Business Ideas | Small Business Ideas: Houseboat Business to Make Money

Sunday, February 2, 2014

Houseboat Business to Make Money | Starting a Boat House Rental Business

A Houseboat is a boat that has been designed or modified to be used primarily as a home. Some houseboats are not motorized, because they are usually moored, kept stationary at a fixed point and often tethered to land to provide utilities. However, many are capable of operation under their own power. Float house is a Canadian and U.S. term for a house on a float (raft), a rough house may be called a shanty boat.

House-boating is a fun and exciting way to spend vacations. Gone are the times when this kind of activity can only be enjoyed by rich people who actually own a house boat. These days anyone can take in this kind of adventure, anyone who has vacation money and vacation time that is.

This type of vacation is ideal not only for families but also for couples who want to spend some quality time together and strengthen bond and for individuals who wants to recharge and distress alone after a year of work. This makes house-boating a quite popular hobby through time.

However, boating experience differ depending on the type of water. There are dessert and snow banks, steep canyon waters to wide open water and island studded impoundments.

Boat house market

There are currently hundreds of thousands house boat owners but a lot more, both first timers and repeaters, are actually into this activity through boat rental. Cost of rental varies from the size of the boat and its features, the popularity of the lake and the number of days the boat is being rented. Thus anyone interested can find a perfect boat for his budget and needs. This is because not everyone can own and maintain a house boat. This makes house boat rental a booming business.

Type of boat house business

There are two ways one can go into a boat house rental business. One is by actually owning a house boat and putting it up for others to rent. The other way does not actually need you to own a boat house, but it requires that you know people who do and are willing to rent their boat to others. A lot of boat owners partner with third party or middlemen to process rentals for them. This second kind of boat house rental business works by the entrepreneur being the middleman. This may be more profitable as a business can coordinate rentals for a number of house boats in a specific area or different areas.

People who haven’t tried house boating might not welcome the idea initially thinking that it’ll be costly as boating has been seen as a rich man’s past time. A good boat house rental businessman would know that spreading of information is the best way to correct this misinformation. And there is the internet to start with the information campaign. The World Wide Web can be a good place to promote and conduct this business especially with the reservations.

Like in any other business, boat house rental business would really suit someone who actually enjoys this kind of activity as well. As they say, it is easier to sell something you believe in than something you don’t know anything about.

Step 1

Write a business plan. The Small Business Administration recommends that you prepare a detailed business plan outlining the organization’s offerings, management structure, accounting practices, loan applications, market analysis, summary of competitors and long-term goals before getting started on a Houseboat charter business. A plan in place helps attract financial backers and sets the stage for stability and growth. For example, conduct a market analysis by visiting local harbors to determine what kinds of boat charters already exist. Outline the possibility of niche offerings, such as sunset charters, whale-watching charters, singles mixers or releasing cremated ashes at sea. Pricing scales might vary depending on time of year or services offered.

Step 2

Apply for permits. Most Houseboat charter businesses need permits, including a business license and tax identification number. You’ll need to purchase liability insurance. Houseboat vending food or alcohol will require additional licensing. The Houseboat’s captain will need to hold a U.S. Coast Guard captain’s license for carrying passengers. This involves earning a certain amount of sea hours and passing a technical examination, background check and physical exam.

Step 3

Lease or purchase a Houseboat. You’ll need a sturdy, dependable boat for transporting passengers. Customers will likely expect coolers and a toilet, but also equip the boat to match charter needs. Fishing boats need pole racks, bait tanks and fish-finding technology, for example. Sightseeing Houseboats should be equipped with plenty of seating. All boats should be equipped with safety gear according to state law, including life vests, fire extinguisher and life rafts.

Step 4

Stock charter gear. In addition to safety gear, stock the charter Houseboat with goodies. Snorkel charter Houseboat need snorkeling gear and fins of different sizes with a deck hammock for passengers who don’t want to fully enter the water. Fishing charter boats need quality fishing gear and tackle. Consider stocking sightseeing charter Houseboat, such as a whale-watching boat, with inexpensive binoculars.

Step 5

Advertise. Network with local marine supply stores to set up a mutual referral system to promote business. Create a website complete with video footage of whale sightings, landing trophy fish or little kids having fun with snorkeling gear. Reach out to colleagues in the travel industry, including hotel concierge, travel agents and the Chamber of Commerce to promote the Houseboat charter business.

Things Needed

Tips

For many guests, part of the fun of climbing aboard a charter boat involves a friendly, charismatic captain and crew. While employees’ primary concern should be the safety of all passengers, train crew members to chat with customers, identify points of interest and offer to take photos or serve drinks to guests.
No matter how entertaining the charter, some guests will prove to be landlubbers. Stock the cabin with ginger tablets and over-the-counter nausea-fighting medication, and direct passengers to take care of seasickness business above deck.
Not all passengers will be familiar with charter Houseboat toilets, or “heads.” Take a few minutes to demonstrate how to pump and flush the head while still docked. It’ll save you extra grunt work down the line.

Warning

Poor weather will sometimes dictate that you cancel scheduled charters. Have cancellation policies in place so that customers know what to expect when their charters are canceled. Policies might include rain checks or refunds.

Houseboat Rental Business Plan

References (3)

Starting a Boat House Rental Business

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1 comment:

Houseboat BusinessFebruary 2, 2014 at 4:53 AM
Boat House Rental Business, Houseboat Business, Houseboat Business to Make Money, Starting a Boat House Rental Business
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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