AboutMike Giles Expertise I am a Master Scuba Instructor with over 6000 dives. I can answer questions on general diving techniques, diving education and diver training. I can offer suggestions on the use and selection of proper dive equipment, general maintenance of dive equipment as well as diving equipment repair. I can also offer suggestions on air conservation techniques and buoyancy control. As a dive shop owner for 17 years, I can offer suggestions on starting/running a dive business.
Experience I have been diving for 52 years, teaching diving for 47 years and owned a diving business for 17 years. I am a certified regulator repair technician for several different brands and a certified scuba cylinder inspector.
Organizations I am currently a member of the Professional Association of Diving Instructors (PADI), Divers Alert Network (DAN), International Resort and Retailer Association and the Better Business Bureau
Publications Undercurrent magazine and Divers Chapbook
Education/Credentials I am a Master Scuba Diver Trainer with 15 distinct specialty instructor ratings, Rescue Diver Instructor, Medic-First Aid Instructor and I have degrees in Chemical Engineering, Biology and Radiologic Technology.
Question Hi Mike, I'm looking into starting a dive instruction business (I'm a PADI OWSI) in California and I'm wondering what type of business structure I need to manage the liabilities. I would like choose the right structure to later expand into retail sales, rental,s and service aspects too.
thanks for your comments,
Robin
Answer Hi Robin!!
I'm not quite sure what you mean by "business structure" but I'll assume that you want to know about how to set up a business plan with the opportunity for later expansion into the areas you mentioned in your letter. As for the plan, itself, I've covered basic business plans in great detail in many of my previous answers so I invite you to browse those answers for some general ideas on how to set one up and things to consider.
However, your question gives me the opportunity to address something I don't think I've covered in my previous answers and will be happy to address here. That has to do with my own personal experience in getting started in scuba instruction.
You mentioned that you have your OWSI and I'll assume that you've already got a "day job" doing something other than dive instruction. That's the same situation I found myself in many years ago.
I had some business cards printed advertising myself as a PADI scuba instuctor and offering private scuba lessons. I'd pass the cards out during social events, at work and during casual conversations.
I converted one of the empty bedrooms in my house to a classroom (chairs, tables, audio-visual stuff, dry erase board, wall posters, etc). I purchased 10 used BC's of assorted sizes and 10 regulator sets. Then I made arrangements with a local dive shop to provide tanks and air in exchange for sending my students to their shop to check out their masks, snorkels and fins. I had an outdoor pool at my house but I also made arrangements with a local YMCA to use their indoor pool when needed. All of this qualified as a Home Business so I got lots of business deductions for pool expenses, utilities, repairs and any improvements which benefited my students. Robin, I think you get the idea.
As for the liabilities, you probably have your professional liability policy as a requirement to maintain your OWSI teaching status. That will cover you for your scuba-related activities both at your house and various pools. It will also cover you when leading dive related activities and conducting open water dives. Check with your insurer for specific details.
I also made arrangements with the YMCA mentioned above to use their classroom and would run special classes for their members at a reduced price.
Of course, you'll need to tailor this to work in your particular situation. One of the big advantages you'll have over the dive shops is that your overhead expenses are very low and you can adjust your teaching schedule to fit the needs of your students. I kept my classes small so rearranging a schedule was easy to do. You can offer more convenience and highly personalized service. Those qualities are difficult to find in a large dive shop. My students were happy and my classes grew.
Later, I decided to expand my business to cover retail sales, trips, rentals, gear repairs and air fills. At that point, I leased a building, got the proper business licenses and opened the shop. I simply moved the dive school to the business location. I had a following from former students so my customers were eager to come to the new shop.
Robin, this same technique may work for you. You can grow as much as you like or keep it small and teach as a "hobby". You may also be able to make arrangements with local dive shops to teach for them on a part-time basis if that's more to your liking.
Take advantage of the internet. Set up a web page for your scuba instruction and note the web address on your business cards.
Robin, I hope this gives you some food for thought and some ideas on how to proceed. If I've missed anything, please write back and I'll try again.
