Where the Money Leaks Happen in Tour Businesses (and How to Plug Them)

You have put your name out there as one of the best, if not the best kayaking tour company around. However, what is that business bank account of yours looking like? Is it leaking like an old canoe (no offense Wenonah!)? These “leaks” or small expenses and inefficiencies can quietly drain profits in outdoor adventure businesses. Let’s take a look at 5 common money leaks – and how to patch them.

Money Leak #1: Untracked Gear Loss & Damage

Example: Broken paddles, ripped tents, missing life jackets

This is normal, right? Well, yes, these things do occur in day-to-day business. But these replacement costs quietly and quickly add up.

What’s the fix?

·         Regular inventory audits.

·         Track gear depreciation in QuickBooks or similar software.

·         Implement renter damage deposits.

Money Leak #2: Seasonal Staffing Inefficiencies

Example: Overstaffing on slow days or peak season hiring scrambles.

Where the cost is coming from: Wasted payroll dollars or lost sales.

But, I need these people! How can I fix this?

·         Analyze past seasons' sales data.

·         Use flexible part-time staff.

·         Pre-book tours to predict labor needs.

Money Leak #3: Overlooked Subscription & Software Fees

Example: Paying for outdated booking systems or unused marketing tools.

Everyone pays for stuff they don’t need. Yes, but let’s try standing out from the crowd and realize that auto-renewals eat profits.

Ok, ok…how do I fix?

·         Quarterly review of recurring expenses.

·         Cancel or downgrade tools that do not provide ROI.

Money Leak #4: Poor Pricing Strategy

Example: Undercharging for premium experiences (sunrise and sunset kayak tours, private guides, the “Ooohs and Ahhhs that really get folks in the door).

Why does this cost you? You are leaving money on the table.

Are my services really worth it? Yes!! You have a cool business! Market it as such by doing the following:

·         Market comparison research.

·         Implement tiered pricing or packages.

·         Review pricing annually.

Money Leak #5: Tax Deductions You’re Missing

Example: Forgetting mileage logs, meals for staff training, gear write-offs.

I have to pay for these things anyway so how does it cost me more money? Higher tax bill. Deductions are your friend!

Let’s get you fixed up…

·         Consult your bookkeeper or tax pro (that’s me!)

·         Use apps to track expenses in real-time.

·         Keep organized digital receipts.

In conclusion, you have an awesome business!

You just need to make sure that little leaks don’t spring into capsizing ones. Good & clean books, software systems that work with you and not against you, bring in those tax deductions, and watch the market in your industry. Patch these leaks now – so you’re not paddling upstream come tax season.

Want help finding the hidden leaks in your business finances? Let’s chat. I make bookkeeping for outdoor adventure businesses simple, not scary.

Don't capsize your business. Tour companies need bookkeeping help too!