How to Start a Canoe and Kayak Rental Business

Start a canoe and kayak rental business by following these 10 steps:

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

We have put together this simple guide to starting your canoe and kayak rental business. 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 Canoe and Kayak Rental Business 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 canoe and kayak rental business?

The startup costs associated with opening a canoe and kayak rental business are sizeable. Business owners must purchase several canoes and kayaks, which can run anywhere from several hundred dollars to more than $1,000 each, depending on style and quality. Life jackets and paddles must also be purchased. The other sizeable startup cost is the price of securing a place to store the canoes, kayaks and other equipment.

In addition to these major costs, business owners also need to pay for any certifications they obtain and insurance.

Some businesses may need to pay a fee to launch canoes and kayaks at a public or private launch. Businesses renting to customers taking long trips may also need a vehicle and trailer to transport canoes and kayaks.

Business owners that are trying to keep their costs low can do so by only purchasing a few canoes and kayaks to start with, building a storage area for the boats on their own property and using inexpensive launches. If their customers are taking long trips down rivers, business owners might be able to hire another company to transport canoes and kayaks for them -- so they don't have to invest in a vehicle and trailer. The additional cost of hiring another company could be built into the rental prices. One student managed to start a business with $12,000.

What are the ongoing expenses for a canoe and kayak rental business?

A canoe and kayak rental business' ongoing expenses include insurance premiums and employee wages (if the business has employees). Businesses that pay to launch canoes and kayaks, or to transport them by trailer, also have these ongoing expenses. All businesses have to occasionally pay to repair or replace damaged canoes and kayaks.

Who is the target market?

Canoe and kayak rental businesses have two ideal customer types. Businesses near cities often cater to customers who like being on the water but don't own their own boat. These businesses usually offer shorter rentals, such as half-day and full-day rentals. Businesses in remote areas often offer longer rentals, including week-long rentals, and cater to canoeing and kayaking enthusiasts who are taking trips down rivers or across lakes.

How does a canoe and kayak rental business make money?

A canoe and kayak rental business makes money by charging for canoe and kayak rentals. Rentals may be by the hour, half-day, day or week.

How much can you charge customers?

Rental rates for partial days generally fall between $25 and $35 per boat for 2 to 4 hours. Full-day rates are usually between $40 and $60 per boat. A few companies offer reduced daily rates for week-long rentals. Exact rates vary with the type of boat (e.g. single kayak, double kayak or canoe) and geographic location.

How much profit can a canoe and kayak rental business make?

A canoe and kayak rental business' income is directly tied to the number of canoes and kayaks it rents out. A business may have a total of eight canoes and kayaks, but on an average day it might rent out only three of them for half a day. (The other five can help the business meet demand on busy days, but not all days will be equally busy.)

If the business charges $30 for a half-day rental, it'd bring in an average of $90 per day. In most regions, such a business is seasonal. Assuming a business' season was 6 months long, its revenue would be $16,200 for the year (even though it was only open for 6 months).

How can you make your business more profitable?

Canoe and kayak rental business owners can increase their business' revenue by offering guided tours, renting out other types of small boats (e.g. jet skis or standup paddle boards), renting other equipment (e.g. tents or fishing equipment), leasing storage space for people's personal canoes and kayaks, and selling canoes and kayaks.

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 canoe and kayak rental business 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 canoe and kayak rental business. Learn more about licensing requirements in your state by visiting SBA's reference to state licenses and permits.

Liability Waiver

Liability waivers are essential since consumers will be in high risk environments, operating equipment in potentially dangerous environments/circumstances. For this reason, it is best to require protective gear. Here is an example of one such waiver for canoe and kayak rental businesses.

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your canoe rental 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 canoe and kayak rental business is generally run out of a physical location. 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 a location:
  • 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 canoe rental business.
  • 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 a 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 Nightclub business 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 canoeing and kayaking may be well-suited to open a canoe and kayak rental business. Business owners also must be strong enough to move canoes and kayaks on shore.

What happens during a typical day at a canoe and kayak rental business?

A canoe and kayak business owner's busiest parts of the day are when they're giving boats out to customers and when customers are coming in. Before customers head out on the water, they need to be given a canoe or kayak, paddle and life jacket, and shown how to paddle and use the boat safely. They may also want to ask the business owner about places to paddle to. When customers come in, business owners need to check the equipment, put it away and make sure the customers enjoyed their time. When not sending customers out or welcoming them back, business owners usually spend their time taking reservations, performing clerical work, and repairing damaged canoes and kayaks.

What are some skills and experiences that will help you build a successful canoe and kayak rental business?

Business owners should be experienced in both canoeing and kayaking, so they can show customers how to properly paddle and steer. The American Canoe Association (ACA) offers many different classes in both canoeing and kayaking. The Red Cross also offers a course on Small Craft Safety, although this class doesn't go into as much detail as some of the ACA's courses. In order to help customers get the most out of their time on the water, business owners should also be familiar with the local waterways. The best ways to learn about an area's bodies of water is to join a local canoeing or kayaking club and to spend time out on the water. Finally, business owners should be certified in at least basic first aid and CPR. It may also be wise to become certified in more advanced first aid and water safety. The Red Cross offers a variety of first aid courses.

What is the growth potential for a canoe and kayak rental business?

Most canoe and kayak rental businesses have one or two locations and serve a particular geographic region. In theory, a business could open up additional operations or franchises in other areas, but it would need to find employees who are familiar with the bodies of water in those areas.