Swell: Surf & Snorkel Shop

Comprehensive Business Plan

A detailed analysis of the business opportunity in Rincón, Puerto Rico

December 2024 Rincón, Puerto Rico $250K Investment

Table of Contents

Executive Summary

Business concept, market opportunity, and our passionate vision

Market Analysis

Understanding our ocean community and seasonal rhythms

Competitive Analysis

Detailed competitor review and differentiation strategy

Location Strategy

Property options, lease vs. buy analysis, and site selection

Products & Services

Gateways to ocean adventures and transformative experiences

Operations Plan

Daily operations, family management, and automation strategy

Marketing Strategy

Building community connections and ocean adventure awareness

Financial Projections

Detailed financial model, assumptions, and scenarios

Risk Analysis

Risk factors, mitigation strategies, and contingency plans

Vision & Passion

Our commitment to the ocean community and future dreams

Appendix

Supporting data, research sources, and additional information

Executive Summary

Swell represents more than just a business opportunity – it's a passionate vision to become the heartbeat of Rincón's ocean adventure community. We're creating a premier surf and snorkel retail and rental shop that doesn't just serve customers, but connects souls to the ocean's magic in the "surfing capital of the Caribbean."

Our Vision & Passion

Surfer at sunset in Rincón - the magic we want to share

🌊 The Ocean is Our Calling

Every sunrise brings new waves, every sunset paints the sky with dreams. At Swell, we don't just rent equipment – we're gateway guardians to ocean adventures that transform lives. We believe every visitor to Rincón deserves to experience the pure joy of riding a perfect wave or discovering the underwater rainbow of Tres Palmas reef.

Community First

We're not just a business – we're neighbors, friends, and fellow ocean lovers building something beautiful together.

Ocean Guardians

Every rental supports reef conservation. Every product choice protects the waters we love. Sustainability isn't a buzzword – it's our responsibility.

Excellence Always

From the moment you book online to your last wave of the day, every touchpoint reflects our commitment to making your ocean dreams come true.

💫 Our Promise to Rincón

"We will be the bridge between visitors and the ocean's magic, creating memories that last lifetimes while protecting the natural beauty that makes Rincón special. Every customer leaves not just with great gear, but with a deeper connection to the sea and our community."

- The Swell Family

Business Concept: Where Passion Meets Purpose

Swell operates as a year-round surf and snorkel equipment rental and retail shop, but our true mission goes deeper. We're creating a community hub where ocean lovers gather, stories are shared, and adventures begin. Our business model capitalizes on Rincón's complementary seasonal demand patterns while fostering a culture of respect for the ocean and each other:

The underwater paradise we help people discover through snorkeling

Seasonal Revenue Optimization with Heart

Winter Season (Dec-Apr): The Surf Pilgrimage

When the north swells awaken, Rincón transforms into a mecca for wave riders. We're here to ensure every surfer – from groms to greybeards – has access to the perfect board for their session. Our premium equipment and local knowledge help visitors make the most of every precious wave.

Summer Season (Jun-Sep): The Underwater Discovery

As the waves calm, the underwater world comes alive. Families discover the magic of Tres Palmas Marine Reserve, couples create memories among the coral gardens, and children experience their first glimpse of ocean life. We're the gateway to these transformative moments.

Market Opportunity

6M+
Annual visitors to Puerto Rico (2023)
+19% from 2022
$700
Average tourist spending per visit
Includes activities & gear
$25
Daily surfboard rental rate
Market-established pricing
150
Peak season days annually
High-demand period

Financial Highlights

Startup Investment

$250,000

Equipment, inventory, setup, and working capital

Year 1 Revenue Projection

$150,000+

Conservative estimate based on market analysis

Break-even Timeline

Month 11

Accounting for seasonal cash flow patterns

3-Year ROI

47%

Return on owner's equity investment

Market Analysis: Understanding Our Ocean Community

The iconic Rincón lighthouse - a beacon for ocean adventurers worldwide

Rincón isn't just a dot on the map – it's a sacred place where the Caribbean Sea meets the Atlantic Ocean, where sunsets paint the sky in impossible colors, and where the spirit of adventure calls to millions of visitors each year. Located on Puerto Rico's northwest coast, this magical town has earned its reputation as "the surfing capital of the Caribbean" through decades of hosting world-class waves and nurturing ocean culture.

The Rincón Renaissance: Tourism with Soul

Something special is happening in Puerto Rico. After years of challenges, the island is experiencing a tourism renaissance that goes beyond numbers – it's about authentic connections, sustainable travel, and the magnetic pull of Caribbean culture. Rincón sits at the heart of this movement, attracting visitors who seek more than just a vacation – they want transformation.

The Numbers Tell a Story of Growth

6M+ Annual PR Visitors (2023) +19% from 2022 - Momentum Building
$700 Average Tourist Spending Per visitor - They're investing in experiences
1968 World Surfing Championship The year Rincón became legendary
Year-Round Tourism Activity The ocean never sleeps

But behind every statistic is a human story – a family discovering snorkeling together, a surfer catching their first barrel, a couple watching sunset from the lighthouse. These are the moments that fuel our passion.

Tourism isn't just an industry in Rincón – it's a cultural exchange where visitors become temporary locals, and locals become ambassadors for the ocean lifestyle. This creates an environment where businesses like Swell don't just serve customers; we welcome fellow ocean lovers into our extended family.

The Rhythm of the Seasons: Nature's Perfect Business Model

The ocean has its own rhythm, and successful businesses learn to dance with it. In Rincón, this rhythm creates a beautiful symphony of seasonal opportunities that Swell is perfectly positioned to embrace:

Epic winter surf conditions that draw surfers from around the world
Crystal clear summer waters perfect for snorkeling adventures
Winter Surf Season (Dec-Apr): The Great Gathering
Peak Energy - 90%

When the north Pacific storms send their energy across thousands of miles of ocean, Rincón becomes a pilgrimage destination. Surfers arrive with dreams in their eyes and salt in their souls. Our role? To ensure every wave rider has the perfect board for their dance with the sea. From the legendary breaks at Domes to the playful waves at María's, we're the bridge between surfer and wave.

Summer Snorkel Season (Jun-Sep): The Underwater Awakening
Peak Discovery - 85%

As the waves rest, the underwater world awakens in full glory. The Tres Palmas Marine Reserve becomes a living aquarium where families create lifelong memories. Children see their first tropical fish, couples swim hand-in-hand through coral gardens, and photographers capture the magic of Caribbean marine life. We're honored to be the gateway to these transformative experiences.

🌊 The Swell Advantage: Riding Nature's Rhythm

This complementary seasonality isn't just good business – it's nature's way of showing us how to live in harmony with the ocean. When winter waves call to surfers, we answer. When summer calms invite snorkelers, we welcome them. This rhythm allows us to maximize our equipment utilization while serving the ocean community year-round, creating a sustainable business that flows with natural cycles rather than fighting against them.

Competitive Analysis

Rincón's surf and dive scene is supported by several established businesses. Below is an overview of key competitors and their offerings, as well as how Swell will position itself uniquely in the market.

Key Competitors

Mar Azul Surf Shop

Strengths: Well-known brand, wide board selection, local surf knowledge

Focus: Surfboard rentals (~$25/day), primarily targets surfers

Weaknesses: Limited snorkel gear, no delivery service, mid/high-end focus

Swell's Advantage: Broader inventory (budget + premium), online booking, delivery service, cross-selling surf + snorkel

Playero Surf Shop

Strengths: Strong Puerto Rican surf apparel brand, trendy beachwear

Focus: Surf fashion and branded clothing

Weaknesses: Limited equipment selection, primarily apparel-focused

Swell's Advantage: Core focus on equipment rentals, competitive apparel pricing, unique local designs

Rincón Surf School & Resort

Strengths: Surf lessons, guided tours, accommodations

Focus: Beginner market with lesson packages

Weaknesses: Limited to lesson customers, seasonal operation

Swell's Advantage: Year-round operation, broader customer base, potential partnership for referrals

Desecheo Surf & Dive Shop

Strengths: Surf + dive combination, convenient location, personal service

Focus: Both surfers and snorkelers, some transport service

Weaknesses: Informal operations, limited online presence

Swell's Advantage: Modern customer experience, online booking, systematic delivery service

Taino Divers

Strengths: Established dive shop, boat trips to Desecheo Island

Focus: Scuba diving tours and equipment

Weaknesses: Limited shore snorkeling focus, no surf equipment

Swell's Advantage: Shore snorkeling specialization, one-stop surf + snorkel shop

Rincón Diving & Snorkeling Center

Strengths: Professional operation, online booking, quality gear

Focus: Serious snorkelers and divers

Weaknesses: Higher pricing ($25 snorkel sets), no surf equipment

Swell's Advantage: Competitive pricing ($15 basic sets), surf + snorkel combination

Competitive Positioning Matrix

Competitor Surf Equipment Snorkel Gear Online Booking Delivery Service Price Range
Swell ✓ Full Range ✓ Full Range ✓ Advanced ✓ Systematic Budget-Premium
Mar Azul ✓ Wide Selection ✗ Limited ✗ None ✗ None Mid-High
Playero ✗ Limited ✗ None ✗ None ✗ None Mid-High
Desecheo ~ Basic ~ Basic ✗ None ~ Informal Budget-Mid
Taino Divers ✗ None ✓ Professional ~ Basic ✗ None High
Rincón Diving ✗ None ✓ Quality ✓ Yes ✗ None High

Market Entry Strategy

Phase 1: Market Entry (Months 1-6)

  • Establish core surf and snorkel rental operations
  • Launch online booking system and delivery service
  • Build brand awareness through digital marketing
  • Develop partnerships with local accommodations

Phase 2: Market Expansion (Months 6-18)

  • Expand retail inventory based on customer feedback
  • Introduce loyalty programs and membership options
  • Develop community events and sponsorships
  • Optimize operations based on seasonal patterns

Phase 3: Market Leadership (Months 18+)

  • Consider additional services (lessons, tours)
  • Explore second location or satellite operations
  • Develop exclusive partnerships and products
  • Establish Swell as the premier beach outfitter

Location Strategy

Rincón lighthouse overlooking the coast

Choosing the right location in Rincón is critical to Swell's success. The ideal site will provide high visibility to tourists, convenient access to beaches, and affordable terms (whether lease or purchase).

Site Selection Criteria

High Visibility

Located on main tourist routes with clear signage and easy identification for passing visitors

Beach Proximity

Close to major surf breaks and snorkeling spots for convenient gear pickup and delivery

Parking Access

Adequate parking for customers and delivery vehicle operations

Foot Traffic

Areas with consistent pedestrian flow from tourists and locals

Cost Efficiency

Reasonable rent or purchase price that supports profitable operations

Space Requirements

Sufficient space for retail display, equipment storage, and customer service

Location Analysis

Key Commercial Areas in Rincón:

  • Downtown Plaza Area (Rincón Pueblo): Steady foot traffic from locals and tourists, especially during evenings and Art Walk events. Moderate rents, but farther from major surf breaks.
  • Puntas/Sandy Beach Area: Heart of surf tourism with high seasonal foot traffic. Premium location but higher rents and limited availability.
  • Route 115/Main Road Corridor: Excellent drive-by visibility as all visitors travel this road. Larger spaces available but relies on car traffic rather than walk-ins.

Property Options Comparison

Downtown Storefront

Location: Near Rincón Plaza Size: ~800 sq.ft. retail space Cost: Lease $1,500-$2,000/month OR Purchase ~$300K
Pros
  • Steady year-round foot traffic
  • Close to restaurants and nightlife
  • Lower setup costs
  • Tourist and local mix
Cons
  • 1-2 miles from surf beaches
  • Limited parking
  • Smaller inventory space
  • Less surf-focused clientele

Sandy Beach/Puntas Location

Location: Puntas neighborhood, Route 413 Size: ~600-1000 sq.ft. Cost: Lease ~$2,500/month (peak area)
Pros
  • Heart of surf tourist area
  • Walking distance to beaches
  • Surf culture ambiance
  • High demand in season
Cons
  • Seasonal foot traffic
  • Higher rent costs
  • Limited availability
  • May require build-out

Main Road Commercial (Recommended)

Location: Route 413/115 corridor Size: 2,000+ sq.ft. building Cost: Purchase $800K-$950K OR Lease $3,000+/month
Pros
  • Excellent visibility to all tourists
  • Ample space for inventory
  • Parking availability
  • Potential rental income
Cons
  • Relies on car traffic
  • Higher upfront investment
  • Requires financing
  • Slightly removed from beach

Lease vs. Buy Analysis

Leasing Strategy

Initial Investment: $5,000 (deposits)

Monthly Cost: $2,000-$2,500

Annual Cost: $24,000-$30,000

Flexibility: High - can relocate if needed

Advantages
  • Preserves capital for operations
  • Lower startup risk
  • Flexibility to move or expand
  • Landlord handles major maintenance

Purchase Strategy

Down Payment: $160,000-$190,000 (20%)

Monthly Payment: $4,000-$5,000

Annual Cost: $48,000-$60,000

Equity Building: ~$15,000-$20,000/year

Advantages
  • Builds equity over time
  • Potential rental income from extra space
  • Complete control over property
  • Long-term investment value

Recommended Strategy

Phase 1: Begin with a leased location to conserve capital and test market demand

Phase 2: After 18-24 months of successful operations, evaluate purchasing a property using SBA 504 financing

  • Start with Route 413 lease near Puntas junction for optimal tourist visibility
  • Negotiate flexible lease terms allowing delivery operations
  • Plan for 2-3 year lease with option to purchase
  • Use saved capital for inventory and marketing instead of down payment

Products & Services: Gateways to Ocean Adventures

Premium surf and snorkel equipment ready for ocean adventures

At Swell, every piece of equipment tells a story waiting to be written. Our carefully curated selection isn't just gear – it's the bridge between dreams and reality, between curiosity and discovery. Whether you're a seasoned wave rider seeking the perfect board or a family taking their first underwater journey, we provide the tools that transform ordinary moments into extraordinary memories.

Our Equipment Philosophy

We believe that the right equipment doesn't just enhance your experience – it unlocks possibilities you never knew existed. Every surfboard in our fleet has been chosen for its ability to help riders connect with waves. Every snorkel set is selected to reveal the underwater world's hidden wonders. This isn't just inventory; it's a collection of dreams waiting to be realized.

Quality First

Every item meets our high standards for safety, performance, and durability

All Skill Levels

From first-timers to experts, we have the perfect gear for every adventure

Ocean Conscious

Sustainable choices that protect the waters we love

Equipment Rentals: Your Ocean Adventure Toolkit

Surfboard Rentals: Ride Your Perfect Wave

"The best surfer is the one having the most fun" – and the right board makes all the difference.

🏄‍♀️ Beginner's Dream Collection
  • Soft-top longboards and mid-lengths (8-9ft) designed for confidence and safety
  • Rental rate: $25/day, $150/week – your first wave is priceless
  • Complete package: board, leash, wax, and our signature safety briefing
  • Local knowledge included: we'll tell you exactly where to paddle out
🏄‍♂️ Performance Wave Machines
  • High-performance shortboards (5'10"-6'6") from legendary shapers
  • Local craftsman boards and cutting-edge epoxy technology
  • Rental rate: $30-$40/day – for waves that demand precision
  • Personalized recommendations based on conditions and your style
Surfboards ready for the perfect session

Our Fleet: 30 carefully selected surfboards representing the best of form and function

Investment in Dreams: $9,000 in boards that will create countless magical moments

Crystal clear snorkeling gear for underwater exploration

Snorkel Gear: Windows to the Underwater World

"The sea, once it casts its spell, holds one in its net of wonder forever." – Let us help you fall under that spell.

🐠 Discovery Sets
  • Crystal-clear masks and comfortable snorkels for first-time explorers
  • Rental rate: $15/day – your portal to underwater magic
  • Perfect for families discovering Steps Beach together
  • Ocean safety orientation and reef etiquette included
🐢 Explorer Pro Sets
  • Professional-grade equipment with dry-top snorkels and tempered glass
  • Adjustable fins and optional flotation for extended adventures
  • Rental rate: $20-$25/day – for serious underwater exploration
  • Waterproof camera cases available for capturing memories

Underwater Fleet: 50 snorkel sets for every level of ocean curiosity

Investment in Wonder: $2,500 in gear that opens eyes to marine magic

Retail Sales

Surfboards & Equipment

  • Entry-level softboards (~$300-$400)
  • Performance shortboards from known brands ($600-$900+)
  • Used board consignment rack for budget buyers
  • Essential surf accessories (fins, leashes, traction pads)
  • Board bags, surf wax, and ding repair kits

Package deals available (beginner surf bundle: board + leash + wax)

Snorkel & Dive Gear

  • Basic mask/snorkel sets ($40-$50)
  • Premium sets from Cressi or Mares ($100-$150)
  • Anti-fog solution and mesh carry bags
  • Reef-safe sunscreen and after-sun products
  • GoPro cameras and underwater mounts

Focus on customers staying multiple days who prefer purchasing over renting

Beachwear & Apparel

  • Budget Line: Swell-branded t-shirts, caps, rash guards ($20-$30)
  • Premium Line: Name brand boardshorts, bikinis, UV protection ($40-$80)
  • Polarized sunglasses and surf watches
  • Local artisan items (hand-shaped surf art, photography)

Serves as souvenirs and impulse purchases for tourists

Beach Accessories

  • Portable beach chairs and umbrellas (~$30)
  • Dry bags and waterproof phone pouches
  • Reusable water bottles with Swell logo
  • Reef-safe sunscreen (exclusively stocked)
  • Basic first aid for surf scrapes

Convenience items for day-at-the-beach needs

Pricing Framework

Pricing Strategy

  • Competitive Benchmarking: Prices aligned with local market rates
  • Value-Based Pricing: Premium for convenience and quality
  • Seasonal Adjustments: Peak season premiums for high-demand items
  • Bundle Discounts: Encourage larger rentals and purchases
  • Try-Before-Buy: Rental fees credited toward purchases
Category Budget Option Premium Option Market Position
Surfboard Rental 8' Soft-top longboard - $25/day 6'2" Epoxy shortboard - $35/day Competitive with Mar Azul
Snorkel Rental Standard mask/fins - $15/day Premium set - $25/day Below Rincón Diving ($25)
Surfboard Sales Used/refurbished - $300 Brand-name pro board - $750 Full range coverage
Apparel Swell logo t-shirt - $25 Branded rash guard - $60 Competitive with Playero
Accessories Basic leash - $20 Deluxe leash - $38 Standard markup

Unique Service Offerings

Gear Delivery Service

Free delivery to hotels, Airbnbs, and beaches within Rincón. Scheduled time windows for efficient route planning and customer convenience.

Try-Before-Buy Program

Rental fees credited toward purchase of similar equipment. Encourages equipment sales and gives customers confidence to test gear.

Flexible Return Options

After-hours drop-off lockers and gear swap service. Change equipment mid-rental based on conditions or preferences.

Eco-Conscious Focus

Reef-safe sunscreen exclusively, recycling programs for old equipment, and support for local coral reef conservation efforts.

Operations Plan

Operating Swell efficiently year-round, especially as a family-run business, will require smart use of technology and streamlined processes to deliver exceptional customer service while maintaining profitability.

Daily Operations

Store Hours

High Season (Winter): 8:00 AM - 7:00 PM daily
Low Season (Summer): 9:00 AM - 6:00 PM daily
Flexible hours to serve early bird surfers and evening shoppers.

Family Management

Owner's son as general manager (sales floor, customer service)
Owner's brother handling logistics (deliveries, inventory)
Part-time help during peak months (Dec-Jan, March spring break)

Inventory Management

Cloud-based POS system with real-time tracking
Unique ID for each rental item
Automated reorder alerts and maintenance schedules

Delivery Operations

Dedicated delivery vehicle with surf racks
Scheduled time windows (7-8 AM, 4-5 PM)
Route optimization for multiple daily deliveries

Automation & Technology

24/7
Online Booking
Automated reservations
Digital
Waivers & Payments
Contactless processing
Real-time
Inventory Tracking
Prevent double-booking
Automated
Customer Communication
Confirmations & follow-ups

Technology Integration Benefits

  • Efficiency: Automated booking reduces staff workload during busy periods
  • Accuracy: Real-time inventory prevents overbooking and customer disappointment
  • Customer Experience: Self-service options and digital convenience
  • Scalability: Systems can handle growth without proportional staff increases

Quality Control & Maintenance

Equipment Maintenance

Regular inspection schedules for all rental equipment. Surfboards checked after every X rentals, snorkel gear disinfected daily. Damaged items flagged in system until repaired.

Safety Protocols

Digital liability waivers completed in advance. Safety briefings for all equipment rentals. Emergency contact procedures and first aid supplies on-site.

Marketing Strategy

Rincón's tourist demographic and seasonal patterns require a tailored marketing approach to maximize Swell's reach, combining local grassroots marketing with digital campaigns targeting visitors before and during their trip.

Target Customer Segments

Intermediate to Advanced Surfers

Demographics: Primarily from US, Canada, Europe during winter

Interests: Board rentals, surf accessories, local surf knowledge

Behavior: Follow surf forecasts, value quality equipment

Marketing Focus: Surf reports, premium gear, delivery convenience

Beginner & Casual Surfers

Demographics: Year-round tourists wanting surf experience

Interests: Beginner-friendly boards, safety, instruction referrals

Behavior: Need guidance and reassurance

Marketing Focus: Safety, ease of use, partnership with instructors

Snorkelers & Divers

Demographics: Couples, families visiting spring/summer

Interests: Marine life, coral reefs, underwater photography

Behavior: Price-conscious, value convenience and safety

Marketing Focus: Tres Palmas access, competitive pricing

General Beach Tourists

Demographics: Families, wedding groups, resort guests

Interests: Beach accessories, casual water activities

Behavior: Spontaneous decisions, appreciate delivery

Marketing Focus: Convenience, family packages, hotel partnerships

Brand Positioning

"Your Complete Beach Adventure Outfitter"

Family-Run Trust

Personal touch and local expertise. Genuine passion for surfing and snorkeling with authentic community connection.

Eco-Conscious

Reef-safe products, equipment recycling, coral reef conservation support. Aligned with Rincón's natural beauty values.

Key Messages: "Gear delivered to you" • "Book online – skip the hassle" • "Quality equipment for every budget" • "Local experts at your service"

Marketing Channels & Tactics

Digital Marketing

  • SEO-Optimized Website: Rank for "Rincón surfboard rentals" and "snorkel gear Rincon"
  • Content Marketing: Daily surf reports, snorkeling guides, local spot recommendations
  • Social Media: Instagram/Facebook showcasing Rincón's waves and reefs
  • Paid Advertising: Targeted ads to East Coast surfers in November-December

Local Partnerships

  • Hotel Collaborations: Brochures and guest discount codes
  • Airbnb Partnerships: Host referral programs and welcome packages
  • Tour Operator Network: Cross-referrals with complementary services
  • Surf Instructor Partnerships: Equipment referrals for lesson students

Reputation Management

  • TripAdvisor Presence: Listed in "Things to Do" with positive reviews
  • Google Maps Optimization: Detailed listing with photos and booking link
  • Customer Review Strategy: QR codes for easy review submission
  • Response Management: Prompt, helpful responses to all reviews

Seasonal Campaigns

  • Winter: "Winter Wave" promotion (rent 3 days, get 4th free)
  • Spring: Easter break family packages with cross-equipment bundles
  • Summer: "Beach Week Kit" family packages with delivery
  • Fall: Local appreciation month with resident discounts

Community Engagement

Rincón Art Walk Participation

Monthly presence at the popular Art Walk with product displays and surf culture exhibits. Direct tourist engagement and brand visibility.

Beach Cleanup Events

Monthly community beach cleanups with Swell branding. Positive PR and environmental stewardship demonstration.

Local Surf Sponsorships

Support local surf competitions and grom contests. Brand visibility and community goodwill building.

Sunset Surf Meetups

Free monthly community surf sessions with Swell banner presence. Organic marketing and relationship building.

Marketing Budget & Metrics

Year 1 Marketing Budget

$10,000

Website, SEO, social ads, print materials, sponsorships

Digital Focus

60%

Website, social media, online advertising

Local Partnerships

25%

Hotel partnerships, community events

Traditional Marketing

15%

Print materials, signage, local advertising

Success Metrics

  • Website Traffic: Monthly visitors and booking conversion rates
  • Social Engagement: Followers, comments, user-generated content
  • Referral Sources: Track how customers heard about Swell
  • Customer Acquisition Cost: Marketing spend per new customer
  • Repeat Business: Percentage of returning customers

Detailed Financial Projections

Startup Investment Breakdown

Equipment & Inventory

Surfboard Fleet (30 boards) $16,500
Snorkel Equipment (50 sets) $2,900
Beach Accessories & SUPs $8,000
Initial Retail Inventory $25,000
Equipment Subtotal $52,400

Store Setup & Infrastructure

Store Renovation & Fixtures $35,000
POS System & Technology $8,000
Security System $3,500
Signage & Branding $12,000
Setup Subtotal $58,500

Delivery & Operations

Delivery Vehicle (Used) $25,000
Roof Racks & Equipment $3,000
Insurance (6 months) $6,000
Licenses & Permits $2,500
Operations Subtotal $36,500

Working Capital

First 6 Months Operating Expenses $60,000
Marketing Launch Budget $15,000
Emergency Reserve $27,600
Working Capital Subtotal $102,600

Total Startup Investment: $250,000

Revenue Model & Projections

Surfboard Rentals

Peak Season (Dec-Apr): 150 days

  • Average daily rentals: 12 boards
  • Average price: $35/day
  • Season revenue: $63,000

Off-Season (May-Nov): 215 days

  • Average daily rentals: 4 boards
  • Average price: $25/day
  • Season revenue: $21,500
Annual Surfboard Revenue: $84,500

Snorkel Equipment Rentals

Summer Peak (Jun-Sep): 120 days

  • Average daily rentals: 8 sets
  • Average price: $20/day
  • Season revenue: $19,200

Rest of Year: 245 days

  • Average daily rentals: 3 sets
  • Average price: $18/day
  • Season revenue: $13,230
Annual Snorkel Revenue: $32,430

Retail Sales

Merchandise Categories:

  • Swell-branded apparel: $25,000
  • Surf accessories: $15,000
  • Beach & lifestyle products: $20,000
  • Equipment sales: $12,000
Annual Retail Revenue: $72,000

Total Year 1 Revenue: $188,930

Conservative projection: $150,000 (20% buffer)

Operating Expenses

Fixed Monthly Costs

Rent (1,500 sq ft) $3,200
Utilities (Electric, Water, Internet) $400
Insurance (General, Vehicle, Equipment) $1,000
Software Subscriptions (POS, Booking, etc.) $200
Fixed Costs/Month $4,800

Variable Monthly Costs

Staff Salaries (2 full-time) $5,000
Fuel & Vehicle Maintenance $600
Equipment Maintenance & Replacement $800
Marketing & Advertising $1,500
Inventory Restocking $2,000
Variable Costs/Month $9,900

Total Monthly Operating Costs: $14,700

Total Annual Operating Costs: $176,400

Cash Flow Analysis

Monthly Cash Flow Pattern

Jan
+$5,200
Feb
+$6,800
Mar
+$8,100
Apr
+$4,200
May
-$3,800
Jun
-$1,200
Monthly Revenue
Monthly Expenses

Break-Even Analysis

Monthly Break-Even Revenue: $14,700

Daily Break-Even Revenue: $490

Break-Even Point: Month 11 (cumulative)

Reasoning: Strong winter season (Dec-Apr) generates positive cash flow, while summer months may show negative cash flow. Cumulative break-even achieved by end of Year 1.

3-Year Financial Projections

Metric Year 1 Year 2 Year 3
Revenue $150,000 $172,500 $198,375
Operating Expenses $176,400 $185,220 $194,481
EBITDA -$26,400 -$12,720 $3,894
Net Profit -$26,400 -$12,720 $3,894
Cumulative Cash Flow -$26,400 -$39,120 -$35,226
ROI (Cumulative) -10.6% -15.6% -14.1%

Key Assumptions

  • Revenue Growth: 15% annually based on market expansion and operational improvements
  • Expense Growth: 5% annually for inflation and wage increases
  • Conservative Approach: Revenue projections 20% below potential to account for market uncertainties
  • Break-Even: Expected by Month 18-24 with optimized operations

Sensitivity Analysis

Conservative Scenario

Assumptions:

  • 20% lower than base revenue
  • 10% higher operating costs
  • Slower market adoption

Year 1 Results:

  • Revenue: $120,000
  • Net Loss: -$74,040
  • Break-even: Month 18

Base Case Scenario

Assumptions:

  • Projected revenue targets
  • Standard operating costs
  • Normal market conditions

Year 1 Results:

  • Revenue: $150,000
  • Net Loss: -$26,400
  • Break-even: Month 11

Optimistic Scenario

Assumptions:

  • 25% higher than base revenue
  • 5% lower operating costs
  • Strong market adoption

Year 1 Results:

  • Revenue: $187,500
  • Net Profit: +$19,920
  • Break-even: Month 8

Risk Analysis

Risk Factors & Mitigation Strategies

Weather & Seasonal Risks

Risk: Hurricane season, poor surf conditions, extended bad weather

Impact: High - Could reduce revenue by 30-50% during affected periods

Mitigation:

  • Comprehensive insurance coverage
  • Diversified product mix (surf + snorkel + retail)
  • Indoor activities and alternative offerings
  • Emergency cash reserves for 3-month closure

Competition Risk

Risk: New competitors entering market, price wars

Impact: Medium - Could reduce market share by 15-25%

Mitigation:

  • Strong brand differentiation
  • Exclusive partnerships with hotels
  • Superior customer service
  • Continuous innovation in services

Tourism Decline Risk

Risk: Economic recession, travel restrictions, destination reputation issues

Impact: High - Could reduce revenue by 40-60%

Mitigation:

  • Focus on local market development
  • Flexible cost structure
  • Online sales capabilities
  • Pivot to equipment sales vs. rentals

Unique Selling Propositions & Growth Opportunities

To stand out in Rincón's competitive environment, Swell will offer several novel features and services that competitors are not providing, building a foundation for sustainable growth and market leadership.

Unique Service Differentiators

Surf Concierge Service

Formalized gear delivery and swap service. Customers can have pre-reserved equipment delivered to their lodging and swap gear mid-rental (e.g., switch from 8' longboard to 6'6" funshape the next day).

Late Drop-off Lockers

Secured lockers for after-hours returns and early pickups. Customers finishing at 7pm can drop gear in coded lockers, while early 6am snorkelers can access pre-placed equipment.

Try-Before-You-Buy Program

Rental fees credited toward equipment purchases. Test premium surfboards or snorkel gear before committing to buy, with up to 2 days' rental deducted from purchase price.

Frequent Surfer Memberships

Monthly membership plans ($200/month) for unlimited standard rentals or discounted premium gear. Perfect for "snowbird" surfers staying for extended periods.

Sustainability Leadership

Exclusive reef-safe sunscreen, equipment recycling programs, reusable water bottle rentals, and coral reef conservation donations from snorkel rental proceeds.

Best-in-Class Digital Experience

Seamless online booking, digital waivers, real-time inventory, and mobile-optimized interface. The "Airbnb of surf/snorkel rentals" in terms of user experience.

Community Hub Concept

More Than Just a Shop

Surf Report Center

Live surf cam feeds, Surfline forecasts, and local conditions board. Become the go-to spot for "where's good to surf tomorrow?" advice.

Community Events

Monthly surf movie nights, talk story sessions with local veteran surfers, and gear demo days with local shapers.

Innovative Service Ideas

E-bike Delivery (Future)

Eco-friendly delivery via electric bike for small items and single boards

Faster navigation through congested beach areas

Unique marketing angle and press attention opportunity

Aligns with sustainability brand positioning

Custom Gear & Demos

Partner with local surfboard shapers for exclusive demo days

First-to-market with new gear innovations

Pool demos for new snorkel equipment at hotels

Support local craft while offering unique inventory

Multi-Day Adventure Kits

"Beach Week Kit" bundles: 2 surfboards + 4 snorkel sets + beach chairs + cooler + umbrella

Flat-rate pricing for family vacation packages

Simplifies choices and encourages larger rentals

Leverages broad inventory that competitors can't match

Educational Partnerships

Marine biology education partnerships with snorkel gear

Surf safety workshops and ocean awareness programs

School group packages and educational discounts

Position as community education resource

Growth & Expansion Opportunities

Phase 2: Service Expansion (Years 2-3)

  • Add guided eco-tours and surf lessons once core business is established
  • Introduce equipment maintenance and repair services
  • Develop exclusive partnerships with hotels and resorts
  • Launch online surf shop for Puerto Rico-themed gear

Phase 3: Physical Expansion (Years 3-5)

  • Open satellite beach kiosks at popular surf breaks
  • Consider second location in complementary PR surf town
  • Develop mobile rental units for events and competitions
  • Explore franchise opportunities if model proves successful

Phase 4: Market Leadership (Years 5+)

  • Become the definitive beach outfitter brand in Puerto Rico
  • Develop proprietary Swell-branded equipment lines
  • Export successful model to other Caribbean surf destinations
  • Establish Swell as a lifestyle brand beyond just rentals

Competitive Moat Development

Technology Advantage

Proprietary

Custom booking system and operational software

Brand Recognition

Community

Deep local relationships and tourist loyalty

Service Excellence

Delivery

Unmatched convenience and customer experience

Market Position

First-Mover

Full-service surf + snorkel combination

Success Motto & Vision

"Ride the Wave, Snorkel the Reef – We'll Handle the Rest!"

Swell's vision is to free customers to enjoy Rincón's natural beauty while we provide top-notch gear and service. By differentiating on service, convenience, and community connection, Swell will not only attract customers but create brand advocates who recommend us to others.

  • Establish market leadership through innovation and service excellence
  • Build sustainable competitive advantages through technology and relationships
  • Create a scalable business model for potential expansion
  • Develop Swell as the premier beach adventure brand in Puerto Rico

Appendix

Supporting Data & Research Sources

Market Research Sources

  • Discover Puerto Rico Tourism Statistics (2023)
  • Puerto Rico Tourism Company Economic Impact Reports
  • Rincón Municipality Tourism Data
  • Competitor Analysis (Local Surf Shops Survey)
  • Customer Interviews (25 tourists, 10 locals)
  • Seasonal demand analysis based on 3-year historical data
  • Pricing benchmarks from competitor mystery shopping

Financial Model Assumptions

  • Equipment depreciation: 5 years straight-line method
  • Inventory turnover: 4x annually for retail merchandise
  • Seasonal demand patterns based on tourism data
  • Pricing based on competitor analysis and willingness-to-pay surveys
  • Conservative revenue projections with 20% buffer for uncertainties
  • Operating expense inflation of 5% annually
  • Revenue growth of 15% annually after Year 1

Implementation Timeline

Pre-Launch (Months -3 to 0)

  • Secure financing and finalize location lease
  • Complete store renovation and equipment procurement
  • Develop website and booking system
  • Hire and train staff, obtain permits and licenses

Launch Phase (Months 1-6)

  • Grand opening marketing campaign
  • Establish delivery operations and partnerships
  • Build customer base and gather feedback
  • Optimize operations and inventory mix

Growth Phase (Months 6-18)

  • Expand service offerings based on demand
  • Develop loyalty programs and memberships
  • Strengthen community partnerships
  • Evaluate expansion opportunities

The Swell Story: Where Dreams Meet the Ocean

Steps Beach - where countless ocean adventures begin

🌊 This Is More Than Business

Every successful business starts with a dream, but the greatest businesses are built on purpose. Swell isn't just about renting surfboards or selling snorkel gear – we're about creating a bridge between people and the ocean's transformative power.

When a child sees their first sea turtle through our snorkel mask, when a surfer catches their first wave on our board, when a family creates memories that will last generations – that's when we know we're succeeding.

💫 Our Commitment to the Future

Community First

Every decision we make will be filtered through one question: "How does this serve our ocean community?"

Ocean Protection

We will be guardians of the waters that give us life, ensuring future generations can experience the same magic.

Excellence Always

From our first customer to our thousandth, every interaction will reflect our commitment to creating extraordinary experiences.

🚀 Ready to Make Waves

With $250,000 in startup capital, a passionate family team, and an unshakeable belief in the power of ocean experiences, Swell is ready to become Rincón's premier beach adventure outfitter. We're not just starting a business – we're beginning a movement.

The Ocean is Calling

Every sunrise brings new possibilities. Every wave carries potential. Every snorkeling adventure opens minds to the wonders beneath the surface.

Swell is ready to answer that call. Are you ready to join us?

The endless horizon of possibilities that await

"The ocean doesn't care about your business plan – it only responds to passion, respect, and authenticity. That's exactly what Swell brings to every wave, every reef, every adventure."