Starting a new ARF business

Feb 07, 2006 4 Replies

Hi: I have some contacts in South America - Where BALSA wood is fairly cheap and labor is also not too expensive, any ideas how to start a small ARF line of rc airplanes, I mean, problems, , taxes, pitfalls, Us customs, regulations etc etc.. is it profitable? how about starting in small scale (e-bay) auctions etc How can we begin with this idea?- Just trying to get a brainstorm about this .. thanks Tony



First off before you go into production you need a saleable design that works second who's going to be your market beginners ,experts ETC as a balsa wood plane wont be much good for a beginner any one can put a plane on ebay but will it sell at a profit you need to to know the market and offer a product to suit

Tony,

First and foremost, congratulations on your entrepreneur attitude ! I had an aviation software company from 90-96 and can relate.

Second, may I ask if you have done a business plan ? The reason I ask is despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan. Before you begin writing your business plan, consider four core questions:

a.. What service or product does your business provide and what needs does it fill? b.. Who are the potential customers for your product or service and why will they purchase it from you? c.. How will you reach your potential customers? d.. Where will you get the financial resources to start your business? Just some thoughts from a guy that has been there.

CJ

Usually, new things evolve from our worst nightmares, when looking at it through a hobbyists eyes.

What do I mean?

Someone will get the price on wonderfully working motors/batteries/radios/servos down so low that a human assembled ARF from China will cost as much without said components as an injection molded, absolutely down to the last rivet scale model with perfect color and excellent flying characteristics, that is RTF. Oh, and cheaper.

Then all the present day "modelers" of ARFs will bitch and complain about the new RTF models, but all will be flying them on any given weekend.

Don't laugh. We're almost there. Go to Hobby Lobby's website and peruse their electric model selection. And these models come with throw away, but perfectly usable radios.

Ed Cregger

Why don't you just make a kit so people will know how to fix the pile of crap when they break it?

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