You’re probably familiar with the terms Hobby Store, The Hobby Shop, RC Hobby Shop or other types of Hobby Shops.
Wondering about things you should do to prepare, before starting a Hobby Shop?
Then this post is definitely for you.
But first, What is a hobby?
A hobby is something that we do in our free time. There are many examples, like collecting action figures, catching fish, cooking, or even extreme one like tattooing etc.
The term ‘hobby’ is broad, so anything can be considered as one if it grabs someone’s interest.
Can we turn a hobby into a lucrative business, though?
The answer is yes.
If you’re a fan of something, you can run a store that sells the product, but this is assuming that you have the willingness and budget to materialize it.
Some people have the budget, but they lack the driving force to start it. Others have the passion, but they’re confined by a nonexistent budget.
Now if you want to start a RC hobby shop, there are a few steps to take.
How to open a Hobby Shop (RC hobby business)
1. Choose RC cars
There are many different types of RC cars. Are you going to sell all or only a select few?
Although RC cars sport similar looks, each type has unique characteristics.
For example, there are RC touring cars, commonly used to drive on asphalt and concrete. They come with a suspension that works independently, consisting of upper and lower control arms.
Another distinct feature is the specially designed upper and lower decks, which are necessary to prevent flexing. As for the tires, there are several options, like rubber and foam tires.
For the record, the chassis of a touring car is designed in such a way to make it run seamlessly on flat surfaces. It also helps reach the top speed in a short time.
And then, there are RC trucks. Just picture a full-size track in your head. That’s what an RC truck looks like except it’s the miniature version of it.
RC trucks are suitable for those who have fascination with large vehicles especially trucks. They come in different shapes and sizes, such as monster trucks and short course trucks.
The latter looks a like the typical off-road car, but it’s equipped with a different shock absorber compared to the buggy.
With these unique traits, these trucks can tackle steep roads and terrains.
On the other hand, RC monster trucks are applauded for the majestic appearance. They are big, high power, and all around impressive.
One of the differentiating factors is the oversized wheels, which look much bigger than those of other RC cars.
Another variety you can sell in the store is RC crawlers that the name pretty much gives it away. These cars have a unique ability to crawl over different surfaces.
If you need a car to run over uneven surfaces, a crawler is the best for the job. The way its chassis is designed makes it reliable for rugged environments.
2. Know the scales
We all know that RC vehicles are a lot smaller than the actual vehicles, but there’s a measurement used to describe the size of an RC.
It’s called a scale, which represents a RC car’s size compared to the real one aka a car with a dashboard where you control everything.
Why is it important?
It determines the size of an RC unit, which will have an impact on how you arrange the shop. If a car has a scale of 1:8, then it means the RC unit is 8 times smaller than the real one.
Or if it’s a 1:10 scale, then the car it ten times smaller. Diversification is important if you want to appeal to more buyers.
Some people are into tiny RC cars, while others want them slightly bigger because they ooze confidence and power.
Well, if your shop is large enough to accommodate larger RC cars, you can mix them with smaller ones. 1:6, 1:8, 1:10, and 1:12 are some common scales used for RC vehicles.
3. Find a supplier
You can partner with one or a few suppliers to fill your store with quality RC units. But, how do you find these RC makers?
First, take advantage of marketplaces like Amazon. These sites are like a shopping center where suppliers come together to sell products to buyers. The best part is Amazon has extensive filter tools.
You can sort out products by average rating, price, age range, and other values. That makes it easier to find suppliers that meet your criteria. Amazon is a platform where third-party sellers do business.
Not only can you look for trustworthy manufacturers here, but you can also use it as a means of promotion.
After doing some research on the site, make a list of suppliers you want to work with. Contact them one by one and see if they are open for some kind of partnership. You can also find RC cars in local businesses.
Use Google Maps to locate companies that produce RC cars. If they do exist in your area, consider buying from them.
4. Find a location
Believe it or not, a location could have the final say on the sustainability of your business. If your shop is hard to locate, you risk losing many potential customers.
A busy shopping center is a good place to open a shop although the lease cost is high, too.
You can consult a broker since he’s an expert in this, so he knows the criteria of a good location. It should be an area inhabited by the demographics you’re targeting.
Now that you want to sell RC cars, you should know the types of individuals who often buy these recreational items.
Do some research if this group of people exists in a large number in the area where you want to run a shop.
Also, take into account factors like total population, median age, income, etc. This way, you’d know if it’s right to do business there.
5. Write a business plan
Creating a business plan is an in important step in opening a shop, be it a RC hobby shop or another. You have to make it as detailed as possible, so that it can increase the value in the eye of potential bankers.
After all, any business needs funding, and if you don’t have it ready, one good way to obtain it is by showing your seriousness through a well-rounded business plan. Your suppliers will also want to know how profitable the business would be.
Remember that you need to fill the store with necessary supplies. And in this case, suppliers are the ones you can count on.
If you’re still uncertain about elements that should be included in the plan, talk to your accountant or anyone who has expertise in this area. A proper business plan can be a gateway to success of your business because it shows that you care about every aspect of it.
Let’s say you’ve acquired everything from capital to suppliers, you can start ordering inventory.
The next step is about arranging the items in the store and making them presentable. This is another crucial step because space utilization is a big concern especially if there isn’t much available.
Display the RC cars in an efficient way, so that you can add many without creating clutter.
6. Open a bank account
It’s better to keep personal account and business account separate. While you can technically receive money with your personal bank account, it may cause a problem if something happens in the future.
This is for your own good. Besides, opening an account isn’t difficult, not to mention that it’s easier to manage operational costs when the revenue is saved in one account, not mixed with your own money.
Furthermore, it can you a clear picture if the business has become profitable or not.
Additionally, if you need a credit card, go get one. It offers many benefits, like helping you build credit history. You’ll realize its importance when you require more money to expand the business.
7. Promote the RC hobby shop
Your shop won’t just suddenly pop up in people’s mind. You need to promote like crazy, so that people notice it. Put the most interesting products in the window display.
If there’s an RC car that’s on trend recently, buy some and gather them in the most noticeable spot.
Another way to promote is by hosting events for hobbyists. RC cars aren’t really a small niche market. Many people are obsessed with these toys.
By hosting special events, you can expand your connection with people who have the same interest. Some may end up being loyal customers and buy new arrivals at your store.
And then, you can be a sponsor for events that involve RC toys. It’s an effective way to attract visitors to your shop.
Having said that, online promotion is still important. Many people have shifted from traditional shopping to online shopping. They are potential buyers you need to cater to.
Start with setting up a website and making social media accounts. This way, people can find your shop more easily.
Summary
At this point you should understand that we can turn a hobby into a profitable business.
So, is it hard to start an RC hobby shop?
If your mind is flooded with worries, then you’ll struggle to work up the courage to start it.
Why not treat it as a mom-and-pop business?
As long as you have the tenacity, even a small scale business can turn into a large one. There are many factors that account for a successful business, not just a capital. What matters is your passion in the products you sell.
If you’re a long-term fan of RC cars, you already have one important asset. Go contact local hobbyists to get more information regarding RC cars, how to find suppliers, and what to buy to fill the shop.
Once you’ve gathered enough information, proceed with the next steps, like seeking funding opportunities, making a business plan, etc.
