Financing Your Alternative Market
Insufficient capital is a common problem for new alternative marketing endeavors. To avoid this problem, it's critical to estimate costs and have financial reserves on hand to cover those costs until the alternative market becomes self-sufficient. Costs for establishing or expanding an alternative market can vary widely and often are related to the complexity of the market (e.g., number of employees, infrastructure and permit requirements).
You will need not only to have enough financial resources to purchase equipment, supplies and raw material, but also enough to pay wages and operating costs until sufficient cash flow is established.
— Modified from Fishermen's Direct Marketing Manual (2007)
When starting/expanding seafood alternative marketing, expenses incurred may include:
- Personnel (employees, yourself)
- Permit fees
- Cold storage
- Fuel and vehicle maintenance
- Promotional activities
- Educational materials
See Resources:Business Planning & Financial Planning for guides and spreadsheets for estimating costs.
Many types of financial assistance are available for alternative marketing, including: