ForumsStarting a Business

Do a business plan including a detailed cash flow projection which will tell you what financing you will need to start and run the business. I recommend a 3 year projection. The business plan will give you focus on all the facets of starting and running a business: Financing, marketing, sales, promotion, facilities, costs, expenses, etc. The business plan will also help you to think through other areas of business like facilities, location and competition, licensing, personnel and management. Having a well thought out business plan and cash flow projection can help you to avoid a lot of the pit falls that you might otherwise experience if you don't have them.

Do your homework. How many other Scuba diving businesses are their in your area? Can you get any information from another company (or perhaps estimate) about costs and income. Does the area need another business? Are people just lined up?

Where and how would you advertise and how much will that cost you? What promotional deals can you provide to get people to come?

Can you corner a niche market of scuba diving? Can you convince all of the fabulously rich people to dive with you so that you might be able to even charge more? Competition isn't where the money is.

I see that this is a relatively old, but still "unanswered" post. How is your planning going?

I've lived in Hawaii and did some diving while there. Serious divers have a favorite shop they do business with already, and you won't pull many of them away from their shop to yours. From that perspective, trying to partner up with or buy out a "retiring" owner is great advice from the previous post.

The non-serious divers are mostly tourists, and the shops that support them have agreements with tour companies and resorts. Hardly any business would come from marketing directly to customers unless you were offering a truly unique dive experience. The problem with that is the operators who make a living off tourism have a kind of surfer or street gang culture, and by that I mean a dive spot may be "public," but a particular shop or operator will treat it like it's their turf (or surf?) and things can get pretty nasty if a new operator tries to come in. In spite of how huge tourism is in Hawaii, it's not a business that seems to welcome new competitors with open arms. So again, working with an existing shop may be the best way to work your way in.

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