Different Legal Paddle Board Rental Business Models
Watersports like paddle boarding are getting popular globally with each passing year. It is not only a recreational sport but is also a very healthy form of exercise. People enjoy it with their friends and family.
If you have enjoyed paddle boarding so far and are interested in starting your own paddle board rental business, make sure you first acquire the market-related knowledge. This rental business can be established in many different ways as there are different legal business models available.
If you are unaware of the legal possibilities of starting this business and do not know which business model is more suitable then this article will guide you to choose the most appropriate business model.
The following list of the most common business models will help you to make a more knowledgeable choice and make your name in this industry known.
Legal Paddle Board Rental Business Models
Mobile-Based Rental Business
The mobile-based rental business is the cheapest business plan out of all the plans mentioned here. Not only that, but it is also very convenient and can be done part-time. Let’s see how this business model really works.
First, you will have to make connections with several SUP rental businesses from whom you can get paddle boards. When a customer who needs to rent a paddle board will call you, you will go and fetch paddle boards from suppliers and rent them out to your customer as promised. You will get it from a supplier at a lower price, and then rent it out to customers at a bit higher price.
Renting paddle boards may not seem as profitable as owning them, so this business model is more suitable to those who are looking for a short-term business. It is also suitable for you if you want to start a business that does not require any investment.
As you will not have a fixed place to attract customers, you will need to promote your business in different ways. For instance, you can create an online page and advertise your business there.
What You Need to Have
You will need to have the following basic things to start this business.
- Connections with several SUP rental businesses
- A car to take paddle boards from suppliers and provide them to your customers
- A mobile phone to receive calls from customers
- A profitable marketing plan to get your phone ringing
- It is the cheapest business model. You will not have to own paddle boards to rent them out. You can simply reserve them from any other SUP rental business.
- You will not have to hire employees to manage your work as it can be managed by a single person easily.
- You will not need to rent a place to keep your paddle boards or run your business. It can simply be done while sitting at home.
- It can be risky. Your supplier can be short of paddle boards if there is a high demand for boards in his area.
- This model is not very profitable as compared to the other business models.
Fixed Base Rental Business
A fixed base rental business model is that in which you will have a fixed place from where you will offer your services. This fixed place can be a park, resort, or any other area which offers paddle boarding. In such business, most of the time, the person does not own the place. Instead, he provides services (in this case, paddle boards) through a place provided by the park or resort, etc.
Resorts or parks usually have their own policies, which you will have to follow if you want to work there. They may also take a little profit out of your whole earning. Unlike the business model mentioned above, this business model requires investment. It is because you will need to purchase your own paddle boards in order to rent them out. You will also have to get expensive permits from the local government.
To keep providing your services at resorts etc., you will have to keep your customers safe, satisfied, and happy with your products. Make sure your paddle boards are in a good position. They should not have cracks. If a paddle board requires repairing, do not provide it to the customers until it is fully repaired.
Maintain good customer service to keep getting more and more customers. You will also need to have field-related knowledge and expertise. For instance, you should be aware of the different types of paddle boards and know which type is more suitable for each customer. If you are skillful enough, you can offer other water sports related equipment like kayaks, life jackets, etc.
What You Need to Have
- Purchase your paddle boards or get them from a rental company
- Get permits from local government
- You will not have to do marketing of your business as the location you will be working at will already have many potential customers.
- You will be able to save your marketing cost.
- This business model will bring you more profit than the mobile-based rental business model.
- You may have to follow policies formed by the resort, park, etc., where you work.
- You may have to offer a small part of your earnings to the place owners.
- You will have to invest money to make this business more profitable.
- You will have to be punctual and be on-site all the time.
Retail Rental Business
This business model is based on the brick and mortar business idea in which you run a street-side business and have a face-to-face interaction with your customers. Your customers will have the opportunity to physically access the item before purchasing or getting it on rent. This business model will offer you many options. Besides renting out paddle boards, you will be able to sell clothes, boards, and watersports related accessories.
You will have to rent or purchase a place to run this business. It may make it a costly option. But this investment will pay off in the long run (only if you use the right marketing strategies and run your business professionally). You can also give watersports related classes and teach courses to attract more audience.
This business model is suitable for those who are looking for a long-term business option and have financial support. You will need to have solid business-related knowledge so that you can attract more customers by offering them knowledgeable suggestions etc.
You may need to hire employees if you are dealing with many customers. Selecting employees may take time as getting trustworthy and skillful employee is a hard task these days. You will need to establish your store at a very suitable place. The place should be near the ocean, lake, or an institute that teaches paddle boarding or similar sports.
You will need to have lots of investment available to set-up this business. Your knowledge related to paddle boards will not be enough to run this business. You will need to be aware of sales techniques, management methods, and much more. You will also need to get a license, a permit, and insurance before starting this business.
- It is a long-term business model, so it can bring more profit if you use the right marketing techniques.
- You will be the owner here and will not have to follow policies created by any other owner. Instead, you will create rules and policies.
- It is an expensive approach and requires more investment.
- You will need to hire trustworthy employees to handle the workload, which will cost you more.
- You will have to purchase the store or give monthly rent.
- You will also have to get insurance, a permit, and a license to legally and securely run this business.
- If your business fails, you will face more loss than the loss of any of the business models mentioned above.
Bricks and Clicks Rental Business
This paddle board rental business idea involves establishing a physical rental outlet and an online store. This way, you will provide your customers with two different options to buy or rent the boards. They can either rent a paddle board after accessing it physically in a rental outlet or rent it online while sitting at home.
We are living in a digital world, and the e-commerce industry is growing with every passing year. Creating an online store will help you compete well with other similar businesses. This way, you will be able to target both kinds of customers; the ones who consider shopping while accessing the items and the ones who like purchasing things without going out of their homes. It will give your customers more flexibility and eventually make your business more successful.
However, this paddle board rental business model will require more investment. It is because now you will have to set two stores; one physical and the other online. But keep in mind that in the future, you will get back whatever you will invest today. You will also have to hire more employees. Both stores will have their own marketing requirements. So, you may have to hire digital marketers or experts to run your business more professionally.
To set a physical store, you will have to do all the things mentioned in the ‘bring and mortal’ model. But to create an online store, you will need to acquire more knowledge or hire people who are aware of setting e-commerce stores. You will need to create a business website or may create pages on different social media platforms to make your business presence known.
- This business model will give you the opportunity to target a large number of customers.
- Offering your services through two different business channels will give you a better customer experience.
- If executed correctly, this business model will offer you more revenue compared to all the business models mentioned above.
- This model comes with more costs. You will have to manage the cost of a physical as well as an online store altogether.
- The online business world is very competitive. You will need to work hard and be more creative than your competitors to make your business a real success.
- You will have to invest more time as two separate stores will require more of your attention.
Subscription-Based Rental Business
Subscription-based paddle board rental business is that in which you will provide your customers paddle boards or similar items for a set period of time (weeks, months, or maybe a year) and get a fixed price in return. Most of the businesses that use this approach offer their services or items on a monthly or yearly basis.
Your customer will pay you before getting paddle boards on rent for a longer period of time. This business model will allow you to create different packages for customers. All packages will vary from each other on the basis of their time period and cost.
This business is more suitable for you if you are interested in creating an online store. However, you can still use this model by establishing a physical rental outlet. This model will only be beneficial if you target those customers who require paddle boards for a long time. You will face loss if you establish your store in a marketplace where most of the customers require boards for one or a maximum of two days.
- It will save you time. You will not have to rent out the boards to a regular customer daily. You can provide him with boards, for a longer period after getting a suitable price.
- It will also give you the opportunity to acquire a customer over a longer time, rather than a one-time purchase.
- Getting subscriptions canceled can put your business at risk.
- Only customers who need paddle boards for a longer time will be interested in your business.
- Your customers will have to sign a contract in order to acquire your services. However, some people get nervous with the simple term ‘contract’ as they think they will need to be more responsible; otherwise, they may face serious consequences. So, this thing can reduce your number of customers.
Why You Should Start a Paddle Board Rental Business
Paddle boarding has become one of the largest growing watersports in the world. It is because more and more people are getting aware of this fun activity and learning more about its benefits. In the U.S. alone, the paddle board market’s worth was 5 billion in the year 2015. It got increased many times in the next years.
It shows that there is more demand for paddle boards in the market. So why not become a part of an industry that is growing more and more every year. Renting paddle boards is a good opportunity for people looking for a business that initially does not require much investment.
Things You Should Consider before Choosing a Paddle Board Rental Business Models
Rental Business Related Knowledge
The most important thing you will need to start this business and run it successfully is the essential knowledge about how a rental business works. It is different than any other business in which you sell the items rather than give them on rent.
Learn the value of paddle boards in the place where you want to establish your store then buy the paddle boards accordingly. If the area is not very demanding, then do not buy more than necessary paddle boards. Instead, save that money and use it for something more beneficial.
Right Amount to Invest
Having a proper plan before starting this business is important to make it a successful business. So, do your research properly. Calculate all the costs carefully to make an estimate of the total investment that you would need.
Start with a small investment. Let your business grow first and see what the success rate is. If you notice that you are earning enough revenue every month, invest more or maybe establish a new store in a different area.
Suitable Marketing Strategies
The business world is very competitive. To make your business successful, you will need to create the right marketing strategies. These strategies should be according to the latest trends. Design these strategies by keeping in mind the needs and requirements of your customers.
If you are establishing an online store and a physical rental store, you will need to use different marketing approaches. So, make sure that you have the essential marketing-related knowledge as well.
There are many paddle board rental business models. All have their own advantages and disadvantages. You should select a business model that is more feasible or convenient for you. If you are looking for a paddle board rental business idea that requires the least investment, then the mobile-based rental business model is the right option for you. On the contrary, if you want to establish a long-term business, then brick and click business model is more suitable.
We hope this thorough analysis of different models will help you make a better decision about your future business.