(I NEED YOUR OPINION!) looking in to Starting a rocket kit business...

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Alright can you guys make a list of what things I need to file with government, and how to do so?
I can't keep up with everything....
Thanks,

What you need to do will vary from State to State, County, City etc hence the suggestion to see if your local library has free law consultations.
 
Yeah, but I've never done anything with a business before....
Thanks,

Andrew, earlier in the thread I posted a link for the Ohio Department of Taxation. Call the number or click the email link and ask questions. Be sure to tell them your age, I think that will be a big factor. From the information you get there, you may need to do more research. This is something you want to do yourself and not rely on second hand information.

At first I was under the impression that this would be something like a summer job and there would be a very limited number of kits sold to forum members. If that's the case, you don't have terribly much to worry about. But as new posts appear, it seems you may want to make this more than just a summer learning experience and that could change things.

At the moment, you seem to be all over the place. It's good to think about instructions and package art but all that's pointless without your kit being ready to produce. As I understand it, you haven't even test flown it yet. Build some prototypes and fly them several times each under various weather conditions. Your first thing is to get a stable rocket. Without that, you could be repeatedly revising your kit design and instructions.

While you're doing that, you can also research what permits or paperwork you need. Reading your original instructions and seeing your original fins, you have a lot to learn about rocketry. You need to understand some basics and there are people who can help with that.

Again, as I see it you need to
1. Get your rockets built and fully tested
2. Make revisions based on those tests. If you make changes, go back to step 1.
3. While you're doing that, you can spend some time researching permits.
4. Work on the instructions.
5. Beta test if you want.
6. Make revisions based on those tests. If you make changes to the design, go back to step 1.
7. Now you're ready to get parts for the kit run.
 
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Yeah, but I've never done anything with a business before....

Your local bookstore or library probably has a book on how to start a business. The publishers tailor them for specific areas. Also, most cities or counties have web sites with the same kind of information.

-- Roger
 
you know what you could do is just offer one special rocket that you really like. Make it unique to interest others and see how that goes. Find some one to laser cut your fins and see about buying large quantities of tubes and nose cones. This way you can see the cost involved with just rocket and then go from there if you want others to be added.
 
Andrew, earlier in the thread I posted a link for the Ohio Department of Taxation. Call the number or click the email link and ask questions. Be sure to tell them your age, I think that will be a big factor. From the information you get there, you may need to do more research. This is something you want to do yourself and not rely on second hand information.

At first I was under the impression that this would be something like a summer job and there would be a very limited number of kits sold to forum members. If that's the case, you don't have terribly much to worry about. But as new posts appear, it seems you may want to make this more than just a summer learning experience and that could change things.

At the moment, you seem to be all over the place. It's good to think about instructions and package art but all that's pointless without your kit being ready to produce. As I understand it, you haven't even test flown it yet. Build some prototypes and fly them several times each under various weather conditions. Your first thing is to get a stable rocket. Without that, you could be repeatedly revising your kit design and instructions.

While you're doing that, you can also research what permits or paperwork you need. Reading your original instructions and seeing your original fins, you have a lot to learn about rocketry. You need to understand some basics and there are people who can help with that.

Again, as I see it you need to
1. Get your rockets built and fully tested
2. Make revisions based on those tests. If you make changes, go back to step 1.
3. While you're doing that, you can spend some time researching permits.
4. Work on the instructions.
5. Beta test if you want.
6. Make revisions based on those tests. If you make changes to the design, go back to step 1.
7. Now you're ready to get parts for the kit run.

It's going to be a small thing that I'm going to start soon, it'll last until the school year starts again, then maybe next summer I'll do it again & again...
I will only sell here on TRF... I don't think I need to register anything, it's a small little thing, VERY LITTLE INCOME, not even $100 for the whole summer, the IRS has bigger things to deal with than my little hobby.
Thanks,
 
you know what you could do is just offer one special rocket that you really like. Make it unique to interest others and see how that goes. Find some one to laser cut your fins and see about buying large quantities of tubes and nose cones. This way you can see the cost involved with just rocket and then go from there if you want others to be added.

Having a product that is unique and interesting is a good way to start. I think there's still some work to be done there.

On the other hand, buying "large quantities" would seem to be premature, given that you don't even know if anyone will buy what your selling. Start small.
 
This is a very good introduction as to 'how things work' in business. Remember, some of the questions you're asking are at a college level, so kudos to you for asking them! And with those questions comes college level research. In this case, learning about the rules & regulations the various levels of governments have in place. It won't be easy, and certainly wont be easy to understand.

Break the tasks down into manageable bites, so you can focus, and are not overwhelmed. As Don suggests above.

I don't remember you asking one important question (one to yourself, not to us): Why do you want to do this? Why do you need to ask this? It'll help plan your route, and help shape your plan.

Something else you might want to think about, and something that will be answered by the above question, is to find a manufacturer and ask him to team up with them, become partners. He / she, being established, with supply lines, marketing, sales know-how, etc.. is in a better place to get kits out to market. You would be the designer & tester. You would then get a small percentage, a royalty of the kit you initially produced, but you 'partner' would kit, sell, ship, etc.. it for you. There are benefits on both sides, but you won't have 100% control. And that may not be a bad thing..

Have you thought of doing a plan set? and selling the plans, say a $3 PDF.. it's "kit bashed' from a standard kit (or parts). Something like this:
https://archive.rocketreviews.com/reviews/all/plan_excel_der_fat_max.shtml

That way, you get your design out to people, but it then up to them to supply the parts.
 
This is a very good introduction as to 'how things work' in business. Remember, some of the questions you're asking are at a college level, so kudos to you for asking them! And with those questions comes college level research. In this case, learning about the rules & regulations the various levels of governments have in place. It won't be easy, and certainly wont be easy to understand.

Break the tasks down into manageable bites, so you can focus, and are not overwhelmed. As Don suggests above.

I don't remember you asking one important question (one to yourself, not to us): Why do you want to do this? Why do you need to ask this? It'll help plan your route, and help shape your plan.

Something else you might want to think about, and something that will be answered by the above question, is to find a manufacturer and ask him to team up with them, become partners. He / she, being established, with supply lines, marketing, sales know-how, etc.. is in a better place to get kits out to market. You would be the designer & tester. You would then get a small percentage, a royalty of the kit you initially produced, but you 'partner' would kit, sell, ship, etc.. it for you. There are benefits on both sides, but you won't have 100% control. And that may not be a bad thing..

Have you thought of doing a plan set? and selling the plans, say a $3 PDF.. it's "kit bashed' from a standard kit (or parts). Something like this:
https://archive.rocketreviews.com/reviews/all/plan_excel_der_fat_max.shtml

That way, you get your design out to people, but it then up to them to supply the parts.

Why do I want to do this? Well, I have several reasons...
___
I really enjoy the great hobby of rocketry, and sometimes I would like to see a rocket kit I like, but it's not on the market, or it costs a lot of money, so I figured I can make rockets kits that aren't really on the market.
___
Small businesses just seem to stand out to me in a special way, And I would like to try one.
___
I have the time this summer, rather than sit around doing nothing, I thought for the last two summers, I want to do something enjoyable, makes a little income, and teaches me good responsibility!
___
Thanks,
 
It's going to be a small thing that I'm going to start soon, it'll last until the school year starts again, then maybe next summer I'll do it again & again...
I will only sell here on TRF... I don't think I need to register anything, it's a small little thing, VERY LITTLE INCOME, not even $100 for the whole summer, the IRS has bigger things to deal with than my little hobby.
Thanks,

Okay, with that description, I think you're fine but that's just my personal opinion and it's worth what you paid for it.
 
Here is the OFFICIAL artwork! It was made by my brother, Kevin. The first kit is complete to go to Nate L. So he can test it for me!! :)
The instructions are finished as well! :)
Thanks,PAT2.png
 
It's going to be a small thing that I'm going to start soon, it'll last until the school year starts again, then maybe next summer I'll do it again & again...
I will only sell here on TRF... I don't think I need to register anything, it's a small little thing, VERY LITTLE INCOME, not even $100 for the whole summer, the IRS has bigger things to deal with than my little hobby.
Thanks,

Research the matter. It doesn't matter what you thought in court.

The IRS's job is to enforce taxes, and by not registering you are breaking the law. Even if there is only be a slim chance of prosecution, ignoring it would be foolish. Optimism bias, look it up if you don't know what it is.

This may be of use:
https://www.sba.gov/starting-business/filing-paying-taxes/it-business-or-hobby
One of the top results in a google search. Research isn't difficult.

In one of the suggested threads below, Dr. Zooch gives some good advice for businesses.
 
The instructions still need a lot of work. I'll try to do another set of illustrations tonight.

If you can state the final parts, the fin drawings, and any other relevant information information not mentioned prior, then I will try to finish the written portion of the instructions tonight as well. Instructions will still need revising after Nate builds his kit and provides feedback, of course.
 
The instructions still need a lot of work. I'll try to do another set of illustrations tonight.

If you can state the final parts, the fin drawings, and any other relevant information information not mentioned prior, then I will try to finish the written portion of the instructions tonight as well. Instructions will still need revising after Nate builds his kit and provides feedback, of course.

Thanks! :)
Thanks,
 
Here ya go no big deal....like I said, but some like to get...Let's get technical , technical....

View attachment 320148



https://www.irs.gov/pub/irs-pdf/p929.pdf

https://turbotax.intuit.com/tax-too...e-to-File-an-Income-Tax-Return-/INF14178.html


You can deduct all expenses, so if you do 1000.00 gross and you net 400.00 profit, you pay NO taxes or withholding.

It costs me $6.00 to put together each kit:
I will sell them for $10.00
That's a profit of $4.00, I will only make 20 kits MAXIMUM!
So, that is a maximum of $80 in profit. It should only last this summer, so I do not have to do anything with the government! :) :) :) :) :)
Thanks,
 
Is the fin going to be 1/8 inch?
3/32 would be closer to scale, but the difference is insignificant and if they're already cut, it's not worth changing.

What's a good knot for tying shock cords to nose cones?
 
https://www.score.org/

Free advice from retired executives who probably know more about business then any of us will ever. They have great resources for "doing it right" and can also help you develop a business plan, from which you then derive a price for your kits that will net you an actual profit. Worse case scenario is that you learn a lot about starting a small business.
 
Is the fin going to be 1/8 inch?
3/32 would be closer to scale, but the difference is insignificant and if they're already cut, it's not worth changing.

What's a good knot for tying shock cords to nose cones?

I have one set cut out as 1/8 inch. I can do 3/32, but I don't have the wood currently.
Thanks,
 
For what it's worth, if you make less than $1000, the IRS really won't give a $%^&. You will owe no tax. I wouldn't worry about the IRS if your plan is to only make $80-ish.

I'm not a lawyer... but, speaking from life experience and not "Google searching", if your plan is to do this for the fun of it and gain a bit of experience during the summer, I wouldn't worry too much about all the requirements of starting an official business as long as it's a temporary summer project. Just like having a single garage sale isn't considered a business and no government agency will care about that.

The only (silly)reason those "lemonade stands" got shut down was because the product was consumed and therefore a public health issue.

Just don't reproduce anything copyrighted, and make sure you send what they pay for, when they pay for it. Just like how we all sell a few things here and there on Ebay. Not a big deal.

If you want to go ahead and make it official down the road, then by all means go through the legal hoops and do it right. But no need for ~20 kits at most.
 
Why do I want to do this? Well, I have several reasons...
___
I really enjoy the great hobby of rocketry, and sometimes I would like to see a rocket kit I like, but it's not on the market, or it costs a lot of money, so I figured I can make rockets kits that aren't really on the market.
___
Small businesses just seem to stand out to me in a special way, And I would like to try one.
___
I have the time this summer, rather than sit around doing nothing, I thought for the last two summers, I want to do something enjoyable, makes a little income, and teaches me good responsibility!
___
Thanks,

I have a friend who constantly tells me I should sell my woodworking projects, or my stained glass pieces, etc. The problem with that is once I turn a hobby into a business a lot of the fun will go away. I will have deadlines to meet, customers to answer to, etc. Many people turn a hobby into a successful business. Many others do not. Be careful what you wish for.

One good thing about a small business like you propose is that you will be the boss. No one will tell you what to do or when. One bad thing about a small business like you propose is that you will be the boss. All the problems will be yours to solve.

It is good to see a young person being ambitious rather than sitting around. However, at your age you should be getting outside and having fun. All too soon you will be working and free time will be scarce.

Not trying to be negative; just want you to think this through.
 
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