Charter Fishing

[GSD]

Hi guys.  New to the site here, but not new to fishing at all.  I do all kinds of fishing, but sweet-water bass fishing has got to be one of the best.  Not to try to sound like a a$$hole, but I'm pretty successful at it too which is always good.  Here's the thing.  I've been seriously considering becoming a charter captain up on a lake in New York.  I've been thinking about this long and hard for a long time now and figure if I'm going to do it, now's a good a time as any to start doing it.  I'm familiar with the lake already, but would be up there and fish day in and day out for the most part for the next two years or so until I'm confident I can consistently put clients on fish in any weather conditions and only then would I start chartering.  I also know that this is also very much so a customer relation business and I'm confident that I work well with others and can make others have a good time while out fishing with me.  I figure I would be able to do this for roughly 7-8 months out of the year and then guide for ice fishing when the ice allows it, and I've got a couple other things I can do to make some modest money and have work year-round.  I know I probably wouldn't end up making all that much money, but a simple life is OK with me.  Does this sound like a feasible career path to make or just crazy?  If there's anyone out there who has done something similar, I'd love to hear from you.  I also figured I'd be making $30-35,000 the first few years I do this, and grow a bit from here.  Does this sound like a reasonable prediction?  Thanks guys.  Looking forward to the feedback.   

[Lund Explorer]

So you are looking forward to the feedback?

I'm not sure where I should start, either as the fisherman or the accountant.  I guess enough folks will chime in here that are fishermen, so maybe I'll stick to the Bean Counter side of your venture.

So to start with, here's a few questions.....

1. Have you looked into writing up a business plan?

2. Have you worked up a cash flow projection?

3. What type of fish will you be chartering out for?

4. How many clients will you take each trip, and how long will a trip last?

5. Is there a market, or a demand for this service?

6. How much cash have you got to start this venture?

Now I don't expect that you have the answers to these questions right now, and I don't even think you need to answer them here on a public forum.  But before you spend too much time and money I really think you need to answer these questions to yourself.

I am very good friends with several charter captains that work on Lake Michigan.  From what i know of their businesses, your estimation of income the first few years is going to be closer if you drop one of those zeros.  Simple math says that if you work 7 months for $30k, you are going to have to net almost $150 per/day, 7 days a week to make that amount.  And that is after paying for the boat, gas, tackle, insurances, and all of the other expenses you'll be faced with.  Also, you'll need to think of those bad weather days that forces you to cancel trips.

Have you thought about maybe starting this out either on a part time basis like weekends?  Or if the lake you are looking at has charters already, you may consider working as a mate for a summer or two.

Anyhow, I can probably pm you a couple of links to help you with a few websites that discuss business plans and cash flow projections.  But somewhere along the line, you will want to hire an accountant (and most likely an attorney) somewhere closer than me.

If you're interested, pm me.

Good Luck!

[swilly78]

As someone who has owned two businesses, the first FAILING EPICLY, and the current one just getting by, I would recommend that you follow Lunds advice.  Have a game plan, do your home work, and DONT try to wing it.  Also, pay close attention to the IRS requirements, even if you hire an accountant.

[cart7t]

Follow Lunds advice.

You predictions for your income are grossly overstated BTW.

It's doubtful you'll make even half that amount. 

[Grey Wolf]

g

Hi guys. New to the site here, but not new to fishing at all. I do all kinds of fishing, but sweet-water bass fishing has got to be one of the best. Not to try to sound like a jerk, but I'm pretty successful at it too which is always good. Here's the thing. I've been seriously considering becoming a charter captain up on a lake in New York. I've been thinking about this long and hard for a long time now and figure if I'm going to do it, now's a good a time as any to start doing it. I'm familiar with the lake already, but would be up there and fish day in and day out for the most part for the next two years or so until I'm confident I can consistently put clients on fish in any weather conditions and only then would I start chartering. I also know that this is also very much so a customer relation business and I'm confident that I work well with others and can make others have a good time while out fishing with me. I figure I would be able to do this for roughly 7-8 months out of the year and then guide for ice fishing when the ice allows it, and I've got a couple other things I can do to make some modest money and have work year-round. I know I probably wouldn't end up making all that much money, but a simple life is OK with me. Does this sound like a feasible career path to make or just crazy? If there's anyone out there who has done something similar, I'd love to hear from you. I also figured I'd be making $30-35,000 the first few years I do this, and grow a bit from here. Does this sound like a reasonable prediction? Thanks guys. Looking forward to the feedback.

No you're not being realistic.

[JigMe]

Listen to Lund's advice.

I have a good friend who runs a head boat at Ocean City, Maryland. His insuarance cost, fuel, tackles, and boat are almost 30,000 dollars a year(I do his accouting work). He is a very successful captain after 6 years, and started to make some money from the business. But the first few years were tough, he was borrowing money from friends almost every month for groecies. I am sure you can be very successful at it, but you need to plan it out. And I think the most important question is What is the market demand for your service? I think you would need to do some Homework.

[NewAngler]

You're 19.

Why try to rush into starting a business? I almost started a business when I was around 20.  A moving company, then someone like Lund talked to me about hard it really will be. I'm not an accountant, and I needed to be. I'm not a human resource person, I needed to be. I wasn't a CDL driver at the time (still not, but in sales now) and needed to be. I'm not onw to tell you not to follow your dreams, but get some more expierence under your belt.

The main question you want to ask yourself is, "Is there a market for this RIGHT NOW?" And even if there is, if you want to be somewhat busy, there better be a LOOONG waiting list for another charter guy on your lake, and your price better be half of what your competitors are. Then you must produce.

Good luck. Take an accounting and business management class, it will help emensly.

[Lund Explorer]

The following link is to the Small Business Administration (SBA) website page that describes the various free training programs available for anyone thinking about starting a new business.

The reason I suggested writing out a business plan, is because it makes a person think of so many easily forgotten parts of starting and operating a business.  It provides a person the chance to put into words, their ideas so that others can see how you intend to run it.  It also allows the business owner to stay on track by consistantly reviewing and updating the plan.

The inclusion of a cash flow projection is also important.  In this case, where the business may be seasonal in nature, the plan needs to show how enough cash can be retained during the 7-8 months of operations, to provide for expenses during the balance of the year.

Anyhow, here is the link below:

http://www.sba.gov/training/index.html

[J Francho]

You are going to want to take a look at USCG requirements for various charter licenses and NYSDEC for guide requirements.  Figure those costs into your plan.  I think your revenue forecasting is grossly over stated.  I know a few bass guides, and I will be guiding next year.  Most have full time jobs that don't involve guiding.

[SirSnookalot]

This is a cash business that requires no business model except clients and lots of them.  Simple math is your guide, earnings less expenses = starvation.  The top side as far as revenue goes is low to begin with, business is a loser.  You will be reporting less income to keep taxes lower which means less social security, if we still have at, at your retirement age, but still will shell out about 14% for it.  Also no health care benefits which is probably the biggest liability of all.  I could go on forever.  I encourage you to own your business, there is nothing more rewarding, but not this one.

In the early days my business was primarily a cash business, luckily I had no ceiling on earning potential, but you do.

[WRB]

Lund Explorer gave you some good advice; work for someone in the business before starting out on your own. Good luck.

WRB