How to Start a Glass Bottom Boat Tour Business

Start a Glass Bottom Boat Tour Business by following these 10 steps:

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

We have put together this simple guide to starting your Glass Bottom Boat Tour 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 very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Glass Bottom Boat Tour Business?

First, you must purchase a new or used vessel. Some glass-bottom boats are custom-manufactured, but you can also buy a mass-produced model like the Looker 370. You'd probably spend over $300,000 on a new boat while pre-owned crafts cost $100,000 to $150,000. If you seek a high-capacity vessel that carries over 200 people, plan on paying more than $1 million. You may also need to obtain electronics and appliances if the boat doesn't come with this equipment. Remember to acquire adult and child-size life jackets. You can buy them for $9 to $17 each — they cost the least when you order bulk sets of four or more.

What are the ongoing expenses for a Glass Bottom Boat Tour Business?

Liability and boat insurance often cost around $500 to $800 per year. Operators have to maintain and repair vessels; expect to spend at least $3,000 annually on maintenance. Engines need gasoline or electricity as well. Many marine batteries cost $80 to $500 each. You may have to order wholesale food and beverages. Yearly boat registration fees cost around $50. Tour vessels usually have restrooms, so you'll need to pay for sewage pumpouts. Most facilities charge less than $45. Other expenses include advertising, wages, payment processing, and docking.

Who is the target market?

Both travelers and locals board glass-bottom tour boats. They include people of many different ages. Wealthy young adults or middle-aged vacationers may produce the greatest revenue because they can afford to buy more food and usually don't qualify for discounts.

How does a Glass Bottom Boat Tour Business make money?

Customers pay per-passenger fees for tickets. Longer voyages cost incrementally more than brief tours. Some operators sell snacks and beverages as well. Stormy weather, recessions, and changes in water clarity can affect income levels.

How much can you charge customers?

Most rates range from $20 to $50 per person. Silver Springs State Park charges about $10 for a 40-minute trip or $25 for a 90-minute voyage, according to the South Florida Sun Sentinel. A business in Oahu prices one-hour excursions at $39 to $50. Another tour operator sells snacks for $1 each and soda for $2.

How much profit can a Glass Bottom Boat Tour Business make?

Costly equipment and supplies limit the net earnings of tour operators. Many firms have slim profit margins, even in popular destinations like Hawaii. Some well-located companies have achieved margins as high as 25% at the best of times. A declining business in an area with poor water quality might have a margin as low as 5%.

How can you make your business more profitable?

You could boost your income by selling gift certificates. Gift certificates give passengers an opportunity to spend more money, and some certificates probably won't get redeemed. Another option is to offer private charter services; private expeditions tend to yield higher hourly rates. You can also consider developing expensive special packages for important occasions, such as weddings. They ought to include some luxurious products and a longer trip.

Think about establishing a minimum occupancy rule because you lose money when only a few passengers show up. You could provide a small bonus along with a refund for anyone you turn away. Consider offering a private voyage for an extra fee if they don't want to cancel. Another way to increase your profit margin is to save money on fuel or electricity:

• Compare different marinas' prices online.
• Remove unnecessary objects from your vessel.
• Thoroughly insulate any refrigerators.
• Install energy-efficient LED lights.

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 Glass Bottom Boat Tour 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.

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?

This occupation may appeal to someone who appreciates nature, enjoys outdoor recreation, and wants to help others do the same. It helps if you find it easy to interact with people in a friendly way.

What happens during a typical day at a Glass Bottom Boat Tour Business?

You'll need to handle payments, perform marketing tasks, keep records, and answer customers' questions. After departing at the scheduled time, you will follow a predetermined route and eventually return to the dock. Some captains make entertaining announcements during each trip. At the end of the day, entrepreneurs will also need to set aside time to maintain and clean their boats.

What are some skills and experiences that will help you build a successful Glass Bottom Boat Tour Business?

You can benefit from experience in providing customer service and operating motorized boats. Repair expertise proves valuable but not mandatory. You'll need a captain's license to transport paying customers. The licensing process involves an examination and fees. You can enroll in a training course if necessary.

What is the growth potential for a Glass Bottom Boat Tour Business?

Relatively few operators exist, so there's not much data on the growth of this sector. Standard river cruises were becoming more popular, and many entrepreneurs achieved long-lasting prosperity without expanding their businesses. For example, a captain based in Hawaii began offering glass-bottom tours on a catamaran in 1999 and continues to do so. Others purchase multiple boats in an effort to serve more customers. Dolphins Down Under in Orange Beach, Alabama expanded its capacity by using two vessels. It also arranges private charter trips and snorkeling tours.