Sand Dollar Boat Charters

There are several different things that can pose barriers to entry into a new business. Some barriers to entry are government intervention (regulation, limits on entry), or naturally occurring barriers to entry such as high fixed costs, a steep knowledge curve or the structure of the industry (Investopedia, 2013).

There are few barriers to entry in the boat rental industry. Startup costs are relatively low, and even the boats can be leased to further reduce startup costs. There is little physical infrastructure needed and there is little in the way of specialized knowledge (Entrepreneur, 2013).. Insurance is one of the biggest fixed costs. Thus, there is a high threat of new entrants if the existing industry players are enjoying success. Indeed, there is even a new business model of peer-to-peer boat rentals that threatens to challenge the existing businesses in this industry. Several peer-to-peer boat rental...
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