Although the tourism industry has suffered a slight hit recently because of the pandemic, it is still one of the leading industries anyone should consider for a business. If you are thinking of starting a Jet Ski rental business, you are on the right path to a profitable business.
Like every other business, a Jet ski rental business also comes with its own risks and challenges. However, it is not a difficult venture, even for a starter. All you need is an attractive coastal location, a few quality Jet skis, and good knowledge about how to maintain and operate the jet skis. And you will soon be making good money from the business.
Like we always do, in this post, we will be giving you some useful tips to help you build a profitable Jet ski rental business. So read on, if that looks like what you want.
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Tips to Help You Start a Successful Jet Ski Rental Business
Let’s talk about “How To Start A Jet Ski Rental Business” in detail:
#1: Consider investing in salvage Jet skis
Although starting a Jet ski rental business is lucrative, it can also be very expensive to start. You need a huge capital to purchase a fleet of jet skis to start with. Jet skis aren’t cheap. They are expensive to purchase, maintain, and repair. To help you cut costs, you can consider going for salvage jet skis instead of new ones.
Brand new jet skis can run up to $2,500, depending on the model and make. While a salvage jet ski can go for as low as $5000 to $10000. That will help you save some cash while starting out with your jet ski rental business.
#2: Choose a good location
Location matters in running a jet ski rental business. Not all water bodies are suitable for jet skiing. So make sure you know the ins and outs of the location you are choosing before settling for it. Consider areas where you have more tourists around and where watersports are in great demand. Here are some popular place that people visits for jet ski.
#3: Analyze the competition
Every business has competitors and trying to neglect them will mean ruin for your jet ski rental business. So, to ensure the future of your business, make sure you comprehensively analyze your competitors before starting the business. Check them out to know what their strengths and weaknesses are. Know what they are doing to attract customers to their business.
The goal is not to copy them but to see what’s working for them and what’s not, and then build on that information. Create a perfect plan to avoid their errors and maximize their unique selling points.
#4: Factor in all overhead costs
Before coming up with your pricing structure, make sure you consider all overhead costs and factor them in. the three most important costs involved in starting this kind of business are:
- Fuelling costs
Your jet skis will always be running on fuel. So, before deciding what your final charges are going to be, make sure you consider your fuelling costs. Additionally, fuel prices are always fluctuating. That means you may need to keep updating your price list or set a pricing structure that will conveniently accommodate the fluctuation in fuel prices.
- Maintenance costs
This usually depends on the durability of the jet skis you purchased for the business. If you get poor quality jet skis, you may need to spend a lot on maintenance services. But buying your jet skis from reputable brands like Seadoo, Kawasaki, and Yamaha will guarantee a reduced cost of maintenance.
- Storage costs
You need to figure out a way to store your jet skis when not in use. You may need to keep them stored in a fenced facility that has a gate. But the truth is that getting such a place near waterways may not be cheap. So when setting your pricing structure, ensure to factor that in.
#5: Obtain the right licenses and permits
Depending on the area you choose to do your business in, you will definitely need to obtain some licenses and permissions before opening up the business. Permits will allow you to run your jet ski rental business without having issues with the law. You will also need regional and state permits. So check in with your state or local government secretariat to know what permits and licenses are required of you.
#6: Get the right insurance
In case of unforeseen accidents, you need good insurance to cover and protect the business. You will daily be working with equipment and employees, so get an insurance plan that will cover them. Below are some insurance policies you can consider when starting a jet ski rental business:
- Worker’s compensation
- Collision damage waiver
- Personal accident insurance
- Personal effects coverage
- Liability insurance
#7: Know the right time to do business
For a jet ski rental business, not all days will be business as usual – remember, it is a water-based sport. So, the safety of your customers should also be your responsibility. That means you need to know when to open for business and when to close shop and wait for the best time.
Plus, it is your duty to help your customers mark out safe jurisdiction where they can travel on the water. Recommend and advise them on how far they can travel and where it will be unsafe for them to ski. All these will help build the reputation of your brand and bring more customers your way.
You may also like our other business ideas like Pool Cleaning Business, Mobile Laundry Business and Popcorn Business.