A cave tours company will take visitors into various subterranean regions. They will assist consumers in learning about the development and function of caves in their region. A cave tour’s nature is adaptable; some owners may utilise them only for educational reasons, while others may promote their excursions to adventurers.
Table of Contents
Follow these ten steps to start a cave tours business:
Plan your Cave Tours Company
Make your Cave Tours Company a Legal Entity.
Register your Cave Tours Company for Taxes.
Create a Business Bank Account and a Credit Card
Create Accounting for your Cave Tours Company
Get the Permits and Licenses You Need for Your Cave Tours Business
Purchase Cave Tours Business Insurance.
Define your Cave Tours Company Brand
Create a website for your Cave Tours business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting started with cave excursions. 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 of starting a cave tours business?
Initial expenditures include business licencing, commercial insurance, and administrative expenses. Admin charges might range from website expenses to accounting software. Owners of cave tours must also consider transportation and equipment. Most entrepreneurs, however, will not need to create an office unless they want to operate on a greater scale. They can most likely transport any necessary equipment in a van and then offer tours from the venue itself.
What are the recurring costs of a cave tour company?
Marketing expenditures, insurance, and equipment replacement/maintenance are ongoing expenses. In addition, owners may need to pay personnel, repair cars, and renew company permits or licences.
Who is the intended audience?
Anyone interested in exploring and learning more about caves in different locations of the nation might be the target market. The population will need to be at ease in cramped quarters and accept the risks of moving about in a subterranean location. As a result, you could wish to pitch your excursions to adults or provide shorter visits to youngsters aged 12 and over in case a consumer panics.
How does a cave tour company generate money?
The advantage of having a guide in a subterranean environment is often charged per participant on cave excursions. They may also provide special group discounts to big groups that want to do the trip together.
How much money may you charge your customers?
A cave tour might cost anything from $15 to $30 per person. You may check at what other operators in your region are charging before deciding on a pricing depending on the guide’s competence and the duration of the trip itself.
How much money can a cave tour company make?
Because the expense is so cheap, company owners are likely to enjoy a profit margin of at least 60%. So, if 100 customers each week take a $15 tour under this strategy, the company owner will earn $900.
How can you increase the profitability of your company?
Consider organising member groups for more risky adventures or selling stuff with your company name emblazoned on it.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a formal business organisation, such as an LLC or corporation, shields you from personal liability if your cave tours 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.
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 Promote and Market a Cave Tours Company
The goal of your cave tours will determine how you promote your company. Paid online advertising and print fliers in public places (e.g., coffee shops, sporting goods stores, etc.) will most likely be the most effective strategies to get you started. On the website or posters, include professional images of the interiors of the caverns you’ll be touring. However, whether you’re promoting a luxury picnic or a daring dive, prospective clients should be informed of cave hazards.
How to Keep Customers Returning
Owners may want to entice consumers by providing a discount for their first trip. To keep consumers, tour guides should be captivating, and excursions should be well-organized from beginning to end.
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.