Many individuals like being on the water but do not own a boat or wish to go boating in places where they cannot bring their own. People may borrow canoes and kayaks from a canoe and kayak rental company and take them out on neighbouring rivers. Customers may rent canoes for as little as an hour or as much as a day.
Follow these ten steps to start a canoe and kayak rental business:
Make a plan for your canoe and kayak rental business.
Create a legal entity for your canoe and kayak rental business.
Taxes must be registered for your canoe and kayak rental business.
Create a Business Bank Account and a Credit Card
Create an accounting system for your canoe and kayak rental business.
Get the Permits and Licenses You Need for Your Canoe and Kayak Rental Business
Get Insurance for Your Canoe and Kayak Rental Business
Create a brand for your canoe and kayak rental company.
Create a website for your canoe and kayak rental business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to beginning a canoe and kayak rental company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses associated with starting a canoe and kayak rental business?
The initial expenditures for a canoe and kayak rental company are substantial. Business owners must acquire a number of canoes and kayaks, which may cost anywhere from a few hundred dollars to more than $1,000 depending on design and quality. Life jackets and paddles are also required. Another significant initial expense is the cost of acquiring a location to keep the canoes, kayaks, and other equipment.
In addition to these primary expenses, company owners must pay for any certifications they earn as well as insurance.
To launch canoes and kayaks at a public or private launch, certain enterprises may be required to pay a charge. Businesses that hire canoes and kayaks to clients on lengthy journeys may additionally need a van and trailer to carry the canoes and kayaks.
Business owners who want to keep their expenditures low may accomplish so by starting with just a few canoes and kayaks, creating a storage place for the boats on their own land, and employing affordable launches. If their clients are on lengthy river journeys, business owners may be able to hire another firm to carry canoes and kayaks for them, saving them the expense of purchasing a truck and trailer. The extra expense of employing another firm might be included into the rental rates. One student was able to launch a firm with just $12,000.
What are the continuing costs of a canoe and kayak rental company?
Insurance premiums and personnel compensation are recurring expenditures for a canoe and kayak rental company (if the business has employees). These are continuing costs for businesses that pay to launch canoes and kayaks or move them by trailer. Every company must pay to repair or replace damaged canoes and kayaks on occasion.
Who is the intended audience?
Canoe and kayak rental companies have two sorts of customers. Customers who like being on the water but do not own a boat are often catered to by businesses near cities. These companies often provide shorter rentals, such as half-day and full-day rentals. Businesses in rural places often offer lengthier leases, including week-long rentals, to canoeing and kayaking enthusiasts on journeys down rivers or across lakes.
How does a canoe and kayak rental company earn money?
A canoe and kayak rental company generates revenue by charging for canoe and kayak rentals. Rentals are available by the hour, half-day, day, and week.
How much money may you charge your customers?
Part-day boat rentals typically range between $25 and $35 per boat for 2 to 4 hours. Full-day fees typically range between $40 and $60 per boat. A few firms provide weekly rentals at lower daily pricing. The exact rate depends on the kind of boat (e.g., single kayak, double kayak, or canoe) and geographic area.
How much money can a canoe and kayak rental company make?
The revenue of a canoe and kayak rental company is directly proportional to the number of canoes and kayaks rented out. A company may own eight canoes and kayaks, but on any given day, only three of them may be rented for half a day. (The other five can assist the company in meeting demand on busy days, but not every day will be as busy.)
If the company charged $30 for a half-day rental, it would make an average of $90 every day. In most areas, this kind of company is seasonal. If a company’s season lasted six months, its annual income would be $16,200. (even though it was only open for 6 months).
How can you increase the profitability of your company?
Canoe and kayak rental business owners can increase their revenue by providing guided tours, renting out other types of small boats (such as jet skis or standup paddle boards), renting other equipment (such as tents or fishing equipment), leasing storage space for people’s personal canoes and kayaks, and selling canoes and kayaks.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a formal business organisation, such as an LLC or corporation, shields you from personal liability if your canoe and kayak rental company is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run a canoe and kayak rental company, several state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Furthermore, local licencing or regulatory restrictions may apply. For additional information on local licences and permissions, please visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Waiver of Liability
Liability releases are required since customers will be using equipment in potentially hazardous environments/circumstances. As a result, it is essential to demand protective equipment. Here’s an example of a waiver for a canoe and kayak rental company.
When you join up for Rocket Lawyer’s premium membership, you can easily produce a professional release of responsibility form for your canoe rental company. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.
Occupancy Certificate
A canoe and kayak rental company is usually conducted from a physical site. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for a canoe rental company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building laws and zoning standards for your business’s location to guarantee that your Nightclub is in compliance and may receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote a Canoe and Kayak Rental Business
Word-of-mouth advertising is the most effective type of marketing for a canoe and kayak company. The canoe and kayak community is a tiny, close-knit one, and if a shop offers exceptional equipment, service, and rates, word will spread.
Because individuals commonly study locations and rental firms online before renting a canoe or kayak, internet marketing via social media and guest blogging may be an efficient approach to reach prospective clients.
How to Keep Customers Returning
Canoe and kayak rental companies may differentiate themselves by adapting their services to the local waterways. Not only should company owners be able to discuss all neighbouring bodies of water in depth, but they should also be able to acquire equipment designed particularly for the local rivers. For example, a firm around the shore would invest in high-quality touring kayaks with plenty of storage, while a business near tiny lakes might specialise on fishing kayaks with reel and depth finder attachments.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.