Charter Business Help - Young Entrepreneur

How will it fail miserably? Maybe if we can get past that idea, you guys can make yourself useful and provide some actual insight about boating.

I know it will work, and I know how to make it work.

I am not on a boating website asking for accounting and financial advice, I am asking for boating and industry advice/resources.

Ok thanks. I'll post more specific questions in the future.

Those boats are possibilities, but ideally I would like a boat with a mid-cabin for more privacy/shade. The boat most likely will not allow for fishing either. But thanks, I know you're a smart guy so hopefully you will help in the future when I ask more specific questions.

Thank you, I am definitely aware and familiar with countless businesses and owners who fail due to improper planning. My goal here is not to become rich off of this, but to enjoy a hobby that doesn't cost me too much out of pocket, and also give me experience with running a business, potentially with the opportunity to expand the fleet and business.

If at the end of 3 years I lose a total of $5,000 out of my pocket for poor budgeting for whatever reason, I will still be a boat owner, gain business ownership experience, and many happy customers, etc and life will move on.

I don't see this as a "you will fail and fail miserably, I told you so" type of scenario, which is what I am having trouble understanding this attitude from the forum.

It is win-win to me really.

That is unfortunately their mistake. Cash management - one of the few areas where my experience as an accountant and my plan for marketing comes in.

I understand there are barriers to entering the business (as there are with many types of businesses), but I see a good opportunity in front of me. Of course it does not come free of concern, but a rewarding experience nonetheless.

Even just crunching numbers...let's say $30,000 for the boat and another $30,000 in annual operating expenses. That is $60,000 a year. Divide by $400 per ride, we are looking at 150 full-day rentals to break even.

150 full day rentals for a single boat within a year is probably unlikely
...So I could additionally offer half day rentals at a fraction of the price
...Or I could additionally offer multi-day and overnight rentals at a premium

The ideas are endless, but even just going off of 75 full day rentals over the course of a year, that will generate $30,000 of revenue, thus essentially covering the cost of the boat.

Over the course of another 1-2 years, if business continued at the same or growing rate, any income generating would be applied to operating costs, or invested in the business, or paid to me or employees in the form of salary/bonus.

I could easily play with these numbers guys. I can get a boat for $20,000. Run $500 full day rentals. It would take 40 full day rentals to break even on the boat. And of course there are the other operating expenses.

Are these numbers really unimaginably far fetched guys? I'm pretty certain I can get 40 people to give me $500 for a full day boat rental over the course of a year...

I see you are from Fort Lauderdale. The New River Downtown marina offers dock space for private charters and owners who rent out their boats. At least that's what I was told when I spoke with someone there. I think it would cost about $800 a month for dock space there.

"Having a single boat to rent you will never hit 75 days a year. Rental companies with established locations at resort marinas may hit that. 40 is more in line with an optimistic individual."

This is good information that I am hoping to learn more about from others in the industry somehow. I don't know how unattainable 75 is in reality, but I am expecting with my marketing plan and commission program, it is possible.

I am not familiar with the durability and specific maintenance or potential major repairs of any kind of boat that I could come across, but I plan to budget for these expenses as well and take into consideration chargebacks and dates the boat is out of operation. I have taken this all into consideration.

From what I have seen, there are many boat clubs and yacht management companies that are mobile and will travel to upkeep the boat. I think the last company I researched offers a package that includes weekly washes/detailing, towing, and changing of oil/filters, etc. for $3,000 a year.

My main concern really is since it is the only boat in the fleet, could it really last a year of daily rentals? Of course insurance would cover any liabilities, but the boat could be out for repairs for...a week...a few weeks...a month? If this happens, many of the clients would have to reschedule or want a refund.


That is my biggest concern, but it is not a deal breaker.