Business Elements
Click on the boxes below to learn more about elements of a business that may need to be modified when starting/expanding alternative marketing.
Business Elements
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).
- Fi$hBiz.
- Alaska Sea Grant. Financial and business tools for Alaska commercial seafood harvesters.
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.
- 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
- Taxes for Your Business (California).
- California Tax Service Center.
- Oregon Express: Taxes.
- Oregon Office of the Secreatary of State. Business Xpress.
- Business and Occupation Taxes (Washington).
- Washington Department of Revenue.
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).