How to Become a Used Jet Ski Dealer in California

Jet Skis are big business in the summer.

According to the Personal Watercraft Industry Association, approximately 20 million Americans ride some form of personal watercraft like Jet Skis every year. Sales of these units have ranged from the tens of thousands to hundreds of thousands yearly. With these facts in mind, it's easy to envision a used Jet Ski business. Opening a used personal watercraft business in California has profit potential if you plan and purchase carefully.

Things You'll Need

• Repair tools

Instructions

1. Decide whether you will strictly buy and sell used Jet Skis or will rent them as well. Renting personal watercraft may necessitate establishing a store front, additional employees and related expenses, but it can generate significant revenue.

2. Create a comprehensive business plan addressing cash flow, business entity type, inventory, service and expansion concerns. Be thorough as you will then use this document in the process of acquiring financing to purchase watercraft and pay service or sales staff if applicable. Address regulations regarding a dealer's responsibility in boater safety such as kill switch requirements and in environmental regulation such as responsible oil recycling.

3. Apply for an Employer Identification Number at IRS.gov. This number allows you to set up a business checking account and to hire employees should you wish to.

4. Sign on to the California Secretary of State's office website at sos.ca.gov/business to get a sales tax license and to download tax forms. You can also find links to other state offices regarding financing and business consultation assistance. You can also find links to environmental regulation regarding engine servicing including oil recycling efforts.

5. Consult with your local city government as to permits and licenses required to perform the functions you will perform.

6. Advertise locally in print and on Craigslist or other online venues that you pay cash for Jet Skis. Post advertisements on marina bulletin boards and other areas that personal watercraft users frequent.

7. Advertise on social media by offering repair and service tips. Post trade-in policies to generate inexpensive inventory from people unwilling to repair watercraft.

8. Prepare for holidays especially if you will be renting equipment. Holiday travelers flock to California on long weekends for Memorial Day, Independence Day and Labor Day. Expect to rent equipment for between $100-200 per hour during normal seasons and potentially more during peak holiday weekends.

Tips & Warnings

• Evaluate service options. If you will service your own Jet Skis you can start with no employees. If you want to be an authorized Jet Ski dealership, you will need to hire and train a factory-certified service technician. Call 1-800-661-RIDE to begin this process and to order a dealer application from Kawasaki, the maker of the Jet Ski product line.

• Renting Jet Skis in California requires substantial liability insurance. Contact your insurance agent for price details and for customer safety requirements in this business such as life vests and rules regarding additional passengers.

• Check your vehicles closely when buying them. The California Department of Boating and Waterways monitors 2 stroke engine emissions in watercraft to verify they meet California Air Resources Board emission regulations.

• Some California localities do not allow personal watercraft.

References

• U.S. Small Business Administration: Writing a Business Plan
• U.S. Internal Revenue Service: Apply for an Employer Identification Number (EIN) Online
• U.S. Internal Revenue Service: Small Business and Self-Employed Tax Center
• California Governor's Office of Economic Development: Get Help from a Business Specialist
• California Governor's Office of Economic Development: Start a Business
• California Secretary of State's Office: Starting a Business

Resources

• California Jet Ski Adventures: Home Page
• Business Ideas: Starting a Jet Ski & Boating Business
• Personal Watercraft Industry Association: Personal Watercraft Sales
• Kawasaki: Home
• California Department of Boating and Waterways: Local Restrictions on Personal Watercraft and/or Two-Stroke Engines
• California Department of Boating and Waterways: Facts About Two-Stroke Vessel Engines