Charter Boat Business Plan
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We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Charter Boat companies.
Below is a template to help you create each section of your Charter Boat business plan.
Executive Summary
Business Overview
La La Land Charters, located in Los Angeles, is a new charter boat company that offers a small fleet of boats that can be rented by the hour or day. Our fleet includes yachts, catamarans, sailboats, and motorboats. Some of our rentals include free amenities, such as wifi hotspot and a full kitchen. We aim to offer the residents and tourists of LA the most luxurious boat chartering experience that they could dream of.
La La Land Charters is run by Joseph Stuckman, who is an experienced charter boat captain with 20 years of experience. While Joseph Stuckman has never run his own company before, he has vast experience and first-hand knowledge of how to run a successful charter boat business from his time working for a local charter boat tour company.
Product Offering
La La Land Charters will provide the following different types of charters:
- Bareboat charters that allow experienced sailors to rent the boat and sail themselves
- Skippered charters for the novice sailor or for a relaxed sailing experience
- Full crew charters that provide meals, lodging, and activities
- Party and corporate event charters complete with a full crew to provide all the planning, accommodations, and activities for special events onboard the yacht
Customer Focus
La La Land Charters will primarily serve residents and tourists within a 30-mile radius of Los Angeles. We expect much of our target market to be affluent and have the disposable income to charter a boat. We also expect much of our target market to board our boats in large groups, such as for family gatherings, parties, or corporate events.
Management Team
La La Land Charters is a family-owned and operated charter boat business that is owned by Joseph Stuckman and his immediate family members. The business will be managed by Joseph Stuckman and his son David. Joseph Stuckman is an experienced charter boat captain who has been working in the charter boat industry for more than 20 years as a skipper and tour guide. While Joseph Stuckman has never run his own company before, he has vast experience and first-hand knowledge of how to run a successful charter boat business from his time working for a local charter boat tour company.
Success Factors
La La Land Charters will be able to achieve success by offering the following competitive advantages:
- Location: La La Land Charters’s location is adjacent to a popular tourist destination and a busy shopping district with lots of foot traffic.
- Customer-oriented service: La La Land Charters will have a full-time assistant to keep in contact with clients and answer their everyday questions. The management team realizes the importance of accessibility to their customers, and will further keep in touch with their customers through monthly newsletters on topics of interest.
- Management: The founder has been extremely successful working in this industry and will be able to use his previous experience to craft customized charter boat tours that suit a variety of customer preferences.
- Relationships: Having lived in the community for 35 years, the founder knows many of the local leaders, newspapers, and other influences in the area.
Download the Charter Boat business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
La La Land Charters is seeking a total funding of $3,000,000 of debt capital to open its charter boat company.
- Dock and office design/build: $1,500,000
- Equipment and supplies: $1,000,000
- Three months of overhead expenses (payroll, rent, utilities): $300,000
- Marketing costs: $100,000
- Working capital: $100,000
The following graph below outlines the pro forma financial projections for La La Land Charters.
Company Overview
Who is La La Land Charters?
La La Land Charters, located in Los Angeles, is a new charter boat company that offers a small fleet of boats that can be rented by the hour or day. Our fleet includes yachts, catamarans, sailboats, and motorboats. Some of our rentals include free amenities, such as wifi hotspot and a full kitchen. We aim to offer the residents and tourists of LA the most luxurious boat chartering experience that they could dream of.
La La Land Charters is run by Joseph Stuckman, who is an experienced charter boat captain with 20 years of experience. While Joseph Stuckman has never run his own company before, he has vast experience and first-hand knowledge of how to run a successful charter boat business from his time working for a local charter boat tour company.
La La Land Charters’ History
Joseph Stuckman began researching what it would take to build his own charter boat company and did a thorough analysis of the costs, market, demographics, and competition. Once his market analysis was complete, Joseph began surveying local vacant office spaces to establish the charter boat rental office. He has secured a space on the water to build his own dock and house his fleet of charter boats. Joseph Stuckman incorporated La La Land Charters as a Limited Liability Corporation in January 2023.
Since incorporation, the company has achieved the following milestones:
- Secured space on the water to build the dock and house the fleet of boats.
- Located available office space for rent that is close to the port.
- Developed the company’s name, logo, and website.
- Hired a general contractor for the build-out of the office and dock.
- Determined equipment and necessary supplies.
- Began recruiting key employees.
La La Land Charters’ Services
La La Land Charters will provide the following different types of charters:
- Bareboat charters that allow experienced sailors to rent the boat and sail themselves
- Skippered charters for the novice sailor or for a relaxed sailing experience
- Full crew charters that provide meals, lodging, and activities
- Party and corporate event charters complete with a full crew to provide all the planning, accommodations, and activities for special events onboard the yacht
Industry Analysis
The global private charter boat industry is a $6.5 billion market. The market is composed of industry operators that charter private boats for individuals and groups.
This industry can be segmented by type of charter boat. There are many boats that can be used including sailboats, motor yachts, party boats, catamarans, and more. One of the most popular segments is yacht charter. Some industry operators rent out their boats. Others provide scenic tours and sightseeing services.
Increasing levels of participation in recreational boating activities in the United States are expected to help boost market demand for private charter boat services over the next five years. In fact, according to Fortune Business Insights, the industry is expected to grow at a CAGR of 6.6% from now until 2027. Market drivers include rising disposable incomes, increased interest in recreation and leisure activities, and a rebound in tourism.
However, due to increasing levels of competition among industry operators in prime tourist destinations, maintaining a competitive advantage can be a challenge for new entrants. For this reason, new industry operators can differentiate themselves by catering to a specific niche market, developing a unique branding strategy, and providing exceptional service.
Download the Charter Boat business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
La La Land Charters will serve the community residents and tourists in Los Angeles and its surrounding areas.
The precise demographics for Los Angeles, California are:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
La La Land Charters will primarily target the following customer profiles:
- Tourists
- Families
- Businesses
Competitive Analysis
Direct and Indirect Competitors
La La Land Charters will face competition from other companies with similar business profiles. A description of each competitor company is below.
Ocean Champion Charter Co.
Ocean Champion Charter Co. is a charter boat company in Los Angeles. In business for over 50 years, Ocean Champion Charter Co. offers bareboat charter rentals to experienced sailors in the area. Sailors can choose from a large fleet of charter boats including yachts, sailboats, motor boats, and catamarans in multiple models and sizes. This charter company rents out its boats for the day or the week.
Although this charter boat company is a top choice for many sailing enthusiasts around the area, it caters to skilled sailors and does not offer options like skippered boats or crew-led tours that the general population can enjoy.
Calming Charter Boats
Calming Charter Boats is another local charter boat rental business. The company is mostly known for its sailing yacht charters and whale-watching tours. They are a full-service option for any skill level from the captain to the novice sailor. Calming Charter Boats provides skippered tours, group charters, and corporate event hosting on its premier yachts.
Although this company provides a wide range of services and charter options, its fleet is composed entirely of sailing yachts. It does not have any other type of boat for customers to choose from. Additionally, this is the most expensive charter company of all the competitors.
Charlie Charter Boats
Charlie Charter Boats is also a local charter boat company that offers a variety of charter boat rental options. This charter boat company opened in 2017 and has since grown to become one of the most popular charter boat options in the area. Charlie Charter Boats offers fully-crewed boat tours to multiple destinations in the region for groups and families. The company also provides bareboat rentals for skilled sailors who prefer to man the boat themselves. Charlie Charter Boats has a fleet of 17 boats including yachts, sailboats, and motorboats.
Download the Charter Boat business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
La La Land Charters will be able to offer the following advantages over their competition:
- Location: La La Land Charters’s location is adjacent to a popular tourist destination and a busy shopping district with lots of foot traffic.
- Customer-oriented service: La La Land Charters will have a full-time assistant to keep in contact with clients and answer their everyday questions. The management team realizes the importance of accessibility to their customers, and will further keep in touch with their customers through monthly newsletters on topics of interest.
- Management: The founder has been extremely successful working in this industry and will be able to use his previous experience to craft customized charter boat tours that suit a variety of customer preferences.
- Relationships: Having lived in the community for 35 years, the founder knows many of the local leaders, newspapers, and other influences in the area.
Marketing Plan
Brand & Value Proposition
La La Land Charters will offer a unique value proposition to its clientele:
- Convenient and attractive location
- Charter boat rentals that suit a wide range of preferences
- Affordable and high-quality charter boat rentals
- Providing excellent customer service
Promotions Strategy
The promotions strategy for La La Land Charters is as follows:
Social Media
La La Land Charters will invest heavily in a social media advertising campaign. The brand manager will create the Company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Website/SEO
La La Land Charters will invest heavily in developing a professional website that displays all of the features and benefits of the charter boat company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat business which will be quite advantageous in the long run.
Sponsorships
La La Land Charters will also invest in sponsoring certain events so that their banners and collateral material are displayed all over events that numerous people attend.
Pricing
La La Land Charters’ pricing will be moderate so consumers feel they receive great value when purchasing charter boat rentals.
Operations Plan
The following will be the operations plan for La La Land Charters.
Operation Functions:
- Joseph will be the Owner of La La Land Charters. He will oversee the general operations of the company. He will also help captain the boats when it is needed for particular rentals.
- David, Joseph’s son, will be the Office Manager who will manage all aspects of the rental office.
- Olivia Stuckmann, Joseph’s wife, will be his full-time assistant. She will answer phones, manage rental bookings, and oversee other administrative tasks for the company.
- Joseph will hire several other captains and skippers to help drive and manage the boats during bookings.
- Joseph will also hire an on-call maintenance professional who will ensure each boat is in perfect working order before every booking.
Download the Charter Boat business plan template (including a customizable financial model) to your computer here <–
Milestones:
La La Land Charters will have the following milestones completed in the next six months.
- 3/202X Finalize lease agreement
- 4/202X Build out dock and purchase boats for fleet
- 5/202X Hire and train initial staff
- 6/202X Kickoff of promotional campaign
- 7/202X Launch La La Land Charters
- 8/202X Reach break-even
Management Team
La La Land Charters is a family-owned and operated charter boat business that is owned by Joseph Stuckman and his immediate family members. The business will be managed by Joseph Stuckman and his son David. Joseph Stuckman is an experienced charter boat captain who has been working in the charter boat industry for more than 20 years as a skipper and tour guide. While Joseph Stuckman has never run his own company before, he has vast experience and first-hand knowledge of how to run a successful charter boat business from his time working for a local charter boat tour company.
Financial Plan
Key Revenue & Costs
La La Land Charters’ revenues will come primarily from its charter boat rental fees.
The office lease, equipment, supplies, marketing expenses, and labor expenses will be the key cost drivers of La La Land Charters.
Funding Requirements and Use of Funds
La La Land Charters is seeking a total funding of $3,000,000 of debt capital to open its charter boat company.
- Dock and office design/build: $1,500,000
- Equipment and supplies: $1,000,000
- Three months of overhead expenses (payroll, rent, utilities): $300,000
- Marketing costs: $100,000
- Working capital: $100,000
Download the Charter Boat business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Average annual maintenance costs: $100,000
- Average fee per charter: $2000
- Number of customers per day:
- Year 1: 10
- Year 2: 20
- Year 3: 30
- Year 4: 40
- Year 5: 50
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Charter Boat Business Plan FAQs
What Is a Charter Boat Business Plan?
A charter boat business plan is a plan to start and/or grow your charter boat business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Charter Boat business plan using our Charter Boat Business Plan Template here.
What are the Main Types of Charter Boat Businesses?
There are a number of different kinds of charter boat businesses, some examples include: Sightseeing charter, Special event charter, Whale watching charter, and Fishing charter.
How Do You Get Funding for Your Charter Boat Business Plan?
Charter Boat businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Charter Boat Business?
Starting a charter boat business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Charter Boat Business Plan - The first step in starting a business is to create a detailed charter boat business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your charter boat business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your charter boat business is in compliance with local laws.
3. Register Your Charter Boat Business - Once you have chosen a legal structure, the next step is to register your charter boat business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.Â
4. Identify Financing Options - It’s likely that you’ll need some capital to start your charter boat business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.Â
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.Â
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.Â
7. Acquire Necessary Charter Boat Equipment & Supplies - In order to start your charter boat business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.Â
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your charter boat business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.Â
Learn more about how to start a successful charter boat business: