[talkgold]

A buddy of mine is thinking about opening a waverunner / jetski rental business in Southwest Florida. I heard that the rate of return of such a business can be pretty descent.

I was wondering if any of you guy have any knowledge of the industry. For example, what are the costs, the profits, etc. Do most rental companies that are on the beaches usually have contracts with the hotels or cities? How does this work.

Any information on this would be great
Brian

[bigwig]

I looked into this, found that you need huge start up capital but it seems like there is plenty of room for profit if you can find a good location.

[talkgold]

Hmm, what is your definition of huge? $50K, 100K, 200K, more?

I would think you could get:
5 Wave runners - $33K
2 Dry docks - $5K

what else is there? Insurance, rent, anything else?

[DriverDan]

He should talk to some other company owners. Maybe in a nearby town but not so close as it would be the competition. Most small business owners are friendly people willing to help a fellow owner (assuming it won't hurt their business).

I think if he could get an exclusive contract with hotels or a chain travel agency it could make some big bucks.

[bigwig]

He said the smallest expenses were the watercraft and accessories, when you are running a business that involves a huge amount of risk there is always going to be huge insurance costs.

This is the main expense, as for the total start up cost, I am not 100% but there is much more expense then what you have listed above.

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