Evaluate Your Environment

• Don't assume you've got to be located right at a popular dive destination to succeed. If you're opening a scuba shop far inland, though, you might not do well unless you're the only game in town. If you are lucky enough to live in a major dive mecca, try to find an area that isn't already saturated with dive shops. You'll do better if you can cultivate a unique niche by offering a type of training or equipment not available elsewhere or scheduling trips that appeal to more advanced divers. Developing a relationship with local hotels or motels can bring in quite a bit of business.
  
  

Decide on the Specifics

• To open a full service dive shop, you'll need a substantial amount of cash to purchase and maintain rental equipment, sales stock and a compressor. You'll also need to rent or buy a retail space. It must be large enough to display gear for sale, to house your rental stock and to offer classroom space, including a pool if necessary. If you don't have your own pool, you'll have to make arrangements with a local facility. Don't forget to factor in insurance costs; both individual instructors and the shop are required by certification agencies to be insured against any accident involving a student.
  
  You'll need qualified instructors, some who might double as shop staff. You'll probably be paying them an hourly wage for shop time and a commission on gear sold, as well as a per-head fee for teaching classes.
  
  If you're planning to operate a dive charter operation, you'll need a boat. If you're not a licensed captain, you'll need to hire one, as well as deck hands and a dive master. Fuel and maintenance costs must be factored into your projected budget.
  
  

Put Together Your Capital

• A business plan will get you thinking clearly about how you view your company's success. It's a valuable tool that becomes a necessity if you're seeking loans or investment funds. It's important to demonstrate through the business plan that you understand the business of diving. Make sure you include your own dive credentials and those of any partners.
  
  You'll need start-up money and funds to cover your operating expenses for at least the first few months. Dive outfits don't always show a profit that quickly. Many banks and other lending organizations offer small business loans. Take advantage of any programs that are open to you. If you're seeking independent financing, you might find some investors among the community of enthusiastic divers.
  
  You might find existing dive businesses for sale. If you choose this route, do your homework. Investigate why the shop is closing and if you succeed where the previous operators failed. Determine what's included in the sale, whether it's a shop, rental gear or stock. There's often less risk to taking over an existing business, and it's considerably faster to get up and running. It's up to you to maintain the customer base or help it grow. Try offering free airfills to loyal customers. If the shop doesn't already have an affiliated dive club, consider forming one. If you're buying a shop that already has a strong customer base, see if the current owner will stay on board for a while to make the transition easier for those loyal to him.