Business Elements

Business Planning

Starting or expanding an alternative marketing effort requires careful planning. Developing a business plan helps one think through the necessary steps and options for each component of the market. Having a written plan will make it easier to share and request financial assistance. Proper accounting practices -- critical for the success of small businesses yet often neglected -- also are needed from the start. See the business and financial planning resources below for sample plans, business management tools and more.

Resources

Business Planning

AgPlan.
University of MN. A free online resource specifically designed to help farmers, ranchers, fishermen, and small businesses write sound business plans. 
Business Plan for a Startup Business Template.
SCORE.
Business Plan Outline.
Fishermen's Direct Marketing Manual. AK, OR & WA Sea Grant.
Create Your Business Plan.
US Small Business Administration (SBA).
TAA Developing Your Business Plan. Videos and Handout.
University of MN Center for Farm Financial Management. Online training includes handouts and presentations on marketing, management and organization, business plans and consultants, and more.
TAA Lobster Marketing Opportunities: Alternative Ways to Organize for the Purposes of Marketing Seafood Products. Video and Handout.
University of MN Center for Farm Financial Management.
TAA Shrimp Marketing Opportunities: Organization Methods. Videos and Handout.
University of MN Center for Farm Financial Management. Provides information to help fishermen understand the alternative methods for organizing to better market their seafood.
TAA Staying Up to Date on Seafood Market Trends. Video.
University of MN Center for Farm Financial Management.
TAA Strategic Positioning for Farmers and Fishermen. Videos and Handout.
University of MN Center for Farm Financial Management. Provides information to assist fishermen with developing a competitive advantage and more.

Financial Planning

Calculating profitability for a direct marketing operation
AK Sea Grant.
Determining marketing costs and returns in alternative marketing channels
Renewable Agriculture and Food Systems.
Fishing Business Spreadsheets.
FishBiz. AK Sea Grant.
TAA Developing Your Business Plan. Videos and Handout. 
University of MN Center for Farm Financial Management. Online training includes handouts and presentations on marketing, management and organization, business plans and consultants, and more.
TAA Lobster Marketing Opportunities: Alternative Ways to Organize for the Purposes of Marketing Seafood Products. Video and Handout.
University of MN Center for Farm Financial Management.
TAA Shrimp Marketing Opportunities: Organization Methods. Videos and Handout.
University of MN Center for Farm Financial Management. Provides information to help fishermen understand the alternative methods for organizing to better market their seafood.
TAA Staying Up to Date on Seafood Market Trends. Video.
University of MN Center for Farm Financial Management.
TAA Strategic Positioning for Farmers and Fishermen. Videos and Handout.
University of MN Center for Farm Financial Management. Provides information to assist fishermen with developing a competitive advantage and more.
Tracking Your Money: A Quick Guide for Alaska’s Skiff Fisherman and Catcher-Seller
AK Sea Grant.
Business Elements

Business Structure

The way a business is structured has implications for taxes, personal liability, and flexibility of ownership. Changing or adding an alternative market to a fishing business may affect these components of a business. As such, the business structure may need to be modified, with these among the general types:

  • Sole proprietorship
  • Limited liability company
  • Cooperative
  • S corporation
  • Partnership

See Resources below for definitions of and further information about each type as well as state-specific variations.

Contact

A tax accountant or attorney can help to determine the most appropriate business structure for a given fishing business.

Resources

Business Structures.
US Internal Revenue Service (IRS)
Business Structure: Which Works best for You?
SCORE Association.
Choose Your Business Structure.
US Small Business Administration (SBA).

West Coast State-Specific

Selecting a Business Structure.
California Tax Service Center.
Select Your Business Name and Structure.
Oregon Secretary of State.
Creating a Business Structure.
Washington State Licensing Service.
Washington Business and Organization Structure Considerations.
Washington State. Tables comparing types of business structures.
Business Elements

Business Taxes

Changing or adding an alternative market to a fishing business may have tax implications. For example, if employees are hired, the following federal and state tax responsibilities may change: 

Federal

  • Income tax
  • Self-employment tax
  • Taxes for employers
  • Excise taxes

State

  • Income tax
  • Employment tax

Contact

A tax accountant or attorney can help determine the tax implications of developing seafood alternative markets.

Resources

Determine Your State Tax Obligations.
US Small Business Administration (SBA).
Filing & Paying Taxes.
US Small Business Administration (SBA).
Small Business and Self-Employed Tax Center.
US Internal Revenue Service (IRS).

West Coast State-Specific

Income Taxes for Your Business Type (California).
California Tax Service Center.
Registering for Business Taxes (California).
California Governor’s Office of Business and Economic Development.
Oregon Express: Taxes.
Oregon Office of the Secreatary of State. Business Xpress.
Business Taxes (Oregon).
Oregon Department of Revenue.
Business and Occupation Taxes (Washington).
Washington Department of Revenue.
Commercial Fishing (Washington).
Washington Department of Revenue. A guide to Washington taxes that apply to commercial fishermen for activities from catching to selling.
Business Elements

Insurance

To protect one’s business and oneself against risks associated with seafood alternative marketing, fishermen may need and/or benefit from additional insurance coverage such as:

  • Product liability: For risks associated with selling defective products that can cause injury to consumers (e.g., spoilage, food poisoning, allergic reaction).  
  • Product transportation (cargo): For risks associated with moving product to stores and customers.
  • Premises liability: For risks of injury to customers at your market, on your vessel or at the docks. 
  • Property insurance: For damage to physical property. 
  • Workman’s compensation: For on-the-job injuries.

Contact

A qualified insurance agent – preferably one with experience with food businesses including fishing, farming and aquaculture – can help determine whether new alternative marketing efforts are covered under one’s current policy and whether additional insurance may be needed or worthwhile. 

Resources

Buying Insurance: Five Tips for Buying Business Insurance.
US Small Business Administration. A tool to determine what types of insurance are best for your business, and how to secure coverage to provide adequate protection and minimize risks.
Insurance Resources.
US Small Business Administration. Links to websites that provide guidance for purchasing business insurance and include "InsureU for small business" and "Information about insurance companies."

Additional permits and other documentation usually are needed to establish an alternative market. Be sure to consult with resource management, public health and business authorities before selling your seafood.

Information provided on this page was synthesized from interviews with fishermen and buyers, and from the Fishermen’s Direct Marketing Manual, the Small Farm and Direct Marketing Handbook, ATTRA publications, and other resources (see About this Website and Resources).