Startup Information for a Travel Business in Florida

Florida, with more than 79 million annual visitors and an economic impact of $57 billion from tourism in 2004, is the top travel destination in the world, according to the Florida Department of State. The opportunities for a start-up travel business in Florida are endless as long as a solid, thoughtful plan is implemented.

Finding a Travel Niche

Florida has fantastic opportunities for those willing to carve out a niche in the massive travel industry. The state is home to endless beaches, wildlife preserves, charming towns, big cities, barrier islands and many attractions waiting to be explored by tourists. The problem for many burgeoning travel and tour operators is almost every area is covered by an existing operation. The key is to find a niche in which you have knowledge or are extremely interested in learning about. If you enjoy kayaking, are experienced in the outdoors and have an intimate knowledge of your local waterways, become a kayak guide. The start-up costs are minimal, you have the expertise in the area and the resources of your local community. Finding an obscure, under-serviced area of travel allows you to eliminate, or severely reduce, competition, provide a service at a competent level and continue to enjoy the work, because we don't get into business to trudge through the day.

Business Plan

Every business, no matter the size, should begin with a thoughtful, honest business plan. This is an opportunity to lay out the entire proposed business from concept to the required financial investment. The basic layout of a business plan begins with a description of your travel business. Cover what service you will provide, how you will provide it, what expectations you think customers will have and the potential developments for your business within the industry. Provide a section covering your businesses objectives. State what your expectations are for the first year, second year and in five years. Next, provide an analysis of the competition. Go beyond the local area and research similar businesses in other markets. This not only allows you to get a sense of local rivals, but also will broaden your understanding of the industry. Once you have a firm understanding of the competition, begin to outline a marketing strategy for gaining customers. Will you need a website? What areas of advertising can you use to reach the targeted demographics? How can you use local community resources? These are all important questions that should be answered. Then decide the legal structure in which your travel business will operate. The options in Florida include sole proprietorship, partner organization, limited liability corporation and corporation. All offer advantages and disadvantages to legally structuring your business. Finally, provide an in-depth finical analysis for one, two and five years. Take into consideration start-up costs, licenses, monthly operational expenses, marketing costs and insurance.

Seller of Travel License

Any seller of travel must be licensed in Florida. The Florida Department of State defines a seller of travel as "any resident or nonresident person, firm, corporation, or business entity who offers for sale, directly or indirectly, at wholesale or retail, prearranged travel- or tourist-related services for individuals or groups, through vacation or tour packages, or through vacation certificates in exchange for a fee, commission or other valuable consideration." The requirements for licensing are a completed application, $300 filing fee and an assurance not to exceed $25,000. An assurance is guarantee of monetary holdings in the form of a bank deposit certificate, letter of credit or surety bond. Once approved, an annual $300 renewal fee is required to maintain the license. All applications and forms can be downloaded via the Resource link below.

Insurance

All licensed businesses that operate in Florida are required to carry insurance. The minimum policy for a travel business should be $1 million in personal liability insurance. Some other areas to address when discussing insurance with an agent is omissions and errors, property damage, rental vehicle insurance, sexual harassment coverage and worldwide coverage if you plan to expand operations outside Florida.

Raising Money

One benefit of starting a travel business in Florida is the low costs to enter most markets. Building a Disney-style theme park will set you back a few billion dollars, but operating a ghost tour in St. Augustine costs only the licensing fees, marketing materials and your own charisma and salesmanship. Once you've identified the financial requirement to start your travel business, it is time to begin raising money. Many travel and tour operators, because of the low cost, can manage the initial financial burden through savings and lines of credit. Other means to raise money are borrowing from friends and family members, applying for venture capital loans and/or taking on a partner who bears part of the financial burden.

Marketing

The most important aspect when determine your marketing strategy is by which means you can reach the targeted demographic. There is no point in wasting money and time if your message is reaching an audience that will never purchase your product and/or services. The sheer number of marketing possibilities - consumer magazines, websites, social networking, etc., can overwhelm a start-up travel business. Think like the consumer and decide how they would receive and react to your message. If you operate a kayak guide service, many of your potential clients will be staying at area hotels, seeking out advice from a concierge or other hotel employee. Set up an incentive program with hotels offering cash bonuses for those who book clients with your company. If you are selling prepackaged tours, a website is necessary, but also seek out other travel sites that don't compete directly with your product and begin a cross-marketing program. Creative marketing solutions will save you money. Remember to keep your message informative, on point and consistent.

Ideas for a Florida Travel Startup

Here are possible start-up travel business specific to Florida. The list is by no means exhaustive; it's meant to get the creative juices flowing.

Kayak/Canoe guide
Fishing guide
Travel agent specializing in a particular area, i.e., golf, romantic getaways, adventure
Guesthouse or hostel targeting budget travelers
Charter bus service to Seminole Casinos
Surf camp on Florida's East coast
Culinary tours
Motorcycle tours
Bike rentals and tours
Segway rentals and tours