Start a snorkeling business by following these 10 steps:
- Plan your Snorkeling Business
- Form your Snorkeling Business into a Legal Entity
- Register your Snorkeling Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Snorkeling Business
- Get the Necessary Permits & Licenses for your Snorkeling Business
- Get Snorkeling Business Insurance
- Define your Snorkeling Business Brand
- Create your Snorkeling Business Website
- Set up your Business Phone System
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your snorkeling business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a snorkeling business?
Snorkeling businesses vary depending on what an entrepreneur wants to do. It’s possible to start giving tours for just a few thousand dollars if you're not renting out a formal space and if you comply with neighborhood regulations. For tours, you’ll just need the actual snorkeling gear plus first-aid equipment. If opening up a franchise, the cost will be dependent on the location. So a popular destination like Hawaii may charge up to $755,000 (or more) to open an established franchise.
What are the ongoing expenses for a snorkeling business?
Snorkel businesses may have the following expenses:
- Mortgage or lease of retail space
- Boat maintenance/repairs
- Snorkel gear replacement
- Employee salaries
- Commercial insurance
Who is the target market?
Tourists are typically the big market for snorkeling gear because they’ll rent equipment while they’re in town instead of buying their own. However, snorkeling businesses will get business from locals who either need to buy all-new gear or replace their equipment as it wears out.
How does a snorkeling business make money?
Snorkel businesses will charge a mark-up on the rentals, tours, and equipment they sell.
How much can you charge customers?
Snorkeling rental gear is typically fairly affordable (about $10 per person.) If the business has boats, customers may spend up to $30 to $40 just to board the boat. If offering more complex or themed tours, then businesses could conceivably charge $50 or more. To get a sense of the going rates, check out your competitors' pricing before setting your own.
How much profit can a snorkeling business make?
The overall scuba and snorkeling business is worth $11 billion in the US, but individual profits depend on location and scope of operations. There were just under 4.25 snorkelers a year in Florida alone though, so the profits can be considerable.
How can you make your business more profitable?
Snorkeling businesses may want to consider branching out to include scuba to serve a wider section of the community. It’s not unusual for people who love snorkeling to want to take it to the next level, so offering lessons and scuba tours would be the next logical step.
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 Snorkeling Business Name Generator
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.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your snorkeling business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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 snorkeling business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A snorkeling business is generally run out of a shop. 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 snorkeling 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 your business’ location to ensure your snorkeling business will be in compliance and able to obtain a CO.
To avoid liability and potential lawsuits, snorkeling businesses should have their clients sign waivers.
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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a snorkeling business
Social media and internet advertising will be good ways to market a snorkeling business. Owners should also pay extreme attention to review sites such as Yelp. Most tourists will be looking everything up on the fly, so it helps to have a truly stellar reputation. Paid ads on Google are excellent for businesses who need to kickstart their growth quickly. Organic content is better (and obviously, free), but most start-ups don't have a lot of time to spend months developing a content strategy. You can also consider radio and television ads to further spread the word.
How to keep customers coming back
Giving customers a truly memorable experience will ensure the survival of the business. Because many customers will be tourists who only visit the area once, it’s not realistic to try to get everyone to return. However, inventive tours, entertaining staff, and organized operations will be pivotal to impressing those who have contact with the business (even if they’re just asking for directions.)
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Nextiva
Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start A Snorkeling Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Owners should ideally have an inherent love of the water, so they can introduce their passion of exploration to new generations of snorkelers. They should also enjoy working with people who may not know very much about how to use the equipment.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a snorkeling business?
Snorkeling businesses will spend a lot of time dealing with customers (e.g., giving tours, renting equipment, selling), but they’ll also need to account for payroll, marketing, and stocking equipment and gear.
What are some skills and experiences that will help you build a successful snorkeling business?
People who have experience with underwater activities will likely excel in this business. Working for a snorkeling business can make it easier to see how the logistics work so there are fewer surprises and shorter learning curve. Formal education is typically not required, though a general business degree may help an owner decide how and when to manage and potentially expand their business.
What is the growth potential for a snorkeling business?
With 11 million snorkelers in the US, it’s clear there’s a market for this industry. Snorkel businesses have to compete with a plethora of equipment that’s for sale online, but there's really no substitute for those who need to rent gear or take a tour. Most tourists won’t travel with their own gear (especially if they’re flying), so the growth potential can be significant for a business that both meets the demand and manages to impress their customers in a short amount of time.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a snorkeling business?
While it’s possible to treat a snorkeling business like every other retail establishment, the owner really should have an idea of what tourists are looking for when they come to town. Visiting the competition can provide insight into what customers are looking for as opposed to what they're actually getting. Owners can either try to improve upon their competitor's business model or offer a different type of experience they can't get anywhere else.
Owners can also consider becoming friendly with a snorkeling business located in a different part of the state or country. Without the threat of direct competition, a snorkeling professional may give tips about how they navigated the tricky waters of their first few years. Tourists generally want friendly experts who can take them out and show them wildlife without their having to become certified scuba divers. From manatees to dolphins to colorful reefs, each area has its own wonders that can be found below the surface. Appealing to a customer’s sense of wonder is often the first way to turn them onto an activity they may have never originally planned to do when on vacation.
You may also want to consider purchasing extra extra liability insurance when it comes to snorkeling due to a higher risk of injuries in the water. This is especially true at the beginning or if guides are trying to get used to a new tour or section of water. This additional precaution can reduce the financial repercussions of a potential lawsuit.
How and when to build a team
A tour operator who wants to take tourists on their own snorkeling excursions may not need a team to help them. They can buy the equipment and set up a schedule that works for them. However, for those who are planning to own a retail space and boats, they’ll need to hire employees immediately. The best thing to do is to look for people with experience as well as the right attitude. Too often, tour guides will turn people off from snorkeling because their personalities aren't quite right for dealing with the public.