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Originally Posted by CPMcGraw
None of the above, actually. The first course of action is to seek out a niche within a given market, where there is a measure of demand but no one filling that demand. Figure out what is required to fill that need. Determine what portion(s) you can easily handle, as well as what you still need to "farm out". Seek out suppliers and pricing schedules for a "ballpark figure" on regular per-unit costs. Also seek out whatever capital equipment you will need to produce any special parts to get your "one-time" investments. Add into this mix the costs for legal work, accounting, shipping, advertising, and "contengency funds" (having enough money in reserve to cover the first months of operation, before you start to see real sales). Now you can start working out your "business plan" to take to the bank (or other SBA lender). There may be additional things that are needed before you can get funding.
Listen to the lender for any suggestions to smooth out the process, and to avoid the pitfalls that other would-be SBOs have fallen into...
The first big mistake is in trying to fill too many niches at one time. The second big mistake is trying to become a big business before you become a small business.
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I agree with that but...none of the niches in this hobby are large enough for you to make a decent living.
Possible niche catagories;
Scale models
Super Scale (very accurate very expensive)
Futuristic Sci-Fi. There's a niche with a lot of existing players.
School market (everybody does that. BMS, SEMROC, Flis, Estes...)
Competition engines, Man, that will take a conciderable investment with little return.
Big box stores (Wal-mart, K-Mart) good luck getting in that door with a start up company.
Export market...forget that, too much paperwork! No big profit there.
Competition models. How many NAR members compete compared to the total membership. Face it, when you are talking competition you are talking NAR. No other organization has a rocketry competition.
Sorry, I can't see any niche large enough to justify a corperate structure.
Four cheifs and one or two minimum wage indians stuffing kits in bags.
Don't quit your day job!
