Startup cost
$50k–$200k
TRUiC Business Ideas
How to Start a Lobster Fishing Business
Decision Snapshot
Lobster Fishing
Idea Score
40
Profit margin
4%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
High
Time commitment
Seasonal
Part 1 - How to start a Lobster Fishing business - Background
Lobster is a much-loved delicacy that many people pay premium prices for. Most of the cold-water lobsters used in recipes are caught by lobster fishing businesses in New England.
Since 2012, when a record-setting catch sent lobster prices plummeting, the lobster fishery has recovered and is now booming. The industry has invested heavily in education and marketing, creating new markets both domestically and abroad in China (where lobsters sell for as much as $100 each). Thanks to these efforts, lobster fishing businesses are now seeing near-record catches and prices for lobster are remaining high.
Our guide is in 3 parts:
- Part 1 - How to start a Lobster Fishing business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a lobster fishing business?
The costs of opening a lobster fishing business are substantial. Business owners need:
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A lobster boat, which costs $200,000 fully equipped
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Lobster traps, which cost $80 each with a buoy
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A license, which costs $167 to $501
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Trap tags, which cost $0.50 each
Based on these figures, outfitting a new business with 800 traps would cost a little over $264,400.
Business owners who aren’t able to obtain a license or outfit a boat probably shouldn’t enter this industry. While Maine lets residents place up to five lobster traps for personal use, there are harsh penalties for selling lobster without a commercial license.
What are the ongoing expenses for a lobster fishing business?
The ongoing expenses for a lobster fishing business are substantial. They include annual licensing fees, boat maintenance and repairs, fuel, and bait. Bait alone can cost $300 per day, and a new engine could run $30,000.
Who is the target market?
Cold water lobsters ultimately end up in restaurants and supermarkets, but lobster fishing businesses don’t sell directly to these businesses. Instead, fishers sell to wharf owners. Most wharf owner then sell catches to processors or distributors.
How does a lobster fishing business make money?
A lobster business makes money by selling the lobster that’s caught. The lobster is sold to the owner of the wharf that a lobster fishing business uses, and most businesses consistently dock at the same wharf.
How much can you charge customers?
In 2012, lobster fishers sold their catches for $2.00 to $2.50 per pound. That was a historic 30-year low, and the price has increased since.
How much profit can a lobster fishing business make?
For those who manage to get licenses, lobster fishing can be profitable despite the costs that come with running this type of business. Some business owners clear six figures in profits annually.
How can you make your business more profitable?
Since how much they make is dependant on what their wharf owner pays for their catch, business owners can increase their profits by selecting the best-paying wharf in the area. Co-ops that own wharves and call around to see what buyers are paying the most tend to offer business owners the best possible prices.
Day-to-Day and Growth
What happens during a typical day at a lobster fishing business?
Catching lobster is hard work. Hauling days start before sunrise, and business owners will haul traps for hours on end. During this time, they’re:
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Pulling up traps
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Grabbing and banding lobsters
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Removing debris from traps
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Re-baiting traps
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Dropping traps
At the end of the day, business owners bring their catch to a wharf where it’s sold.
On non-hauling days and during the winter, business owners spend time mending their traps, repairing their boat, and focusing on other aspects of their business.
What are some skills and experiences that will help you build a successful lobster fishing business?
In order to obtain a Maine lobster license, prospective business owners must first work as an apprentice on a lobster boat for at least two years. They can only apply for a license after a captain endorses them, and the waiting list for licenses is lengthy. Applicants wait years, and at times even decades.
Maine is reviewing the current licensing system as the population of lobster fishers ages.
What is the growth potential for a lobster fishing business?
The growth potential for a lobster business is finite. Maine accounts for about 80 percent of the United States’ lobster fishery, and the state heavily regulates the industry. Commercial lobster fishers in Main must be licensed, and there’s a limit of one license and one boat per person. The number of traps that a licensed business owner can drop is limited to 800.
What are some insider tips for jump starting a lobster fishing business?
While Maine is a difficult state to start a lobster fishing business in, the state’s waters are the most promising for lobster fishing businesses.
As ocean waters have warmed, the waters in Southern New England and the Mid Atlantic have become too warm for lobster to reproduce at a respectable rate. In contrast, the waters in the Gulf of Maine have become the perfect temperature for lobsters. Lobsters are breeding at faster rates in these waters, which largely why business owners are seeing record catches.
Thus, lobster businesses in Maine have much more potential than those in Massachusetts, Connecticut, New York, and New Jersey.
How and when to build a team
Lobster fishers may choose to work alone or with an apprentice. Some have family members help on the boat, especially if the license holder is older and children/grandchildren are waiting for a license. Business owners can hire an apprentice or family member as is appropriate for their situation.
Part 2 - Is a Lobster Fishing business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Lobster Fishing business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Lobster Fishing Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Lobster Fishing business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.