Investing in a Scuba Diving Business Lester Kwok
The truth in investing in a scuba diving business or a scuba related diving business
The REAL worth of a scuba dive business
Being in the tropical destination scuba diving business for 20 years now, and have been involved in owning, running and finally selling scuba dive centres, liveaboards and resorts, we decided to write this article to better inform potential investors and what the true dive business is all about
Before you jump into a scuba diving business and writing that cheque for your investment, consider finish reading this article prior to giving away your hard earn money.
It is a major MISTAKE to invest in any scuba dive companies based on what the owner have convinced you that the business is all about.
Understanding the nature of Scuba Dive Business
Scuba Dive Business is loosely classified into two main areas. The Core of diving and the supporting arm of diving. All these businesses comes together and form the scuba diving industry.
The Core of Diving
These are the scuba diving centres operating at tropical destinations or in a cosmopolitan city such as Singapore. Each scuba dive centre will decide on which agency or teaching methodology they want to be associated too. Personally, for newer dive centres in Singapore, most of them have chosen agencies such as SDI or SSI as it is significantly easier to become a SDI or SSI Instructor compared to agencies such as NAUI or PADI.
Before stoning us, please note, we mentioned NEWER dive centres and NOT the establish dive centres.
For any dive centre to try to be even successful, they have to embrace the three Es of Diving, primarily, Equipment, Education and Experience.
Equipment is further broken down into Equipment Rental, Equipment Servicing and Equipment Sales.
Education would be dependent on the scuba dive agency the dive centre has decided to embark their journey with. Some dive centres have gone beyond recreational diving certification programs and provide tec diving programs to cater to divers.
And experience is the most important E. It provides diving adventures and an overall experience to divers, getting them addicted to diving and making them dive more and more. And when the dive more, they want to learn more, and they more they learn, the more they buy.
This is a straight forward business concept.
The Supporting Arm of Diving
We call it the supporting arm. But these are individual profiting business that you should consider investing in as well.