🎁 Uncle Sam Wants To Gift You A Business & Its In The Virgin Islands 🏝️

Overview

During all my research I’ve never come across or heard of a business like this before but apparently the US National Parks Service sometimes gives away the rights to running a concession business, what is not very common is for that concession business opportunity to be in on a beach in the US Virgin Islands. Since just like many of you my dream is “some beach, some where” for retirement, this is a opportunity to have your cake and eat it to so lets try and break down this amazing business idea.

What is it?

A US National Parks concession business, is an exclusive opportunity to sell some item, in this case rent snorkel and beach gear, inside a national park for a certain amount of time. This is normally an exclusive deal where you will be the only business allowed to sell this type of item inside the park. With only 424 national parks in the US and of these just under 60 have a beach, and of those only a few have a year round swimmable beach this is a extremely rare opportunity.

How to view start this opportunity?

You can out the details on nps.gov, the deadline submit your notice to apply is July 6th 2023 so if your ready to make a change this could be your opportunity.

Trunk Bay (Amazing)

Considered by some to be one of the top 10 beaches in the world, if your were going to start a snorkel rental shop on a beach it doesn’t get any better than this location, and as I preach when starting a in person business location matters, Truck Bay could be the holy grail of location dependent business ideas.

Attendance Numbers?

Using the NPS website I was able to find attendance information for Trunk Bay National Park, this is all public information, so its going to make deciding on the business idea a walk on the beach.

• April 2023 - 28,858

• March 2023 - 26,612

• February 2023 - 20,442

• January 2023 - 18,214

Average attendance so far this year, 23,531 people.

Estimated Revenue

23,531 people walk into the park a month so lets say we have a 10% conversation rate on renting beach & snorkel equipment with an average order value (AOV) of $15. This means that my very rough guess for this business top line revenue is roughly $35,000 a month or $423,558 a year or revenue.

My rough numbers match up with the historical revenue numbers presented by the NPS so I said we are starting to look pretty good for this business.

Expansion Revenue

NPS has given the operator of this business the opportunity to lead snorkel tours and rent out lockers something that doesn’t seem to be done right now by the current operator. This is a huge opportunity to take this business and really grow it. Assuming that a locker rental could be done for $2 an hour and all customers will want to lock up valuables this could account for an additional $12 a day (6 hours of rental) per customers of AOV. Bringing in almost $30,000 in top line revenue a month.

Now for the guided tours you could do these as small groups or private tours charging much higher costs for these, but I would assume this is a much lower percentage of people who would want to do this but even assuming 1% conversation of walk up customers to tour purchase and assuming you charge $150 + rental gear for a private tour this could be an additional roughly $35,000 in top line revenue.

Estimated Revenue with expansion

Using our historical revenue’s and our new expansion revenue, I estimated that you could bring this business into a low 7 figure business in the first year and be 100% protected from competition.

Startup Costs

NPS has listed some very detailed numbers for startup on this business so it makes it pretty simple, I’ve pulled these details out and listed them so that you can get an idea of whats required.

• 220 masks, finds, inflatable vests, and snorkels in a variety of sizes.

• 220 swim belts in a variety of sizes.

• 60 beach chairs

• 60 shade devices, tents or umbrellas that can not be sand penetrating

• Provide storage shed at park approved location

NPS estimates this will cost about $110,000 to get started.

Risks

The weather is a huge risk to this business as hurricanes can have a large impact of your monthly revenue as well as the health and safety of the island. Travelers could avoid the islands for months if a strong hurricane knocks out power to the island.

A minimum of 12% of gross revenue must be paid back to NPS meaning that you will want to considers your costs here and if the return makes sense but I would look at this as a franchise fee for the captive customers that NPS will provide and just markup all the above costs 12%.

Equipment breakage & sourcing, while a minor risks this risk could limit sales as you are on a island and this could limit access to things that could be simple to find on the mainland.

Conclusion

If your looking to retire early while stilling running a business this could be just what you came here for, do your own research quickly but I encourage you to submit a proposal to make your dreams come true!