Looking to make some money with your boat and make a living out of it? Learn how to start a fishing business the right way. You will find out it is not only about paying for licenses and bait as there are many important factors to keep in mind. A successful fishing business doesn’t just pop up overnight, but the rewards to it in the long term can be pretty satisfying.
Every year, hundreds of ship owners apply for federal documentation eager to convert their boats into money-making floating machines. While a long-desired wish and inspiration are the first step to it, running a business is no simple task. Not only you will have to invest quite a sum to put the foundation stone, but also lots of time and perseverance.
What Do You Need To Get Started
The first and most important question is: do you have a boat? It may sound pretty obvious, but is the key question to ask yourself many more. Is the boat suitable for the activity you need? Is it big enough to carry people for charter fishing? Does it have the required maintenance to keep the engine running year long? A ship has to be prepared for these ventures, and safety is a top priority if you are taking people on the water.
Making Some Numbers
If you already have a proper vessel for charter fishing, it’s time to get started with the calculator. Among the many startup expenses, you can find dockage, insurance, business and fishing license, and utilities. Beware though, if you want to make money out of your business, you need to promote yourself. Forget about asking your nephew to run a social media for a couple of bucks. You need to invest in advertising.
What about ongoing fees? Will you just own the business or will you be the captain as well? That decision will decide if you get to pay a salary to another guy. Also, a boat needs fuel and oil. You will need to think about bait, ice, utilities, maintenance, management, and legal costs, boat maintenance, and depreciation.
If you can’t afford to pay for every single thing by yourself, you may want to consider funding. Meet with a local bank and present your business plan, which should outline all necessary funding and anticipated return on investment. You can open your business bank account and credit card there too.
Legal Issues To Start a Business
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your fishing charter business gets sued. The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
You will also need to register for a variety of state and federal taxes before you can open for business. You can do this by applying for free for an Employer Identification Number (EIN).
Getting The Proper Permits
Charter and commercial fishing always require permits, which depend on your state, boat size, desired species of catch, and many other variables that need to be researched according to your municipality. You may sometimes need federal permits as well.
Unless you are an experienced fisher, you need to run a little background research over the species that you can catch wherever you want to settle your business. Ask around at your local fish shops or fishing store to know what species you can find, and if they are of interest to your target audience.
Need a Hand With The Permits? We Can Help
Now that you know how to start a fishing business, it’s time to get hands-on with it. In the Commercial Fishing Permits Center, you can find all the permits you need for the state you are looking to fish at.
Feel free to contact us if you have any questions.