Boat Builder Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Boat Builder Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Boat Builder business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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Product Specifications (please see images below):
Customized small boats are popular among fishing enthusiasts and water sports enthusiasts. Unlike boat manufacturing companies, boat builders typically focus on providing much smaller vessels at a much lower cost to their customers. Typically, the sales price for a new custom-built boat runs anywhere from $5,000 to $30,000 depending on the scope and scale of what the customer wants. One of the nice things about these businesses is that they are able to aggressively control the rate build so that they are not spending a substantial sum of money on a number of materials before an order comes in. This is primarily what separates a boat builder from a boat manufacturing company. Typically, the startup cost associated with a new boat builder are around $100,000 to $300,000 depending on the scope and scale of the fabrication shop that will be developed in conjunction with operations. These businesses typically have gross margins of around 50% on all sales of developed boats on behalf of clients. Of course, these gross margins can be somewhat higher depending on the amount of customization that is required by a customer.
As with any business seeking capital, a boat builder business plan should be developed. This business plan should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. An expansive demographic profile in marketing objective summary should be developed as well in order to ensure that the appropriate people are being targeted for boatbuilding services. Most importantly, a competitive analysis should also be developed as a relates to other boat builders in the area. Usually, these businesses are located near water sources – so it is relatively easy to determine what other competitors are in the market. As it relates to industry research, there are approximately 2,500 independent boat builders within the United States and each of these businesses generate about $2 billion in revenue.
A boat builder SWOT analysis should be produced as well. As it relates to strengths, boat builders are able to generate substantial sums of money on a per order basis for the development of a new boat. The target market typically has enough economic staying power to place orders for new boats even during times of economic recession.
As it relates to weaknesses, boat builders can have some downward pricing pressure in the event of an economic recession given that these are purchases made with discretionary funds. The boat builder can also have very high operating expenses depending on the size of the shop.
For opportunities, boat builders can expand by developing vessels on a speculative basis for sale to the general public. Additionally, larger scale orders can be solicited once the business it establishes a strong brand name.
For threats, the biggest challenge faced by these businesses is when an economic recession occurs. These businesses will have fewer orders given that fewer people are going to be placing orders for new large ticket items.
A boat builder marketing plan also needs to be developed in order to ensure that the business can quickly find customers. An expansive website should be shown with varying designs and images of completed work in the past. This website should be listed among all major search engines and it should be mobile friendly. Additionally, a presence on popular social media platforms including FaceBook, Twitter, LinkedIn, and Instagram should also be included in order to continually increase interest in the boat builders activities. These social media platforms will allow the business to join a number of communities where people enjoy taking a look at custom developed boats. A marketing and public relations firm can also be hired in order to place articles about the boat builder and its services in boating, yachting, fishing, and other sporting magazines. While this is a substantial expense for a new business, the results can be significant if this is done properly.
Boat building is a time-honored tradition with the United States, and there are always going to be people that want to have special and customize watercraft. For an entrepreneur that knows how to properly control the underlying cost associated with his business – these can be lucrative small businesses that have substantial opportunities for growth.