A swimming school is a good business for any community, because most children would like to learn how to swim. While such a school can prosper in any community, it will obviously do better in communities that have prominent water parks, public pools, and/or beaches, where there is ample opportunity for kids to try out their new skills.
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Learn how to start your own Swim School and whether it is the right fit for you.
Start a swim school by following these 10 steps:
- Plan your Swim School
- Form your Swim School into a Legal Entity
- Register your Swim School for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Swim School
- Get the Necessary Permits & Licenses for your Swim School
- Get Swim School Insurance
- Define your Swim School Brand
- Create your Swim School Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your swim school. 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 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 swim school?
The cost of opening a swim school can be relatively low. One of the greatest costs is the pool itself: if you already have one at your home and are willing to use it for lessons, then this costs nothing. If not, the most cost-efficient step is to work out a pool rental agreement from a local school or hotel. The cost of this varies but can go up to $15 per swimming lane per hour, but the easiest solution is to build this cost into the membership fees for your customer. Insurance may be up to $6,000 per year and obtaining relevant licensing and permits can vary in costs, but are typically less than $5,000. Marketing can vary, as traditional marketing via television, radio, and print to advertise a grand opening may be $15,000 or more, but advertising via social media and Youtube is free.
What are the ongoing expenses for a swim school?
One of the most attractive features of a swim school is that there are few ongoing expenses. Building a pool rental cost into membership fees means that there is no cost for pool upkeep, rent, or utilities. Insurance costs can vary but can cost the equivalent of $500 a month. Beyond that, the only real ongoing costs would be monthly advertising (typically $2,000 a month or less, especially if you use a lot of social media advertising).
Who is the target market?
Generally, the best clients tend to be “older,” as in teenagers on up. These groups tend to want to learn for their own reasons and are more motivated, whereas younger clients are typically there at the urging of their parents and may actually resent the lessons just as they may resent typical school lessons.
How does a swim school make money?
Of course, the most basic way that a swim school makes money is by charging clients for the lessons you provide. You may offer a variety of payment methods, such as charging per lesson, charging a monthly fee for regular lessons, and possibly charging a greater monthly fee for “unlimited” lessons. You should always charge a higher rate for private lessons as this takes away time when you could be making money via group instruction.
How much can you charge customers?
To a degree, how much you charge customers should both reflect the socioeconomic status of your clientele while also remaining competitive with other businesses. Typically, $50 would be the low-end for group lessons while $100 would be the high-end, with the assumption that these lessons last an hour; you can adjust prices downward for shorter lessons. One way to encourage frequent lessons by offering discount rates on a certain number of lessons purchased at once or to offer a kind of membership plan that rewards visits over time.
How much profit can a swim school make?
In general, a swim school has a decent profit margin, with many in the profit margin of 20 to 30 percent, which is particularly high for a service industry. The high margin is primarily due to the aforementioned lack of overhead and monthly expenditures, meaning that you can potentially pocket anything that does not go towards pool rental, insurance, and marketing.
How can you make your business more profitable?
Most of the most profitable tricks have already been mentioned. Renting rather than building a pool keeps costs down while building the costs of rental and insurance into your fee structure helps you to absorb those costs. Advertising more via social media is also free and helps you reach younger people, while liaising with schools, churches, and other organizations is a free way of reaching your key demographic.
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 Swim School 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 swim school 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:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
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
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.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report 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 best net 30 vendors, guide and start building business credit.
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.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
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 swim school. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
In addition, certain local licensing or regulatory requirements may apply. For more 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
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.
All swim instructors should be certified. Certifications typically come from either the Red Cross or the Aquatic Teaching Foundation Unit. Different levels of certification should be obtained relevant to teaching intent. More information on certifications can be found here.
Liability Release Forms
It is advisable to have swimmers sign liability waivers to decrease legal responsibility and encourage transparency. An example of a liability waiver can be found here.
Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your swim school 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
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 swim school 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 swim school business will be in compliance and able to obtain a CO.
- For more 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.
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 swim school
Promote your swim school via traditional and modern means. As mentioned above, this includes combining print, television, and radio advertisement as well as social media. Placing flyers and business cards throughout your community is another relatively cheap way of advertising your business.
How to keep customers coming back
Because of the relative youth of many of your customers, a good way to retain customers is to hold special events. These may include swim parties in the summer and theme parties around holidays. Offering customers rewards programs where customers can earn free lessons over time and getting free lessons for referring their friends can also provide a powerful incentive for customers to come back.
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: Phone.com
Phone.com 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 Swim School in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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Is this Business Right For You?
First and foremost, this is for someone both passionate and knowledgeable about swimming, as you must be able to provide specific tips and techniques in order to help swimmers succeed. You must be good at working with children, as most of your customers will be younger. And you must be careful modulating group lessons and individual instruction in order to underscore the value of your private lessons.
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What happens during a typical day at a swim school?
Most of the day to day activities of a swim school involves conducting the lessons themselves. The most successful swim schools will offer lessons to different age groups, so these will need separate times for instruction. You may also consider offering lessons for aspiring professional swimmers, such as those on swim teams in middle school, high school, and college. Beyond this, you will be reaching out to customers and their parents via email each week as well as designing and releasing advertisements for your business. You may also liaise with local sponsors and take time out of each day to process payments and make sure all customers are accounted for.
What are some skills and experiences that will help you build a successful swim school?
It is important to not only be very knowledgeable about swimming but to already be certified as an instructor. This helps you keep initial start-up costs lower because you do not have to hire any additional instructors at first. Having taken swim classes yourself will help you come up with ideas for conducting your own classes. Having community ties with local schools, churches, and other organizations can help you recruit students, while previous experience working at a swim school ran by someone else gives you vital experience for running your own business.
What is the growth potential for a swim school?
There is decent growth potential for a swim school because it is always possible to expand lessons to different groups of clients. For instance, while swim schools have traditionally catered to younger clients, one swim school business owner was able to quadruple her business when she began offering private swimming lessons for adults. For businesses able to work with a diverse age range of customers, the growth potential is very real.
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 swim school?
Jump start your swim school by first coordinating with local schools and obtaining permission to advertise your business. In particular, the coaches should be able to spread word of your business opportunity. Make sure to provide a venue via social media and your website for customer testimonials, as those are increasingly popular among younger customers.
How and when to build a team
Starting out, you will likely be the only instructor. You will know when to build a team if you have more customers than you can personally handle or simply want to expand your hours or services.