Are you about starting a Jet Ski rental company? If YES, here is a complete sample Jet Ski rental business plan template & feasibility report you can use for FREE.
If you live around any beach where people either ski for fun or for sports, then you should consider starting your own Jet Ski rental business. The truth is that you can make cool cash from this line of business with little effort if you are well positioned.
Establishing a Jet Ski rental business can expensive because the start-up kits and Jet Skis are truly expensive, and also maintenance cost and even fueling can be expensive as well. Jet Skis or watercrafts as are known are majorly imported from Japan because Kawasaki and Yamaha happen to be the major manufacturers.
A Sample Jet Ski Rental Business Plan Template
1. Industry Overview
The Jet Ski Rental industry consists of businesses that rent out different types of jet skis for fun or for tournament. Operators in the Jet Ski Rental industry vary greatly in size, ranging from large operators with a fleet of jet skis to single jet ski owner-operators and part-time rental companies that also engage in the rental of jet ski.
It is important to state that Jet Ski rental business is usually restricted to certain area – areas close to the sea shore and beach.
A recent report published by IBISWorld shows that over the five years to 2018, the Jet Ski Rental Industry has experienced moderate growth. Industry revenue has increased at an annualized rate of 2.9 percent to reach $371.1 million, including an anticipated 2.4 percent rise in 2018 alone.
During the five-year period, the industry recovered from a sharp decline that began with the 2008 recession and bottomed out in 2009.
Falling per capita disposable income and poor national economic performance forced consumers and businesses to reduce recreational services. So also, within the said period, the Jet Ski Rental Industry grew by 2.9 percent to reach revenue of $371m in 2018.
In the same timeframe, the number of businesses grew by 0.8 percent and the number of employees grew by 1.5 percent.
The Jet Ski Rental Industry has managed to untangle its early post – recessionary bumps. Rising consumer sentiment and per capita disposable income have boosted industry growth over the five years to 2018. This has also led to increased demand for services provided by operators in the industry.
In the coming years, the industry is forecast to exhibit continued growth. Per capita disposable income and consumer confidence will keep rising as the unemployment rate continues to decline, providing consumers with more discretionary income for luxury services such as renting of jet skis for fun.
The Jet Ski Rental Industry is indeed a growing sector of the economy of the united states of America and they generate over 1 million annually from more than 3,107 jet ski rental businesses scattered all around the country. The industry is responsible for the employment of over 5,143 people.
Experts project that the industry will grow at a 2.9 percent annual rate between 2013 and 2018. Please note that no player can boast of having a lion share of the available market in this industry.
The industry is growing only marginally slower than the economy as a whole, which suggests that the industry is mature. Additionally, the industry exhibits characteristics of mature industries, such as stable long-term demand and minimum product innovation. Product innovation has grown at a relatively steady rate over the five years to 2017.
In summary, the jet ski rental business is very open to any aspiring entrepreneur who has the capacity to open and run his or her own jet ski rental business. Just ensure that your jet ski rental business is located around a beach and of course in an environment with the right demography and you will be fine.
2. Executive Summary
Perez Malone® Jet Ski Rentals, Inc. is a licensed and US registered jet ski rental business. We have been able to secure a standard and well – positioned facility in Newport Beach – California. Newport Beach which happens to be one of the most visited beaches in the United States can boast of receiving 9,703,500 beach goers annually in a city with a population of 85,323 people which translate to 113.7 per capita beach goers.
We are set to compete in the fast growing and fragmented Jet Ski Rental Industry in Newport Beach – California. Perez Malone® Jet Ski Rentals, Inc. will run a standard jet ski rental business that will provide jet ski rental services for individuals, sport clubs and companies.
Our business goal is to become one of the leading jet ski rental companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of hardworking, creative and highly experienced workers in and around Newport Beach – California and also from any part of the United States of America as the business grows. We will make sure that we take our workforce through the required trainings that will position them to meet the expectation of the company.
At Perez Malone® Jet Ski Rentals, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Perez Malone® Jet Ski Rentals, Inc. is owned by Perez Malone a Mexican – American with hands – on experience when it comes to running a jet ski rental business. The business is family business hence he will be managing the business alongside members of his immediate family.
3. Our Products and Services
Perez Malone® Jet Ski Rentals, Inc. was established with the aim of maximizing profits in the Jet Ski Rental Industry. We want to compete favorably with the leading jet ski rental businesses in the United States which is why we have put in place a competent team that will ensure that our jet skis meet and even surpass our customers’ expectations.
Our products and services are listed below;
- Inshore/coastal jet ski rental services
- Offshore jet ski rental services
- Tournament jet ski rental services
- Commercial jet ski rental services
- Sale of jet ski related products and tools
4. Our Mission and Vision Statement
- Our vision is to establish a standard jet ski rental business with some of the latest jet skis from Japan. We want to become the leading jet ski rental company in the whole Newport Beach – California.
- Our mission is to provide a standard jet ski rental service that can attract a wide range of clientele in and around the United States of America.
- We want to build a jet ski rental brand that can favorably compete with other leading brands in the Jet Ski Rental Industry hence we will place high premium on the safety of our clients.
Our Business Structure
Perez Malone® Jet Ski Rentals, Inc. intends starting small in Newport Beach – California, but we hope to grow big in order to compete favorably with leading jet ski rental companies in the industry. We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business cum brand we want to own.
This is why we are committed to only hire the best hands within our area of operations. At Perez Malone® Jet Ski Rentals, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more. As a means of maximizing operational cost, we will contract the maintenance of all our jet skis to a service provider, we don’t intend to maintain a very large overhead from the onset.
But as soon as the business grows and stabilizes, we will assemble our own in – house maintenance team. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Jet Ski Rental Manager
- Sales and Marketing Executive
- Accountant / Cashier
- Jet Ski Safety Instructors / Operators
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Answerable to fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Jet Ski Rental Manager:
- Maintains quality service by establishing and enforcing organization standards.
- Supervises multi-disciplinary teams of staff including cleaning, maintenance, grounds and security
- Advises businesses on increasing energy efficiency and cost-effectiveness
- Oversees jet skis (watercrafts) building projects, renovations or refurbishments
- Ensures that the organization work in line with international best practices.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Develops, executes and evaluates new plans for expanding sales and ensuring that all our jet skis are always rented out
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Jet Ski Safety Instructors/Operators
- Responsible for giving out instructions on how to make use of jet skis and ensuring the safety of everyone that rents our jet skis
- In charge of the rental of jet skis (watercrafts)
- Responsible for making sure that our jet skis (watercrafts) and our services meet the needs of the people that hire them.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the Manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Because we want to become the leader in our line of business, Perez Malone® Jet Ski Rentals, Inc. engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured jet ski rental business that can favorably compete in the highly competitive Jet Ski Rental Industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Perez Malone® Jet Ski Rentals, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Perez Malone® Jet Ski Rentals, Inc.;
- Strength:
We can boast of having some of the latest jet skis from Kawasaki and Yamaha under our fleet. Our services will be guided by best practices in the industry. Another strength that counts for us in the location of our jet ski rental business; it is located in one of the most ideal locations for such business in Newport Beach – California.
- Weakness:
As a new jet ski rental business in Newport Beach – California, it might take some time for our company to break into the market and gain acceptance especially from top profile clients in the fast growing Industry; that is perhaps our major weakness.
Another weakness is that we may not have the required cash to promote our business the way we would want to especially as it relates to placing advert in mainstream media.
- Opportunities:
No doubt, the opportunities in the jet ski rental business are massive considering the number of people that would want to ski either for fun or for sport. As a jet ski rental company, we are ready to take advantage of any opportunity that is available in the industry.
- Threat:
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power especially as it relates to recreational activities. Another threat that may likely confront us is the arrival of a new jet ski rental company in same location where our target market exists.
7. MARKET ANALYSIS
- Market Trends
A close reflection of trends in the Jet Ski Rental Industry shows that industry now competes with a wide variety of recreational activities especially in and around beaches and coastal lines. These activities include non – fishing sightseeing by boat and land-based recreation, such as hiking, city sightseeing, sporting events and even video games.
Over the five years to 2018, the industry has lost ground to other forms of recreation as consumer preferences changed. External competition for the Jet Ski Rental Industry is expected to increase in 2018, representing a potential threat to the industry.
Total recreation expenditures track the total amount spent by US consumers on recreation services, including industry services. Total recreation expenditure is expected to increase in 2018, representing a potential opportunity for the industry
If you are involved in Jet Ski rental business, you will always have people who haven’t used it before coming to rent it; that is the reason why you must have competent instructors on ground to help guide those who aren’t used to Jet Skis.
In some cases, depending on your policy, you might charge extra cost for those who want to learn how to drive your Jet Ski. Besides your instructors will also ensure that all those renting your Jet Ski adhere to all the safety measures you have in place especially the use of life jacket.
Lastly, jet ski rental business operators in the bid to generate more revenue for their business engage in retailing safety google, life jackets, beach and swimming wears and other related merchandize. They open a store where everything about jet skis are sold.
8. Our Target Market
One thing about Jet Ski rental business is that you only require less effort to market your service especially if your office is located in an area that is close to the beach. Although it is still important for you to create some form of advertisement to tell people what you do, and it will pay you to partner with any hotel and resort that is close to the beach.
Even though Perez Malone® Jet Ski Rentals, Inc. will initially serve small to medium sized businesses, but that does not in any way stop us from scaling up our revenue and growing to compete with the leading jet ski rental companies in the United States. Below is a list of the people and organizations that we have specifically designed our products and services for;
- Potential Couples/Young Adults
- Tourist
- Households/Families
- Schools (High Schools, Colleges and Universities)
- Sport Organizations (For Jet Ski Competitions)
- Event Planners
- Tour Guides
Our competitive advantage
Because of the competitive nature of the jet ski rental business, there is an increasing degree of related business activities, with big players dominating the market. We are quite aware that to be highly competitive in the Industry means that you are not only expected to make available safe jet skis and safety gadgets, but your price model must be flexible
Our competitive advantage is anchored on the state of the art jet skis that we have. So also, we have a team of hardworking, creative, highly trained and experience workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.
Another strength that counts for us in the location of our jet ski rental company; it is located in one of the most must busiest beach communities highly suitable for such business in Newport Beach – California. Our ability to compete on tender, fast adjustments made to changing regulations and close monitoring of competition are part of the competitive advantages we will be bringing to the industry.
We are aware that there are some people who haven’t used jet ski before coming to rent it; that is the reason why we have competent instructors on ground to help guide for free those who aren’t used to Jet Skis but want to rent and learn how to use them.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Perez Malone® Jet Ski Rentals, Inc. is established with the aim of maximizing profits in the Jet Ski Rental Industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Perez Malone® Jet Ski Rentals, Inc. will generate income by offering the following services;
- Inshore/coastal jet ski rental services
- Offshore jet ski rental services
- Tournament jet ski rental services
- Commercial jet ski rental services
- Sale of jet ski related products and tools
10. Sales Forecast
One thing is certain, there would always be fun loving people who would want to go jet skiing especially during summer holidays hence the need to rent jet skis.
We are well positioned to take in the available market in the Jet Ski Rental Industry in Newport Beach – California and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our jet ski rental business to enviable heights.
We have been able to examine the jet ski rental market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Perez Malone® Jet Ski Rentals, Inc. It is based on the location of our jet ski rental business facility and of course our target market;
- First Fiscal Year: $230,000
- Second Fiscal Year: $320,000
- Third Fiscal Year: $575,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same facility as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and increases our market share.
We will leverage on improving our services and facility to ensure that we win new clients and retain old clients as well. Our unique selling proposition is that we are well positioned, we offer brand new Yamaha and Kawasaki jet skis, and people can easily access our facility.
Our sales and marketing team will be recruited based on their vast experience in Jet Ski Rental Industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Perez Malone® Jet Ski Rentals, Inc.
Our corporate goal is to grow Perez Malone® Jet Ski Rentals, Inc. to become one of the top 10 jet ski rental brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in Newport Beach – California.
Perez Malone® Jet Ski Rentals, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Open our jet ski rental business with a big party
- Advertise our jet ski rental business on national dailies, local TV and radio stations
- Promote our jet ski rental business online via our official website and all available social media platforms
- Introduce our business by sending introductory letters alongside our brochure to households, businesses and key stake holders in Newport Beach – California
- Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
- Delivering consistent customer experiences to all our members; making our first impression count positively to those that hire our crafts for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our jet ski rental business facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Newport Beach – California
- Create a loyalty plan that will enable us reward our consistent clients especially those that introduce their friends and family members to the business.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for tourists and jet skiing fun lovers in the whole of Newport Beach – California and other cities in the United States of America where we intend opening our chains of jet ski rental business which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote and advertise Perez Malone® Jet Ski Rentals, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our jet ski rental services
- Install our billboards in strategic locations all around Newport Beach – California
- Distribute our fliers and handbills in target areas
- List our jet ski rental business in local directories/yellow pages
- Advertise our jet ski rental business in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our company logo.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging their clients. Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
- Payment Options
The payment policy adopted by Perez Malone® Jet Ski Rentals, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Perez Malone® Jet Ski Rentals, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for renting our jet skis without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Having done our due diligence, this is what it would cost us to set up Perez Malone® Jet Ski Rentals, Inc. in the United States of America;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $60,000.
- The total cost for facility remodeling – $30,000
- The total coats for financing the purchase of different sizes of jet skis and safety gadgets – $100,000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- The cost for our grand opening party – $5,000
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard jet ski rental business in the United States of America.
Generating Funds/Startup Capital for Perez Malone® Jet Ski Rentals, Inc.
Perez Malone® Jet Ski Rentals, Inc. is a private business that is solely owned and financed by Mr. Perez Malone and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Perez Malone® Jet Ski Rentals, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to rent out our jet skis a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Perez Malone® Jet Ski Rentals, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard facility and reconstructing the facility to fit into the kind of jet ski rental business facility we want to manage: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of tanning tools and equipment and supplies: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of jet skis (watercrafts), furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industry: In Progress