss and earn more than usual.
Do not mind beginning up your business today no matter how small it is. After three years, you will feel how wonderfully you have progressed. With the right strategies, you will be able to achieve great heights. Hope this guide & tips was able to help you out. Your thoughts and suggestions are welcome in the comment section below.