I need feedback on a new marine business idea please!

[stresslessmarine]

Hey fellow lake lovers!
I was born and raised on Lake Winnisquam and have been boating my entire life. There is nothing like the wind, waves, and sun! I have recently returned to the area after obtaining my master’s degree in business from William and Mary in Virginia. You don’t know how much the lake has an effect on you until you leave it! I am looking to start a new yacht/boat management business and I was hoping for your ideas and thoughts. Please do not hold back as any and all feedback will be beneficial especially from you guys and gals!

I have worked in all aspects of the marina environment from yard, taking out the trash, dock repair, detailing, delivery (land and sea), parts, service, sales, marketing, training, rentals, gas dock, etc. I really miss it but I would like to start a new business to put the relaxation back in the boating experience. Boating should be about turning the key and going, it is a place of relaxation and more importantly an activity that can be enjoyed while spending quality time with the family. In my recent role as a yacht broker, I also worked as a yacht/boat manager, looking over the boats and servicing, detailing, moving, repairing them as needed based on a maintenance contract. This will be the basis for my business.

My ideas currently for the business are as follows:
Objective: Provide a stress free boating experience for all involved in boating through the use of reliable contacts, honest service, and fair prices.
Services: Can be part of a maintenance package or ala carte all mobile or my location
• Boat washing interior/exterior
• Boat detailing (wax, buffing, etc.)
• Dewinterization
• Selling prep (getting the boat ready for sale along with market analysis)
• Buyers inspection
• Servicing (coordinating/performing service work both interior and exterior)
• Repairs (Fiberglass, engine, drive, house systems)
• Fueling (Fueling before a weekend so the customer comes up, turns the key and goes!)
• Transportation (Land and Sea)
• Storm Prep (Check on boats during storms, move if needed, additional lines if needed)
• Canvas and upholstery work
• Captain’s training and education
• Parts research (tracking down and obtaining best pricing on needed parts)
• Weekly checkup (check on the boats while owner is away)
• Facilitate and monitor service specialists hired by the customer
• Charter (Lake captain, I have my NH commercial license)
• And anything in between!!
Again, sometimes owning a boat can be a fulltime job in and of itself and I just want to bring people back to a stress free environment in the Lakes Region!
I look forward to any and all feedback good or bad on things such as whether or not you would use a service like this, do you think it is a good idea, is it needed, am I crazy? My pricing will be very reasonable as I plan to run an efficient business without the exorbitant overhead of many of the local marinas. The business will be a full fledged business with licensing, bonding, insurance, marketing, etc.

Thanks!
Chris

Please feel free to email me or message me through the board as well!

[baygo]

Welcome back to the Lakes Region and welcome to the forum. I like your strategy of turning to the forum for input. I can tell you from experience that you are in for a all kinds of feedback.

I think you are on to a good idea. Something I would suggest is a connection with caterers who will package coolers for your charter. Come on by and have a chat with me at Tavern 27 if you would like to explore this further. Bring some businesses card size promotional material with you for our display. I'll do what I can to help.

Best of luck,
Ray

[NHBoat70]

Just realize a small, local business struggle to survive in a good economy so just know of the all the risks of going into the operation. When you have your own business it becomes your life and you're likely not to make a fortune with respect to profits. If this is your passion though, by all means go right ahead, there is no one from stopping you. I've just seen so many businesses in the area come and go over the past few years and it's sad to see. Best of luck.

[jrc]

There people providing these services already, so be ready for some competition.

The idea of a comprehensive service is interesting, when I was with Irwin, they were soup to nuts and it was very easy, but pricey. There are few other full service marinas as well.

I found as a boat owner, that I could get better service and spend less money by cherry picking the providers. I have my favorite mechanic, my favorite detailer, my favorite canvas guy, etc. But it is a little work to keep this all going.

If you could provide a complete service without the high price, you could be successful. But this means that you have to make up for all my work with your work and you can't charge me much.

I suggest that come spring you go door to door through the marinas and talk to people about what they need. Beware the exisitng guys will not be your friends unless you can bring them more business.

[stresslessmarine]

Thanks for the feedback already guys!

Baygo - Thanks for the invite! Once I get more organized with my direction I will most certainly stop by Tavern 27. I drove by it a few times as an avid snowmobiler I like the marketing, signage, and the poker run idea. I think that the Tavern 27 is doing it right in this tough economy.

NHboat70 - Thank you for the input. I am very aware of the current economy and the small business struggle in the Lakes Region. I know that this won't be a cash cow nor do I expect it to be. I want it to be a supplemental income while enjoying something I love which you hit the nail right on the head!

JRC - I too came from an all service marina and having been in all of those departments felt that I could capitalize on that experience through convenience. I do plan to make my prices very reasonable as service rates at the marinas are closing in on $100 an hour! What are your thoughts on pricing? What would you pay for this service given the fact that you already do this? What is the convenience worth money wise to you?

Keep'em coming!

[Seeker]

Most full service marinas I have been at do not allow outside contractors if it is a service they can provide. Some that do make sure they get a percentage of the fee. Warranty repairs or work done by the owner usually is permitted but I have even seen marinas that won't allow the owner to even paint the bottom of the boat. I would check the contract language that those boat owners have with their marinas. Some are available online.

As far as those not at marinas, and there are plenty, I think it's a good idea if the prices are reasonable. Since you won't have the overhead of a marina your prices should be a minimum of 20% less.

Good luck in your venture.

[baygo]

Thanks for the feedback already guys!

Baygo - Thanks for the invite! Once I get more organized with my direction I will most certainly stop by Tavern 27. I drove by it a few times as an avid snowmobiler I like the marketing, signage, and the poker run idea. I think that the Tavern 27 is doing it right in this tough economy.

NHboat70 - Thank you for the input. I am very aware of the current economy and the small business struggle in the Lakes Region. I know that this won't be a cash cow nor do I expect it to be. I want it to be a supplemental income while enjoying something I love which you hit the nail right on the head!


Stresslessmarine - Thanks for the vote of confidence. Tavern 27 is 2 months away from completing the first year. All considered; things are going better than expected.

July will mark the completion of year two for Leslie and I in our attempt to bring life back to a once abandon facility that had a long-standing track-record for serving the community. We've had many a nay-sayers but fortunate for us I was told a story 30 years ago that helps keep me in focus today.

An immigrant came to America and opened up a hot dog stand. He would rise early every morning and go to the stand. He would push up his fancy umbrella and place out signs the read "HOT DOGS". He would stand on the corner and yell "Hot Dogs... Get your Hot Dogs.." He became so busy he was unable to read the paper, watch TV or Listen to the radio. His fortune grew and he was able to put his son through college.

His son comes home from college and the man asks him to help with the business. The son relied "there is a great depression going on and hot dogs will not sell anymore" The man sat and pondered for a moment.. Hmmm "my son reads the news paper, he listens to the radio, he watches TV news and he has a college education. He must be right". The next day the man arrives at the hot dog stand a little later than typically. He does not put up his fancy umbrella. He did not put out his sign. He sat and listens to the radio and reading the news paper instead of Standing on the corner yelling "Hot Dogs... Get your Hot Dogs.."

At day's end the man returns to the house to applaud his son. "Son, you were right. Hot dogs are no longer going to sell. The money I spent to send you to college was very-well spent!"

Listen but don't take to heart what the nay-sayers feed you. A good product or service along with Persistence, Tenacity and good old hard work. This is the only formula I know regardless of the economy.

[jrc]

Chris, it's hard to name a price, I pay the mechanic by the hour, the detailer by the foot, canvas guy by the job, so I can't really name a price. You have to sell me or people like me. There are at least two possible ways:

Your stressless idea, people pay money for not having to worry.
A cost savings idea, people pay you to get the best prices.

As Seeker says you can't go to full service marinas, they will lock you out. But Mountian View YC, Spinaker cove YC, Gilford YC, and Glendale YC combined have over 400 boats. Then there couple YC in Meredith, when I was at Samoset there were 70 boats there. There are plenty of boats that don't have contractual ties to a full service marina.

[TheProfessor]

This concept is a credit to your ingenuity.

Some are quite successful and happy with ideas thought outside the normal box.

You seem to have a long list of items you would offer. Give it a shot. Some may work out better than others and then you can refocus your business.

Do you have and did you write a Business Plan?

[stresslessmarine]

Thanks for all of the tips and information! This is exactly why I read and posted in this forum.

My main market will be the Yacht clubs, cottages, and out of staters that travel up to the lake of the weekend. The bylaws and rules of the yacht clubs pretty much state that I would have to have liability insurance to $1,000,000, register with the club, no solicitations, and work during business hours.

Theprofessor - Thanks for the comments! I am in the process of writing my business plan at the moment. I wanted to get a basic idea of what people in the area thought or if it was a pointless idea. I assume that you are a professor (by the name:)) Where do you profess?

Thanks!

[brk-lnt]

I think your core concept is sound. You might be biting off a little too much to do all that at once. It could be worthwhile to start a little narrow and then build out from there.

For me, I start businesses for a living (in the startup/venture capital areas). Plus, I have a fair bit of boating experience. If you need help with business plans, ideas for capital allocation, or just a general deep-dive discussion with someone who is good at debunking theories, I'd be happy to buy you a drink at Tavern 27 sometime (since it's right next to my weekend place) and offer you some free commentary.

[stresslessmarine]

Brk-lnt - that sounds great! Drinks will be on me. I will definitely be in touch to pick your brain on certain ideas and thoughts. That kind of information would be invaluable to me. I also agree with the narrowing of my focus as I keep moving forward and realizing that I would be scaling up too quickly thus loosing out on the benefit/business of being small, efficient, and cost effective.

you guys/gals are awesome! :coolsm:

[Ironfish]

I think you are going to have a difficult time with such a business in the Lakes Region of NH. As you are probably aware, a boat/yacht management service is quite common in areas like Florida. However, I see the Lakes Regions as a completely different market, for the following reasons:

1. The season is very short. Nobody will want to pay anything to have you manage their boats while they are in storage 7-8 months of the year.

2. Most owners live relatively close, and the boats get used relatively often. Conversely, in Florida, owners live long distances away, and it is inconvenient to "check in" on their boats.

3. Lake boats tend to be fairly simple. Unlike the thousand of yachts in Florida, most lake boats don't have particularly complex systems such as generators, air conditioning, and big diesel engines. The fewer the systems, the less need for management/checking.

4. The lake is a friendly climate to boats. The fresh water, the "summer only" usage, and the winter covers all result in less wear and tear on the boats.

5. Lake boats are relatively inexpensive. When you have a $2,000,000 investment, you can/must justify management. When you have a $20,000 investment, or even a $200,000 investment, management costs will be more difficult to justify for most people.

Much of what you're describing might work great as a college summer job, but I don't think it makes for a good full time business. I think you have all the right passion, and a great attitude. If I were you, I'd take the passion and attitude to Ft Lauderdale, and put some of the lazy yacht management companies out of business.

Regardless of what you decide to do, best wishes for success.

[jonfinn]

I think it's a good idea. As I was reading it, I was thinking (stop laughing) about the "Freedom Boat Club" model. If you're not familiar, it's a bit like "Boat time sharing" where your membership fees buy you access to the company's fleet.

It's a good idea for someone people because you can have access to different kinds of boats for different activities.

Of course, the downside is that you could get less experienced captains at the helm of larger boats.

Has that been tried in Lakes Region NH?

[MDoug]

Good luck with your plans! Where would you locate your business? If on Lake Winnipesaukee, how about something close to Bear, Mark, and Timber Islands?

[stresslessmarine]

Ironfish - I really appreciate the honesty. I realize that the optimal desination for this endeavour would be in Florida or done south however I love the Lakes Region. My thoughts now after business plans, opinions from forum members (thanks!), and friends in the industry is that I will specialize in a few things rather than trying to spread too far and focus on yacht management. I will scale as I grow but I am not looking for this to be a cash cow more like supplimental income!

jonfinn - I have had thoughts of doing that! I don't think it has been tried. The only problem with that model is that it takes a lot of capital infusion to get the boats, slips, location, marketing, etc. I think the business model is a good one but it goes by the old adage, it takes a bunch of money to make money!

Thank you guys for all of the thoughts!:)

[AmericanBoatClub]

Ironfish - I really appreciate the honesty. I realize that the optimal desination for this endeavour would be in Florida or done south however I love the Lakes Region. My thoughts now after business plans, opinions from forum members (thanks!), and friends in the industry is that I will specialize in a few things rather than trying to spread too far and focus on yacht management. I will scale as I grow but I am not looking for this to be a cash cow more like supplimental income!

jonfinn - I have had thoughts of doing that! I don't think it has been tried. The only problem with that model is that it takes a lot of capital infusion to get the boats, slips, location, marketing, etc. I think the business model is a good one but it goes by the old adage, it takes a bunch of money to make money!

Thank you guys for all of the thoughts!:)

I love your idea, and hate taking the conversation away from your plan but FYI we are launching a boat club this spring.

[skipperus]

Yacht clubs were suggested previously. The larger clubs are managed by marinas and are closed to outside vendors unless you get permission. For example, Mountain View and Corinthian are Managed by Irwin Marine. I would expect the same cold welcome that you would get from a full service marina. Also remember that it is a very short season and winter work is hard to come by.

[stresslessmarine]

AmericanBoatClub - Sounds great! I sent you a pm/email!

[Descant]

I am already at a full service place. and they do a good job. I would think along the lines of hiring a professional captain's services to coordinate things that the marina management doesn't do, or can't do economically.

If I hired a captain ("Share-a -capatin") I would expect to pay a retainer up front and have some sort of contract for professional services.

What do I need? Cleaning, vacuum, wash windows, etc. Stock ther boat for a particular cruise event (food, prepared Hors D'Oeuvres)). How many times have I thought about going out with my friends and canceled because there's no dock space in "X" .Could I use a captain to drop us all off and drift in the bay for awhile? And take us all safely back to homeport?

In that direction, I'd focus on larger boats, say over 30 feet, and determine how many I need on retainer at $500/season. In other words, pattern it after a professional captain's contract, not a marina by the hour contract.

I know people who have occasionally hired a captain for such things on the lake, but it's done more as a casual, occasional job, than a business operation. Definitely a niche market, but I think there are people out there who would like to say "My captain takes care of all that."

Good luck.

[JasonG]

Opening any business that will compete with existing corporations in any industry is going to be tough, period. Make is seasonal? OW! After writing and rereading this, there are some tangents. Take it for what it is worth.

We can all say marine product/service is expensive. Well there is a reason. Short season, high overhead, knowledgeable employees are not cheap either.

Coming from someone who has owned (seasonal) retail stores, mail order, and consults other corporations on how to move their excess inventory in a dead economy....well you better have to give the masses a damn good reason to leave a local brand name they have known and they will trust. Otherwise you will have to call someone like me to dump your product.

Hypothetical: ( random names ) Channel marine customer X has been going there for 10 years and happy. One day they piss him off.... really piss him off. So he takes his 50k boat from them and now needs service. Who is he going to pick? The new guy or Shep Browns, Paugus Bay Marina, etc etc that has been on the lake since day one? He needs a good reason to go to you.

Similar to taking a road trip and getting hungry. You know the Golden Arches is junk food, but you know what to expect. People dont like the unknown, so they will pick what they know vs the local mom/pop shop that they never heard of. Now if that mom and pop makes their place have great curb appeal, a line out the door, and is promoting a better product at a better price, then you are more open. They needed to do something above and beyond. People like consitency and and comfortable with what they know, even if something is better and cheaper. It usually needs to be a LOT BETTER, and a lot CHEAPER to draw than out of their comfort zone. But with that usually comes lower profit to....and you know where that gets you... your mom/pop place could be giving away hamburgers and coke by girls in bikinis to every customer that pulls up and the McDonalds across the street still will be busy as usual.

And no body wants to be the test dummy with their 50k boat. a 1.50 coffee is one thing. Personally, I will try the new local java place, and then go back to star bucks or dunks if they suck. But if I need to get 10 dozen bagels and donuts...well dunks is looking pretty good because I know the quality as do the people that will eat them. Go back to the office with 120 bagles from Mom's Bagel Place and you will get some comments.

Point? Even if someone never used Paugus Bay Marina before and needs a new place for service, he is more comfortable with them because he sees the sign every day.

Now this is a total shot in the dark here....but I am going to assume the number of new boats in the region is not climbing to high these days and may be plateaued. Again, this is a guess. If that is the case, now you need to consider market saturation. There are a dozen boat dealerships that come across my mind without even goggling it. Adding one more doesnt mean you will make more customers. Now you have to hope and pray they customers will morph to you from other places. You are not adding a business to fill a need because all the dealerships cant handle all the work. You are adding because you think you can do better. May not be enough and you might need both reasons, customers in need and customers looking elsewhere.

I am not trying to be a negative person or telling you dont do it. You know more than anyone what you have at your disposal. But you are selling a nich product in a seasonal area. Granted, one of the best damn areas around for it, but it isnt coffee.

J Paul Getty would rather sell 100 items at $1 than 1 item at $ 100. Words that I live by for my own business. Lets face it, you are not selling $ 1.00 coffee which everyone drinks. You are selling $ 100 coffee machines that not everyone wants. You need to convince everyone to stop going to dunks. Everyone knows a machine is cheaper in the long run, but Dunks is still jammed on a sunday morning with a line out the door. Give that person a machine and a years supply of dunkins coffee and you will still see them in line. Why? Because its what they know, its their routine. Its in their comfort level.

You may have the best idea since Carl Kiekhaefer created Mercury Marine, but unless all the eggs are there and ducks lined up, it will fail. I have been there. The best prices and best service dont mean success anymore. You need more, lots more. Grass roots marketing is a start.

Good luck to you. Regardless of your endeavors, I wish you well.
Jason

[SteveA]

maybe a great small business would be finding a source of ethanol free gasoline and providing a service to boat owners and homeowners that would like to avoid the E-15 problems.

Appears that there are some sources for "Real Gas". I'd pay a premium for it, if I could find in local.

See this thread.
http://www.winnipesaukee.com/forums/showthread.php?t=11697