Charter Boat Business Plan Template
If you want to start a charter boat company or expand your current charter boat business, you need a business plan.
The following Charter Boat business plan template gives you the key elements to include in a winning business plan. It can be used to create a yacht charter business plan or a fishing charter business plan.
Sample Charter Boat Business Plan Template
Below is a charter boat business plan example with each of the key sections to help you write a charter boat business plan for your own company.
I. Executive Summary
Business Overview
[Company Name], located in [insert location here] is a new charter boat company that focuses on providing a variety of charter boat rentals for experienced and novice sailors alike. The company has a small fleet of charter boats including yachts, catamarans, sailboats, and motorboats. [Company Name] aims to be the most fun charter boat company with the best customer service around.
Products Served
[Company Name] 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 full crew to provide all the planning, accommodations, and activities for special events onboard the yacht
Customer Focus
[Company Name] will primarily serve residents and tourists within a 30-mile radius of the location. The demographics of these customers are as follows:
- 50,000 tourists to the area last year
- 200,000 residents
- Average income of $66,000
- 49.3% married
- 40.5% in management/professional occupations
- Median age: 40 years
Of the above target market, a significant portion of the population spends thousands of dollars per year on leisure activities.
Management Team
[Company Name] is a family-owned and operated charter boat business that is owned by [Founder’s name] and his immediate family members. The business will be managed by [Founder’s name] and his son [insert name]. [Founder’s Name] 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 [Founder’s Name] 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. He also has a bachelor’s degree in Business and has working knowledge of sales and marketing techniques that he can leverage to promote the new company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will be providing a valuable service for residents and tourists in the area that are looking to take advantage of the local oceans and waterways [location] has to offer.
- [Company name]’s location is situated adjacent to a busy tourist destination with lots of foot traffic from both tourists and locals. In addition, the founder surveyed the local community and received highly positive feedback pointing towards a demand for charter boat experiences and an excitement about using these services after the new business launches.
- The founder has a track record of success in the charter boat industry and is a proven expert in the field.
- The charter boat is a proven business model that has succeeded in communities throughout the country.
Financial Highlights
[Company Name] 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
- Working capital: $50,000 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], located in [insert location here] is a newly established charter boat company that will provide a variety of charter boat rental options. The Company focuses on providing charter boat rentals for experienced and novice sailors alike. [Company Name] has a small fleet of charter boats including yachts, catamarans, sailboats, and motorboats. [Company Name] aims to be the most fun charter boat company with the best customer service around.
[Company Name] is a family-owned and operated charter boat business that is owned by [Founder’s name] and his immediate family members. The business will be managed by [Founder’s name] and his son [insert name]. [Founder’s Name] 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 [Founder’s Name] 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. He also has a bachelor’s degree in Business and has working knowledge of sales and marketing techniques that he can leverage to promote the new company.
[Company Name]’s History
[Founder] began researching what it would take to build his own charter boat company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has now compiled enough information to develop his business plan in order to approach investors.
Once his market analysis was complete, [Founder’s Name] began surveying the local vacant office space and located an ideal location near the port 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. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].
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 located at [website].
- Hired a general contractor for the build-out of the office and dock.
- Determined equipment and necessary supplies
- Began recruiting key employees with previous charter boat management experience
[Company Name]’s Products/Services
Below are [Company Name]’s product and service offerings:
- 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 full crew to provide all the planning, accommodations, and activities for special events
III. Industry Analysis
The United States private charter boat industry is a $778 million market with over 800 businesses and more than 2,000 employees throughout the country. 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 is expected to help boost market demand for private charter boat services over the next five years. Market drivers include rising disposable incomes, increased interest in recreation and leisure activities, and a rebound in tourism.
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.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents and tourists in [company location] and its surrounding areas.
The community of [company location] has thousands of individuals and families who regularly participate in recreational activity. Additionally, the location is next to a prime tourist destination that draws tens of thousands of people each year.
Customer Segmentation
The Company will primarily target the following three customer segments:
- Families: This segment makes up the bulk of leisure tourism in the U.S. The Company aims to provide these families with charter boat rental opportunities that will give them unique and memorable vacation experiences.
- Individuals, couples without children, and groups: [Company Name]’s unique, highly customized charter boat tour itineraries will be targeted specifically towards this market. Individuals, couples without children, and groups of adults tend to have more disposable income and appreciate curated experiences.
- Businesses: Some companies travel with their employees for team building activities and look for unique ways to make corporate events fun. The Company plans to target these businesses who may want to host their next corporate party on a charter boat.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 50-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Ocean Champion Charter Co.
Ocean Champion Charter Co. is a charter boat company in [location]. 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, motorboats, 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.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Location: [Company Name]’s location is adjacent to a popular tourist destination and a busy shopping district with lots of foot traffic.
- Customer-oriented service: [Company Name] 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.
- 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
- Charter boat captains, crew, and tour personnel
- Charter boat maintenance staff
- Operations manager on duty
- General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
- Hiring and training staff
- Office staff to answer phones, schedule meetings, and book tours
- Brand management/social media
- Operations Manager: [Founder’s son name] will manage the day-to-day charter boat operations and assist [Founder] with managerial duties.
- Charter Boat Staff: (5-6 to start) experienced captains, crew, and tour guides to carry out the charter boat services.
- Office Staff: 3–4 employees who will manage the phone calls, scheduling, accounting, marketing, clerical, bookkeeping, billing, and any administrative task required.
- Brand Manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
- Charter Boat Maintenance & Janitorial staff: 2–3 employees who will be responsible for boat maintenance and cleaning.
- Salaries
- Charter boat supplies and equipment
- Boat maintenance
- Business Insurance
- Lease on office and utilities
- Taxes
- Dock and office design/build: $1,500,000
- Equipment and supplies: $1,000,000
- Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
VI. Marketing Plan
[Company Name] seeks to position itself as the most fun charter boat rental company with the best customer service in the area. Customers can expect to receive personalized customer service and a choice of multiple types of charters, tours, and events all aboard best-in-class boats that are meticulously maintained for safety and comfort.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
Promotions Strategy
[Company Name] expects its target market to be residents and tourists within a 30-mile radius of its location. The Company’s promotion strategy to reach these customers includes:
Social Media
[Company Name] 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.
Publications
The Company will invest in professionally designed ads to display in both major and local publications. Ad space will be purchased for major travel, boating, and leisure trade magazines, local newspapers, and local travel publications to increase brand awareness and spread the word about the new charter boat company.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all 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.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the Company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.
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
[Company Name] will also invest in sponsoring certain events so that their banners and collateral material are displayed all over events where numerous people attend.
Pre-Opening Events
Before opening the charter boat company, [Company Name] will organize pre-opening events such as an open house to draw future customers to rent the charter boats or book a tour. When they witness the fleet of boats and understand all of the options they have at moderate price options, they will be more inclined to rent the boats.
Pricing Strategy
[Company Name]’s pricing will be moderate, so consumers feel they receive great value when purchasing charter boat rentals.
VII. Operations Plan
Functional Roles
[Company Name] will carry out its day-to-day operations as a charter boat company. There will also be numerous administrative functions involved.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company Name] anticipates using the services of X employees, divided into the following roles.
Service Functions
Administrative Functions
Milestones
The following are a series of steps that lead to the Company’s 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] is a family-owned and operated charter boat business that is owned by [Founder’s name] and his immediate family members. The business will be managed by [Founder’s name] and his son [insert name]. [Founder’s Name] 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 [Founder’s Name] 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. He also has a bachelor’s degree in Business and has working knowledge of sales and marketing techniques that he can leverage to promote the new company.
Hiring Plan
[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from its charter boat rental fees. The Company will charge fees for bareboat rental, skippered rental, full-crew rental, and event rental.
The office lease, equipment, supplies, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the Company’s operation will consist of:
Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $3,000,000 of debt capital to open its charter boat company. The capital will be used for funding capital expenditures, dock and office build-out, hiring initial employees, marketing and branding expenses, and working capital.
Specifically, these funds will be used as follows:
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| Year 1 | 10 |
| Year 2 | 15 |
| Year 3 | 20 |
| Year 4 | 25 |
| Year 5 | 30 |
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 |
