What is the most popular jet ski?

How much does it cost to start a Jet Ski Rental company? How much is the insurance? What else is involved?

• My best friend and I are looking to partner to start a jet ski rental company. I just got back from a caribbean vacation in St Maarten and saw how much money the Jet Ski stand was making IN CASH. This has always been a goal of mine and I honestly think that by starting a company like this, i would not only make good money, but would love my job and be happy doing it. With that said, I am not positive of the up front costs. I looked up how much jet ski's are, so this I know. I have a couple quesitons. How do you go about claiming a spot on the beach to start the company? Can you just find a spot that you like and set up shop, of course not, so who do you talk to to see if you can claim a certain spot on a beach front? Do you lease a spot and if so, from who? How much does this usually cost per month? Also, how much is the insurance? How much is it to maintain jet ski's? Other than leasing a spot, purchasing the jet ski's, insurance, and maintenance, what other up front costs are there? If anyone has some advice and answers they can give it, it would be greatly appreciated. Thank you in advance for your help. Neil

• Answer:

  It would help if I knew where you were thinking about undertaking such an endeavor. If you are going to start this business within the territorial waters of the U.S., liability insurance alone will cost $14,000/year (2006 prices, Lloyd's of London, or its' subsidiaries, are about the only available insurer's, link below) or more. If you have to acquire insurance, be prepared to have your bowels examined. If you set up with any resort or other property owner, THEY WILL INSIST ON A VALID INSURANCE POLICY. Lease prices for a good location in the U.S. range from 10%-50% of your gross revenues. Good luck there. If you have the ability to set up offshore (beyond 300 feet from any U.S.shore), you won't have to pay anyone any cut of your revenue, and if you properly set up a legal LLC, and can afford to buy your jet-skis outright, and if you properly shelter your personal assets, then you can say, 'screw insurance'. If you do set up offshore, you will need at least two other grunts, but these guys will certainly work for cash under-the-table. If you are starting up outside of the U.S. and the Great Golden Land of Lawyers, forget everything I just said. If not, forget it anyway.