People say that one of the best things in life is when you do business out of something that you love.
It surely is a dream of many to turn their passions and hobbies into something that can make them money. For yacht lovers, it’s a dream to own a yacht and another to make a business out of it.
Owning a yacht is expensive. And, just like a car, its value depreciates, which is why it’s impossible to get back the money you spent on it if ever you plan to sell it. One smart way that you can do though, is to put it up for business.
If you own a yacht under fractional yacht ownership or any other partnership, this can also be a great move.
But of course, just like any other business in the world, it won’t be easy. There are a lot of things that you need to consider and work on before you can officially start your operation.
If you’ve been thinking of starting a yacht business, here are 5 Things To Consider If You Plan To Start A Yacht Business
1. First, think about the yacht
This first point may seem vague, but we’ll get down to it. So, if you’re planning to start a yacht business, congrats!
That’s a great business to have. But, do you already have a yacht that you’ll use for the business, or are you still planning to buy one for it?
If you already have one, great! The next thing for you to think about is how much can the yacht take? How many people can it carry?
How far can it travel? What is the main purpose of the yacht if you’re putting it up for business? Think about the yacht’s features, and from there, map out how it can be used for business.
On the other hand, if you don’t have a property yet, map out first the main activity or business feature that you’d like to offer.
If it’s mainly for fishing or just sailing for less than an hour, maybe you can go for a small yacht type. Or maybe, you plan to cater to people who’ll go on overnights or long travels.
Think about the yacht, and from there, list down two to three main purposes that the business will offer.
2. What type of arrangement do you plan to have for the yacht?
Another thing that you need to consider is the type of yacht arrangement that you’ll have. If, for example, you own a yacht under shared yacht ownership, it’s hard to fulfill your plan of putting the property up for business.
All of the owners under yacht syndication must agree first, that they are okay with having the boat for business. This would only be possible if all owners didn’t use the boat that much anymore.
If you are just about to purchase a yacht and you know some people who you would love to do business with, maybe you can buy one under shared yacht ownership too. In this case, you won’t have to shoulder all of the expenses alone.
Keep in mind that if you plan to purchase a boat under shared yacht ownership, all of the other owners have equal rights as yours over the property. The same goes for your profits once your business operates.
If you prefer to manage everything on your own, from the expenses to setting up the business, you are free to do so.
Of course, this will be harder than if you have partners who’ll help you create better ideas for the business.
If you plan to manage everything on your own, you can start with one property first. It would be easier to know the strategies and to gauge how you operate if ever you plan to add more in the future.
Know that the type of arrangement can play a big factor in your success. If you plan to enter into a partnership either under yacht syndication or merely for business,
look for people who you trust and are competent. Their talents matter because they will contribute to the strategies that will be used for your business.
3. Decide on a budget and map out your business plans
After you’ve settled on the type of boat arrangement that you’ll have, it’s time to work on the business plan. Before anything else, decide on a budget. Start with a capital that would not only cover the operation, but also the expenses in case of emergencies.
If you own a yacht under shared yacht ownership, discuss with your co-owners how much each of you is willing to allocate to the business.
From there, discuss your operational plans. Do you plan to open the business all year round? Or do you only plan to operate it in a certain season so that each of you can use the property privately?
What would be the yacht business name? Though you won’t have a physical office that would need a business name, a name for the yacht service makes it more professional.
Set up rules and regulations for the property. If you plan to target clients who’ll use the yacht for parties and overnights, this is critical.
Another important thing that you must consider well is who will operate the yacht. If you charter it, do you plan to hire people? Or do you plan to charter it on your own?
If you don’t have the budget yet for hiring people, consider the important risks of chartering the property. If you have co-owners, maybe you can set a scheduled rotation of who’ll manage the business.
4. Consider a good location for boat storage that is also a good tourist spot
Another important factor that you should consider well, is the location of the boat storage. Know that customers love accessibility and convenience. If you own a boat that is stored in a port that only you or your family know, consider looking for a new storage area.
Having a storage location where a lot of people know of and if possible, a famous yacht area is a great advantage for your business. Once you open your boat for charter, it’s easier for your clients to access the area.
Also, it attracts more clients knowing that your home port is an area that has a lot of frequent visitors.
Look and scout a great home port for your yacht. Choose an area that has easy gas refill stations for the yacht as well as has some famous attractions to attract more potential clients.
The thing is, you have to create more opportunities for your yacht business to grow. You can’t just sit around and wait for clients to come to you. It’s your responsibility to attract them.
5. Lastly, ask yourself if you are up for the game
After reading the 4 points above, ask yourself, ‘am I up for a yacht business?’ If your answer is yes, then it’s time to put your dreams into action.
Remember, it won’t be easy. You have to be critical in your decisions while ensuring your client’s safety on your property.
Whether you end up opening a yacht business under shared yacht ownership or alone, always keep in mind the importance of the safety and privacy of your clients. Moreover, never take for granted the importance of business legalization, regardless if you start with 1 single yacht.
Who knows, if your clients liked the yacht and the packages that you offer with it, maybe they’d recommend your business to the people they know.
Running a legal boat charter business gives clients peace of mind that they are entrusting not only their holiday but also their lives to a secure business.