Jet Ski Rental Business Plan Template
If you want to start a jet ski rental business or expand your current jet ski rental company, you need a business plan.
The following Jet Ski Rental business plan template gives you the key elements to include in a winning Jet Ski Rental business plan. In addition to this template, a solid plan will also include market research to help you better understand the jet ski rental industry and your target market. It will also help you craft a strong marketing plan and financial plan.
Jet Ski Rental Business Plan Example
Below is a jet ski rental business plan example with each of the key sections to help you write a jet ski rental business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a jet ski rental company located in [Location]. We have a full fleet of jet skis to rent, including SeaDoos, Yamahas, and Kawasakis. Customers can rent our jet skis by the hour or by the day. We aim to be the #1 jet ski rental company in the area by providing the most options and the best customer service in the industry.
[Company Name] is run by [Founder’s Name], who has been in the jet ski rental business for ten years. He has spent much of his career working for other jet ski rental companies as an associate and manager. His considerable experience and expertise ensures that our business will be a success.
Products Served
[Company Name] offers premium jet skis to rent for affordable rates. We have a full fleet of some of the best jet ski models in the world, including SeaDoos, Yamahas and Kawasakis. Our rentals are regularly replaced, so clients can feel confident that they will drive a well-maintained and up-to-date rental. All jet skis we provide are in excellent condition.
Customer Focus
[Company Name] will primarily serve the residents living within a ten-mile radius of our location. The demographics of these customers are as follows:
- 56,321 residents
- Average income of $84,700
- 55% married
- 48% in Management/Professional occupations
- 65% of residents are homeowners
- Median age: 38 years
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been in the jet ski rental industry for the past ten years. He started his career as an associate and worked his way up into management. Therefore, he has considerable experience running a jet ski rental business and is sure to lead our company to success.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- There are currently very few businesses dedicated to offering premium jet ski rentals. [Founder’s Name] surveyed the area and found that there is considerable demand for jet skis.
- Our location is in a highly convenient location, as it is near the city’s famous lakes and is located in a high traffic area.
- The management team has a track record of success in the jet ski rental business.
- The jet ski rental business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Initial jet ski inventory: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a jet ski rental company located in [Location]. We have a full fleet of jet skis to rent, including SeaDoos, Yamahas, and Kawasakis. Customers can rent our jet skis by the hour or by the day. We aim to be the #1 jet ski rental company in the area by providing the most options and the best customer service in the industry.
Customers can choose to either rent our jet skis at an hourly rate or a daily rate. Rates will fluctuate depending on the season and demand. All of our rentals include fuel.
[Company Name] is run by [Founder’s Name], who has been in the jet ski rental business for ten years. He has spent much of his career working for other jet ski rental companies as an associate and manager. His considerable experience and expertise ensures that our business will be a success.
[Company Name]’s History
[Company Name] company was incorporated as an S-Corporation on [Date of Incorporation]. Enriched with a highly qualified staff and crew, [Company Name] is always aiming at customer satisfaction and the fulfillment of their needs.
Since incorporation, the company has achieved the following milestones:
- Found a business location and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Determined inventory and equipment requirements
- Began recruiting key employees
[Company Name]’s Products/Services
We offer a full fleet of jet skis to rent. Customers can choose from several makes and models, including Yamahas, SeaDoos, and Kawasakis. We offer our rentals at hourly rates and daily rates. These rates will vary depending on the season and demand.
III. Industry Analysis
The Jet Ski Rental industry has increased significantly over the past five years. COVID brought an opportunity for more disposable income and free time, and many people made the most of it by trying new activities. As a result, there was an increase in maritime activities, including the use of jet skis.
Furthermore, the rising per capita disposable income, coupled with a low national unemployment rate have encouraged consumers to increase their level of spending on renting out jet skis and other watercraft.
It is anticipated that the industry will continue to grow over the next five years. According to IBIS World, the industry’s revenue is expected to grow 7.5% annually over the next several years. This shows that jet skis and other watercraft are in significant demand and that this is the perfect time to start a jet ski rental company.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [Location] and the immediately surrounding areas in a ten-mile radius. We expect much of our target customer base will be affluent or have the disposable income to rent jet skis.
Customer Segmentation
The company will primarily target the following three customer segments:
- Travelers/Tourists: Jet skis are a fun activity for tourists to enjoy while visiting our beautiful city. We expect to serve hundreds of tourists every year who come to the area to check out the beautiful scenery of our local lakes.
- Families: Jet skis are fun for the whole family. We expect to see many families renting our jet skis for a fun-filled afternoon out on the water.
- Affluent residents: [Location] is full of affluent residents who have the disposable income to rent jet skis. We expect most of our target market will earn the local median salary or more.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a ten-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Jet Ski Rentals Inc.
Jet Ski Rentals Inc. is a local leader in renting jet skis to locals. The company has over 100 jet skis to choose from, all different makes, models, and colors. The most popular jet skis that Jet Ski Rentals Inc. rents out are SeaDoos, which they market heavily on their website. Jet Ski Rentals Inc. also sells jet skis that are no longer in perfect condition to rent out to customers.
Ultimate Water Rentals
Ultimate Water Rentals is a local competitor that rents out pontoons, boats, kayaks, and jet skis. Their jet ski fleet is minimal, with only a few options available. As such, we don’t expect Ultimate Water Rentals to be a major competitor.
Jet Ski Dreams
Jet Ski Dreams offers high-class luxury jet skis to rent throughout the [Location] region. They have a massive fleet of jet skis available across three different locations. They offer every brand you can think of, including SeaDoos, Yamahas, Kawasakis, Hondas, Alumas, Alcoms, and more. Their massive fleet ensures that every customer can find the perfect jet ski to rent.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time manager to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with his clients through newsletters about jet ski rental specials.
- Management: [Founder’s Name] has been extremely successful working in the jet ski business and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- A large fleet of jet skis to choose from
- Client-focused jet ski rental services, that treat each client individually and get the job done right the first time
- Service built on long-term relationships
- Convenient location near local lakes
Promotions Strategy
[Company Name] expects its target market to be residents living within a ten-mile radius. [Company Name]’s promotion strategy to reach these potential customers includes:
Website/SEO
[Company Name] will develop a professional website that displays pictures of our jet skis and information about our rates. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer their friends and neighbors by providing discounts for new clients. This strategy will increase in effectiveness after the business has already been established.
Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, new jet ski rentals, and more.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will offer discounts and/or provide other inducements for people to check out our rentals.
Pricing Strategy
[Company Name]’s pricing will be moderate compared to our competitors. We provide premium rentals for an affordable price so that customers feel they are receiving great value when renting out one of our jet skis.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- Website maintenance
- Hiring and training staff
Service Functions
- Rental appointment management
- Customer service
- Payment processing
- Jet ski maintenance
- General maintenance functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been in the jet ski rental industry for the past ten years. He started his career as an associate and worked his way up into management. As such, [Founder’s Name] has an in-depth knowledge of the jet ski rental business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
[Company Name] will also employ an experienced assistant manager to manage the company’s operations. This will be an experienced operations manager who will be trained in other important company operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].
Hiring Plan
In order to launch the business we will hire the following employees:
- Associates (4 to start)
- Mechanics (2 to start)
- Assistant Manager (1 to start)
- Administrative Assistant (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the fees charged for renting out our jet skis.
The major cost drivers for the company include maintenance expenses, salaries, the lease, labor expenses, and marketing expenses.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Initial jet ski inventory: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 100 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 220 |
| FY 5 | 300 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
