Basement hobby or online business? Which one should I go for?

LukeWolf

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Hey all!

so recently I have begun to dive into the world of frag tanks. I have a good size frag tank setup and cycled now, and I’m transshipping corals next week from a good supplier I know. I’ve been reefing and fragging for quite a long time, and like to think I know what I’m doing. Im looking to start a small in home frag business, but I’m not sure how far to go yet. Should I keep this a basement hobby and sell exclusively on R2R, or go all the way and get licensed as a business with a name, logo, and website and all that fun stuff?

I’m not looking to make a killing off of this. It’s mainly for a fun hobby. I know that I won’t make thousands off of fragging. Lol
just putting that out there because I know a lot of people will lecture on this fact.
 
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codymichae1

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Thank you for your advise!
Don't let the idea of "creating a business" scare you, it's easier than you think. People do it all the time on whim, I have a few businesses that I didn't pull the trigger on, were just good ideas - they are registered and the logos and such are in a folder waiting to be used. Make a brand and have some fun with it, you don't need a storefront for that. And let it build naturally as you let it. The best businesses happen naturally because the founder is passionate about it and not doing it to make a buck.

Disclaimer: this is coming from a business perspective, not a fragging perspective

Good luck with whatever you decide!
 
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LukeWolf

LukeWolf

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Don't let the idea of "creating a business" scare you, it's easier than you think. People do it all the time on whim, I have a few businesses that I didn't pull the trigger on, were just good ideas - they are registered and the logos and such are in a folder waiting to be used. Make a brand and have some fun with it, you don't need a storefront for that. And let it build naturally as you let it. The best businesses happen naturally because the founder is passionate about it and not doing it to make a buck.

Disclaimer: this is coming from a business perspective, not a fragging perspective

Good luck with whatever you decide!
thank you! I actually own a publishing business and like you said, it’s sitting in a file waiting to be used when I get my first book ready for print.
 

Dr. Dendrostein

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Hey all!

so recently I have begun to dive into the world of frag tanks. I have a good size frag tank setup and cycled now, and I’m transshipping corals next week from a good supplier I know. I’ve been reefing and fragging for quite a long time, and like to think I know what I’m doing. Im looking to start a small in home frag business, but I’m not sure how far to go yet. Should I keep this a basement hobby and sell exclusively on R2R, or go all the way and get licensed as a business with a name, logo, and website and all that fun stuff?

I’m not looking to make a killing off of this. It’s mainly for a fun hobby. I know that I won’t make thousands off of fragging. Lol
just putting that out there because I know a lot of people will lecture on this fact.
Here's a simple test, there's four different types of personalities A,B,C,D, A is entrepreneur personality, business-oriented,usually called A driver personality. Go on the internet and do a search on those four different types of personalities and if you fall in the A category go for the business slowly or as quickly depending on your personality. I'm not a psychologist, we know this because of sales and marketing background.
 
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LukeWolf

LukeWolf

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Here's a simple test, there's four different types of personalities A,B,C,D, A is entrepreneur personality, business-oriented,usually called A driver personality. Go on the internet and do a search on those four different types of personalities and if you fall in the A category go for the business slowly or as quickly depending on your personality. I'm not a psychologist, we know this because of sales and marketing background.
thank you!
 

Mastiffsrule

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Hi,

My thoughts. Start like all great small businesses do. Build your name. Sell some pieces on here, eBay, what ever medium suits you. You have everything you already need I bet. But sell your name more than the coral to start. Nothing big.

Create your name and logo. Nothing crazy, professional but not stuffy. Get a printer to make some labels, stickers, etc. Get an online store on eBay or somewhere else that doesn’t charge a lot of fees or a basic website. Buy some basic shipping boxes and coolers. Don’t get basic cardboard. What the customer actually gets in their hands is as big as the service. You could be great, send a flimsy box and..

My thought..I may be your first customer. I just ordered from Wolfe’s Midnight Corals. You responded right away with my tracking info and prices were fair. The box arrived. It had either your printed logo, a stamped logo, or just your stickers printed and stuck on. Right away looks nice. I open up the box, has a nice shipping cooler. On top you maybe have a printed acclimation flyer or even a thank you note from the owner with a future discount code. I open the box and see a heat or cooling pack. The coral is packed in small baggies with cheap plastic cups cut with holes to hold the frags. From top to bottom, the whole order was though out, and most all of the cost was in the shipping and building your name.

Most all threads I read, #1 did the coral look like the pic, #2 was packaging/doa. And it will just cost a lot of time and some boxes and printing supplies.
 
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LukeWolf

LukeWolf

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Hi,

My thoughts. Start like all great small businesses do. Build your name. Sell some pieces on here, eBay, what ever medium suits you. You have everything you already need I bet. But sell your name more than the coral to start. Nothing big.

Create your name and logo. Nothing crazy, professional but not stuffy. Get a printer to make some labels, stickers, etc. Get an online store on eBay or somewhere else that doesn’t charge a lot of fees or a basic website. Buy some basic shipping boxes and coolers. Don’t get basic cardboard. What the customer actually gets in their hands is as big as the service. You could be great, send a flimsy box and..

My thought..I may be your first customer. I just ordered from Wolfe’s Midnight Corals. You responded right away with my tracking info and prices were fair. The box arrived. It had either your printed logo, a stamped logo, or just your stickers printed and stuck on. Right away looks nice. I open up the box, has a nice shipping cooler. On top you maybe have a printed acclimation flyer or even a thank you note from the owner with a future discount code. I open the box and see a heat or cooling pack. The coral is packed in small baggies with cheap plastic cups cut with holes to hold the frags. From top to bottom, the whole order was though out, and most all of the cost was in the shipping and building your name.

Most all threads I read, #1 did the coral look like the pic, #2 was packaging/doa. And it will just cost a lot of time and some boxes and printing supplies.
That’s some very good advice!! Thank you!!
 

Uncle99

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Tried this over the years clowns, shrimps and finally Sticks.
It was a ton of work for little return in a basement setting, but definitely fun.
To be a money maker, it needs to be scaled way up.
 

tehmadreefer

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Good luck. Seems everyday another hobbyist selling frags posting the same questions or similar.
Personally the market is getting Way too saturated so better for us buyers, def not a sellers market.
 

phillygeeks

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Don't let the idea of "creating a business" scare you, it's easier than you think. People do it all the time on whim, I have a few businesses that I didn't pull the trigger on, were just good ideas - they are registered and the logos and such are in a folder waiting to be used. Make a brand and have some fun with it, you don't need a storefront for that. And let it build naturally as you let it. The best businesses happen naturally because the founder is passionate about it and not doing it to make a buck.

Disclaimer: this is coming from a business perspective, not a fragging perspective

Good luck with whatever you decide!
Couldn’t agree more. There are some tax and liability considerations once you decide to go forward and decide on the type of business. However, the actual process of getting it done is pretty darn easy
 

bguile

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A lot of good advice here but one thing that I haven't seen considered is the tax benefits. Once you're consistently making over a certain amount of sales, it would be a good idea to at least file for an LLC. It will give you personal protection if anyone were to come after you. PLUS, now whatever you buy for your tanks can be written off as business expenses because you need to purchase items to grow and sell and you need to purchase equipment to facilitate that inventory properly. Definitely speak with an accountant about it though.
 

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