Setting up a charter business? Are we mad?

[sparkle]

Being new I hope that this is an OK topic but having got more and more excited about sailing, my brother and I would love to start up a skippered charter business -with one boat - which we don't have yet! Is this foolish or could we live our dream? Any suggestions?

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[byron]

<font color=blue>Think of something else.

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[graham]

To charter your boat will have to be inspected and coded by the MCA which can be an expensive business so allow for it in your budget.

Also you will need at least a yachtmaster ticket to hire yourself out.It needs to be commercially endorsed which means you need a medical done by your GP usually and a Sea survival certificate which can be done on a one day course.

Contact the RYA for advise first .They have just moved offices so may be slow responding at the moment.

If your keen enough Im sure all obstacles can be surmounted.

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[Gunfleet]

I think you'll be four boats short of an income, if you see what I mean. Why not do it as a sideline?

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[Reap]

Well one boat sailing schools can run succesfully and profitably too. There's no reason why it cannot work, though I think the failure rate of such a venture especially by somebody so inexperienced must be extremely high.

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[Gunfleet]

Nobody mentioned sea school before you, but it's an interesting point. Say the boat and coding cost £100000. You need to return say 20 per cent of that (including asset depreciation) to make any investment sense, especially if you've borrowed the money and expect at some stage to buy another boat. Berthing = £2500, say. You run the sea school as a one man band and as long as you never sprain your ankle or get the flu, you are able to sail with 4 people aboard for 150 days a year @ £80 per dayper person. They eat nothing and the income from sales = £48000. You had a good year so call it £60000. Take your £22500 off and you get £37000. (If it wasn't a good year call sales £36000 and take the £22500 off that - you're left with£13500). No, that's too depressing. Let's stick with the good year - £37000 left ot pay you. Of course, you can live off that if you already own a house, if you never need cash reserves for anything else, if there are no unforseen contingencies with the vessel and if you are of revoltingly robust health. But it doesn't provide two incomes and it would only just be enough to allow you to buy a basic house in East Anglia. Property in the Solent area has its own rules. Strictly speaking you're right. It just depends what you'd think of the income this massive investment and all your hard work will provide.

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[snowleopard]

i ran a small bareboat business a few years ago. a lot of the lessons i learned are applicable to your situation.

the key to making it work is utilisation. if it's just a sideline to help pay for your boating then a week a month will be good enough but if you want to make a living at it you will have to fill 80%+ of your berths during the high season and say 50% for another 1/3 of the year.

the tough nut you have to crack is that you can't be selling while you're sailing. an agent may charge 25% of the charter fee and he's not too bothered if he sends you no clients as it doesn't cost him a penny when your boat is tied up and not working.

if you have a partner who can do your office work you may be able to make a go of it. here are a few tips:

get a well-known make of boat: people won't take a chance on a boat they've never heard of however good you know it to be.

aim to provide good quality food in generous quantities.

most charter guests (as opposed to sailing school clients) expect en-suite facilities.

accept that it will take a long time to build up a client base.

most of your business will be repeats so they must enjoy themselves.

a theme will make you stand out from the crowd (music, wildlife, gourmet etc.) but you need to know your stuff.

at the end of 3 years we worked out that for every pound of charter income we spent three on fees and maintenance. the only one who did well out of it was the agent.

good luck.

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[spark]

If I were you I'd the qualifications and then try working as a charter skipper on someone else's boat to see if you like the life, which is very demanding. While on board you're on duty 24 hours a day and if you have irritating guests there is no escape from them.

If you're determined to go ahead and buy a boat then try and find one that is already coded and has an existing client base. I know of one such (PM me if you want to know more) and there will be others - chartering is a tough life that cannot be sustained for long by most people.

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[Forbsie]

The boatyard down from me on the Thames have this wonderful launch that is hired 3 or 4 times a day by Sikhs who then scatter the remains of their recently departed relatives on the river in the belief that, at some point, the Thames will meet with the Ganges.

This must be a goldmine. /forums/images/icons/cool.gif

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