620: Plans for a future Charter Business

[Valmika]

Originally Posted by peterbeale

Mark,

I did 10 days solo cruise, Redondo, Long Beach, Newport, Dana Point, Avalon, Cat Hrb and back to Del Rey last Saturday afternoon.

Peter

Well then, I wasn't you I was yelling to. this guy had about 4 people on his boat. I thought your sails got a little dull quickly

[HappyMdRSailor]

Originally Posted by duefocena

Yikes..... if you're still interested in chartering after that barrage of "reasons why not", then you probably have it in your blood and can make it work. Remember, there are a ton of charter operations and all of them started and exist somehow.
To throw in another possibility to add to your due diligence that I don't see mentioned here. See who is selling their charter business and why. You may want to start with the ball up the field further and you can hyperspeed your knowledge of the business. The owner of a charter business has been there and can help you avoid pit falls, learn local best spots, deal with permits etc. There are some basic truisms that can be of immeasurable help that only the owner could share with you.

Yes, crewing for some charter company is helpful.... If you're 18 and have 10 years to build sea time scrubbing and scrubbing. You can hire a captain until you've built sea time to get your own license so don't let that stop you. They're called "paper captains" and for all intents and purposes you are the captain but he is aboard with the proper license. There are plenty of captains willing to work as crew just to get out and make a few bucks.

After 14 years in the charter business in Hawaii I can give you plenty of why not's. The first guy that barked at me "make me a Margarita !" conjured a response from me, "Make me a Ferrari !!!), I can also say I wouldn't have done it for 14 years if I didn't love it.... at least sometimes.

PM me if I can be of any help because I can see the tone of the responses you've received and I don't see a lot of support.

Overlooked buying an existing bus......

Originally Posted by Mark Killam

I only have one boat, the rest just hire me as captain. Mine is the Beneteau. I am in A basin, Tahiti marina. What Morgan do you have?

In Golf over by the hotel... 33 OI that I NEEEEEEEEEEEEEED to sell !

http://www.cruisersforum.com/forums/...ed-141619.html

[Scaramanga F25]

Do you have $ 2,000,000.00 for that boat?

[DerekKelsall]

Rich and Jane,

contact me directly - <derek@kelsall.com>

There is a rare opportunity to take over an existing, successful catamaran charter business, that you may like to consider. I can introduce you to the owners.

Derek.

[MarkJ]

You could get done I go from Tradewinds charters. They have husband and wife teams running large cats.
Some of my friends do it and they enjoy it. But they are quite special, driven people.

At least you would be able to work out if its aa life for you.

[alansmith]

Rich, u remind me of me with the serious addiction to the ocean life. When it bites you... soon become a werewolf or vampire. It is a serious affliction that can't be denied or conjured away.

First question, the old adage of wanting to make a million dollars with your boat is to start with 2million dollars is not really too far from the truth. You have not divulged your cash situation. But since you mentioned investors I will assume that you are looking for someone to help cashier the boat and you pay them some sort of partnership dividend. The boat you have mentioned is a very nice boat...you have good taste...expensive taste...but it is a good boat for what your plan is. So, first thing is, do you have the financial wherewithal to get a bank to cut the check? If not, then you have to have some serious people behind you like a corporation or some well healed clients to pony up. Those are hard to come by...and for a very good reason. They have money because they understand money and how easy it is to lose money on business.

If you have an expensive boat like that you surely must understand that it costs a lot of money for insurance, engine repairs, ....some people can quote you what percentage of the purchase price of a boat it costs per year to maintain...I read it but forgot it.

The best advice that I read here is this...get you and your lady certified and hire on for a season or two as charter boat team. It will give you a real feel for what you are attempting to do. There must be hundreds of blogs like "zero to cruising" about the life of charter captains/cooks and what they go through on a daily basis. It is no joke how hard they work.

I think that if you will go this route of becoming a charter team on someone else's dime you can learn the ropes, make good business contacts, see if it really is what you think it is, and see if it fits your wife's expectations. I can tell you are a very open and friendly guy and would work hard. Choosing a multihull versus a mono hull works better for a woman. A woman likes her own little private spot like her own toilet and shower and bedroom that is afforded on a cat. Hard to do charters and have that same level of privacy on a mono.

Many of the posters seem negative for a reason. The business is fraught with serious competition, weather issues like hurricane seasons and high heat during the summer months. The Carib season is actually pretty short due to weather and heat. It takes years to build clients and most single boat charters (not a fleet) almost never make it. It is a business that needs scale, reputation, experience, and financial acumen to survive. Many posters know this and are really just trying to say you better look at the business model very carefully. Most people here have seen many people like you ask the same question over and over ad nauseum.

Here is a rhetorical question for you? Why do you think all of the big chartering companies like Mooring, Sunsail, and Tradewinds never own their own boats? They get people like you and me to buy the boats and put them into their charter business for management fees, tax breaks, and owners to use these boats for 2-4 weeks a year. By the time the boat leaves their lease in 3-5 years you would vomit to know how much of the boat value was lost due to depreciation. It literally is a zero sum game if I understand it correctly.

The last bit of advice...sorry...I am not trying to rain on your dream. But, honest to heavens, my thinking is to make sure you have thought this through very carefully...all of the other posters are trying to do the same for the same reason....sit down with a representative of a large charter company and tell them you want to buy a boat and put it in their charter business. Study carefully what they are telling you and do the math. Sit with your CPA (if you don't have one...it is worth the 200-300 dollars consultation) and go over the math they are trying to sell you on. See what the CPA has to say about what you would end up by putting a boat you bought into "THEIR" service. Now...do you think you can compete with their price structure, advertising, expertise, maintenance crews, licensing permits, business contacts, government permits, and on and on? And remember one critical component of their equation for success...they didn't buy the boat so they don't have the capital expenditure like you will. It is truly an upside equation. Research will tell you that I am pretty close to the truth in what I am stating.

So, start with necessary licenses and then work for a charter company for awhile. Then make your move. Wish you the very best and keep us informed what road you take. You seem to be a great guy...

[Eduardoandrade]

I'm buying a charter business in BVI , turn the key ,lagoon 450, I have no experience....any thoughts !!!??

[belizesailor]

Originally Posted by Eduardoandrade

I'm buying a charter business in BVI , turn the key ,lagoon 450, I have no experience....any thoughts !!!??

Ha, back out of the deal?

[Vasco]

Originally Posted by Eduardoandrade

I'm buying a charter business in BVI , turn the key ,lagoon 450, I have no experience....any thoughts !!!??

Actually I can offer you a much better investment. I can't divulge too much on this forum but the link might give you some idea.

Brooklyn Bridge - Facts & Summary - HISTORY.com

[Eduardoandrade]

Originally Posted by belizesailor

Ha, back out of the deal?

Why??!

[Tellie]

From pretty much zero knowledge to a 62' Lagoon Charter business? All due respect, a boat this size is a whole different realm of considerations that takes more experience than can be garnered in a few months. Most people don't get to the financial position you must be in to afford a 62' Lagoon by being foolish. Your desires are fine but your bite may be a bit too much. A 45' Lagoon is easily a charter able boat. A lot less the cost and the huge money difference between a 45 and a 62 will easily outfit a 45 with money to spare. If you become the best charterer in the Carib then move up. If you find that this is not your cup of tea, not all white beaches, and Rum Runners your loss won't be nearly as much. I work with a lot of new owners of Lagoons and Leopards who have the same ideas and dreams as you do. It doesn't always work out. This is a personality business and I find most people don't have the real people skills needed to go into this business for themselves. For what a 62 Lagoon would cost to buy, maintain, outfit, and repair, you could get into any number of absolutely gorgeous boats that will take you and your wife anywhere you want in a luxury most of us would drool over without having guests help pay for the ride.

Halden Marine Services | Marine Watermakers, Solar Panels, Wind Generators

[belizesailor]

Originally Posted by Eduardoandrade

Why??!

Read the several threads here on the subject and you will, or should, understand why...or rather...why not.

[Fishbreath]

Charter companies seen to work better in the med..
but you need to a RYA YACHT-MASTERS license and insurance ...ect
or at least thats what someone told me... I was told Greece has started charging for entering their coastline?
I would think it would make more sense to buy a smaller boats and spend the difference in price.. enjoying the boat ?

[doublewide]

Boy, Alansmith; that was a good post! I am going to go back and read that every time I even think about putting my boat into charter.

[Steadman Uhlich]

Howdy Rich and Welcome Aboard CF!

I have read your intro post above, and all of the following comments posted by others.

Based on what I have read (especially your comments in the original post and in response to others) I have the following suggestions to make.

Here are a few previous discussion threads for research:

Charter Business Advice

Member wants to purchase a new 58 foot cat and put it in charter. Business plan with budget discussed. This one thread has a lot of experienced views and good suggestions related to what is a realistic budget for launching a charter business.

http://www.cruisersforum.com/forums/...an-151011.html

Additional threads related to "charter business"

Google Custom Search of CF
Keywords = charter business
charter business - Google Search
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After that, you will probably still have questions.

Looking for Quick Answers?

Tip: First use the Google Custom Search of this forum.

This is the best and fastest method I have found to the answers I seek here.
Since you are relatively new to the forum, here is my favorite friendly forum search tip: Look at the menu bar on the forum pages for the drop down "Search" menu. Click on that to drop down a list of search functions. From that drop down menu select the GOOGLE CUSTOM search feature (the second box down) and then enter several different descriptive terms for your topic of interest. That will do a Custom google search of ONLY this site and it is likely to find answers to your questions or results for you. Note: this is VERY different from using the regular forum search box or field (which I never use because of poor search results). Also note, this is NOT found if you use the CF app. It IS found if you use a web browser such as Safari, etc.

Note: The ordinary "search" field on this forum has yielded less helpful results for me when I perform searches. That is why I prefer and suggest the use of the alternative "Google Custom Search" instead. I see a very clear difference and find the Google Custom Search much easier for scanning (with my eyes) threads for relevant comments and info. YMMV
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