How to Start a Whitewater Rafting Business

Part 1 - How to start a Whitewater Rafting business - Background

A whitewater rafting business helps customers navigate rough waters by supplying them with the equipment and/or the guides they need to safely head down the river.

Our guide is in 3 parts:

• Part 1 - How to start a Whitewater Rafting business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a whitewater rafting business?

Average start-up costs can be as low as $10,000 and as high as $50,000. You’ll need to buy the rafting equipment (including safety gear), secure a license, and purchase liability insurance. In addition, you’ll need some sort of facility to house the equipment in. While you may be able to get away with shelter as basic as a large shed, you may want to spring for something large enough to accommodate more traditional business features (e.g., bathrooms, snacks, etc.) You’ll also need to account for the salary of the staff.

What are the ongoing expenses for a whitewater rafting business?

The major costs will be staff salaries, equipment maintenance/replacement, lease/mortgage payments, and liability insurance.

Who is the target market?

The target market can be huge for whitewater rafting, especially in tourist cities. Families or visitors looking for activities while on vacation will make up a large portion of your profits, but you may also receive business from die-hard water rafters who are looking to challenge themselves on the next big run.

How does a whitewater rafting business make money?

Whitewater rafting businesses charge customers to either rent their equipment or take their tours. Equipment may include anything from kayaks to helmets, usually lend out per piece rather than as a package. Tour prices typically include all the gear a customer would need plus a tour guide, so owners will price the excursions based on demand, labor, and cost of equipment.

How much can you charge customers?

Whitewater rafting trips in the most popular areas can charge up to $50 or more for just a short run down the river, and hundreds of dollars for an overnight trip. Look to your direct competition to find out what the going rates are for different types of outings.

How much profit can a whitewater rafting business make?

While equipment and staff salaries can be pricey, the profit margins for whitewater rafting can be huge. Your exact margins will be determined by the demand and the quality of equipment you use but can be as high as 50 – 60% or even more. If you give 5 trips a day at an average of $100 a run, you can make as much as $500 – 600 a day.

How can you make your business more profitable?

Renting out additional water equipment or selling gear can make your business more profitable. Even offering t-shirts, snacks/beverages, or specialty photographs can significantly contribute to your profits.

Day-to-Day and Growth

What happens during a typical day at a whitewater rafting business?

The majority of the day is spent scheduling tours, completing river runs, and transporting customers to and from their destinations. Owners may give the tours, coordinate supplies, interface with customers and employees, or manage schedules.

What are some skills and experiences that will help you build a successful whitewater rafting business?

Those who are trained in rafting will likely do well in this business. While it’s theoretically possible to hire trained staff and managers to take care of the day-to-day business, owners should understand how rivers work before choosing their employees. Owners should also have people skills to successfully interface with both staff and customers.

What is the growth potential for a whitewater rafting business?

Growth potential can be solid for a whitewater rafting business — it’s a fun activity that can never be outsourced. While there may be saturation in certain areas, owners may be surprised at how they can create demand in more rural areas just by offering a quality product.

What are some insider tips for jump starting a whitewater rafting business?

Safety is going to be tantamount to your success. Not only will safety limit your chances of getting sued in the case of accidental injury, but it will also make your customers far more likely to try your business over another’s. All employees will need to be certified in CPR, general first aid, and river rescue techniques. Your staff will need to stay cool under pressure and be willing to handle all kinds of customers if you hope to generate good word-of-mouth.

Owners should look at what’s being offered in the area they want to target before deciding on the types of packages they want to offer. They may even want to give tours in their spare time to get a better sense of the market (not to mention their own guide skills.) Some whitewater rafting companies will offer outings by the hour or the length of the river course. They may offer overnight packages where everyone gets to eat and camp at the bottom of the river. Visit your ideal location repeatedly and talk to fellow business owners to get a sense of the etiquette on the river too. Park rangers and authorities can give you great information as to the potential barriers that stand in the way of your business.

All guides should have plenty of ongoing safety training to keep their skills sharp and passengers safe. But one of the smartest things an owner can do is hire guides who are flexible while on the river. You may want a guide to be more daring with certain groups and more conservative with others. It’s this kind of extra attention to detail that can make it easier for a whitewater rafting business to make a name for themselves when they’re first starting out. Finally, find out what the most popular equipment in your area is so you have a good idea of what customers are looking for.

How and when to build a team

You’ll need to hire staff immediately unless you’re giving limited tours on a part-time basis. Preferably, you’ll be hiring experts in rafting, but this may be difficult to find in what’s usually considered a seasonal job. At the very least, you’ll need to hire people who are strong swimmers and willing to learn the art whitewater rafting.

Part 2 - Is a Whitewater Rafting business the right fit for you?

Part 3 - Action plan to launch your Whitewater Rafting business in 90 days