SeaBag Marina

ProHub Comment

This case teaches structured profitability analysis through a less familiar industry, requiring the candidate to think analogously (marina as hotel). The math is straightforward but the key value lies in building a comprehensive framework covering revenue drivers (slips, moorings, occupancy rates, pricing), cost structures (setup, maintenance, wages), and strategic considerations (market size, seasonality, competitive risks, regulatory factors). The thin 3-year profit margin ($134,000 on $4.6M revenue) reveals that success heavily depends on accurate demand forecasting and execution risk—critical for an inexperienced operator.

Estimated Time 15 minutes
Difficulty Medium
Source Columbia
50 / 100
A recent Columbia MBA graduate, Finn Russo, is exploring entrepreneurial opportunities and has decided he would like to open up a private boating marina near Sullivan’s Island, South Carolina. With limited knowledge of the region apart from celebrating a bachelor party in the Charleston area and some online research, Finn has chosen a potential location and has come to you for guidance on how to proceed. He has one financial partner (his father) who is contributing $2,000,000 to the project interest free to be paid back in the 3rd year of operation. Should Finn open up a marina?

Clarifying Information

  1. Primary source of revenue comes from providing docking and mooring. Docking prices are often charged based on length of the boat.
  2. Docking - wet slips or docking space near shore usually complete with electrical power supplied will be charged based on $/Feet of length of the boat.
  3. Mooring - permanent anchor spot in the water some distance from short (mostly used for much larger boats and sailboats)
  4. Alternative Sources of Revenue: Sell boating supplies and equipment, Repairs on boats, Sell fuel for boats
  5. The marina will be offering both monthly and daily moorings and slips
  6. Finn has no experience in boating or running a marina.