How to Run a Charter Boat Business

There's more to running a charter boat business than boating and fishing.

Many avid boaters or fishermen dream of quitting their day jobs to become a professional guide or charter boat operator. But when you look into running a charter boat business, you will quickly learn the time out on the water running the boat and helping the clients catch fish is only a minor part of the operation. There are many legal requirements for the boat, boat owner and boat operator and business details to follow if you want to stay in business.

Things You'll Need

• Adequate boat
• Proper gear
• Website
• Commercial insurance
• Licensed captain
• Permits
• Inspections
• Drug testing program

Instructions

Legal Requirements

1. Hire a person with a U.S. Coast Guard "Operator of Uninspected Passenger Boat" (OUPV) license or Merchant Mariner's Masters License to operate the boat when customers are on board. In the case of an owner-operator charter business, the owner must procure one of these licenses.

2. Make sure the captain has a valid Transportation Workers Identification Card (TWIC) issued by the U.S. Department of Homeland Security.

3. Buy a commercial insurance policy protecting the boat and with adequate liability insurance. Not all insurance companies offer commercial insurance or are familiar with insuring charter boats. Shop for the few carriers who deal with charter businesses to get the best value.

4. Enroll everyone who will be working on the boat when passengers are on board in a U.S. Coast Guard (USCG) approved random drug testing program. Not all consortiums are approved or familiar with the USCG requirements, so shop around to find the ones who regularly deal with charter operators to insure compliance and to get the best value.

5. Register with the agency or agencies in your state that regulate passenger-for-hire boats, fishing guides and charter fishing licenses.

6. Comply with state and USCG equipment and safety inspections. These inspections are normally required on an annual basis.

Boat and Gear

1. Purchase or lease a boat adequate for the number of people you plan to have on the boat. The boat should also be adequately sized and configured for the waters you plan to travel and the prevailing sea conditions for the area.

2. Purchase functional and reliable gear suited to people of all levels of experience.

3. Plan for the unexpected by having back-up equipment, tackle and supplies on board and available.

Marketing

1. Devise an advertising program which will attract customers. The usual methods include signs, posters and brochures placed in strategic locations. Consider placing ads in the phone book and list your business in as many places as possible on the Internet. Targeted print ads in newspapers and magazines will pay off.

2. Develop a good Web site. The Internet is now the first place people look to find charter boats for hire. A dynamic Web site and good search engine ranking will provide your best source of business.

3. Set your prices to be comparable to other charter businesses in your area. Price is only one feature customers explore when choosing which boat to hire.

4. Set up a merchant account to allow you to accept credit cards. Many customers prefer to pay by credit or debit card and it makes your business look professional.

5. Set up a toll free number to encourage customers to call. This will give you the chance to "make the sale" and answer specific questions.

Tips & Warnings

• Run your business as professionally as possible. This includes providing a clean boat with good, well maintained gear, presenting a well-groomed personal appearance, answering phone calls or e-mails promptly and being on time to appointments.

References

• Merchant Marine Training Schools: License Requirements
• Charter Lakes Insurance

Resources

• National Association of Charter Boat Operators