Start a sea salt business by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your sea salt business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a sea salt business?
Starting a sea salt business is a low-cost venture. In fact, Wellfleet Sea Salt Co. won a business competition in part because the startup expenses were so low. To get started, business owners need:
a pickup truck (for sourcing salt from locations)
- 5-gallon buckets or 50-gallon barrels (for carrying seawater)
- a method of evaporating the seawater (see below)
- a food processor (to grind the salt crystals)
- jars and labels (for packaging)
While some businesses use expensive evaporators or factories for processing seawater, a greenhouse or other sun-exposed structure will work just fine. Whatever method is used, air should be allowed to pass through as this will speed up the evaporation process.
In theory, business owners could source all of these materials for very little. Many food-service businesses will give away 5-gallon buckets, and most people have a food processor. A greenhouse can be built from scrap wood and clear plastic. If business owners don’t have a pickup truck, they can rent one as needed. Jars and labels must be purchased, but they can be bought in small quantities until the business has an established revenue.
What are the ongoing expenses for a sea salt business?
The ongoing expenses for a sea salt business are minimal. They include costs associated with:
packaging and shipping costs
utility costs (depending on the type of evaporator used)
Who is the target market?
The target market for a sea salt business is people who appreciate fine food and have some discretionary income. Such people will be interested in high-quality, unique salts, and they’ll have enough income to afford sea salt.
How does a sea salt business make money?
A sea salt business makes money by selling jars of salt to wholesale and retail customers. Jars may be sold individually or in a set that contains several different flavors.
How much can you charge customers?
Most sea salt sells for between $8 and $12 retail. The Marblehead Salt Co. has fishing salt priced at $10 and Fire Salt priced at $13. A high-end truffled salt made with truffle mushrooms is $25.
How much profit can a sea salt business make?
Because seawater is free to source, a sea salt business’ potential profit is high. A 3-ounce jar that’s priced at $10 might have cost $1 (for the jar, label and associated fuel). Using these numbers, a business that sold 500 pounds in a year would net $24,000. At 40,000 pounds annually, the profits would grow to be much more.
How can you make your business more profitable?
A sea salt business can increase its profits by selling sets of multiple salts together. The owners of Amagansett Sea Salt Co. found that customers who spent $10 on a jar of salt would often spend $30 on a set of several blends. Some customers may also be interested in purchasing sea salt cellars, which are wooden or ceramic containers for storing sea salt.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Sea Salt Business Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your sea salt business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a sea salt business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For more information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A sea salt business is usually run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a sea salt business:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a sea salt business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a sea salt business:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your sea salt business will be in compliance and able to obtain a CO.
If you plan to sell food at your sea salt business, you will need licensing from a local health department. All establishments serving food are required to pass a health inspection. Tips for faring well on a health inspection can be found here.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market a sea salt business
While direct retail sales can be profitable and efficient in the first stages of a sea salt business, there’s a ceiling on the number of direct retail sales a business can do. To grow beyond this, a business need wholesale accounts.
Therefore, one of the most effective ways to promote a sea salt business is by cold calling retailers that might become wholesale customers. Specialty restaurants, gift shops, food stores and similar retailers are worth contacting.
How to keep customers coming back
A sea salt business can set itself apart from other businesses in the industry by offering salt from specific seawater. For instance, Main Sea Salt Company’s first product was salt made from Maine waters and branded for use with lobster. Alaska Pure Sea Salt Co. uses Alaskan seawater.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start a Sea Salt Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Anyone who is self-driven, likes working with their hands and can connect with people may be well-suited to running a sea salt business. The day-to-day work of making sea salt is largely done independently and involves a significant amount of manual labor. To sell their salts, though, business owners need to be able to successfully share their product with customers.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a sea salt business?
Most days at sea salt businesses are spent either making sea salt or getting it to customers.
Making salt involves collecting ocean water from pre-selected locations and then evaporating the water molecules. Evaporation techniques range from leaving the saltwater in primitive wooden boxes to using high-tech evaporators.
When selling manufactured salts, the day might be spent finding wholesale accounts, selling at retail locations or analyzing online sales. Some of these methods also require packaging and shipping salts.
What are some skills and experiences that will help you build a successful sea salt business?
To successfully run a sea salt business, business owners must understand the nuances of ocean salt. Much more than just sodium-chloride, sea salt contains many minerals that give it its unique flavor, density and shape. At different locations and in different seasons, the minerals in the water change.
Finding the best locations, seasons and times to source seawater requires a knowledge:
- seasonal currents
- sea level maps
A familiarity with each of these areas helps business owners predict what trace minerals will be in specific locations’ seawater at any given time.
What is the growth potential for a sea salt business?
A sea salt business may be a small one- or two-person operation that produces just a few hundred pounds of sea salt, or it can be a large company that makes thousands of pounds. For example, Amagansett Sea Salt first produced 500 pounds of salt in 2010. By 2014, the company was making 4,000 pounds annually and had plans to reach 40,000 pounds each year.
TRUiC's YouTube Channel
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a sea salt business?
Although much of the work involves making salt, business owners can’t forget the interpersonal side of running a sea salt business. When starting out, a business’ first few customers are usually people who already know the business owner. Thus, networking is an integral part of getting this type of business launched.
How and when to build a team
Many sea salt businesses remain one- or two-person operations. If needed, a business owner might hire employees to help process salt, find wholesale accounts or fulfill orders as a business grows.