Has anyone ever figured out...

[realityracing]

...how to turn this hobby into a money making business without opening a hobby shop to build custom boats or supplying spare parts?

[Climate]

Sure...it's easy.
All you have to do is come up with a unique or distinctive product at a reasonable price.

Market it through several mediums like magazines, banner ads, chat boards, etc.

You have to have top-notch customer service.
(If you can not answer a phone in a happy voice all day or you get upset if someone posts something bad about your product, you will not do well.)

Be available. Your customers need to contact you. If you want to be in business, it has to be full time. You can not work another job and be available at the same time.

Have several payment options. Set up a credit card processing service. Nothing makes you look small like only accepting payments through Paypal.

Always have stock.
Nothing is worse to a customer than a backorder of the one part they needed the most.

Be proficient in book keeping, finance, and all other small business related activities. If you can not do this, hire someone who can.

Do not be afraid to fail. If you do fail, get up and start again.

Most importantly, believe in your products. If you think they are the best they probably are and others will as well.

We run Climate Models exactly as I have sated here and we have grown exponentially over the last few years. We have full time staff and several part time employees. We started by shipping a few kits each week from our garage in our house. We now ship skidloads of models to dealers and distributors worldwide each week from our 2200 Sq. ft, fully equipped shop.
We have a 120-watt laser cutter, a 5-axis mill, full production area, shipping and receiving area, offices upstairs, and much more.
I am not saying our way is the only way to do it, but we have grown to a very successful company in the last 5 years. We must be doing something right

Peter Richards
www.climatemodels.com

[Ron Olson]

Peter hit it right on the head. You would be surprised to find out how many businesses are run or have started from someones home and are doing well.
Tower Hobbies was started in a College Dorm room. Trinity was begun in a bedroom of his mother's home.
Hobby Shops have a high overhead. Going through a major Distributor can cost you a lot of money, some requiring a Storefront and stating that it has to be open so many hours a day/week. Some others are willing to help out the small businessperson because they still remember where they came from.

[P. Tritle]

Real, I too started modeling full time 11 years ago. It started out a simple custom building service and has since evolved into about half design and half custom building. So far I've managed to stay 3 steps ahead of the bill collectors with 58 designs currently being kitted and several magazine article designs behind me, and more on the way. And it was all done purely by word of mouth.
The main thing when you get started is that you stay at it, and be prepaired to change directions many times along the way. I'm not getting rich doing this, but there's something to be said for a job you can't wait to get out of bed and get started at --- every day!!!
PAT

[Tony Oliver]

So it's that easy then?

:)

... and you're all such approachable people too, even after the traumas you must have gone through from time to time. I'm full of admiration, and a little bit envious.

Tony

[P. Tritle]

Tony, "So It's That Easy Then?" Generally speaking I would definately say "YES". But, that's because I love the work, and the modelers I get to work with. Modelers are typically a great bunch of folks and are always fun to deal with, and never cease to amaze me in the things that they can do when they put there minds to it.
That's not to say that there isn't the challenging side to it though, too. When you do a project for someone other than yourself, it takes a different mind set, and you must be able to change your way of thinking to accommodate the task at hand -- but at the same time, build it like it's yours to keep. I've also heard it said that when you're in busines for yourself you can set your own hours -- and it's true, you can-- just pick any 12 hours of the day, and work them!!!
I would also concider myself VERY fortunate to have survived on my own for the past 11 years, as I've seen at least a dozen local modelers try it and fail, but usually it's because they are stuck in a very narrow vain and either can't, or won't, step out of that vain. And I always make it a point to help them out in every way I can, for two reasons. First, I love to see someone successful, the other is that if they don't make it -- for whatever reason -- I'll be happy to step in and pick up the "overflow".
Bottom line, In my entire profesional carrear, I've never worked longer hours, made less money, or enjoyed life more -- and I wouldn't trade it for ANYTHING!!!
PAT

[Tony Oliver]

I couldn't agree more with your comment " I love to see someone successful ". That's what I think of when I see contributions to modelling like yours and many others particularly in RCGroups.

I put my 'tongue-in-cheek' comment in because I thought that you and the others who have replied to reality racing's post were understating the achievement to some extent. There's nothing quite so enlightening as having first hand experiences passed on by people who have been there and done it successfully. It's very encouraging in these days of cynicism.

Tony

[speedchaser]

Hi to all on this thread. I like alot of the positive comments here, which essentially say that it can be done, and has been done, via mail-order operation instead of through the costly shop or store front approach. I've been thinking of doing something with innovative boat hulls for some time (even though my curent boat is not yet finished and is probably a bit too ambitious for a first scratch-build project...), but there's only so much that one person can do in a day - one needs to find like-minded people that will share the cost financially and time-wise; which 'ain't that easy' where I come from - a certain individual in this discussion will know what I mean here...

[Treetop]

PAT says:

"Bottom line, In my entire profesional carrear, I've never worked longer hours, made less money, or enjoyed life more -- and I wouldn't trade it for ANYTHING!!!"

I could say the same about when I had my own woodworking business for 8 years, only worries were money, but there was always the credit card to use to eat or buy materials during a "crisis". Of course, I was single and childless then.

I have been planning to get back into business on a smaller scale and have been wondering about the down side of online marketing. (This would not have to do with RC, unless I think of something to manufacture for enthusiasts) Just not sure if it is what I want to learn how to do.

Any pointers or caveats?

tt