Education Can Ensure Success When Buying, Starting or Expanding a Boating Business

By Harry Munns

Let me share a story I’ve heard more times than I can count. Someone in the boating business describes how they got into the industry. Their origins lead back to a keen interest in some segment of boating. They say, “I loved it so much I figured, why not make it my occupation?”

If you’re expecting me to say there’s something wrong with that, I’m not. What could be more valuable to any business than having an owner who has genuine passion for their work?

You might also meet people in the business of boating who tell you, “If I can do it, anyone can do it.” I would take a little more exception with that statement. Statistically, nearly 50% of all new businesses fail within five years. Boating businesses probably score higher in failures. The business owner who told you anyone can do it, probably left out everything that comes after the “if” that belongs at the end of that sentence.

A professor at the University College of London attributes career success to 55% luck and only 45% talent and effort. I’m not sure I agree with that. Luck can definitely make a difference. A few other elements play starring roles in making your boating business a box office success.

Money is a big one. You’re starting with a big handicap if you don’t have enough. Lots of people say, “I’ll work 20 hours a day, seven days a week. No way I cannot succeed.”

Now for the bad news. You’re going to work that much with or without adequate funding.

So what determines how much is enough money? First, you need a budget for at least the first three years. You can’t just pull those numbers out of the air. They need thought and research. Things like advertising and promotion can require more or less money in years one, two or three.

Advertising is a great example of an expense that can act like a black hole on your finances, consuming as much money as you’re willing to dump into the hole. How do you determine what’s too little, enough or too much?

The best way I know is to take lots of time to write a comprehensive business plan. You’ll often see business plans associated with the process of raising money. It’s nearly impossible to get people to invest or loan you money without a business plan.

In my opinion, the more important reason for writing a business plan is to force you to look at all aspects of the business, not just the pleasant parts like making your job about your passion or making money.

Writing a business plan is probably the single-most important tool you can use to understand how your new business or improved existing business will function, mature and grow. It’s also an invaluable yard stick against which you can compare anticipated performance and actual results.

You can cut the learning curve down significantly by working with an expert advisor whose sole purpose is to share knowledge and provide guidance. You, the budding entrepreneur, will have a hard time seeing reality without looking through a lens that highlights all the amazing parts of the future you’re planning.

I hope nothing in this article casts a dim light on your boating business dreams. Many, if not most, of the highly successful companies in the industry were started by people just like you. They took dreams and great intentions and turned them into amazing accomplishments. Every one of them started with an idea.

Harry Munns is a boating expert and consultant. www.harrymunns.com. harry@munns.org.