Article- Analysis

Article: Share Float

By Helen Coster

Gavin McClurg, founder and chief executive of Off Shore Odysseys, has a job most people could only dream of. Life wasn’t always so luxurious for him. After floating from job to job McClurg developed a plan to increase his earning capacity. His plan consisted of a five year long expedition on a 57 foot catamaran worth $1.2 million. With no startup capital it seems nearly impossible to run a business, but for Gavin McClurg it became a reality.

A large vessel requires a lot of cash. McClurg decided to sell 615 time shares costing up to $30,000 a piece plus annual fees which adds up to nearly $250,000 a year. Each share entitles the owner to a 10 to 14 day cruise and a piece of the boat. Several of his investors actually own more then one share.

I think McClurg’s business is a great idea. He offers a product people dream of having but had no clue how to achieve it. As he mentions it cost a lot of money to have and maintain a yacht so he gives people a chance to experience this without the hassle. I personally feel McClurg gets a pretty good deal out of the whole thing. He spends most of his time on the sea, which he loves, but at the same time he is responsible for all the arrangements from navigating the trips, to handling all repairs, and catching lobsters for dinner. The shareholders, on the other hand, are responsible for paying for food, annual operating fees and salaries.

There are a few things I would do differently. Currently McClurg pockets only $59,000 salary and for the time and labor he puts in. I would hope to receive a higher salary being that he is the backbone to the operation. Although his charter only runs 198 days of the year during the down time he is still working by doing maintenance on the boat or sailing to the next destination. I would also change the fact that this excursion is based around activities only those highly skilled in water sports can take part in. Many people would love to invest in a...