How to Create a Sailing Charter Business
Making the transition from happy sailing charter guest to charter business owner involves a complete change in perspective. Your venture's success will largely depend on how well you prepare a business plan that is specific to a sailing charter business. To prepare the plan, enlist the services of an accountant, an attorney, and a business mentor familiar with the sailboat charter business. The mentor might be the owner of a larger charter company who is located elsewhere and therefore not in competition with you. See the Charter Directory in "Cruising World" magazine.
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Things You'll Need
- United States Coast Guard Captain's License with appropriate endorsement
- Boat(s) suitable for the selected type of charters
- Place to dock the boat(s)
- Local permits and/or licenses
Instructions
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Identify your target market area and existing sailing charter companies. This will help you identify your competition, and also expose any unfilled niches. For example, if most area companies are booking weeklong charters, there's a potential market of people who want to sail but only have a long weekend available. Once you decide on your niche, the choice of boat(s) will become more apparent.
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Decide on the type of experiences you will offer your charter clients. Bareboat charters allow the client to captain the boat themselves after a checkout, while crewed charters provide a captain and/or crew for a higher fee. Other charter options include filling spots aboard larger excursion sailboats, or chartering an entire boat for a special occasion or corporate event.
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Look at the personnel you will need to adequately staff your business. United States Coast Guard regulations specify that a vessel for hire must have a Coast Guard-licensed captain in command. As the vessel size, tonnage, and number of passengers increase, the captain must also have higher level certifications. If you don't possess the credentials yourself, you will need to engage someone who does.
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Ensure that you have sufficient operating funds to keep the boats well maintained and the expenses paid---even if income is not coming in regularly. Your charter clients must be confident that their chosen boat is in top structural and mechanical condition. As a general guideline, "Entrepreneur" magazine states that startup costs for sailing charter businesses can be up to $50,000.
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Establish "win-win" partnerships with other businesses. Here are a few examples: (1) Dinner cruises for clients of banks, investment or insurance companies; (2) Client appreciation events for key advertising agency clients; (3) Add-on events for hotels; and (4) Prizes for automotive sales contests. Other partnerships specific to your area may also be possible.
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