Embarking on a new business journey entails a multitude of moving parts. From understanding the industry you’re breaking into to considering the customer’s journey, there are many things to consider! Starting a Jet Ski rental business is no exception: as temperatures stay hot, people want to get out and be on the water to cool down - so this industry is definitely in demand.
If you’re considering opening up your own Jet Ski rental business, this article will help you gain a foundation for the industry and which factors to analyze when starting out.
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Understanding the Jet Ski Rental Industry
A Jet Ski rental business is a promising venture with a wide prospect for growth. All you need to start this business is a coastal location that attracts people, have an in-depth understanding of a Jet Ski’s maintenance and operation, and also know how to source some reliable Jet Skis.
There are other little challenges that come with this business, including getting an appropriate business license, scoring the right location, keeping your cost low, and more. Customer preferences, average income, and even the national economy directly influence the financial performance of the Jet Ski rental business. A rise in oil prices also plays a major role in the demand since the cost of operating the personal watercraft increases with higher fuel prices.
Tourists who want to enjoy a time out on the waterfront are likely the biggest demographic that a Jet Ski rental business would target. It’s also a means of water transport - so you might need to appeal to the working class, young adults, and whoever else can hire your services.
Tips to Consider When Starting a Jet Ski Rental Business
Invest in Salvage Jet Skis
Setting up a Jet Ski rental business is an expensive endeavor because, in order to startup, you need a fleet of Jet Skis. They’re expensive to buy, run, repair, and maintain - so, to get your rental business started and ensure that you don’t overshoot your budget, you can go for salvaged Jet Skis for sale. While the cost of brand new Jet Skis ranges from $2,500 to $10,000, depending on the make and model, a salvaged Jet Ski can cost half that amount. Of course, you also need to invest a little cash towards repairs and touch-ups to ensure the equipment works perfectly but will still be in better financial shape than going for a fleet of brand new Jet Skis right off the bat.
Find a Favorable Body of Water
Not all geographic locations have the potential for good returns when it comes to starting a Jet Ski rental business. Firstly, you need to find a location that is conducive to your enterprise - look for a place characterized by a surge in tourists and where water sports are in high demand. While some water bodies are unfavorable for water sports, some are protected by federal and environmental laws. It’s important to explore your local geography and get acquainted with local, regional, and environmental laws before investing yourself in any specific location. Even if your shortlisted area has its share of water sports machinery for rent, it’s still wise to read up on the laws and regulations in that area.
Apply for the Right Insurance Coverage
As with any business involving motor vehicles of all sorts, it’s important to have the right legal protections for your Jet Ski rental business and to ensure the safety of your patrons. To operate without the appropriate type and level of insurance would be incredibly detrimental to your future and reputation.
Jet Ski insurance typically covers third-party liability for bodily injury, pays for the injuries you cause to others due to an accident when operating a personal watercraft, and property damage. You need to carefully study all your insurance options; you can also meet with a professional insurance agent that would guide you on the best policies suitable for 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
Factor in all Overhead Costs
There are three primary costs that are often missed when calculating the total overhead costs of a jet ski rental business, such as:
- Storage Costs: When operating a Jet Ski business, it’s obvious that you’d require space to store your Jet Ski when they’re not in use. Keeping them behind a fenced facility really works, but real estate close to water bodies can be expensive; don’t forget to include this land cost into your overall costs of running the business.
- Fuel Costs: Although you can charge customers for the fuel cost, fuel prices are always in flux. It’s likely that one day you would be making money due to low fuel prices but losing it with a sudden increase in the price.
- Maintenance Costs: Different jet skis have different lifespans; for example, if you’re purchasing salvage jet skis, they may require frequent maintenance. It’s important to include maintenance costs in your overheads and keep accurate service records.
Consider Investing in Security
Jet Skis are expensive - and handing the keys over for renters is loaded with a multitude of risks. When starting a Jet Ski rental business, investing in a comprehensive security system will give you peace of mind and protect your equipment.
With one of Rastrac’s GPS tracking devices and our comprehensive asset tracking system, you can create multiple geofences in areas of the water that you don’t want your property to enter. Utilizing geofencing capabilities via Rastrac's waterproof GPS tracking device ensures the safety of your watercraft's passengers. By mapping out and alerting your renters of prohibited areas, you avoid the risk of them swimming in dangerous currents or accidentally trespassing.
Rastrac is a leading provider of GPS tracking devices and remote asset tracking systems. Our solutions empower companies of all sizes to conduct more effective fleet management. Since 1993, our goal has been to help organizations all over the world experience more efficient fleet operations and reduce their operating expenses. Contact us today to see how we can help your Jet Ski business!
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