This article is part of a seven-chapter story following Drew on their journey to start a Scuba Diving Shop. Inspired by the guide How to Start a Scuba Diving Shop: Step-by-Step Guide, the series blends practical steps with storytelling to show what starting a business really feels like.
What Location and Setup Make Sense First?
Where Opportunity Meets Reality
How do you choose the perfect location for a business that depends on both land and sea?
Drew spread three maps across his kitClark table. One showed dive sites throughout the Florida Keys. Another marked existing dive shops from Key Largo to Key West. The third displayed tourism patterns, hotel concentrations, and marina locations.
The morning coffee grew cold as he studied the intersections. Somewhere in these overlapping circles of opportunity and competition lay the answer to his next big decision: where exactly would Ocean’s Edge Dive Center call home?
His phone buzzed with a text from Elena, his Cozumel mentor: “Remember—location isn’t just about foot traffic. It’s about matching your model to your market.”
Drew picked up his pen and wrote across the top of his legal pad: “Model First, Then Location.”
Mapping the Business Model
The dive industry offered several paths, but Drew had learned from his research that trying to be everything to everyone was a recipe for mediocrity. Elena had been clear: “Pick one focus to start. Do it exceptionally well. Expand later.”
Drew sketched out the five main options:
- Pure Retail and Rentals: Selling and renting gear with minimal instruction. Lower insurance costs, predictable inventory, but fierce competition from online retailers.
- Instruction-Heavy Center: Focus on certifications from beginner to professional levels. Steady revenue streams, but requires classroom space and pool access.
- Charter-Only Operation: Boat-based guided trips to dive sites. Strong margins per trip, but high equipment costs and weather dependency.
- Full-Service Dive Resort: Bundled accommodations, meals, and diving packages. Great experience, but needs hotel partnerships or major capital.
- Eco-Tourism Specialty: Educational tours centered on marine conservation and reef protection. Growing interest, but needs distinctive positioning and expertise.
Drew circled two options: Instruction-Heavy Center and Eco-Tourism Specialty. His strengths in teaching and marine biology pointed toward these models. More importantly, they aligned with his deeper mission of creating ocean advocates, not just customers.
But Elena’s advice echoed in his mind: “Your business model has to match your location’s reality. The best model in the wrong place still fails.”
Time to scout the territory.
The Great Location Hunt
Drew’s first stop was Islamorada, ninety miles south of Miami. Known as the “Sport Fishing Capital of the World,” it attracted serious water enthusiasts year-round. The village offered deep-water access, strong tourism infrastructure, and a premium outdoor vibe.
He parked near a well-known shop and walked the area, watching how people flowed from parking lots to storefronts and toward the marina. Through the front windows he saw tidy gear displays, confident staff, and a steady stream of customers who looked experienced. He didn’t introduce himself or ask questions. He simply observed what any passerby could see and jotted notes: clear signage, easy loading path, and a layout that helped customers move quickly.
“Professional, but intimidating,” he wrote. “Strong for veterans. Where do nervous beginners fit?”
Next, he drove to Key Largo, the self-proclaimed “Dive Capital of the World,” next to John Pennekamp Coral Reef State Park. Tourist infrastructure was robust—hotels, restaurants, and marine attractions everywhere. He counted six dive shops within three miles. Competition was intense, but the market seemed large enough to support multiple operators.
Again, Drew did not approach management. He walked the sidewalks, noted storefront visibility, checked parking access, and watched how long customers stayed inside. Back in his car, he opened his laptop and continued the day’s work online: reading websites, scanning class calendars, checking review patterns, and noting which shops leaned into instruction versus charters versus retail. He compared public price ranges, looked at photos of classrooms and rinse stations, and read FAQs to understand how each shop positioned itself.
What stood out: many operators appeared geared toward certified divers booking trips or buying specific gear. Fewer highlighted “first-time friendly” messaging up front.
“Maybe there’s a gap,” he wrote. “Beginner-focused, small classes, conservation-minded.”
Reading Between the Depth Charts
That evening, Drew booked a short, paid phone consult with Tom, an owner in Key West—well outside Drew’s likely target area in Upper Key Largo. Before they spoke, Drew made it clear he wasn’t opening anywhere near Tom’s market. The conversation stayed high level and professional.
“The quiet truth about dive locations,” Tom said, “is that being on top of the best reef isn’t everything. Instruction happens in pools or easy training sites. Customers value convenience, clarity, and service.”
Tom paused. “The real lever is matching your model to your community’s rhythm. Tourist-heavy zones reward smooth processes and fast communication. Local-heavy zones reward relationships and flexible scheduling.”
Drew took notes and then went right back to public sources—association articles, tourism board data, and city dashboards—to validate what he’d heard without asking any shop for confidential details.
He marked three promising areas on his map based on public information and his own field observations: Upper Key Largo (tourist access, less saturated near certain corridors), Marathon (good local community with moderate tourism), and Big Pine Key (unique ecosystem access, smaller market).
The Zoning Reality Check
Before falling in love with any location, Drew needed to understand the regulatory landscape. He called Monroe County’s planning department and spoke with Lisa, a zoning specialist.
“Dive shops fall under marine commercial use,” Lisa explained. “You’ll need appropriate zoning, adequate parking, and compliance with coastal construction rules. Some areas limit compressor operations due to noise.”
Drew wrote it all down: marine commercial zoning, minimum parking ratios, sound restrictions, coastal setbacks. He asked about timelines.
“Six to twelve weeks if it’s straightforward,” Lisa said. “Longer if you need variances or environmental review.”
He added: Start permits early. Budget for delays.
He also checked with Captain Mike, a boat captain he knew, about marina realities. Mike’s advice was blunt: “Don’t sign a lease until you’ve confirmed slip availability. Shops without reliable boat access don’t last.”
Testing the Waters
Rather than trusting assumptions, Drew spent a day in each area.
- Upper Key Largo: From a coffee shop near a promising retail strip, he counted foot traffic, watched the mix of families and divers, and tracked how people moved from hotels to shops to the road toward the marina. He noted a 2,000-square-foot space with classroom potential, strong visibility, decent parking, and posted rent of $3,500 monthly. The marina was a ten-minute drive—workable, if the class flow made sense.
- Marathon: The vibe felt more local—dive clubs, fishing tournaments, and conservation groups on community boards. He found a 1,500-square-foot spot near the water with direct access but limited parking and higher rent around $4,200 monthly. He chatted with a marine supply store owner about general community dynamics—nothing competitive, just neighborhood reality. “People here know each other,” she said. “Word-of-mouth carries more weight than ads.”
- Big Pine Key: Access to unique sites near the National Key Deer Refuge drew him in, but the market looked smaller. A listed 1,800-square-foot space ran $2,800 monthly with excellent marina proximity. The question was volume across all seasons.
That night, Drew compared his street observations with public online research—tourism trend reports, hotel occupancy patterns, and seasonal charts—so he could weigh what he’d seen against neutral data.
The Partnership Question
As his short list came into focus, Drew revisited the idea of a partner. A partner could balance the books while he taught classes and guided eco-tours. He noted a few names, each with trade-offs. But the more he thought, the clearer it became: his vision was still forming. He didn’t want to split decisions yet.
Elena’s words returned: “Partnerships in dive operations are like buddy diving. Great when they work, risky when they don’t.”
Solo to start. Hire specialists as needed.
The Support Team Strategy
Going solo didn’t mean going alone. Drew lined up a support bench:
- Attorney (Laura Klein): LLC setup, basic contracts, marine-industry guidance.
- Accountant (Robert Clark): Seasonal cash-flow and equipment depreciation know-how.
- Business Banker (Maria Santos): Familiar with marine lending.
- Insurance Specialist (David Park): Dive-specific coverages from equipment to professional liability.
- Marketing Consultant (Lisa Wong): Booking systems and outdoor recreation marketing.
All on project or light retainer, so expertise without heavy overhead.
The Decision Matrix
Drew built a simple scoring model and weighed the factors:
- Customer Access (30%) – hotels nearby, road visibility, parking.
- Operational Efficiency (25%) – layout, marina access, storage.
- Competition Dynamics (20%) – saturation and clear differentiation.
- Cost Structure (15%) – rent, permits, renovations.
- Growth Potential (10%) – market size and room to expand.
Upper Key Largo came out on top. Strong access, workable operation, moderate competition, and room to grow. Renovation needs looked modest, and the layout fit an instruction-forward plan.
Marathon scored well on community but stumbled on cost and parking.
Big Pine Key had uniqueness, but the market felt thin for a first launch.
The Hybrid Model Emerges
With location clearer, the model snapped into focus:
- Scuba Instruction (~50%) — small classes, beginner-friendly, strong safety and marine-life education.
- Gear Sales & Rentals (~30%) — quality equipment, expert fitting, brands aligned with conservation.
- Eco-Education Tours (~20%) — guided experiences that teach reef etiquette, biology, and photography.
It played to Drew’s strengths, differentiated from heavy charter or pure retail shops, and diversified revenue against seasonal swings.
Sealing the Decision
Drew returned to Upper Key Largo to walk the block again at different times of day. Afternoon light filled the potential space. He pictured gear walls, a calm classroom, a tidy back room for the compressor and maintenance bench, and a small office for consults.
He called the landlord, Mike Peterson, a local developer who liked supporting operators with roots in the area.
“I can offer a two-year lease with renewal options,” Mike said. “Reduced rent for the first six months while you launch. I’d rather back a committed local than a chain.”
Terms were fair: $3,500 a month after the startup period, shared maintenance, signage permitted, and flexibility for minor build-outs.
“I’ll take it,” Drew said.
That evening, he sat on the dock where this plan first took shape. His legal pad now held a clear path: Upper Key Largo, instruction-heavy with eco-tourism, solo operator with a strong support bench. The work wasn’t guesswork. It was public research, street-level observation, and professional guidance—without asking any competitor for secrets.
Elena’s final reminder returned: “The perfect location doesn’t exist. The right one is where you can execute your model better than anyone else.”
Drew believed he’d found it.
Chapter 2 Summary: Why Matching Model to Market Matters
Drew learned that solid models emerge at the intersection of personal strengths, market opportunity, and operational reality. By touring areas, observing without prying, and validating with public data, he chose a path that fits his skills and serves an underserved need—without stepping on anyone’s toes.
See the guide Drew used: How to Start a Scuba Diving Shop: Step-by-Step Guide
Next Step: Build detailed financial projections before major spend.