Coral Scuba’s first 18 months in business have been full of surprises. Mostly good surprises.

Partners Skip Lawrence and Mary Falotico opened their Cape Coral scuba-supply store, training facility and repair shop a year ago October, expecting to spend their first year “getting organized.” Instead, they immediately dove into operating at “full blast.” Customers continued to stream in despite an unexpected mid-year move to a new Del Prado location on the Cape.

In this, their second year, the husband and wife team anticipated taking the season in stride, only to spot an exciting opportunity in Bonita Springs. By December 2000, Lawrence and third partner/instructor Tony Berardi had opened a second store, one year ahead of schedule. Here, too, Lawrence says, “Response has surpassed expectations.” So much so that the original staff of four has grown to seven, including two full-time store managers.

Lawrence, having eight years under his belt “managing a scuba shop for somebody else,” still finds himself surprised by the industry’s narrow profit margin. It’s why running a dive shop is usually a second job for those who try it. “The desire to do this isn’t enough,” he says. “Owners must negotiate financial challenges in inventory, trip expenses, and insurance that regular retail businesses don’t encounter.”

For example, each scuba store must open with a $9,000 to $12,000 compressor just to pump air. Coral Scuba’s self-imposed high technical standards also require on-the-spot customer access to the latest equipment for training, rentals, and sales. Divers like the high-end mixed-gas rebreather system that allows more time underwater. A wrist-mounted computer monitors equipment and environmental readings to replace diver guesswork and make a safe sport even safer.

“We’re always looking for what’s next, not just what’s available,” says Lawrence. Coral Scuba’s modus operandi calls for it to catch the crest of a coming wave ahead of competitors. Being a full-customer-service store also means large displays of quality accessories, from underwater cameras to custom masks. It means qualifying instructors to offer a growing number of specialty classes like river and manatee diving, treasure and shark tooth hunting, spear fishing and night dives. Regular trips take students to local and Florida east coast dive spots.

All of it takes financing. Lawrence, Falotico, and Berardi decided early not to swim with outside investors, who can call for repayment on demand. Instead, they have totally self-financed, avoiding the use of credit cards. The company’s three-year financial plan calls for a transfer from personal funds to commercial financing as soon as they hit the mark local banks look for.

One thing Coral Scuba owners and instructors have is patience. They, like other National Association of Underwater Instructors, focus first and foremost on student education, putting newcomers at ease in trying diving for the first time. “We work with students individually, step by step, spotting and resolving any uncertainties up front,” says Lawrence. “Once you get people in the water and let them try it, they understand what all the fuss is about.”

Growth in the industry has proved stable during the past five years, while females, couples and families with young children discover the recreational joys of the sport. Coral Scuba’s most effective marketing is word-of-mouth supported by neighborhood newsletters and grand opening ads. Its Discover Scuba Program offers free introductory classes to any community on request.

“In every class, we get one to two students who stick with it,” says Lawrence. Having customers stick with it is essential to business growth. Recently, a class of four drew a crowd of 20 onlookers.

As much as 70 percent of Coral Scuba’s traffic walks in looking for dive partners. The Bonita Springs location next to the city’s busy movie theatre has proved a boon. About 25 percent of Bonita Springs scuba students prefer private lessons, with 75 percent gathering for group classes. Two hundred students signed up in the Cape Coral store’s first year, 10 percent of them in private classes. Overall, training accounts for 30 percent of business revenues, with 70 percent generated by equipment sales, rentals, and repairs as well as equipment and accessory upgrades. Enthusiasts consider scuba a reasonably priced sport, at $235 a class and less than $1,000 for full gear, which Lawrence notes can last “a long time.”

What’s next for Coral Scuba? Advanced education for today’s beginning students and an accelerated travel schedule. Plus hiring additional instructors to keep up with the perhaps not-so-surprising demand. According to Lawrence, the approach is simply “to grow as we go.”

Asked what, if anything, he would have done differently, Lawrence says he would have become an entrepreneur years ago. “I enjoy the rewards now that I’m ready to take the risks. Best of all, I see benefits from all the hard work.”

S. Alison Chabonais is a freelance business writer.