A jet ski rental business is a business that rents out different types of jet skis for different purposes. Operators in the Jet Ski Rental industry vary greatly in size, ranging from large operators with different sizes and models of jet skis to single jet ski owner-operators and part-time rental companies.
It is important to state that the Jet Ski rental business can be restricted to certain areas such as sea shores and the beach. Jet ski rental is part of the boat rental industry and available statistics show that the boat rental market was valued at USD 15 Billion in 2021 and is expected to grow to USD 20 Billion by 2027, registering a CAGR of 5% during the forecast.
Steps on How to Start a Jet Ski Rental Business in Florida
Table of Contents
Conduct Market Research
If you are considering starting a jet ski rental business in Florida, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your jet ski rental business should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will help you know what your potential market will be looking out for from a jet ski rental business in Florida and also to help you operate your jet ski rental business with less stress and of course, build the business to profitability.
a. Who is the Target Market for a Jet Ski Rental Business in Florida?
- Tourists and visitors
- Travels and tours agencies
- Everyone who lives and works in the city where you operate.
b. Is Jet Ski Rental Business in Florida a Profitable Business?
Yes, the jet ski rental business is very profitable. As a matter of fact, the boat rental industry that jet ski rental is part of records steady growth in income.
c. Are There Existing Niches in the Industry?
No, there are no niches when it comes to the jet ski rental business in Florida because the jet ski rental business is a subset of the boat rental industry.
d. Who are the Major Competitors?
- Move Aside Jet Ski and Boat Rentals
- Port Richey Watersports/ Clearwater Beach Jet Ski Rentals
- Miami Beach Jet Ski Rentals
- Island Vibez Watersports | Orlando Jet Ski and Boat Rentals
- Jet Ski Rentals Orlando CO.
- 305 Jet Ski & Boat Rentals
- Cool Breeze Boats & Jet Ski Rentals
- Jet Ski Rentals | Gnarly Water Sports LLC | Florida
- 321 Jet Ski Rental
- H2O Jet Ski Rentals
- Bonita Jetski & Parasail
- Falcon’s Jet Ski Rentals
- Sunshine Jet-Ski Rental and Adventures
- Falcon’s Jet Ski Rentals
- Sak Pase Rental – Jet Ski Rental
- Luxe Jet Ski and Boat Rentals Orlando
- Island Jet Ski Tours & Rentals
- BlueWater Boat Jet Ski Rental Palm Beach
- Atlantic Boat & Jet Ski Rentals
- J&N Powersport Rentals | Jet ski Rentals.
e. Are There County or State Regulations or Zoning Laws for Jet Ski Rental Business in Florida?
Yes, there are county, state regulations, and zoning laws for jet ski rental in Florida. For example, a person must be at least 18 years old to rent a PWC in Florida.
A rental facility shall not rent any vessel that does not have proper safety equipment on board, exceeds the recommended engine horsepower or load capacity (as stated on the capacity plate), or is not seaworthy. Anyone born on or after January 1st, 1988 is required by law to have a boating license permit to operate a personal watercraft in the state of Florida.
f. Is There a Franchise for Jet Ski Rental Business in Florida?
Yes, there are franchise opportunities for jet ski rental businesses in Florida, and here are some of them;
- JETSKI Safari
- Trax Powersports Rentals
- Invert Sports
- Nautical Boat Clubs.
g. What Do You Need to Start a Jet Ski Rental Business in Florida?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Jet skis and related safety accessories
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a jet ski rental business are;
Creative Jet Ski Rental Business Name ideas
- Rivers King© Jet Ski Rental Company, Inc.
- Presidential Fleet® Jet Ski Rental Company, LLC
- Water Crest© Jet Ski Rental Company, Inc.
- Leap Frog® Jet Ski Rental Company, Inc.
- Highlanders™ Jet Ski Rental Company, Inc.
- Palm Grove™ Jet Ski Rental Company, LLC.
- Trent Harold© Jet Ski Rental Company, LLC
- Prince Philips® Jet Ski Rental Company, Inc.
- Miami Beach© Jet Ski Rental Company, Inc.
- Deerfield Beach© Jet Ski Rental Company, Inc.
- Your Choice® Jet Ski Rental Company, LLC
- Green Stream® Jet Ski Rental Company, LLC
- West Coast™ Jet Ski Rental Company, LLC
- Tyler Williams© Jet Ski Rental Company, Inc.
- Sopita KYLER® Jet Ski Rental Company, Inc.
- Bob Nelson™ Jet Ski Rental Company, Inc.
- Sam Madison™ Jet Ski Rental Company, Inc.
- Pro Rent© Jet Ski Rental Company, Inc.
- Julius Chamberlin® Jet Ski Rental Company, LLC
- Regal Base™ Jet Ski Rental Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Jet Ski Rental Business in Florida?
When it comes to the business structure of a jet ski rental business in Florida, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Jet Ski Rental Business in Florida?
- General Business License
- Watercraft Licenses
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your parking
d. What Type of Certification is Needed to Start a Jet Ski Rental Business in Florida?
You don’t need any certifications to start a jet ski rental business in Florida.
e. What Documents are Needed to Open a Jet Ski Rental Business in Florida?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your parking)
- Certificate of Incorporation
- Watercraft Licenses
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a jet ski rental business in Florida, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Jet Ski Rental Business in Florida?
A jet ski rental business in Florida will cost from $40,000 to $150,000 to start and that can easily go higher depending on your overall business goals and objectives.
A new jet ski costs around $5,000 on the low end of the spectrum, but higher-end jet skis can cost close to $20,000. The cheapest jet ski currently on the market in 2021 is the Sea-Doo Spark, and the most expensive is the Kawasaki Ultra 310LX.
b. What are the Costs Involved in Starting a Jet Ski Rental Business in Florida?
- The total fee for registering a business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $5,200.
- Marketing promotion expenses – $3,580.
- The cost for hiring a business consultant (writing of business plans inclusive) – $4,500.
- Insurance coverage – $15,400.
- The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
- The cost for leasing a facility (long-term lease agreement) – $45,600.
- The cost for facility remodeling and installations – $10,000.
- The cost for the purchase of jet skis: $75,000
- Phone and utility deposits will cost – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,150
- The cost for the purchase of office furniture and gadgets – $8,000.
- The cost of launching an official website – $600
- The cost for our grand opening party – $5,000
- Miscellaneous – $5,000
c. What Factors Determine the Cost of Opening a Jet Ski Rental Business in Florida?
- The size of the jet ski rental business (number of jet skis to start the business with)
- The choice of location
- The required licenses and permits
- The cost for branding, promotion, and marketing of the jet ski rental business
- The cost of furnishing and equipping the jet ski rental facility
- The cost of insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost of the grand opening of the jet ski rental business in Florida
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Actually, it is not compulsory to build a new facility for your jet ski rental business, but if you have the required finance, it will pay you to build your own parking facility and administrative office. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Jet Ski Rental Business in Florida?
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Maintenance and repairs
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $48,000 Per Year
- Admin and HR Manager – $36,500 Per Year
- Fleet Manager $36,000 Per Year
- Accountant $34,000 Per Year
- Instructors and Lifeguards – $33,800 Per Year
- Customer Service Officer (Call Center Executives) – $26,100 Per Year
- Jet ski Detailers -$24,000 Per Year
g. How Do You Get Funding to Start a Jet Ski Rental Business in Florida?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Miami Beach® Jet Ski Rentals, Inc. is a licensed jet ski rental business. We have been able to secure a standard facility in Miami Beach – Florida. We chose Miami Beach because it has been one of America’s pre-eminent beach resorts since the early 20th century.
Miami Beach® Jet Ski Rentals, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations guiding the jet ski rental business in Florida.
b. Products and Service
- Inshore/coastal jet ski rental business services
- Offshore jet ski rental business services
- Tournament jet ski rental business services
- Commercial jet ski rental business services
- Merchandise sales of jet ski-related products and tools.
c. Mission Statement
Our mission is to make available some of the latest and safest jet skis to customers at every given time.
Our vision is to be listed as one of the top 3 jet ski rental companies in Florida.
d. Goals and Objectives
The goals and objectives of a jet ski rental business are to make available different types and sizes of jet skis and accessories for use by individuals and organizations.
e. Organizational Structure
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Fleet Manager
- Instructors and Lifeguards
- Customer Service Officer (Call Center Executives)
- Jet ski Detailers
a. SWOT Analysis
- Excellent operational history
- Availability of latest and safe jet skis
- Accurate estimates with no hidden costs.
- Experience and trained professional instructors and lifeguards.
- Excellent customer testimonials.
- Not enough clientele to run at full capacity
- We will need a loan to build our storage facility and to purchase the latest jet skis and related accessories
- The owner is currently running the business solo
- Lack of economies of scale.
- Increase in the number of tourists and visitors to our location (Florida has the longest coastline (1,197 statute miles) in the contiguous United States, with 825 miles of accessible beaches to enjoy)
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- The water transport department could change its regulatory status and decide to regulate enforce strict regulations that can strangulate new businesses.
b. How Do Jet Ski Rental Businesses in Florida Companies Make Money?
Jet ski rental businesses make money by renting and leasing jet skis and related accessories.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your jet ski rental business in Florida by sending introductory letters alongside your brochure to corporate organizations, households, and key stakeholders in and around our city and state
- Print fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
- Use friends and family to spread the word about your business
- Post information about your company and the services you offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about your company and the services you offer
- Leverage on referral networks such as agencies that will attract clients who would need your customized services
- Advertise your business in relevant magazines, newspapers, TV, and radio stations
- Engage in a direct marketing approach
- Encourage the use of word-of-mouth marketing from loyal and satisfied customers
- Join local chambers of commerce and industry to market your services.
a. How Much Should You Charge for your Service?
Jet ski rentals cost between $80-$100 per hour.
b. How Much Profit Do Jet Ski Rental Businesses Make a Year?
The profit a jet ski rental business owner is expected to make a year is not fixed, but on average, they can make over $60,000 in a year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the jet ski rental business (number of jet skis owned)
- The location the jet ski rental business is covering
- The management style of the jet ski rental business
- The business approach of the jet ski rental business
- The advertising and marketing strategies adopted by the jet ski rental business.
- The number of years the jet ski rental business is in business
d. What is the Profit Margin of a Jet Ski Rental Business in Florida?
The profit margin of a jet ski rental business in Florida is not fixed. It could range from 25 percent to 55 percent.
e. What is the Sales Forecast?
Below is the sales forecast for a jet ski rental business. It is based on the location of the business and other factors as it relates to such startups in Florida;
- First Fiscal Year: $240,000
- Second Fiscal Year: $360,000
- Third Fiscal Year: $480,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Jet Ski Rental Business in Florida?
- The demography of the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location and availability of lakes
- The number of jet ski rental businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What City is Best to Open a Jet Ski Rental Business in Florida?
- Miami Beach, Florida
- West Palm Beach, Florida
- Clearwater, Florida
- Coral Springs, Florida
- Pompano Beach, Florida
- Riverview, Florida
- Palm Coast, Florida
- Deerfield Beach, Florida
- Boynton Beach, Florida
- Daytona Beach, Florida
c. What Equipment is Needed to Operate a Jet Ski Rental Business in Florida?
- Jet skis
- Jet ski tracker
- Booking software
- Dash Cam
When it comes to hiring employees for a standard jet ski rental business in Florida, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, fleet manager, accountant, instructors and lifeguard, jet ski detailers and customer service officer.
Launch the Business Proper
In recent times, no jet ski rental business in Florida opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
With the proper launching of the jet ski rental business, you will officially inform people in your city that your jet ski rental business is open for business.
a. What Makes a Jet Ski Rental Business in Florida Successful?
- Choose a good location and the latest jet skis to launch the business
- Hire only competent, hardworking, and trustworthy staff
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your jet ski rental business
- Leverage all available online and offline platforms to promote your jet ski rental business
b. What Happens During a Typical Day at a Jet Ski Rental Business?
- The business is open for the day’s work
- The jet skis are washed, cleaned, and ready for rental
- Customer’s requests to rent and lease jet skis are attended to
- Schedule maintenance of the jet skis is carried out
- Marketing/website upkeep
- Supply ordering
- Administrative duties
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Jet Ski Rental Business in Florida?
- Business management skills
- Customer services skills
- Interpersonal skill
- Logistics and material handling skills
- Good jet skiing skills
- Bargaining skill
- Work experience in the jet ski rental services industry
- Experience in managing people
- Experience in business administration
- Experience in handling logistics and transportation software.