6 STEPS TO STARTING YOUR OWN CHARTER BOAT BUSINESS

 

Here is a simple but practical guide, inspired by our charter boat owners, on how to successfully launch your own charter boat business in Australia or New Zealand. Watch the video of Pete Johnson from Pegasus Charter to see his story.

 

 

Step 1 – Get Sailing / Boating Lessons

If you have absolutely no experience with boats of this size, a great place to start is taking sailing or power boat lessons, ideally on the type of boat you eventually hope to own. This can be informal from friends or through a sailing club, or more formal through a boat training program.

 

Sign up to your local sailing club as crew and you will be on the water in no time. Or if in Sydney, join our Multihull Cruising Yacht Club as crew. Visit here: https://www.multihullcruising.org.au/

 

In partnership with Pacific Sailing School we offer training to both Competent Crew and Day Skipper level with the RYA syllabus.

 

 

Charter boat operators are always in search of good, reliable and passionate deck hands to assist in their charters. This is a great way to learn the rope of the charter boat industry and get a taste for the style of charters you might expect. This will also help you log the hours required on a commercial boat to enable you to get qualified as a commercial captain.

 

If you want to sign up with us visit www.charterboatcentral.com.au and get in touch with our team.

 

 

 

Step 3 – Get Qualified 

If you plan to operate your own charter boat in Australia, you will need the appropriate qualifications and these qualifications depend on the length of the vessel. There are training schools around Australia that provide the training required.

 

If you plan to run a boat that is less than 12 meters in length you will require a Coxswain Cert II ticket (most common and easiest to obtain). See courses offered by Seaschool here: https://www.seaschool.com.au/commercial-certificate-courses/coxswain-cert-II

 

If plan to operate a boat over 12 meters but under 24 meters, you will require a Master Engine Driver 3 certified. This is a more rigurous course with many more hours logged. See courses offered by Seaschool here: https://www.seaschool.com.au/commercial-certificate-courses/marine-engine-driver

 

 

It’s important to work with your accountant to build out a business plan. Things to consider are your hourly or ticket rates, how many charters a week or a season you might get, and where the new emerging opportunities are surfacing. Then consider expenses such as costs for a deck hand (or a skipper if unqualified), maintenance, insurance and marina / mooring fees. How will the boat you like fit in the existing market? Below is an example of how a Seawind 1160 Resort charter boat PNL may look based on Sydney Harbour.

 

Charter boat operators in the Whitsundays and Sydney are already noticing strong bookings as Australians rediscover their backyards, despite restrictions on interstate movements. To watch a full replay of Webinar Interviews with Trevor Rees of Whitsundays Escape <<CLICK HERE>>, or with Russell Waddy of Pittwater Yacht Charters <<CLICK HERE>>

 

We can recommend an expert charter boat accountant for specialised advice. Contact Peter Jabour or Andrew Schilling from Jabour Accountants on 02-4626 9900

 

 

Like any finance from a banking institution, there are usually two main considerations including: 1 – Security and 2 – Serviceability

 

Getting finance on a boat is not always easy as banks don’t tend to favour floating assets that can sail away over bricks and mortar. So it certainly helps if you have equity in property that can be used as security against boating finance which also means lower interest rates and longer and lower repayment terms. When it comes to serviceability, unless you are buying a going concern with several years of financial records, the potential income from a future boat is unlikely to be considered towards serviceability so income an existing income will be reviewed.

 

An expert finance broker can help package this to submit to the most cooperative finance institutions.

 

We can recommend an expert finance broker for assistance with finance. Contact John Eldick from Sumplus Mortgage Brokers on 1300 761 197.

 

 

 

To operate commercially with paying passengers in Australia or New Zealand, your vessel will need to be commercially compliant or in ‘Survey’. In Australia this is a nationwide system so once your boat is approved in one state you can operate with the same restrictions in another state.

 

Use the following table to work out your vessel service category. For example, a passenger vessel carrying 30 people and operating out to 15 nautical miles has a service category of 1C.

Common classes of survey our boats are built to include 1E (for larger groups in smooth waters), 2C (groups up to 12 for offshore charters), and 4D (bareboating in partially smooth waters).