How to Start a Boat Manufacturing Business in South Florida

Florida, a boating state, boasts more than 200 boat building businesses, according to the "Miami Herald."

Florida is a natural location for a boat-building business, as the state boasts the largest boat sales in the country, according to a 2011 "Miami Herald" report. South Florida boat builders craft vessels ranging from small, economical fishing boats to million-dollar yachts. Even if you love boats and love the idea of making a living building them, however, you have to approach your new career with a rational eye for your costs, your potential income and your ability to compete with established firms. An appropriate first step to establishing you own business might be working in the industry to gain contacts and experience.

Instructions

1. Talk to established builders or groups such as the Marine Industries Association of South Florida. Find out what sort of boats are selling and which part of the market is sluggish. Your new business should target a market niche with potential for sales.

2. Write a business plan specifying, among all the other details, what sort of boats you intend to manufacture. Choosing your market niche will make it easier for you to calculate the cost of supplies, the need for financing and to whom you're going to market your boats. All that information should also go into your business plan.

3. Calculate how long it will take for your company to break even, based on anticipated sales and expenses. If your personal resources won't keep you afloat until then, seek financing. The Small Business Administration website reports that most small businesses use equity financing -- giving an ownership stake to family, friends or investors -- but you can also try taking out a business or personal loan.

4. Buy insurance for your property. South Florida has been hit by a lot of hurricanes over the years. Taking out coverage against windstorms and flooding can enable you to rebuild after the next big storm in the area. You should also consider business-interruption insurance, which covers your losses if you can't reopen immediately.

5. Market yourself to the boat-buying public. Word of mouth is helpful, but you might also want to present your wares at boat shows and advertise in South Florida magazines and fishing or yachting publications. Network heavily.

Tips & Warnings

• Your business must comply with state and local regulations. If your business is a corporation, you need to file articles of incorporation with the state. If you have a business name, register that with the state's SunBiz website too. You must take out a local business license from the county or city in which you will do business.

• In addition to defining your niche, your business plan should state how you'll compete with established builders. Possible ways to compete successfully might include offering better prices, quality or customer service.

• When drawing up your budget, you'll need not only money for supplies and employees but also to buy or rent land on the waterfront for your operations. If you buy land, you'll also need money for real estate taxes, which are high on South Florida waterfront property.

• If family or friends help finance your business, you should make it clear to them how long you expect it to take before they see a return on their investment.

References

• "Miami Herald"; Battered but Still Building; Joseph A. Mann Jr.; Feb. 2011
• Recreational Boat Building Industry: FAQ
• "Bradenton Herald"; Getting a Start-Up Boat Business Off the Ground; Grace Gagliano; Jan. 2011
• Small Business Administration: South Florida Small Business Guide
• Small Business Administration: Borrowing Money

Resources

• Marine Industries Association of South Florida
• Florida Division of Corporations