Clams are a common mollusk that may be found in a variety of recipes. They may be found in anything from cheap fried clam baskets to fancy trays of clams casino, not to mention the clam soup that many New Englanders and New Yorkers grew up with.
Many of the clams consumed are obtained by small business owners digging for clams in the mud and dirt along the beach. While some boats trawl for clams in deeper seas, tiny clamming operations dig and rake millions of pounds of clams each year.
Table of Contents
Follow these ten steps to start a clamming business:
Plan your Clamming Enterprise
Create a legal entity for your clamming business.
Register your Clamming Company for Taxes.
Create a Business Bank Account and a Credit Card
Create an accounting system for your clamming business.
Get the Permits and Licenses You Need for Your Clamming Business
Purchase Clamming Business Insurance.
Define your Clamming Company Brand
Make a website for your clamming business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting started in the clamming industry. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a clamming business?
The startup expenditures for a clamming company are negligible. Business owners require:
A shellfish commercial licence
A clam gauge made of metal.
Several 5-gallon buckets
Footwear that provides security (wetsuit shoes work well)
A rake, inner tube, and rolling machine (for sorting) may also be bought if desired. Even with these materials, it is often feasible to equip a clamming company for under a thousand dollars, including any required permits.
Business owners who want a boat to access clamming areas will have to pay more, but a secondhand rowboat or skiff will suffice and will not cost much.
What are the continuing costs of running a clamming business?
The recurring costs of a clamming company are essentially non-existent. If a company has a powerboat, it must buy gasoline and oil. Otherwise, the only recurring expenditure is the yearly amount required to maintain licences current.
Who is the intended audience?
Clams ultimately find their way to seafood markets, supermarkets, and restaurants. Clamming operations, on the other hand, sell to clam wholesalers, who act as intermediaries in the supply chain.
How does a clamming operation produce money?
Once the clams have been sorted, they are sold to a local wholesaler. In most clamming areas, there are just one or two wholesalers.
How much money may you charge your customers?
The market determines the wholesale price of clams. Most clams sell for roughly $2.25 per pound, although littlenecks may fetch more.
How much money can a clamming operation make?
Owners of small businesses may earn between $100 and $200 each half-day of labour. How much money company owners earn is determined by how hard they work and how numerous the clams are.
How can you increase the profitability of your company?
Aside from clams, company owners may be able to collect crabs or mussels that they come across while working. These aren’t going to be huge cash generators, but they may help if someone in the neighbourhood is willing to purchase them.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your clamming company is sued, forming a legitimate business entity, such as an LLC or corporation, safeguards you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
A Clamming licence is required in the majority of states. To run a Clamming business, certain state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Regulations Concerning Food
When selling food, you must get a licence from your local health authority; all enterprises serving food must pass a health inspection. Tips for Passing a Health Inspection
Federal laws govern what may and cannot be added to, marketed as, or processed with food. A Food and Drug Administration resource on the procedure of opening a food company is attached: How to Launch a Food Business
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Clamming Company
Clamming company owners do not need to bother about promoting their clamming operation. As long as there is a wholesaler in the vicinity, clams delivered to them will be purchased.
How to Keep Customers Returning
Business owners may distinguish themselves by being professional and making the clam-buying procedure as simple as possible for the wholesaler with whom they operate. This will not increase sales, but it may give company owners special treatment when everyone brings in their clam harvests. At the end of the day, being given the front of the line is never a terrible thing.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.