How to Start a Boat Cleaning Service

Start a boat cleaning service by following these 10 steps:

1. Plan your Boat Cleaning Service
2. Form your Boat Cleaning Service into a Legal Entity
3. Register your Boat Cleaning Service for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Boat Cleaning Service
6. Get the Necessary Permits & Licenses for your Boat Cleaning Service
7. Get Boat Cleaning Service Insurance
8. Define your Boat Cleaning Service Brand
9. Create your Boat Cleaning Service Website
10. Set up your Business Phone System

We have put together this simple guide to starting your boat cleaning service. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Boat Cleaning Service Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a boat cleaning service?

The startup costs for a boat cleaning business are very manageable. They include:

• cleaning tools (e.g. brushes, a mop, towels, a vacuum and a steam-cleaner)
• cleaning materials (e.g. detergent, wax, glass cleaner, furniture polish and wood polish)
• a vehicle for transporting supplies to different sites
• a workboat and trailer

Business owners will need a workboat so they can access the hulls of boats that are in the water.

A vehicle and trailer will also be needed to transport the workboat and supplies to different sites. Businesses often service boats at different marinas, and driving between marinas is often more fuel-efficient and takes less time than going between them by boat.

Business owners who want to keep their startup expenses as low as possible can begin by using their own vehicle and purchasing an old, used workboat. A workboat doesn’t need to be fancy or even very seaworthy, since it’s generally kept in or around marinas. Any old, small boat will be fine as long as it’s stable, doesn’t leak and has a small motor.

Franchises are available for business owners who would prefer to purchase a franchise. They tend to be much more expensive than simply purchasing cleaning supplies and an old boat is, though. For instance, Super Clean Yacht Service Franchising Inc. charges between $12,700 and $50,800 for new franchises.

What are the ongoing expenses for a boat cleaning service?

The ongoing expenses for a boat cleaning service business include fuel for a vehicle and workboat, and the cost of replacing used cleaning supplies. In most cases, these expenses are minimal.

Who is the target market?

A boat cleaning service business’ ideal customer is someone who owns a large boat that they’re particular about. Such a boat owner will likely be willing to pay well to have their boat cleaned, and they’ll probably be able to afford a cleaning service if they can afford a large boat. Additionally, they will be more likely to hire a cleaning service than clean their boat themselves, because cleaning a large boat takes longer than cleaning a smaller watercraft.

How does a boat cleaning service make money?

A boat cleaning service business makes money by charging for boat cleaning and detailing services. While business owners may consider their desired hourly rate when setting prices, most businesses don’t bill by the hour. Instead, they offer cleaning packages for set fees.

For example, Miami Boat Cleaning provides quotes based on the size of a boat and the type of cleaning services requested.

How much can you charge customers?

Boat cleaning rates vary depending on the size of a boat, the boat’s state and the services requested. Most businesses charge between $8 and $40 per foot. For instance, a 30-foot boat might cost between $240 and $1,200 to clean, depending on what was involved in the cleaning.

How much profit can a boat cleaning service make?

A boat cleaning service business can earn several thousand dollars in a week during the peak season. Cleanings that cost a few hundred dollars typically take just part of a day, so it’s easy to clean many boats in a week. Cleanings that cost a few thousand dollars can usually also be done within a week at most.

In the Northern United States, this is a highly seasonal business. People only use their boats for a few months out of the year in colder climates.

How can you make your business more profitable?

A boat detailing business can increase revenue by branching into auto detailing work. Auto detailing is similar to boat detailing, and boat cleaning businesses usually already have all the equipment that’s required. Auto detailing can also help a business survive the slower times of year when people aren't boating.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your boat cleaning service is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a boat cleaning service. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Services Contract

In businesses where services are provided on an extended basis, a services contract is often put in place outlining terms and conditions of service. You may wish to require clients to sign a services agreement before starting a new project. This agreement clarifies client expectations and minimizes risk of legal disputes by setting out payment terms and conditions, and service level expectations. Here is an example of one such services agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your boat cleaning business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Certificate of Occupancy

A boat cleaning service can be run out of a storefront or small office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease space:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a boat cleaning service.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build your own location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your boat cleaning service will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Anyone who enjoys being outside and working with their hands may like running a boat cleaning service business. Cleaning boats is manual work, and it’s often done at docks where there’s little protection from the elements.

This is a business that can be started while working another job full-time. Business owners can begin by cleaning boats in evenings and on weekends, when they aren’t working elsewhere. Once their business grows to support a full-time salary, they can then transition from their current job to cleaning boats full-time.

What happens during a typical day at a boat cleaning service?

Business owners spend most of their cleaning boats, which may include:

• washing and rinsing off boats’ top sides and hulls
• waxing fiberglass exteriors
• vacuuming and cleaning carpeting
• wiping down windows
• polishing wood and vinyl

When not cleaning boats, business owners order supplies, schedule cleanings, bill customers and market their business.

What are some skills and experiences that will help you build a successful boat cleaning service?

In order to successfully run a boat cleaning service business, business owners must know how to clean and detail boats. Companies like International Detailing Association offer marine detailing courses. Most courses are a few days long and cost a few hundred dollars. Boat Detailing Training, for instance, offers a 2-day course for $550 and a 3-day course for $750. (Online courses generally aren’t available because cleaning boats is a hands-on process.)

Business owners may also want to purchase a reference book that they can refer to after their training is completed. Boat Cleaning and Detailing, and Boat Detailing Guide are two titles that cover cleaning boats.

Finally, business owners should also familiarize themselves with the business aspects of running a boat cleaning business. Start Your Own Boat Detailing Business and How to Start a Boat Cleaning Business are two books that cover business-related topics (as opposed to cleaning techniques).

Aspiring business owners who want to save money on training may want to spend a season working for a boat cleaning business. During this time, you can learn how to clean and detail boats, and you also may pick up some inside secrets on running a boat cleaning business.

What is the growth potential for a boat cleaning service?

Boat cleaning service businesses may have a single location that serves just one area, or they may grow to have multiple locations across the country. Boat Bathers in Chicago is an example of a business that serves one area. Pro Boat Clean, on the other hand, has franchise locations in the United States and Canada.