Houses On The Lake will create a competitive business model for vacation houseboat rental on Lake Shasta in Northern California. Rather than purchasing houseboats, the business will offer rentals to families and young couples of small (up to 6 persons) houseboats on loan from existing owners. The business will offer vacationers other services to compete with luxury vacation houseboat companies and moorage and revenue sharing for existing owners. The business must acquire loans to launch.
The business will become profitable in its second year and quite profitable in its third, as the owner and founder, Robert Hopkins, expands the offering from three to eight houseboats. Rental rates will be on the low end for the market, starting at around $600 for 3 days during an off season.
Houses On The Lake will launch its business with three vacation houseboats. Over the first three years, Houses On The Lake has the following objectives:
- Rent land for marina and marina facilities
- Create a pool of eight houseboats from current owners interested in renting them out
- Steadily increase revenues each year
- Achieve a 50% retention rate of customers from year 2 to year 3
Houses On The Lake will offer competitively priced vacation houseboat rentals oriented for families and couples to enjoy Lake Shasta, California. The business will seek to offer families and couples the balance of relaxation and excitement they seek by providing options for activities to suit both individuals and groups.
Keys to Success
Keys to success in the vacation houseboat business include:
- Impeccable upkeep of the rental boats to maintain the luxury of the accommodations
- A wide variety of activities and services to promote and suggest to families
- Seasonal pricing to encourage year-round utilization of the boats