The Charter Fishing Business Manual

Captain Mike’s Fishing Charters

Business Plan

By

Captain Michael Grimm

Janaury 2014

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Table Of Contents

I. Executive Summary
A. Business Description
B. Ownership and Management
C. Key Initiatives and Objectives
D. Marketing Opportunities
E. Competitive Advantage
F. Marketing Strategy
G. Summary Of Financial Projections

II. Confidentiality and Risk

A. Confidential Clause
B. Recognition Of Risk

III. Business Overview

A. Business History
B. Vision And Mission Statement
C. Objectives
D. Ownership
E. Location

IV. Products and Services

A. Description of Products and Services
B. Key Features Of Service
C. Future Services

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V. Industry Overview

A. Market Research
B. Size Of The Industry
C. Key Service Segments
D. Key Market Segments
E. Description Of Industry Competitors
F. Key Industry Trends and Outlook
G. Marketing Strategy
H. Analysis Of Competitive Position
I. Pricing Strategy
J. Promotion Strategy

VI. Management and Staffing

A. Organization Structure
B. Staffing
C. Implementation Plan

VII. Startup and Other Expenses

A. Startup Expenses
B. Fixed Operating Expenses

VIII. Projected Profits and Loss Assumptions

A. Gross profit
B. Net Profit
C. Future Projections

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Executive Summary

Business Description:
Captain Mike’s is a charter fishing business (the “Business”) specializing in inshore fishing trips
that is scheduled to open for business on January 1, 2014. The Business will operate in the Fort
Lauderdale and Miami, Florida areas. With this location and charter type, the cost to provide a
trip is significantly less than the rest of the surrounding fleet. Initial profits will be re-invested
into the business so as to build a small fleet of inshore boats and guides providing daily fishing
charters in the Miami area. By operating in cities that enjoy high tourism volume, Captain
Mike’s will cater to out-of-town clientele by providing a complete package including customer
pick-up at their hotel or nearest access point and fishing the surrounding area to maximize the
customer’s “time on the water.”

Ownership and Management

Captain Mike’s will be operated by Captain Michael Grimm (“Grimm”), a highly knowledgeable
Captain and angler with vast corporate experience, especially in the areas of marketing and
hospitality.

Grimm will manage all aspects of the Captain Mike’s business and he will oversee the fishing
guides who represent Captain Mike’s . Grimm will constantly pursue effective strategies
designed attract to new customers while building an increasing web presence. Grimm’s website
marketing talents are the key to engaging the “out-of-towner” clientele.

Key Objectives
The primary short-term goal of the business is to have one boat that is fully-booked and providing
two trips daily: a morning trip and afternoon trip. Once the service is fully operational, all

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profits are to be re-invested back into the business in order to add two (2) more boats to the
fleet, which would support up to six trips daily.

Grimm will oversee the 3 boats and 3 Captains while completely managing all interactions with
the customers before and after the trips.

Marketing Opportunities
With Miami and Fort Lauderdale being two of the hottest tourist destinations in the country,
the opportunity for sustained grown through experienced web marketing is immense. Grimm’s
proven track record of strong ROI-positive marketing strategies demonstrates that he is well-
suited to take advantage of this growth opportunity.

Competitive Advantage
Captain Mike’s is going to have a reputation for providing fun and memorable fishing trips
for the entire family. Grimm, as sole marketing manager, will cultivate positive Google reviews
from each and every customer, thereby building brand and credibility. Captain Mike’s captains
will reflect Grimm’s CUSTOMER FIRST culture and will be dedicated to showing customers a
great time, regardless of how the fishing is that day. Initially, Captain Mike’s will not cater
to accomplished anglers or book world-record-seeking fishing trips. This makes it easier for
Captain Mike’s captains to manage customer expectations and create an enjoyable experience
for all.

Marketing Strategy
The primary marketing tool will be a highly-optimized website that seeks Page One ranking
in Google and other major search engines for particular key phrases. While the search engine
marketing in Miami and Fort Lauderdale is competitive, Grimm will cast a wider net to capture
search engine terms and searches related to “tourism” and not limit tactics to simply “fishing”
search terms. An example search phrase would be “Things To Do In Miami.”

Grimm’s CUSTOMER FIRST culture is designed to lead to recurring business from existing

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customers. Recurring customers are the most desirable and valuable customers in any business.
In addition, recurring customers are also likely to refer new business by way of “friends and
family.” Simply stated, recurring customers will add value to Captain Mike’s.

Grimm’s primary marketing objective will be to ensure that Boat Number 1 is booked twice
daily – even over-booked. Grimm created a battle-tested “Pay-Per-Click” online marketing
strategy that requires a significant budget and attention to detail that should result in numerous
bookings.

Summary Of Financial Projections

Captain Mike’s revenue projections are based upon 300 trips in the first year of operation.
After 2014, we project 25% growth in the number of trips once a second boat is added.

Confidentiality and Risk

Confidentiality Clause
The recipient of this Business Plan agrees that he/she will keep CONFIDENTIAL the information
contained in this document and will not, without the sole, prior written consent of Michael
Grimm distribute, reproduce, or use this Business Plan or any information contained herein
for any purpose other than the creation of a Business entity. By purchasing this Business Plan,
Michael Grimm is granting a limited use license to the recipient.

Recognition Of Risk
Although the author believes that the information contained in this Business Plan is complete
and accurate, this Business Plan may not contain all of the information that may be important
to creating and operating a charter fishing business. The sole purpose of this Business Plan is to
assist the recipient in deciding whether to proceed with a further analysis of this opportunity,

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and it is assumed that any prospective business owner will conduct his/her own analysis of
the charter fishing industry. The author expressly disclaims any and all liability for statements
contained in, or information omitted from, this Business Plan.

Business Overview

Business History
Captain Mike’s is a new business venture by Captain Michael Grimm who possesses more than
ten years of experience in the charter fishing industry as a guide and as a marketing manager.
The new business will be located in Miami and Fort Lauderdale, Florida. The new business will
have a “fishing concierge” approach that will include picking up the customer from their hotel,
etc.

Staffing will consist of fishing guides that are friendly, well groomed and social, and accomplished
anglers. Grimm will oversee all operations and marketing, while the staff will focus on fishing
trip “fulfillment.”

Vision and Mission Statement

Captain Mike’s model is unique in that it provides inshore fishing trips that typically cost less
to run than typical offshore trips of similar duration. Advantages to this model include:

• Higher gross margins than offshore trips

• Customers still have access to large “trophy” and highly-sought game fish

• Lower risk of Customers getting seasick

• Closer proximity to the dock means more actual time spent fishing and less risk of
returning to the dock later than expected.

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Grimm will be the point of contact for the customer and will use his proven methodology
to determine the best type of trip to offer the customer. Every fishing trip will be run by an
experienced fishing guide who will be prepared by Grimm regarding the type of trip and
customer preferences.

Captain Mike’s will initially feature a single boat. Once that boat is fully-booked and operations
are mature, a second boat will be added to take advantage of certain economies of scale since
Grimm’s customer booking infrastructure is designed to support multiple boats.

Objectives:

Captain Mike’s Primary Objectives for 2014 are:

I. Complete website and establish search engine presence in organic listings and
paid listings.

II. Establish mutually beneficial local affiliate relationships with hotels, tackle shops
and marinas to give us access to their clientele.

III. Acquire one (1) boat and staff 1 to 3 fishing guides to run trips.

IV. Secure at least 300 trips on Boat One for the year.

V. Build brand and become a recognized name in the tourism industry for South
Florida.

VI. Attract sponsors to provide tackle, gear, boat and fuel to reduce cost of services
sold.

VII. Re-invest end-of-year profits into acquiring second boat.

VIII. Grow customer base while engaging all existing customers throughout the year.

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Ownership

Captain Mike’s will be solely owned by Michael Grimm, operating as a Limited Liability
Company under Florida State Laws. Captain Mike’s will be operated at the sole discretion of
Michael Grimm and Grimm will maintain 100% control of the company.

Location
Captain Mike’s will offer saltwater fishing trips in South Florida inshore waters from Fort
Lauderdale down to Miami. All marketing material will be specifically tailored to the South
Florida area. Physical booths or kiosks will be placed in high foot traffic tourist locations where
visitors can register for a fishing trip on that day or reserve a future trip.

All boats owned by Captain Mike’s will be mobile on trailers, enabling the fishing guide to
meet or pick up the customer at a location most convenient to the customer. A key objective of
Captain Mike’s is that we tailor the trip to the tourist customer. We will go to their hotel by boat
or have them meet us at the closest possible location. This reflects our concierge philosophy and
also results in more actual fishing time for the customer.

The booths/kiosks will consist of a mobile trailer with mounted computer that allows customers
to book a trip. These booths/kiosks will be located close to beaches and similar attractions.

Products and Services

Descriptions of Product and Services

Captain Mike’s will offer a primary service with up-sell products. The primary service will be
to take customers fishing for 4, 6 or 8 hours. Each fishing trip is tailored according to Michael
Grimm’s proven customer methodology.
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Upon returning to the dock after the fishing trip, the customer will have the option to purchase
a custom replica mount of a notable catch by a local taxidermist, which can be shipped to the
customer’s residence. Captain Mike’s will earn a 50% commission on each replica mount.

Key Tactics
• All captains will be wearing collared sportfising shirts and hats featuring Captain Mike’s
logo

• Each Boat will have a custom Captain Mike’s wrap applied and will ALWAYS be spotless
inside and out: When a captain isn’t fishing, the captain is cleaning

• All customers will be given Captain Mike’s merchandise that is underwritten by sponsors.

• Captain Mike will greet every customer before and after each trip to build a rapport
designed to lead to recurring and referral business

• Even though fishing is the primary service offering, sight-seeing will also be incorporated
into every trip to hedge against slow fishing

Future Service Offerings

As Captain Mike’s gains a foothold in the local fishing industry, we will offer additional services
such as:

• Sunset Cruises

• Snorkeling Trips

• Sightseeing and Photography Trips

• Waverunner and Personal Watercraft Rentals

• Parasailing Trips

Many of these services can be offered at even higher margins than our primary fishing trip
offerings.

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Industry Overview

Market Research
To analyze the current market trends, we contacted established fishing guides to get an idea of
how many trips a year we can reasonably expect to provide. By analyzing statistics from the
U.S. Bureau of Labor Statistics, we project 300 trips per year, for Year One, as a conservative
estimate for the first boat. This is a reasonable goal and we expect to meet and exceed this goal
by the end of Year One.

The charter fishing fleet in the South Florida area has grown and the competition is increasingly
fierce. However, we believe that most guide operations are taking the wrong approach. By
passively waiting for customers to book the trip, they are limiting their growth opportunities.
Our model will not only target potential customers who are interested in a fishing trip but will
seek to convert potential customers who had not intended to go fishing. Our trips will sound too
good to pass up.

Size Of The Industry

The charter fishing industry is well-established and mature in tourism hotbeds such as South
Florida and continues to grow with influx of part-time guides seeking to supplement their
income. However, most operators possess an antiquated marketing and business model. In
today’s world, foot traffic and prime dock location are not as important as a top-ranked website.
This is where Captain Mike’s will shine.

Key Service Segments

The main service offered by Captain Mike’s will be family-friendly fishing charters, catering to
anglers with skills ranging from first-timer to intermediate, with an emphasis on sight-seeing.
Brand credibility and price point will be the competitive advantage here.

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Key Market Segments

We will target tourists through strong website marketing and affiliate relationships with local
hotels and marinas that are seeking “attractions” for their clientele. We want to “cultivate” the
customer before they begin looking for a charter outfit. We do this by actively marketing the
Captain Mike’s brand and establishing a presence in local business where our competitors are
not, including beaches, landmark restaurants, etc.

Description of Industry Competitors

There are literally hundreds of fishing guides who utilize the “do it all” business model where
they handle the sales, marketing and fishing. This business model is suitable for the guide who
wants to fish 250 trips a year and is not concerned with growth. However, that is NOT the model
contemplated in this Business Plan. Our competitive advantage will be to find the tourist before
they find us... or worse, the competition. Grimm’s focus is to handle nothing but marketing and
sales all day, every day in order to build the customer base.

Key Industry Trends and Outlook

The South Florida continues its upward growth trend and Fort Lauderdale has returned to its
lofty perch as one of the hottest Spring Break locations in the world. Tourists from across the
globe are making South Florida their destination of choice. While the winter and spring are
some of the most active tourism months in this industry, we plan to build a customer base that
keeps our captains fishing throughout the slower months as well. The summer months are
when folks form the southeastern US tend to visit South Florida as well as Florida residents,
such as those in Jacksonville, Pensacola, Tampa and Orlando looking for a change of scenery at
an affordable price. These are often overlooked potential customers and are very likely to wind
up as recurring customers for a charter business that can capture them.

Marketing Strategy
We will target two types of customers. The first customer is one who has already booked
accommodations in the area and plans to fish while in town. This customer will likely find

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Captain Mike’s via a Google search. The second customer is the one who is coming to town and
just looking for a fun activity to fill their schedule. This customer will likely find Captain Mike’s
because our marketing presence will be felt at every possible venue while the customer is in
town.

The first customer, the easier of the two types, will find us through a highly-optimized and
designed website. Our website will build customer confidence and deliver convenience by
including the following features:

• Beautiful Design, including Mobile-Friendly

• Photo Gallery Full Of Happy Customers

• A Fishing Blog

• Easy and Intuitive Reservation Form and Easy-to-Find.

Once the website is created and in production. we will engage a Search Engine Optimization
(“SEO”) specialist to create “organic” search results for us in Google.

In order to attract “instant business,” we will also hire a Pay-Per-Click (“PPC”) specialist (SFC
Design Group) to ensure that find Captain Mike’s is associated with every desirable keyword
for converting leads to customers such as:

• Miami Fishing Charters

• Fort Lauderdale Fishing Trip

• Miami Fishing Vacation

• Miami Deep Sea Fishing

• Fort Lauderdale Boat Tour

• Etc

We project that our highly-optimized PPC campaign to cost us less than $50, on average, per
booked trip.

Our offline efforts will focus on mobile booths/kiosks that will be placed near beaches and other
landmarks. We will also work to build affiliate relationships to reach hotel and resort guests.

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Analysis Of Competitive Position

Captain Mike’s will separate itself form the competition by offering “concierge quality” services
at slightly lower prices. In other words, find Captain Mike’s will deliver VALUE to the customer.

Pricing Strategy
Captain Mike’s will charge a $450 flat fee plus tip for a typical four-hour trip. This is our “bread
and butter” service. Discounts will be provided to recurring customers as well as their family
and friends as an incentive. We can offer these discounts since our cost-per-trip is so low,
especially once we secure certain sponsor underwriting.

Promotion Strategy
The first phase of marketing will be devoted to funding Pay-Per-Click (“PPC”) Marketing. Initially,
the cost-per-customer will be higher while our PPC specialist (SFC Design Group) refines the
campaign to deliver optimum Return on Investment. Each acquired customer will be treated
as the most valuable asset of the company as we nurture a long-term relationship and establish
Captain Mike’s brand recognition.

With PPC as the primary source of customers, our “natural SEO” will be working constantly to
achieve the highest possible site rankings. At the same time, Grimm will be cultivating affiliate
relationships with hotels, marinas and sponsors.

Management and Staffing

Organization Structure
Captain Mike’s will be managed and operated by Michael Grimm. Grimm’s focus is to attract
business and ensure customers are happy with the service provided.

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Staffing
Grimm will hire as many as three (3) licensed captains to fulfill the booked trips, which will
free up Grimm to execute his primary mission: building a customer base.

Implementation Plan:

Captain Mike’s will commence implementation of the following Plan on January 1, 2014:

Phase 1: January 1 – 31
• Completion of Custom Logo

• Completion of Custom-designed Website that is optimized for Search Engines and

Mobile Devices

• Design and Print 3x5 Business Cards and 4x9 Rack Cards

Phase 2: February 1 – 28
• Purchase Efficient Boat with Engine

• Purchase Fishing Tackle and Gear

• Hire first captain (hire second if bookings allow)

Phase 3: March 1 – December 31

• Hire second and third captains ad booking momentum builds

• Hire PPC specialist and SEO – SFC Design Group

• Implement Cash-Positive Campaigns

• Build Customer Base

• Start Providing Fishing Charters

• Gain Sponsorships

• Establish Affiliates
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Startup Expenses:

Category Description Amount Total

Marketing Logo Design 600
Website Design 2500
Business Card Design and Print 1000 Cards 250
Rack Card Design and Print 2500 Cards 650
Display Holders 50
Mobile Business Booth 4000
Credit Card Merchant Machine 200
Screen Printed Uniforms 10 including: hat, shorts and shirt 250
Screen Printed T-shirts 144 1000
boat wrap 1500
PPC One month budget 3000
SEO One Month Budget 1000 15000

Operation 4 Fishing Rod and Reels USED 500

Boat, Motor and Trailer USED 15,000
Mobile Telephone (iPhone 4s) 200
Hooks, Leader, Terminal Tackle 200
Bait and Ice 100
Dockage / Boat Storage 200
Fuel and Oil 100
Light 100
Stereo/VHF 250
Fishfinder/GPS 200
Laptop 1000
PDA 350 18200

License First Aid and USCG Required 400

Business License 200
Business Permits 200 800

R&D Marketing Survey 100

Newsletter Software 30
Copying and Postage 250 380

Salaries Captain @15/hour / 40 hrs per week - 1 month $3,600 $3,600

$37,980

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Fixed Operating Expenses (Monthly):

Category Description Amount Total

PPC One month budget 3000
SEO One Month Budget 1000 4000

Operation Mobile Telephone (iPhone 4s) Service 100

Hooks, Leader, Terminal Tackle 50
Bait and Ice 50
Dockage / Boat Storage 200
Fuel and Oil 100 500

R&D Marketing Survey 100

Newsletter Software 30
Copying and Postage 250 380

Salaries Captain @15/hour / 40 hrs per week - 1 month $3,600 $3,600

$8,480

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Projected Profit and Loss:

• 300 Trips an average of $450 each: $ 135,000.00

• Cost for 12 months of business: $ 76,320.00

• Gross Profit: $ 58,680.00

Prior to Taking Profit:

• Accounting: $ 450.00

• Maintenance: $ 1000.00

• Unaccounted Fees: $ 1000.00

Total: $ 2,450

Net Profit: $ 56,230

Future Projections

After our first year, marketing costs will decrease and our marketing campaign will result
in increased ROI as well as increased number of charters. The Year One profit will be re-
invested in the company to support the purchase of up to two additional boats and the
hiring of additional captains to meet increased demand.

Affiliate relationships with local hotels and marinas will grow as the brand awareness
increases and Grimm establishes rapport with business owners.

Customer base will double in Year Two as new business will be supplemented by recurring
customers and referrals resulting from website marketing efforts such as blogs, newsletters
and leveraging social media.

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