How to Start an Outdoor Adventure Business

Start an outdoor adventure business by following these 10 steps:

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

We have put together this simple guide to starting your outdoor adventure 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 an outdoor adventure business?

You'll probably need to pay for one or more licenses. They usually cost a minimum of $100. At the least, this business requires some basic safety gear and first-aid supplies. You can buy a small waterproof medical kit for less than $20 and a larger, more advanced set for about $35. Some adventures call for costly equipment like boats, snowmobiles, or ATVs. To avoid high upfront expenses, partner with a nearby rental business that can supply your clients with equipment at discounted rates.

What are the ongoing expenses for an outdoor adventure business?

You're likely to spend around $800 per year on liability insurance. It may cost more if you engage in more dangerous activities. Equipment maintenance, fuel, utilities, and provisions will add to your expenses. You also need to pay for advertising and/or sales commissions.

Who is the target market?

Numerous vacationers between 40 and 70 years of age sign up for adventure tours. On average, clients are just under 50 years old. This service has gained popularity among men as well as women. Casual customers spend less, but they might embark on longer trips after sampling a short excursion.

How does an outdoor adventure business make money?

These firms generally charge flat per-person fees. Customers make a deposit and pay the full amount at the end of a journey. Customers often tip as well. Depending on your location and the variety of activities you offer, income may or may not be seasonal.

How much can you charge customers?

Prices vary based upon your reputation, amenities, level of customization, and other factors. A lengthy international expedition may cost several thousand dollars whereas vacationers often pay under $700 for local, two-day excursions. Some guides offer quick trips for less than $100 per person. If you normally supply equipment, you could give a discount to customers who bring their own gear. However, you should ensure they have suitable, well-maintained equipment before departing.

How much profit can an outdoor adventure business make?

Companies in this sector frequently have a profit margin of around 20%. Short, basic trips tend to have lower margins while complex, lengthy expeditions yield greater profits.

How can you make your business more profitable?

Try to attract more people for each excursion, but don't let groups become so large that it compromises safety or degrades the experience. On the other hand, you can also boost earnings by charging a special tour fee for one-person journeys. Find ways to differentiate your adventures so they aren't identical to any other company's trips. This reduces the need to compete on price alone. More ideas:

• Learn how to maintain and repair your outdoor gear.
• Ask equipment brands about discounts for professionals.
• Try to take remarkable photographs that you can sell.

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 outdoor adventure 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?

To succeed in this field, it helps if you crave thrilling experiences and have an enthusiastic, friendly personality. You must not panic or become stressed too easily; guides may encounter emergency situations that demand swift action. This business opportunity appeals to individuals who truly enjoy exciting pastimes like rafting, snowmobiling, sailing, and horse riding. You should be able to tolerate getting wet or experiencing uncomfortable temperatures.

What happens during a typical day at an outdoor adventure business?

Guides plan trips and oversee clients during tours. You'll help customers enjoy the expedition, learn interesting facts, and avoid injuries. This occupation may also involve preparing food, especially if you embark on lengthy excursions. The work doesn't always take place outdoors; you'll need to perform office tasks like marketing, answering phone calls, and ordering supplies.

What are some skills and experiences that will help you build a successful outdoor adventure business?

A wide range of abilities can come in handy in this line of work, such as first aid, outdoor food preparation, and vacation planning. You need to communicate well in person and by phone. Long-term involvement in at least one outdoor sport proves vital. You could prepare by taking an educational course for guides. Another option is to work as an adventure guide for an established company before starting your own firm.

What is the growth potential for an outdoor adventure business?

This sector grew faster than most tourism businesses in recent years. Women's Fitness Adventures is an example of a successful small company. An entrepreneur started the firm in 2013. It arranges hiking and mountain-climbing trips in Australia, according to the Outdoor Women's Alliance. Such businesses rarely establish multiple locations or create franchises. However, they can promote themselves nationwide and attract long-distance vacationers. National Geographic organizes adventures to a variety of international destinations.