: It sounds like a good idea in theory, but I may just be misjuding the
: interest level that is out there that could support something like this.
: Look forward to reading the responses.

Greg,

This idea sounds very similar to the "extra closet" temporary storage business. I think if you researched that business model you would be able to get the necessary numbers to determine whether such a business would be successful in your area. You would want to "rent" space for construction, they rent storage space. In both cases the areas being rented are fairly narrow, an probably ab out 20 feet long. If a storage company can make money by renting out such spaces, then you can too.

The big problem is not making money, but making *enough* money to pay the bills and compensate you for your time. Profit is NOT a dirty word!

I agree with a previous poster who questioned limiting the construction to kayaks and canoes. You would get a larger pool of potential clients if you also advertised to people who had other large projects, say reupholstering a couch, or building a bookcase.

The nature of renting out a relatively small space would constrict those who wanted to bring in a larger tool, such as a table saw. Where would they put it while building the boat? For that matter, what about a secure storage area for each builder's tools? Would you need additional space in your building for that, or would each builder have to provide a locked box?

There are numerous add-on features which could increase revenues. I recall camera stores which had darkrooms which they rented to photographers by the hour. They made additional money by selling photographic supplies (film, photo paper, developing chemicals) to a rather captive audience. Likewise, you could do a retail business in paints, varnishes, epoxy resin, fiberglass cloth, and certainly in sandpaper!

Since the materials would be used on the premises, you could lower your costs, and your sales prices by buying suck materials in bulk, and measuring out quantities yourself. For example, it is MUCH cheaper to buy epoxy resin by the 55 gallon barrel than to buy it by the individual gallon. If you could expect to have 40 or more people building boats a year then this would be the way to go.

Insurance costs could break the operation. The potential for someone to injure themself, or an adjacent builder, while on your property increases along with the number of builders. Storage of solvent based paints and varnishes, and other materials increases the fire risks. Exposure to epoxy resin may sensitize one builder out of any given group. If you provide tools you might be responsible for any injuries. Even if you don't provide tools you could be sued if one of your renters was using a tool which injured an adjacent renter.

The workshop model you are suggesting is probably not something with which your insurance agent would be familiar, so there may be difficulty finding a company to cover you at a reasonable price. Shop around at independent insurance agents. I'm sure the rates and coverages suggested will be quite diverse.

The Small Business Administration has a welath of information on the steps to go through in determining the potential success of a business. you can get information from them online, in print, or in person at one of their offices.

If you have not run your own business before, i suggest you find one of their seminars on starting a business. They will spend a day working with you
9 and a group of other entreprenneurs) summarizing the steps needs to become established. Their outline for a basic business plan will help you consider all the steps involved. At the same time, when you have completed a business plan you will have most of the data you need to approach a bank about providing start-up funding. Of course if you wish to do this from your own pocket you won't need the bank.

lack of sufficient finaces is the leading cause of business failure. The historic rate of small business failure is considered to be 50% in the first year, and 90% to 95% in 5 years. These numbers are so frequently quoted that I wonder if they are merely estimates. On the othre hand, an SBA speaker i once heard said that these numbers were minimums. He said that they had only to do with businesses which had obtained money from a bank or the SBA and then gone bankrupt. They could count the bankruptcies. what they could not count was how many nore business closed up because they were not making enough money, but were not is such bad shape that they went bankrupt. His opinion was that there were many of these. If so, then the success rate of any one business over 5 years is pretty slim.

While that sounds discouraging, there is a strong likelihood that an entreprenneur will then start a second, third, or more business. ?the idea is that a battle may be lost, but you are not beated if you can get back up and go into another battle. Or in other words: "You win if you get back up just one time more than circumstances knock you down."

Best of luck in your venture.

PGJ