How to Start a Charter Boat Business
- 1). Determine the nature of your charter boat business. Consider the types of services your business will provide, such as dive charters, sightseeing, business functions, dinner cruises, weddings, whale watching and fishing. You may offer skippered or crewed charters (you'll need a highly trained crew to accompany your clients) or bareboat charters, which is where clients are responsible for chartering a boat alone or with their own group. It may be wise to offer both, which would allow you to tap into two markets: the independent and skilled sailor and those looking to be entertained.
- 2). Obtain a captain's license (see Resources). Without it, you cannot charter your boat. You may need a mate or master license, depending on the number of passengers you intend to carry and the distance traveled. You will also need to be first-aid and CPR certified and pass a physical test. Then register your business with your local tax commission, and obtain a federal tax identification number.
- 3). Purchase your boat(s). Sailboats should start at around 32 feet and powerboats around 27 feet. When you first start your business, it is reasonable that you may only have one or two boats. Attend boat shows to review different types of boats. Your boat should be equipped with safety equipment such as life jackets, flares, fire extinguishers, rubber boots and smoke detectors, and it might include a depth sounder, VHF radio, loud-hailer, foghorn and stereo system. It should include the luxuries needed for the types of services you will offer, such as beds and showers for overnight stays, x number of cabins, crew bunks, or a dining room for parties. Once you have purchased your boat, contact your state wildlife department to get it registered.
- 4). Purchase business insurance. This may range from $25,000 to $25 million (see Resources).
- 5). Provide toys such as diving gear, a hot tub, fishing gear and licenses, and other luxury items that add to your customer's experience. Consider offering diving, sailing or fishing lessons. If you cannot or do not want to provide food, be sure to connect your customers with someone who can. Consider renting or offering towels, blankets and pillows.
- 6). Hire a qualified crew, such as trained chefs, deckhands and stewards.
- 7). Create attractive brochures. Consider opening a website. Set your prices. You may charge $300 for a three-hour evening trip or $1,200 for a weeklong trip. Your deposit should start at $300 and insurance may start at about $30 per day. Lessons could be $300 for an eight-hour session. During busy seasons, consider charging a reserve deposit.
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