Boat Manufacturing Company-Business Plan - Conor McLaughlin

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Boat Manufacturing Company Business Plan

Conor McLaughlin


The boat manufacturing industry is a multi-billion dollar industry. Whether it is manufacturing of ships, Yatch or speed boats; there is a ready market for them. But the surprising thing is that many boat manufacturing companies are going out of business without the first few years. The problem is not just starting a boat manufacturing company but maintaining it as a profitable business is where the major problem lies. I will start by outlining factors you need to put in place before starting a successful boat manufacturing company, how to start your own manufacturing company and who your end users are


Things You Need to Start a Successful Boat Manufacturing Company ď‚— Choice of Boats to Manufacture-: There are ships, speed

boats, yatch, liner boats and many other types of boats; you have to make a choice of which you wish to specialize in. Also, you need to make a choice of the materials you will need for your productions. For instance, you can choose to major on two sitter boats and wood as the major material for production.


ď‚— Source of Capital-: Starting a boat manufacturing business

requires a lot of capital investment to get it up and started. You can get other partners to pool in capital to start the company. But be sure to state a clear memorandum of each partner’s contribution towards the growth of the business, and financial investment, and percentage of profit each partner is entitled to.


Business Plan  Take a Business Course-: If you haven’t started and

successfully grown a company before now, then you need to take major business courses before you start your company. Some basic business related courses you can take include; project management, sustainability in business, business management and many others.


Take Inventory of Cost and Profitability of the Businessď‚— This is one major reason why many boat manufacturing

companies went out of business; they didn’t take the time to calculate the cost and profitability of the business before they got started. Draw up a rough plan of how much it will take you to build a boat, and an estimate of the selling price.


 Develop Your Business Plan ď‚— After you calculate your profitability and cost of production,

it is time to draw a business plan. The business plan should contain the plan you have for your business for the next few years and steps you need to take to make it happen.


Register Your Company as a Legal Entity  You can’t run your business without getting it registered

since you are planning to start productions in a commercial quantity. Find out the basic requirements for incorporating a business in your state and get your business registered. Also, you may also need to get some license to permit you operate your boat business in your location.


Build Your First Boat and Check Your Cost:Â ď‚— You have to build a sample of the boat your company is to

manufacture; and through out the process, have a journal where you record every single cost and expenditure you made during the building stage. After you are done check the selling price or how much customers are willing to offer for the boat; minus it from the cost of expenditure you made for production, then you will get the amount that will be your potential profit.


ď‚— The sales and profit you made from this first batch and the

subsequent demand for the product will determine the number of how many more you will manufacture as your next batch. You can also expand your boat manufacturing company into taking custom boat building contracts from private individuals and companies; this is how most boat making companies make the bulk of their profits.


Advertisement-: ď‚— Your company is ready, your first batch of boats are ready; so

it is time to get buyers to start placing their orders. You know that buying a boat is not for the average income earners, so you have to find a way to locate these top companies and high income earners who you know have what it takes to order for a boat and are willing to do so.


2 Ways to Advertise Your Boat Manufacturing Company ď‚— Have An Online Presence-: This is one of the best place to

locate the right buyers. Most rich people prefer to search on search engines like Google to find high quality boat manufacturing companies anytime they have the need to order for a boat. Your best shot in getting their attention is to create a website that will contain an online catalogue of the boats you have in stock, with a payment system and instruction on how customers can order for a custom made boat if possible. If you can add a sub forum with threads for boat owners and users, I think you will catch a lot of attention for your boat manufacturing company.


ď‚— Advertise on Business Sections of Magazines-: You

can place adverts on business sections of popular magazines and publications; as long as they have a wide sections of readers, you advert is sure to be noticed by the right people. Note that it is not all magazines will work for this; you have to look for luxury or high class magazines that are patronized by the high and wealthy. It will be expensive to place such adverts but as soon as you start getting your first orders, your profits will cover for the expenses.


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