Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on February 1, 2022 Updated on November 27, 2023
$13,550 - $47,600
$150,000 - $450,000 p.a.
Time to build
1 – 3 months
$120,000 - $225,000 p.a.
If you’ve ever been on a jet ski, you know that there’s nothing like flying over the water with the wind blowing through your hair. Recreational boating is a big industry, worth nearly $30 billion, and jet skis are one of the more popular segments. That’s why personal watercraft sales increased 8% in 2020. You could start a jet ski rental business, grab a share of this growing market and give people joy while making a good living.
You can’t just jump into a jet ski business, however, like you zip across the water. Knowledge of the ins and outs of the business is necessary in order to be successful. Fortunately, this step-by-step guide has all you need to begin your entrepreneurial adventure.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Average prices – The average price of a jet ski rental is $85 for one hour.
How much does it cost to start a jet ski rental business?
Startup costs for a jet ski rental business range from about $13,000 to nearly $50,000. The largest cost, of course, is the jet skis, so it depends on the quality of the jet skis you get and how many.
You’ll need a handful of items to successfully launch your jet ski business, including:
Setting up a business name and corporation
$150 - $200
Business licenses and permits
$100 - $300
Business cards and brochures
$200 - $300
$1,000 - $3,000
$10,000 - $40,000
$300 - $500
Storage space rental
$200 - $1,000
$1,500 - $2,000
$13,550 - $47,600
How much can you earn from a jet ski rental business?
The average price of a jet ski rental is $85 for one hour. Your profit margin after fuel and maintenance should be about 80%.
In your first year or two, you could rent two jet skis per day for 5 hours each for 175 days of the year, bringing in nearly $150,000 in annual revenue. This would give you nearly $120,000 in profit, assuming that 80% margin. As you grow your fleet of jet skis to 6, you might need an employee or two, reducing your profit margin to around 50%. With annual revenue of close to a whopping $450,000, you would make close to $225,000.
What barriers to entry are there?
There are a few barriers to entry for a jet ski rental business. Your biggest challenges will be:
Funding the startup costs
Finding a good location for jet skiing, preferably with tourism
Related Business Ideas
If you’re still not sure whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.
Now that you know what’s involved in starting a jet ski rental business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
Research jet ski rental businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a jet ski fishing rental business.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as guided jet ski trips.
This could jumpstart your word-of-mouth marketing and attract clients right away.
What? Determine your products or services
You’ll want to determine if you want to add on any services to jet ski rental. You could add jet ski fishing, guided jet ski trips, or jet ski lessons.
How much should you charge for jet ski rental?
Jet ski rental prices range from $70 to $100 for an average of $85. Your costs will be for fuel, maintenance, and storage of the jet skis. You should aim for a profit margin of about 80%
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.
Who? Identify your target market
Your target market will be mainly tourists to your area. You can reach them on sites like Instagram and Facebook. You can also distribute flyers at local hotels, restaurants, or local attractions.
Where? Choose your jet ski rental location
You only need storage space for your jet skis unless you want a physical structure on the water to rent your jet skis from. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed
Step 3: Brainstorm a Jet Ski Rental Service Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “jet skis” or “jet ski rental”, boosts SEO
Name should allow for expansion, for ex: “Splash Zone Jet Skis” over “Extreme Jet Ski Adventures”
Avoid location-based names that might hinder future expansion
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Step 4: Create a Jet Ski Rental Business Plan
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
Executive Summary: A brief overview of the jet ski rental business, highlighting its key points.
Business Overview: An introduction to the jet ski rental business, including its mission, location, and legal structure.
Product and Services: Detailed descriptions of the jet ski rental services and any additional offerings.
Market Analysis: An examination of the target market, customer demographics, and industry trends.
Competitive Analysis: Assessment of key competitors and their strengths and weaknesses.
Sales and Marketing: Strategies for attracting customers and promoting the business.
Management Team: Bios and qualifications of the individuals responsible for running the business.
Operations Plan: Details on daily operations, equipment, and location requirements.
Financial Plan: Projections for revenue, expenses, and funding needs.
Appendix: Supporting documents, such as resumes, legal agreements, and additional research.
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to jet ski rental businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Choose your business structure
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your jet ski rental business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
Sole Proprietorship– The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC)– Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Step 7: Fund your Business
Securing financing is your next step and there are plenty of ways to raise capital:
Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.
Bank and SBA loans are probably the best option, other than friends and family, for funding a jet ski rental business.
Starting a jet ski rental business requires obtaining a number of licenses and permits from local, state, and federal governments. You’ll likely need a watercraft license. Check with your state for requirements.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your jet ski rental business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked yet, especially for jet ski rental, it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as Alert, booqable, or Quipli, to manage your bookings, inventory, purchases, and payments.
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
For your jet ski rental business, the marketing strategy should focus on highlighting the excitement and adventure of jet skiing, the safety and quality of your equipment, and the unique experiences customers can enjoy on the water. Emphasize your commitment to customer service, safety training provided, and any special packages or tours you offer.
Professional Branding: Your branding should convey fun, excitement, and safety. This includes a catchy logo, vibrant signage, and visually appealing promotional materials.
Direct Outreach: Connect with local hotels, tourist centers, and travel agencies to promote your services. Offer promotional deals or packages to attract tourists and locals alike.
Digital Presence and Online Marketing
Professional Website and SEO: Develop a user-friendly website showcasing your jet ski rental services, rates, safety measures, and customer testimonials. Optimize your site for local SEO to appear in searches related to water sports, jet ski rentals, and tourist activities in your area.
Social Media Engagement: Utilize platforms like Instagram and Facebook to share exhilarating photos and videos of people enjoying jet skiing, customer reviews, and information about your rental services.
Content Marketing and Engagement
Adventure Blog: Share blog posts about water sports, local attractions, and tips for a fun day out jet skiing. Include customer stories and highlight any unique aspects of the local waterways.
Email Newsletters: Send out regular newsletters with seasonal promotions, safety tips, and updates on new equipment or services.
Video Content: Create engaging videos that capture the thrill of jet skiing, customer experiences, and the beauty of your location.
Experiential and In-Person Engagements
Participation in Local Events: Take part in local festivals, waterfront events, or tourism expos to showcase your services and offer special promotions.
Demo Days: Organize demo days where potential customers can try out jet skiing at a discounted rate or for free, encouraging future rentals.
Collaborations and Community
Partnerships with Local Businesses: Collaborate with nearby businesses, such as beach resorts, restaurants, or tour operators, for cross-promotion opportunities.
Community Involvement: Engage in community beach clean-up events or sponsor local water sports competitions to enhance your community presence.
Customer Relationship and Loyalty Programs
Loyalty Discounts: Offer discounts or loyalty cards to repeat customers, encouraging them to return and rent again.
Group and Family Packages: Create special rates for groups or family packages to attract more extensive group bookings.
Promotions and Advertising
Targeted Local Advertising: Use local tourism magazines, online tourist forums, and outdoor advertising to target vacationers and local residents.
Collaboration with Travel Influencers: Partner with travel influencers or bloggers to showcase your jet ski rental service and reach a broader audience.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your jet ski rental business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your jet ski rental business could be:
Fun from sunup to sundown – all day jet ski rental
Two in one fun – jet ski and fish!
Best jet ski rental prices in town
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a jet ski business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in jet ski rentals for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in jet ski rentals. You’ll probably generate new customers or find companies with which you could establish a partnership.
Step 12: Build Your Team
You may not need any employees at first, but eventually you may want to hire assistants to help you with the jet ski rentals.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Run a Jet Ski Rental Business – Start Making Money!
A jet ski rental business offers a great lifestyle, working on the water, enjoying the sunshine and helping people enjoy their free time. What could be better? People love being out on the water, with the recreational boating industry coming in at $30 billion.
It will take a bit of an investment to start your business, but the many rewards, including a hefty wad of cash in your pocket, will be worth it. Now that you understand the business side of jet ski rentals, get ready to zoom your way to becoming a jet ski entrepreneur!
Jet Ski Rental Business FAQs
How profitable is a jet ski rental business?
You can rent jet skis for about $70 to $100 per hour, so even if you only have two jet skis, you can make up to $1,000 per day. Even if you’re only working half the year due to the weather, you can bring in some nice money.
How do I differentiate my jet ski rental business from competitors?
To differentiate your jet ski rental business from competitors, you can focus on providing a unique customer experience that sets your business apart. This can include offering high-quality equipment that is well-maintained and up-to-date, providing exceptional customer service, offering unique rental packages or experiences, and emphasizing safety and environmental stewardship.
What kind of marketing and advertising strategies can I use to promote my jet ski rental business?
There are several marketing and advertising strategies you can use to promote your jet ski rental business, such as utilizing social media platforms to showcase your business and interact with customers, creating a professional website with information on rental options, pricing, and safety guidelines, offering referral programs or special promotions for repeat customers, advertising in local tourism guides, newspapers, or other publications, partnering with local hotels or resorts to offer bundled rental packages, and offering online booking and reservation options to make it easier for customers to plan their rental experience.
How do I handle and manage equipment maintenance and repair for my jet ski rental business?
To handle and manage equipment maintenance and repair, you can develop a comprehensive maintenance schedule and regularly inspect your equipment for wear and tear. Additionally, you can invest in high-quality replacement parts and hire trained professionals to handle repairs and maintenance tasks.
Can you start jet ski rental business on the side?
Yes, it is possible to start a jet ski rental business on the side. However, it is important to be aware of any legal or regulatory requirements for starting a business in your area and to ensure that you have the necessary insurance and liability coverage. Starting small and gradually scaling up the business can help you manage your time and resources effectively. Additionally, it is important to prioritize safety and customer service and to comply with any regulations related to equipment maintenance and safety guidelines.
How to Start a Jet Ski Rental Business
Decide if the Business Is Right for You
Hone Your Idea
Brainstorm a Jet Ski Rental Service Name
Create a Jet Ski Rental Business Plan
Register Your Business
Register for Taxes
Fund your Business
Apply for Business Licenses and Permits
Open a Business Bank Account
Get Business Insurance
Prepare to Launch
Build Your Team
Run a Jet Ski Rental Business - Start Making Money!
Jet Ski Rental Business FAQs
Subscribe to Our Newsletter
Join our exclusive community! Subscribe to our newsletter and gain insider access to cutting-edge business insights and trends.
Thank you for subscribing! We can't wait to share our latest news and updates with you. Get ready for exciting content in your inbox.