how to start a hobby store?

[08kgraves]

so i was thinking that i would love to start up my own little buisness and open up a hobby store since theres no good ones in the area. the only one around really has a very very limited selection sadly. but i know i would have to go through and get a buisness licence and what not but how would one go about getting a companies product in to sell? like Traxxas for example? because there the biggest so i would carry the best selection of there products and like to be able to atleast order parts from others.

input anyone?

[NewbieToTraxxas]

One sprouted up near me. He saved up 20 grand. He started it for him and his airplane buds. I went there before the franchised hobby shops around here since he cared and always helped me find a solution. But he went under within a year or two. Make sure you do tons of research. I would imagine you would have to do all kinds of rc to stay in business..ie planes, boats, cars, multiple brands. But if you want to start business with a company find their support phone number and phone them up. They'll take care of you. Here is traxxas's contact page.

[bazookamaxx]

I spent a few months arguing with hobbytown about opening one. They were stuck on selling stupid so I gave up but email them and ask questions, free advise http://www.franchiseclique.com/franc...FQK5KgodzTXi3A

[guardog]

There is a ton of overhead. My friend started a shop last year. He bought left over inventory from a previous mom and pop shop. He told me that traxxas and other RC makers demand that you buy a certain amount of their product. Plus trying to compete with Internet sales makes it almost impossible to survive. I personally would rather spend a few extra dollars to support a local business and have face to face interaction and support but most prefer the " bottom dollar". Good luck. One key thing is to get familiar with your core customer base and carry the parts for their machines plus fuel, batteries, chargers etc..... Takes "BIG" dollars. I also considered this venture and would cost close to 80 thousand with building and stock. Wasn't worth the risk. Would take 20 years to turn a profit in my opinion plus countless hours sometimes unpaid if no sales for the day. Give it much consideration !!!

[PBO]

Independent hobby store business plans don't normally make compelling investment reading, they tend to be lifestyle businesses rather than money making ventures

As mentioned carrying stock is perhaps the biggest single cost that you have & turning it over frequently & at decent margin will be the biggest issue. You could sensibly do reduced margin internet sales to boost turnover but the same common problem you'll have is visibility to potential customers

Getting market penetration shouldn't be underestimated & marketing is expensive generally speaking, without raising your profile your customers won't easily find you...it's a catch 22 - you need to speculate to benefit. Not sure how big your vision of the potential sales area is but the population of Castalia is finite & how far will customers travel even if they know where you are? Position is everything

If you need to raise finance to make it happen, any lender will need these & many, many more questions answered before they get serious

Franchised ventures have a significantly better chance of succeeding but I would anticipate some tight parameters before they commit to you, they want their brand to succeed after all & you will need to demonstrate some relevant business experience

[harry697]

the only one around really has a very very limited selection sadly.

Possibly a big clue as to whether it's a worthwhile business venture. There may be a real good reason that your LHS has such a limited selection. Could be poor management, but it could also be a lack of interest in the area. Worth looking into before taking the leap.

[rustlervxl4life]

I wish I could open a hobby store but the thing is you need allot of cash

[MAXXXMASHER]

I was a store manager of a Hobbytown that went out of business. The major reason was our lease was up and the property owner suddenly wanted a 30% increase in rent and a five year commitment. This was in '08 when the economy was really tanking. Yes, you have a better chance with a franchise to help with advertising and getting everything going, but you have to put up major bucks and you have to carry a certain percentage of different hobby segments to have their name on the front of the store. At the end, I was the only employee left as the owner was trying to save funds wherever he could. He thought about moving the location, but didn't want to risk everything he owned and figured it was a good time to retire. Unless you have a ton of cash to be able to do this venture on your own, good luck, because bank loans are not handed out like they were a decade ago. You'll have to show a great business plan with a cost/profit analysis and show that it would be a viable venture for a lender to give up the cash. Banks being to loose with their funds is a big reason our country is in the mess it is. Their a bit more careful now. Only the biggest and oldest hobby shops have been able to last out this storm of our economy and if you manage to start one up, I hope you can succeed. Its really tough with the internet because (as I heard a thousand times) why should I wait for you to order a part when I can have it shipped to my house? Now that I've moved, I don't have an RC hobby shop within less than a 45 minute drive. Once I find them, I will try to give them my business, because I know how hard it can be.

[Dknuckles]

You can go through Great Plains, Tower and Horizon for inventory and purchase it one day and it's there the next. Just have to have so much in sales for free shipping. This way you don't have to keep so much in stock of various kits or rigs. You can also keep on hand the typical spare parts of major brands. Start a facebook page or dotcom about your inventory and services etc. You can start small and grow bigger depending on how it works out. Set up flyers in areas that you know rc folks would see them.

[08kgraves]

man....... you guys are really kind of shooting me down here lol.

as far as location goes it wouldnt be in castalia if possible. my ideal location would be on one of the major roads that anyone and everyone who goes to cedar point would see. for those of you who dont know cedar point is the largest roller coaster amusement park in the world, and its like 15 min. from my house

the little hobby shop that is here doesnt really advertise and its not in a very good location. its downtown, but no cedar point traffic really goes that way at all. i mean dont get me wrong, there some of the nicest people around but they dont really even know rc at all. (one guy had to look up a part number to even know what i was talking about for a spur gear) they used to sponsor me back when i was like 13 for racing bmx bicycles though lol.

[guardog]

It's really quite simple.... Supply and demand. Is there a high demand in your area for R/C ? Also consider developing a track to run or a field to fly. Advertising is paramount ! You want to reach your core enthusiasts which actually are adult males or kids with rich parents because this addiction is not cheap.. I alone have spent over 8,000.00 in less than two years .... But then again, I'm an R/C junky. Lol
Don't want to burst your dreams, just go into this venture with eyes open and do all of your homework

[O.G.]

The LHS owner I knows makes most of his money off the outdoor track he runs next door to the shop. Maybe you should consider that in your cost projections. I think most of the work in opening a track is sweat instead of dollars but it could earn you some money. He keeps the shop open on race night selling parts.

Another guy I know from a different track bought a big enclosed trailer like you see lawn companies using, and stocked it with parts for a different race track and sets up shop on the parking lot. I guess he has to get permission from the track owners to do that...

[PBO]

man....... you guys are really kind of shooting me down here lol.

I wouldn't say that, if you hadn't already considered some of the problems then now is the time....BEFORE you invest

There are pros & cons with any deal, you've just got to find a way to mitigate the cons. Sometimes this isn't possible & these are the deals you let go

There are a lot of small business resources available. Do some research & you'll find there are basic business tenants that work consistently, if you have these checked off & you're prepared to work hard, you have a good chance at succeeding. One question that hasn't been mentioned but you will need to honestly answer is "am I really interested in turning my passion into my profession?" this may sound stupid but when the gloss has worn off & you're interest has become saturated, will you be able to face the daily grind?

[1979chevy.]

Marketing is everything, get some CD's from the big guys in that field and learn how to do it effectively.

[harry697]

The LHS owner I knows makes most of his money off the outdoor track he runs next door to the shop.

+1. Forgot to mention that yesterday, but a track next to a hobby shop is pretty much a win win. That is, as long as you know how to build and operate both. Charge people to race on your track and charge them again to fix your car when you break it. And believe me, people break their cars on the track. Even the best guys who rarely crash or break parts are still gonna be in the shop buying tires, batteries, fuel, gears,etc.

[1979chevy.]

Sounds like a good business idea man, take your time.

[08kgraves]

i would really love to do this, i think its going to take a few years and alot more money though............. and research lol

[Emaxx2.0]

You can also build a track, offer rentals like some Traxxas slash and B-Day party events for kids. Make the kids the focus. And research your area about brand loyalty. If everyone around you is a Losi fan you will have no business selling Associated.

[NewbieToTraxxas]

i would really love to do this, i think its going to take a few years and alot more money though............. and research lol

And that is what we are here for. To help you see everything about this you may have overlooked. It always helps to get more perspective.

[O.G.]

i would really love to do this, i think its going to take a few years and alot more money though............. and research lol

I'll be your first customer if you give me the standard traxxas forum discount of 20% Lol

Sent from the cockpit of my Jeep Wrangler

[horseguy84]

ill be your first employee if you pay for my room and boardlol

[08kgraves]

well shoot.......... havent even picked a name yet and already have employee's and customers lol, this might go some where soon

[horseguy84]

oooooh............. cool name
cedar traX hobbies,
you could even put up a figure 8 track and have demolition derby's once a month

lol, i do think the track is a must though, i went my lhs and broke the antenna off my receiver, i went in to spend the $30 on one so i could go back to racing my little brother.
the next day i repaired my receiver
you need probably i would say 4-5+ acres, and maybe a parking lot across the street and you could become a HUGE name in the rc business hosting ROAR and ACOR races, as well as other small modified races,you could make alot of money charging participation fees.
btw. what is your average population?

[08kgraves]

well from what i just found it says the population of sandusky itself is 25,000 people. but if you include a 15 mile radius from sandusky then it says there are 112,000 people. and all of this isnt including the thousands of tourist around for cedar point, or the other attractions like water parks and what not. plus were right on the lake which brings people alone.

[Dknuckles]

There are 2 lhs's within a 15-min drive of me. One is downtown Davenport and the Other is across the mississippi outside of town. The one downtown has better prices and a much more friendlier atmosphere. However the one with the track has more business because everyone races there and they stock every part. The lhs downtown doesn't stock but a few things like some batteries, plugs, chargers etc while the other has everything under the sun for rc. But going through Great Plains gets you what you need the next day. I think the track is a great way to draw folks in and keep them coming.

[PBO]

well from what i just found it says the population of sandusky itself is 25,000 people. but if you include a 15 mile radius from sandusky then it says there are 112,000 people. and all of this isnt including the thousands of tourist around for cedar point, or the other attractions like water parks and what not. plus were right on the lake which brings people alone.

I would use population statistics & ignore the tourists - you can't rely on tourists, they're going somewhere, have time pressures, have budget pressures etc

Be good to get hobby participation statistics to use as a general guide for potential customer numbers. It will be less than you think. Have a look at this;

www.rcuniverse.com/Webguide/WebSavvy.pdf