How to Start a Scuba Diving Business

Start a scuba diving business by following these 10 steps:

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

We have put together this simple guide to starting your scuba diving business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall 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 important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourScuba Diving Business Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering 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.

What are the costs involved in opening a scuba diving business?

The startup costs for a scuba diving business are significant, for businesses must have:

• A commercial space for teaching classes
• A boat for getting to open-water dive sites
• Equipment for students to use
• Property and liability insurance policies

Equipment costs alone can runnearly $1,000 per set, for each student needs a regulator, air tank, wetsuit, booties and other items. Businesses that need to keep startup costs low can rent commercial space and a boat on an as-needed basis.

In total, business owners should expect to spendbetween $10,000 and $50,000to start up a new scuba diving business.

Established businesses can sell for much more. At the time of writing, the prices for successful businesses in North America ranged from$30,000 to $1.5 million.

What are the ongoing expenses for a scuba diving business?

The ongoing expenses for a scuba diving business are significant. They include:

• Boat and facility maintenance costs
• Fuel costs
• Salaries and wages for employees
• Equipment replacement costs

Because equipment is used regularly and sometimes abused, it needs to be replaced frequently. A wetsuit that would last a single individual years, for instance, might need to be replaced in just a few months.

SSI-affiliated businesses must also purchase training materials for students, but these are usually passed on directly to students.

Who is the target market?

Most open water divers are affluent, typically owning their home and having an annual household income between $100,000 and $150,000. They have enough discretionary income to spend on vacations and pricey recreational sports, such as scuba diving.

How does a scuba diving business make money?

A scuba diving business primarily makes money by charging customers for classes or guided dives. Many businesses also rent equipment, including necessary essentials, optional dive computers and underwater cameras to generate additional revenue.

How much can you charge customers?

The prices for scuba diving classes and tours range depending on the duration, level of expertise and location. For example,National Aquatic Servicein Syracuse, NY has a learn-to-dive program for $399. Multi-night scuba vacations on liveaboard boats can cost thousands of dollars per person.

How much profit can a scuba diving business make?

Even though scuba diving businesses have substantial expenses, successful ones can bring in significant revenues. A class of just 12 beginner divers could bring in nearly $4,800, and guided tours with groups can bring in much more. It’s these revenues that make established businesses worth so much more than starting a new business normally costs.

How can you make your business more profitable?

潜水企业可以增加收入来源renting equipment to private divers when the equipment isn’t being used by a class. They also can offer to service students and private divers’ gear.

Business owners who are extremely familiar with a particular dive spot might bring in a little additional revenue by writing a book on scuba diving in the area.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your scuba diving business is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app 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 aboutstate sales taxand 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 aspiercing 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 abusiness credit cardhelps 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 ourLLC 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.

Federal Business Licensing Requirements

It is important that you follow all state and federal regulations for scuba diving licensing and instructor licensing. More information can be foundhere.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a scuba diving business. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

Certificate of Occupancy

A scuba business is generally run out of a storefront or diving facility. Businesses operating out of a physical location typically require aCertificate 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 scuba diving 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 recommendedto 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 scuba diving business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects 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 withGeneral 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 isWorkers’ 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?

While scuba diving businesses can generate sizable profits, most business owners don’t get into this type of work solely for the financial return on investment. Instead, they’re passionate scuba divers themselves and aredrawn to the scuba lifestyle. They like the idea of making money doing a sport they love.

What happens during a typical day at a scuba diving business?

一个典型的天潜水业务充满of activity. Business owners and employees spend time:

• Servicing equipment (e.g. refilling air tanks, checking masks, etc.)
• Maintaining the business’ building and boat (if they’re owned)
• Teaching in classroom settings
• Going on guided dives
• Ordering more supplies and equipment
• Filing paperwork for students (see Skills & Experiences)

What are some skills and experiences that will help you build a successful scuba diving business?

Business owners should themselves be competent and experienced dive instructors, certified with either theProfessional Association of Diving Instructors(PADI) or theScuba Schools International(SSI).

The scuba diving business will be affiliated with one of these organizations. Which of the two organizations a business is affiliated withhas a significant impacton what the business is responsible for and what support it receives.

In PADI’s system, instructors themselves certify students. This means that instructors are responsible for purchasing training materials and filing paperwork upon course completion. They communicate directly with PADI and can even run a business entirely on their own.

Despite their independence, many instructors partner with diving businesses. In these arrangements, businesses usually provide facilities, equipment and marketing. Businesses can expect only basic support from PADI.

In SSI’s system, it’s the businesses that certify students. Instructors still teach courses, but businesses order training materials, file certification paperwork and communicate with SSI. Instructors work for the businesses and can’t themselves certify students.

Thus, businesses that work with SSI are responsible for the entire training process. SSI also provides more support for businesses, although the support packages come with price tags.

What is the growth potential for a scuba diving business?

Because diving requires an intimate knowledge of the local underwater features, most scuba diving businesses have just one location. If well chosen, this location can provide access to multiple dive sites.