How to Start a Whitewater Rafting Business

Start a whitewater rafting business by following these 10 steps:

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

Average start-up costs can be as low as $10,000 and as high as $50,000. You’ll need to buy the rafting equipment (including safety gear), secure a license, and purchase liability insurance. In addition, you’ll need some sort of facility to house the equipment in. While you may be able to get away with shelter as basic as a large shed, you may want to spring for something large enough to accommodate more traditional business features (e.g., bathrooms, snacks, etc.) You’ll also need to account for the salary of the staff.

What are the ongoing expenses for a whitewater rafting business?

The major costs will be staff salaries, equipment maintenance/replacement, lease/mortgage payments, and liability insurance.

Who is the target market?

The target market can be huge for whitewater rafting, especially in tourist cities. Families or visitors looking for activities while on vacation will make up a large portion of your profits, but you may also receive business from die-hard water rafters who are looking to challenge themselves on the next big run.

How does a whitewater rafting business make money?

Whitewater rafting businesses charge customers to either rent their equipment or take their tours. Equipment may include anything from kayaks to helmets, usually lend out per piece rather than as a package. Tour prices typically include all the gear a customer would need plus a tour guide, so owners will price the excursions based on demand, labor, and cost of equipment.

How much can you charge customers?

Whitewater rafting trips in the most popular areas can charge up to $50 or more for just a short run down the river, and hundreds of dollars for an overnight trip. Look to your direct competition to find out what the going rates are for different types of outings.

How much profit can a whitewater rafting business make?

While equipment and staff salaries can be pricey, the profit margins for whitewater rafting can be huge. Your exact margins will be determined by the demand and the quality of equipment you use but can be as high as 50 – 60% or even more. If you give 5 trips a day at an average of $100 a run, you can make as much as $500 – 600 a day.

How can you make your business more profitable?

Renting out additional water equipment or selling gear can make your business more profitable. Even offering t-shirts, snacks/beverages, or specialty photographs can significantly contribute to your profits.

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 Whitewater Rafting 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.

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 whitewater rafting 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!

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

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.

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.

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 barrel making business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

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 Whitewater Rafting business is generally run out of a storefront or small house. 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 Whitewater Rafting 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 Whitewater Rafting business will be in compliance and able to obtain a CO.

Liability Waiver

To avoid liability and potential lawsuits, a Whitewater Rafting businesses should have their clients sign waivers.

An example of an appropriate waiver can be found here

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 whitewater rafting business

Local and internet advertising will be the best way to market your whitewater rafting business. Major search engines like Google will display your ads to people who search for whitewater rafting in your area, or you can use television or radio to get your name out there. You can also consider offering half price or even free trips when first getting started to attract customers.

How to keep customers coming back

In addition to safety and excellent guides, you’ll need to have an efficient way to book customers, give them their equipment, and pick them up. Customers are looking for every last detail to be taken care of so they can just relax and enjoy themselves on the river.

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.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

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 2023 to find the best phone service for your small business.

Start a Whitewater Rafting Business in your State

Is this Business Right For You?

Those who love showing people a good time outdoors. Whitewater rafting is made for the adventurous, but not everyone realizes that they don't have to be an expert paddler to successfully steer. A good owner makes whitewater rafting accessible to practically anyone and finds a way to deliver a quality experience no matter the odds.

What happens during a typical day at a whitewater rafting business?

The majority of the day is spent scheduling tours, completing river runs, and transporting customers to and from their destinations. Owners may give the tours, coordinate supplies, interface with customers and employees, or manage schedules.

What are some skills and experiences that will help you build a successful whitewater rafting business?

Those who are trained in rafting will likely do well in this business. While it’s theoretically possible to hire trained staff and managers to take care of the day-to-day business, owners should understand how rivers work before choosing their employees. Owners should also have people skills to successfully interface with both staff and customers.

What is the growth potential for a whitewater rafting business?

Growth potential can be solid for a whitewater rafting business — it's a fun activity that can never be outsourced. While there may be saturation in certain areas, owners may be surprised at how they can create demand in more rural areas just by offering a quality product.