Starting an RC Company

[JamesWhom]

I was just wondering about manufacturing RC products in a small scale business, similar to Flite Test's kits, or David Windestål's Tricopter kits, and have a few questions.


Has anyone got any experience of this or manufacturing and selling things in general?

Are RC themed start ups generally successful and have large enough markets?

What legal things would you have to think of before making and distributing RC kits?


Maybe this could be a thread for helping people create businesses themed around growing the RC community. What are you thoughts?

 

[makattack]

I think this is quite common in the hobby. Unfortunately, like all businesses, there are many challenges and risks. I just heard that microaces, who are UK based, are closing.

 

[Stradawhovious]

Startup will be a pain in the tush. There are so many manufacturers out there right now that you need a name for yourself before anyone will buy your stuff, and even then to compete with the macro manufacturers of China you will need to sell it cheap. You will need a "hook" as it were... something that makes your product much better than everyone elses. Then you need to protect it from being copied... which it almost certainly will be if it's successful. You're almost better off patenting an idea and selling it to an established manufacturer.

As far as legal stuff, coming to a RC forum on the interwebz and asking for legal advice is akin to going to the car mechanic and asking for medical advice. You want legal advice, consult a lawyer. You'll want to do that anyways.

 

[Tritium]

Patents on small easily copied items are generally worthless since the China "Copy Machine" is running! (IMHO)

Thurmond

 

[HarleyRev]

Create a highly successful YOUTUBE channel about RC hobby, when you get 100,000 viewers open a store. Google RC hobby stores and you will find a BUNCH of them online nowadays for sure. To be successful online I think you would need alot of publicity online. To have a brick n mortor hobby shop would depend on location, % of population in the area interested in the hobby, competition in that market place.

Specializing in one facet of the hobby and being an EXPERT on all things related to that specialty, along with alot of online publicity would have a better chance to succeed IMHO. Example : FPV gear , foam planes, multirotors, one area like this to focus on entirely in the beginning.

Just my 2 cents worth, as I have pondered the situation myself.

 

[rcspaceflight]

Since I am hoping to make an RC flight simulator and I want to offer for free, one idea I had to make money off of it was to manufacture (rather hire someone to make them) a small USB box that plugs into your computer and you can plug your Rx into it to use any transmitter for the sim. I figure it is a great way to make some money, gives people a product they would want, and I hope it would only cost about $5 to make and I could sell it for around $20. So it would be profitable. I know there is already a product that does just that out on the market but it would have my brand name of the flight simulator on it.

Otherwise I was thinking of making a free version that is the full software. But then a pay version that has extra models.

Those are just ideas I've been kicking around to turn hobbies into careers.

But really all you can do is make what you would want to buy. Make it something you know a lot about and try to show others that you are an expert with that. Much like the other responds. Start a YouTube channel showing off what you make, why you make it, and why it's better than the rest.

My guess is that the RC market is a hard one to get into. A lot of companies now a days seem to be going out of business.

 

[JamesWhom]

Thanks for your replies on this thread. I thought it would be good to discuss this topic. Turning a hobby into a career is exactly what I've been thinking about rcspaceflight. Thats what the guys from Flite Test did eh? That adapter for your transmitter sounds like a great idea by the way.

I've been toying with the idea of 'tools' for making it easier to make things. I suppose tools appeal to a wider audience of Makers in general. I see a lot on Kickstarter - things such as 3D printers. One of the things that I would buy personally is tools to help scratch building. Drills, 3D printers, graphics printers, things for making soldering easier... that sort of thing.

I agree, Youtube is a great way to gain a dedicated audience for your 'brand', which can lead to good things.

I'd be pleased to hear anyone else's thoughts on this topic, especially if they have experience in either having made products for makers, or for the RC community specifically, or working in for companies that do. Thanks!

 

[mjcp]

Where in the UK are you...

Have been having some of the same thoughts!

mjcp

(Berkshire)

 

[etegration]

Patents on small easily copied items are generally worthless since the China "Copy Machine" is running! (IMHO)

Thurmond

Patents/ trademarks etc etc works only if people honour them. Even in China, they copy you copying me. It's really a wild west.

 

[rcspaceflight]

JamesWhom, making tools sounds like a fantastic idea. No idea how you could promote that. Unless you come up with some scratch build designs and you have a YouTube channel showing how to build them and then show off your tools that way. Or maybe even send the tools to Flite Test to review and/or sponsor an episode where they use the tools. (But other RC shows too, don't limit yourself to FT.)

 

[hawkO_O]

small moddles shops open up near me every few years . but they never seem to last very long ... location seems to be a major issue .. and wether or not there is an already established moddle store near .. really sucks they shut down tho .. when they are around im in there every week looking around ..

think these days most stores need to have a pretty strong web pressance and store to be able to survive very long

 

[Stradawhovious]

think these days most stores need to have a pretty strong web pressance and store to be able to survive very long

It costs a lot of money to keep the lights on in a staffed brick and mortar. Far less money to keep a computer running 24 hours a day.

 

[matthew954]

Thats how Mud Duck Aviation worked. I had a nice rapport with Greg Drusjack when he ran the company. But even with just the online store, he had several issues keeping MDA running. He was the only one working, and had to keep up with the Mud Duck demand. But it was ultimately a family issue that forced MDA to go up for sale, and closed. I so wanted to buy MDA myself if I'm honest.

 

[rcspaceflight]

There is an old business saying: "You either have to be first, or you have to be best."

I'll explain by using the Coke vs. Pepsi example. Pretty much everywhere around the world Coke out sells Pepsi. However, in the majority of blind taste tests Pepsi wins. Guess which company has been around longer.

If you're the first to offer a product then you can establish your brand and become a trusted brand. If you're selling what the next guy sells, then you have to offer a superior product to even be considered.

 

[Tritium]

There is an old business saying: "You either have to be first, or you have to be best."

I'll explain by using the Coke vs. Pepsi example. Pretty much everywhere around the world Coke out sells Pepsi. However, in the majority of blind taste tests Pepsi wins. Guess which company has been around longer.

If you're the first to offer a product then you can establish your brand and become a trusted brand. If you're selling what the next guy sells, then you have to offer a superior product to even be considered.

Dr. Pepper all the way!

Thurmond

 

[JamesWhom]

Where in the UK are you...

Have been having some of the same thoughts!

mjcp

(Berkshire)

Cheshire, near the Peak District.

To others, yes I was thinking more along the lines of the way Flite Test has done things online.

Thanks again for everyones contributions to this thread.

 

[frogman]

There is an old business saying: "You either have to be first, or you have to be best."

I'll explain by using the Coke vs. Pepsi example. Pretty much everywhere around the world Coke out sells Pepsi. However, in the majority of blind taste tests Pepsi wins. Guess which company has been around longer.

If you're the first to offer a product then you can establish your brand and become a trusted brand. If you're selling what the next guy sells, then you have to offer a superior product to even be considered.

Remember the VHS vs Beta? Beta was better but VHS won cause Sony got cocky and kept it proprietary.

My thoughts on starting the business beyond what has been said is that many small RC businesses people have are just a side thing for fun. They make some stuff for themselves and people get interested so they manufacture on a small scale. Often these folks are doing it at next to no profit but are just doing it for fun.

Lots of good advice here. I will say I like your idea of the specialty tools for Makers/Builders. There could be some market there if you have the right products at the right price. Now finding/creating the unique products is the hard part. I saw on a podcast feed (not FliteTest.....The CrashCast) there is a small RC startup company launching this week at SEFF that has a nice little wooden tote to hold all your glues and knifes. Great little product. They also make a nice adjustable folding table stand for foamies. Great ideas that fill a whole in the market that didn't exist or weren't that common. Look for those items.

Perhaps you can become a reseller of all the unique ideas others create. You could become the one stop place for all those different niche products that others thought up. Of course getting them to let you sell them may not be as easy. Have lots of unique tools like this plus a few you created and you may have something. There are so many ways to build stuff that special little things that make it easy could be a great idea. It's worth pursuing the idea.

What I always tell people, especially young people, is follow your dream. If you don't you will never know if you could have achieved your dream.

 

[JamesWhom]

Thanks for the advice man.