Jet Ski Rental Business Plan
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Executive Summary
Business Overview
Beachside Jet Ski Rentals is a startup business located in Imperial Beach, California. The company is founded by Tomas Juarez, a jet ski enthusiast and former business manager for a jet ski rental business in Oceanside, California. His enthusiasm for the sport and leadership skills in running the former jet ski business created a large following of jet ski rental fans and his social media platforms now host over 20,000 followers of his podcasts, video reels, and posts online. Tomas has secured a long-term contract with the largest licensed distributor of jet skis in the U.S. to use name-brand jet skis in all aspects of the rental business and to encourage his social media followers to rent and purchase the same brand name jet skis. The long-term contract establishes the price for the equipment, including repairs and maintenance in the contract. Tomas will, in return, act as a brand ambassador for the distributor of jet skis.
Product Offering
The following are the services that Beachside Jet Ski Rentals will provide:
- Jet ski rentals, featuring hourly or daily rates
- Paddleboard rentals, featuring hourly or daily rates
- Private instruction for jet ski rentals and paddleboards, featuring hourly rates
Event venue planning for group experiences; 10-50 guests - Products sold at retail: jet ski equipment, souvenirs, sunscreen, and other essentials
- Organic marketplace offering water-tight, bagged light meals and snacks
Customer Focus
Beachside Jet Ski Rentals will target individuals and corporations within the South Bay region of San Diego, California. They will also target party groups seeking an event venue/sport combination. Additionally, they will target university students from the several colleges and universities within the region.
Management Team
Beachside Jet Ski Rentals will be owned and operated by Tomas Juarez. Tomas has hired a close friend, Manny Cruz, to be the Strategic Business Development Manager of the Beachside Jet Ski Rentals business. In addition, Tomas has also recruited three employees from his former place of employment who will work as rental representatives and instructors.
Manny Cruz is a graduate of University of California San Diego, having earned a Bachelor of Arts degree in Athletic Performance Science. Manny was employed for six years as a sales representative for the jet ski distribution company now contracted with Beachside Jet Ski Rentals, where he was a top sales performer, having garnered over 1M in sales within the first two years of employment. Manny also demonstrated skill at administration tasks and oversight of the former employer’s day-to-day operations.
Success Factors
Beachside Jet Ski Rentals will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team of rental representatives, instructors, and customer service personnel
- Comprehensive menu of services and products relating to beach-themed experiences, including jet ski and paddleboard rentals.
- Retail sales of beach accessories, toiletries, beach towels, and beach toys.
- Event venue and experiential event planning and destination for active-themed parties of 10-50 guests
- Beachside Jet Ski Rentals offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Jet Ski Rental business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Beachside Jet Ski Rentals is seeking $200,000 in debt financing to launch its Beachside Jet Ski Rentals. The funding will be dedicated toward securing the rental space and purchasing jet ski accessories, retail inventory and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the social media campaign and launch party. The breakout of the funding is below:
- Rental space build-out: $20,000
- Jet ski accessories, retail inventory and supplies: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the financial projections for Beachside Jet Ski Rentals.
Company Overview
Who is Beachside Jet Ski Rentals?
Beachside Jet Ski Rentals is a newly established full-service jet ski rental business in Imperial Beach, California. Beachside Jet Ski Rentals will be the most reliable, cost-effective, and efficient choice for individuals, parties, and corporations in Imperial Beach and the surrounding communities. Beachside Jet Ski Rentals will provide a comprehensive menu of rental services, accessories, retail inventory, event venue options, and marketplace food items for all customers to utilize. Their full-service approach includes a comprehensive set of rentals, party experiences, and accompanying beach items and food choices.
Beachside Jet Ski Rentals will be able to provide stellar experiences for those who wish to rent jet skis or paddleboards by the hour or by the day, private instruction for both, if needed, and an array of optional choices in beach-themed accessories and meal or snack items. The team of professionals are highly qualified and experienced in customer service, jet ski service and maintenance, and retail sales. Beachside Jet Ski Rentals removes all headaches and issues of securing jet skis or paddleboards for rental, as well as offering a one-stop shop for party-planning and event coordination for 10-50 guests. Team members will ensure all elements of the rental and retail service needs are taken care of expeditiously, while delivering the best customer experience.
Beachside Jet Ski Rentals History
Since incorporation, Beachside Jet Ski Rentals has achieved the following milestones:
- Registered Beachside Jet Ski Rentals, LLC to transact business in the state of California.
- Has a long-term jet ski rental and sales contract in place with a major distributor in the jet ski industry.
- Has secured rental and retail space at a location next to the beach. Beachside Jet Ski Rentals will manage to set up its space of 15,000 square feet.
- Reached out to numerous regional tourist platforms to include Beachside Jet Ski Rentals.
- Began recruiting a staff of rental representatives, retail personnel and office staff to work at Beachside Jet Ski Rentals.
Beachside Jet Ski Rentals Services
The following will be the services Beachside Jet Ski Rentals will provide:
- Jet ski rentals, featuring hourly or daily rates
- Paddleboard rentals, featuring hourly or daily rates
- Private instruction for jet ski rentals and paddleboards, featuring hourly rates
- Event venue planning for group experiences; 10-50 guests
- Products sold at retail: jet ski equipment, souvenirs, sunscreen, and other essentials
- Organic marketplace offering water-tight, bagged light meals and snacks
Industry Analysis
The jet ski rental industry is expected to grow over the next five years to over $4.6 billion.
The growth will be driven by increased numbers of customers who are seeking outdoor activities and attractions, especially in light of the pandemic restrictions on venues such as these.
Costs will likely be reduced as additional rental businesses will open; however, customizing services by adding amenities, such as food, accessories and ancillary rentals will produce a steady stream of additional revenue for jet ski rental businesses.
The impact of an uncertain economy may create some hesitation in the jet ski rental market; however, the cost for rentals remains steady and is comparatively low in relation to other sporting equipment rentals.
Added incentives, such as experiential offers for groups, creates a significant driver of additional revenue.
Download the Jet Ski Rental business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Beachside Jet Ski Rentals will target those individuals and groups seeking jet ski rentals or experiences that include jet ski and paddleboard rentals within the greater San Diego, California area. They will target individuals, party groups, corporations and others seeking event venues. They will also target those seeking casual meals and snacks, or beach accessories and amenities sold at retail.
The precise demographics for Beachside Jet Ski Rentals are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Beachside Jet Ski Rentals will primarily target the following customer profiles:
- Individuals
- Families and private party groups
- Corporate event groups (10-50 guests)
- Customers seeking retail items or beach food items
Competitive Analysis
Direct and Indirect Competitors
Beachside Jet Ski Rentals will face competition from other companies with similar business profiles. A description of each competitor company is below.
Jet Skis R Us
Jet Skis R Us is a direct competitor, operating a business within two miles of Beachside Jet Ski Rentals. Jet Skis R Us has been in business for five years, offering jet ski rentals on an hourly rate; in addition to other beach activity items, such as paddleboards. The owners, Jay and Jenny Richards, have previous experience as employees of a now-defunct jet ski business, working as customer service representatives. The list of services includes jet ski rentals, paddleboard rentals, giant inflatable rentals, surfboard rentals, jet ski accessory rentals (life jackets, paddles, sunglasses), and souvenirs.
Jet Skis R Us is a Limited Liability Company, formed in 2018 in Oceanside, California. The rental business was moved to Imperial Beach during the pandemic years, as the clientele significantly dropped during those years and the business contracted to adapt to the circumstances.
Easy J’s Surf Shop
Easy J’s Surf Shop is a direct competitor and well-known retail store at the beach in Imperial Beach, California. The primary target of the shop are the tourists and travelers to the region. The retail inventory includes beach wear, themed clothing items, tourist amenities, souvenir items, as well as beach towels, sunblock and other beach-related accessories.
In addition to the retail store, Easy J’s Surf Shop rents jet skis on a part-time basis from the back of the store. Five jet skis are available for rent at hourly rates. The owner, Marcus Morris, operates the business from Scottsdale, Arizona, where he formed the S-corporation in 2019 with his wife, Missy. As absentee owners, they rely on the day-to-day operations and management of Scott Townsend, the General Manager of the store. There are three part-time employees who provide customer service and inventory stocking.
The Shell Shack
The Shell Shack was formed in 1998 as a small retail establishment selling imported seashells from Indonesia. Father and son, Tamir and Tomal Selvan, own and operate the Limited Liability Company together as co-managers. The retail outlet is positioned one block from the beach and includes an undeveloped lot where jet skis are stored and are available for rent on an hourly basis.
The location of The Shell Shack requires that renters of the jet skis must have a vehicle that can tow the jet skis to the dock, unload the jet skis from the trailer, and position the vehicle for pick up when the rental time is up. This presents challenges for tourists, who often do not have vehicles in the area; however, it is popular with locals who enjoy low rental rates and are aware of the need for a vehicle with a trailer hitch.
Download the Jet Ski Rental business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Beachside Jet Ski Rentals will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified team of rental representatives, instructors, and customer service personnel
- Comprehensive menu of services and products relating to beach-themed experiences, including jet ski and paddleboard rentals.
- Retail sales of beach accessories, toiletries, beach towels, and beach toys.
- Event venue and experiential event planning and destination for active-themed parties of 10-50 guests
- Beachside Jet Ski Rentals offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Beachside Jet Ski Rentals will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees that is able to provide a comprehensive set of rental equipment and instruction for using the rentals.
- Friendly customer service staff who sell and service retail inventory, including beach accessories and beach-themed souvenirs
- Experienced customer service staff who prepare and offer water-tight bagged light organic meals or snacks for rental customers and others in the area.
- Unbeatable pricing for the package of services offered to their clients. Beachside Jet Ski Rentals will offer the lowest pricing and best service in rentals, retail sales and event venue offerings.
Promotions Strategy
The promotions strategy for Beachside Jet Ski Rentals is as follows:
Social Media Marketing Campaign
Beachside Jet Ski Rentals will hire a part-time social media marketing manager to assist with the launch and three-month opening of the business. Included in this will be video reels, podcasts from employees, photo images, and other representations of the offers provided by Beachside Jet Ski Rentals. Testimonials from former customers will be included.
Professional Networking
Tomas Juarez will introduce the San Diego region to Beachside Jet Ski Rentals at a variety of community and citywide networking events. He will be accompanied by Manny Cruz, who is the Strategic Business Development Manager for the business. The offers will include discounted pricing for corporate events and experiences, as well as invitations to explore the business as invited guests.
Website/SEO Marketing
Beachside Jet Ski Rentals will utilize their in-house social media marketing manager who designed their marketing strategies to also design their website. The website will be well organized, informative, and list all their services that Beachside Jet Ski Rentals is able to provide. The website will also list their contact information and list their available offers for rentals and retail sales. The social media marketing manager will also manage the website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “San Diego jet ski rental” or “jet ski rental near me”, Beachside Jet Ski Rentals will be listed at the top of the search results.
Pricing
The pricing of Beachside Jet Ski Rentals will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Beachside Jet Ski Rentals.
Operation Functions:
- Tomas Juarez will be the Owner and President of the company. He will oversee all staff and manage client relations. Tomas has recruited the following staff members:
- Manny Cruz – Strategic Business Development Manager who will manage the growth of the business in addition to the day-to-day management of the business and employees.
- Kristan Hanson – Part-time bookkeeper will oversee accounts receivables and payables, employee compensation and monthly financial reporting.
- Jessica Anderson – Part-time rental representative, experienced with jet ski rentals and instruction in the use of jet skis.
- Jeff Jones – Part-time rental representative, experienced with jet ski rentals and instruction in the use of jet skis.
Download the Jet Ski Rental business plan template (including a customizable financial model) to your computer here <–
Milestones:
Beachside Jet Ski Rentals will have the following milestones complete in the next six months.
- 5/1/202X – Finalize contract to lease location and retail space
- 5/15/202X – Finalize employee contracts for the Beachside Jet Ski Rentals
- 6/1/202X – Finalize jet ski distribution contract for jet skis
- 6/15/202X – Begin networking at San Diego region events
- 6/22/202X – Begin moving into Beachside Jet Ski Rentals location
- 7/1/202X – Beachside Jet Ski Rentals opens its doors for business
Management Team
Beachside Jet Ski Rentals will be owned and operated by Tomas Juarez. He recruited his close friend, Manny Cruz, to be the Strategic Business Development Manager for Beachside Jet Ski Rentals to build the business and oversee the day-to-day management of the operations.
Manny Cruz is a graduate of University of California San Diego, having earned a Bachelor of Arts degree in Athletic Performance Science. Manny has been working at a national jet ski distribution company, where he was a top sales performer, having garnered over 1M in sales within the first two years of employment. Manny also demonstrated skill at administration tasks and oversight of the former employer’s day-to-day operations.
Financial Plan
Key Revenue & Costs
The revenue drivers for Beachside Jet Ski Rentals are the rental equipment fees, retail sales, and prepared food sales charged to the customers for their products and services.
The cost drivers will be the overhead costs required in order to staff Beachside Jet Ski Rentals, the costs of equipment and retail inventory items. The expenses will be the payroll cost, rent, utilities, equipment and supplies, retail inventory, and marketing materials.
Funding Requirements and Use of Funds
Beachside Jet Ski Rentals is seeking $200,000 in debt financing to launch its property management business. The funding will be dedicated toward securing the location space and purchasing jet ski equipment, retail inventory items and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the social media marketing campaigns and networking events. The breakout of the funding is below:
- Rental space build-out: $20,000
- Jet ski accessories, retail inventory and supplies: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Jet Ski Rental 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 in order to pay off the startup business loan.
- Number of Rental and Retail Customers Per Month: 540
- Average Revenue per Month: $40,500
- Office Lease per Year: $100,000
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 |
Jet Ski Rental Business Plan FAQs
What Is a Jet Ski Rental Business Plan?
A jet ski rental business plan is a plan to start and/or grow your jet ski rental business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Jet Ski Rental Businesses?
There are a number of different kinds of jet ski rental businesses, some examples include: Off-site jet ski rental business and Beach-side jet ski rental business.
How Do You Get Funding for Your Jet Ski Rental Business Plan?
Jet Ski Rental 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 Jet Ski Rental Business?
Starting a jet ski rental 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 Jet Ski Rental Business Plan - The first step in starting a business is to create a detailed jet ski rental 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.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your jet ski rental 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 jet ski rental business is in compliance with local laws.
3. Register Your Jet Ski Rental Business - Once you have chosen a legal structure, the next step is to register your jet ski rental 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.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your jet ski rental business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
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.
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.
7. Acquire Necessary Jet Ski Rental Equipment & Supplies - In order to start your jet ski rental business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your jet ski rental 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.
Learn more about how to start a successful jet ski rental business: