Charter Business Help - Young Entrepreneur

Hi all,

I am new to the forums and as my first post would like to make an introduction post.

I currently do not own a boat, but am looking to purchase a 30 ft. powerboat w/cabin and offer half/full day private charters at discounted prices. I believe I have the marketing resources available to be profitable within the first year of operations, also living in South Florida doesn't hurt.

Can anyone point me in the right direction for resources I can read and absorb all the information online about running a private charter business?

I am an absolute beginner to boats unfortunately, but have always been drawn to the water and adventure.

Best regards,

Vinn

Haha, well I am looking at purchasing only a $20k - $30k boat. I will plan on running approximately $200 half day and $400 full day charters with various options.

I think I am lucky to have location on my side. Living in South Florida, the waters are active all year long with people from all over the world looking to get on the water.

I am an accountant and have crunched the numbers. The boat would be completely financed, but with some super marketing techniques to get bookings scheduled in advance, I believe it will be hard not to at least make up the cost of the boat (approximately $30,000) in the first year at the prices noted above. I am looking for docks in the area, most likely I plan on looking for city owned docks if I am running private charters at higher volume. Would not want to be located in someone's back yard. Aside from fuel, docks, salary, and repairs, of course I would purchase the proper insurance as well.

Clients will have the ability to choose whether they want bareboat charter or a skipper to accommodate the excursion at an extra fee and the skipper will get paid a percentage of the total fee. Since it is a smaller boat, I do not have to worry about hiring an expensive captain or crew, etc.

So just a quick run of the numbers, it would take a total of seventy five $400 full day customers to break even with the cost of a $30,000. 75 full days would be difficult, but at the end of the day, even if this was reached in the second year of ownership, it would be a success in my opinion.

As an accountant, I have run several scenarios through my mind and on paper. I don't really foresee any major issues. And the great thing about pursuing an opportunity as such is that I will own the business, own the boat, generate passive income, and still work my full time job as an accountant.

I'm excited. Thoughts?

If possible, I would like to learn more about the following:

• Required licenses/permits

• Regulations about boating in public and private waterways, speed regulations, day time and night time anchoring, food/alcohol on board, noise regulations, etc.

In other words, I am not familiar with the proper norms and etiquette of boating in the area. I think the best way to learn will actually be by joining a membership club and receive training, but I would like to utilize my resources online first before I begin investing.

$31k that is a lot, does that include any financing charges or repayment?

My figures could be off +/- $1,000 but here is a rough budget:

$3,000 a year for insurance
$3,600 a year for fuel
$4,800 a year for general and admin (including marketing expenses)
$5,000 salary for captain/skipper (this is on a part-time/per charter basis)
$8,400 a year for dock ($700 per month)
$3,000 a year for repairs and maintenance

Using the above budget, I am calculating a rough $28,000 in annual expenses, which I think is doable.

I just knew there would be someone to respond in this manner. First off as far as googling, no kidding. I have found several forum sites, including this one, and a variety of other online resources. I decided to join and ask the great people of this forum their thoughts.

Sounds like a niche to me

Yes

Thanks for the opinion, and no I am not confusing anything.

One thing I don't think is clear to you, is that this business would be solely in operation for passive/secondary income. It would be a hobby to me, one that would eventually pay for itself and have the possibility of growing. I don't see anything wrong with owning a 30 ft boat and offering rentals and private charters at an affordable price.

These were my initial concerns, of course people will think "there is NO WAY", but at the end of the day, if the boat pays for itself within 1-2 yrs and I don't actually make a dime in my pocket by cutting myself a salary, it would STILL make a great investment.

I know how to generate leads and sales, not just by advertising on broker sites, etc. I think it is what makes the impossible, possible.

http://r.ebay.com/GFzWUZ

Also I would not consider this to be an old or beat up boat for starters. It is listed for only $17,000 and I have found several other in the same range that would be reasonable.

Just like that huh, no in between? You don't sound very happy or helpful really.

There are only so many things I can say about people like yourself on the internet.

In my original post I stated, "I am an absolute beginner to boats unfortunately, but have always been drawn to the water and adventure."

So what is the point of you repeating I have no idea what I'm getting into. And then you criticize me for asking questions so that I can have a better idea of what I'm getting into.

Just can't win with some people.

Wow this is an immature forum I see. Someone gives advice, and no discussion ensues? The learning process involves asking questions and interacting. I see this forum is not about helping others learn, just typical elitist types. Good day all.