Starting a radio business

Post by **/\/\y 2 cents** » Tue Oct 22, 2002 7:51 am

I'm thinking about starting a radio business.....Motorola, Kenwood, Vertex/Standard. How hard is it to do this ?....I know my stuff extremely well and I am motivated. I was previously employed with a comm shop in sales and did well....left because my deals were getting too big for them and they would screw everything up. I feel with my dealmaking ability, and skilled hand in guiding the service experience I have a good shot at shaking things up in my local area. What would be the most important thing...Yellow Pages, getting on bid lists, ? I have the ability to get dealer pricing on almost everything through previous relationships with other radio people. What are my chances of success and whats my chances of failure. Im....22 and thinking about leaving college to do this. Like I said....my radio knowledge is almost unsurpassed and I have closed $80,000 municipality deals when I was 19. I'm asking you guys because my parents have no idea about two way radio and the market for it out there. If I know I can give lower prices plus Much better service...how can I fail..right? Let me know

shammond · Post by **shammond** » Tue Oct 22, 2002 8:04 am

Sounds like you are motivated. Where are you going to get your capital backing? It's very unlikely that these companies are going to extend you credit right away.

Cheaper isn't always better. As a good salesman you probably already know that it is service after the sale. Don't price yourself so low that you can't afford to service the customer afterwards.

Good Luck,
Steve

YoChief · Post by **YoChief** » Tue Oct 22, 2002 1:23 pm

First you get a whole handfull of marbles.

Then each day as you are going around setting up your shop, you throw away a marble.

When all your marbles are gone, you're ready to get into the radio business

Mike 701 · Post by **Mike 701** » Tue Oct 22, 2002 1:28 pm

Hey there....I am 17, and this is only my $0.02. You sound motivated and like you know your stuff, but even coming from a senior in high school, I don't think it's such a good idea to leave college. You're 22, you should be graduating soon anyway, right? If things go sour, you are going to NEED that degree, and it will be a royal pain in the @$$ if you have to get a different job, I've seen it with my brother & a firefighter on our dept. almost drove him nuts!! But after college....I think it's best if somebody in the field answers it.....But either way, GOOD LUCK!

Mike

Post by **wavetar** » Tue Oct 22, 2002 2:47 pm

Your "skilled hand in guiding the service experience" line intrigues me. You were apparently a salesman with the comm shop, and did well. But they messed things up? In what way? The sales (long order times, incorrect ordering, etc) or the service side (screwed up installs & insufficient product knowledge, etc)? Who will do your servicing? If you plan on supporting your sales yourself, let me warn you, it's very difficult to run a profitable service shop. Actually let me re-phrase that...it's very difficult to run a repair shop without all your money seemingly sinking into a black hole somewhere. The overhead can be huge (service equipment & vehicles, parts inventory, etc) not to mention the salary if you want/need to hire a competent service tech(s). You may be one yourself, I don't know. It's a catch-22, you seem to need to spend far too much money to provide the proper customer care level necessary to survive as a company. That's why you'll see many companies around that will sell you anything they can get their hands on, but provide piss-poor service when the time comes (some of those "dealers" Will mentions from time to time, no doubt). Just a few things to think about. Good luck,

Todd

RadioSouth · Post by **RadioSouth** » Tue Oct 22, 2002 3:34 pm

Why not stay in school, take a stab at the radio gig part time and see if it pans out ?

elkbow · Post by **elkbow** » Tue Oct 22, 2002 3:46 pm

I've been around for awhile, first thing is first....finish your degree, you'll regret it if you don't and any person that you deal with will respect that you have a degree.

Secondly, starting a business is a big venture. The business license itself can be exhausting, there are many ways to go with this, many forms to fill out, etc. Think about employees, taxes, social security, insurance, etc. I suggest you visit the Small Business Administration website nationally and there is probably one for your area. They put on classes that will assist you in starting your business.

As someone mentioned before....capital....money, dinero, etc......In order to get business you have to have products and employee's, if you think you can run a business on your own....think again. Its great to have your motivation, but my advice being in the position I am in is that you want to finish your degree, etc. Contact SBA for your area, go through their courses, etc., and then decide.

Jim202 · Post by **Jim202** » Tue Oct 22, 2002 4:47 pm

Take it from what the others have said. Get your degree over with. Try going into the radio shop business in a part time basis. This way you can still hold a job to bring in some income.

It is not easy to start up a radio shop. Just getting the needed test equipment, computers, software, radio test jigs and programming adapters, building rent, phone lines, fax machine, stationary, office furniture, and all the other items we have all forgot to mention.

Don't even count the inventory of radios your going to need. The checking accounts, capital to operate the shop on for one year, vehucles, ladders, climbing belts, tools and what ever we have forgot to mention.

Stay in school, work part time if you insist. Just don't jump into this with a better than the rest of them attitude. You won't last long on that shoe string.

I am sure there are other things we all haven't mentioned yet. Do yourself a favor, finish school. It will come in handy in your later years.

Jim

JohnG · Post by **JohnG** » Tue Oct 22, 2002 6:12 pm

Here's another idea... You got some radio shop experience and have a taste for the radio business. Find a university with a good RF or computer engineering program. Get your BS degree in engineering. Maybe get an advanced degree. Get a coop or summer intern job with a company involved in the radio industry. Get a full-time job designing radio equipment/software/systems when you graduate. 22 isn't too late to transfer into engineering. Good luck!

John

mavericknet · Post by **mavericknet** » Tue Oct 22, 2002 7:10 pm

I'm running a small computer/communications/two-way radio business, incorporated. (Thats an unfocused mess, but eh, it's profitable) I've been told I'm a genius, I don't think I am. I'm in college too... I hate college especially mine.

Radio just happened to be an accident. My local Motorola dealer is a major shlep, I beat his prices and deliver a good product with good front end service, (major stuff gets shipped off to my supplier). I try to stay clear of big ticket items like repeater systems and dispatch consoles (been known to dabble though). What's your location /\/\.02?

I found getting into business was easy... that was until I ran into my county's way of doing license notification. Turns out I've been running a business without necessary county licenses that no one has, and I need to work for a licensed for two year before I can qualify for mine. Oh, an to top it off, the licenses appear only on hand printed applications and not in the county code, how that works I'll never know. ANYWAY, I think I've done enough of a run on, the best thing I can tell you at 22 is hang in on college if you're passed the halfway point. Give me a PM if you need any help setting up a business.

radioconsult · Post by **radioconsult** » Tue Oct 22, 2002 7:26 pm

Three words of advice "stay in school" the present two-way business as we know it is dying. Thirty plus years ago the bread and butter was what we called the "base and 3" customer, a base and a few mobiles. They have all gone to cellular or Nextel. Hone your skills on technology of the future, such as UWB, UMTS, SDR and others. Things evolve, simplex, repeater, community repeater, SMR, Trunking wide-area systems, what next? Enjoy radio challenges in your spare time, but plan a career that will provide the necessary funds to support your "true" love.

Post by **xmo** » Tue Oct 22, 2002 8:17 pm

I'll let you in on the secret of how to have a two-way radio business and end up with a small fortune - start with a big one.

PETNRDX · Post by **PETNRDX** » Tue Oct 22, 2002 8:54 pm

If you are asking the question, sounds like you already have the answer.... If you were sure, you wouldn't ask, you would just do it. Since you are asking, you must already know that it might be a bad idea. Stay in college until you are sure. NOW is a very bad time to be starting a business. A year or two from now the prospects will be better, and I bet you won't have to ask for opinions. Good luck either way. PS I WISH I had the option of going to college, way too late now. Mite go when I retire next Aug. FOR THE FUN OF IT and to better understand stuff that I have worked with for MANY MANY YEARS.

n9upc · Post by **n9upc** » Wed Oct 23, 2002 4:08 am

I think if you want to start your own 2 way radio shop then go for it. But, like other people have posted on here it will be a tough road. Getting dealerships are a very hard thing to do and keep. I know of some dealerships that worked so hard to get a product line and boom one day they get a call from the manufactor and they say "sorry not enough units going out the door!"
And if you want to resell through another dealer careful not to get screwed in the process and get tagged for two stepping the dealer.
Some advice I can give you about starting is this:

1.) Do all research first?
- What other companies are in the area?
- Are they national or worldwide companies?
- What are the requirements for becoming a dealership?
2.) What are you going to sell?
- Commercial?
- Public Safety?
- Amateur?
3.) Are there any infastructures you have access to?
- Can you sell some space on a Community Repeater?
- On a LTR/Trunked system?
4.) And finally, product out, then money in !!

Most people who try to get into this wack industry have either done one of the three following to make themselves fail: 1.) Not enough money to buy product and supplies, 2.) To much money, then it becomes to much overhead and you can not get rid of it, and 3.) you spread yourself to thin by going and getting to many customers and to much work and then you start to neglect big time.

In the end I hope you have good luck and sucess in what ever you do. Maybe you should check into buying into a company before starting your own.

Good Luck !!

Astro_Saber · Post by **Astro_Saber** » Wed Oct 23, 2002 7:24 am

doesnt matter how smart you are if you dont have the paper they dont want you.

Its really funny when you hear all these companys wanting msce people or other paper qualifacations and they cant even install a OS.

gotta love the BS Microsoft has blown around to make more money

Microsoft - motorola two companys thay are monopolistic

Post by **/\/\y 2 cents** » Wed Oct 23, 2002 8:42 am

I have acess to Vertex, kenwood, and some motorola. All new straight from the factory mostly 5-10 dollars over cost. I know A guy who will repair almost anything for 25$ FLAT RATE TO ME with 48hr. turnaround (then mark it up). (and he's good...ive seen him fix some pretty badly beaten stuff that would have been like 150$ if sent to motorola, and he sets up and aligns repeaters/duplexors...I can get any software, and all Id have to do is buy cables ($1000.00 tops from polaris). Don't need a van...my parents gave me a car that can be used at first. My parents are somewhat affluent and told me they would back me (if I finish college though) but I am not intrested in college. I also have several people that I still know that I could get sub-dealer pricing on loading thier UHF LTR PASSPORT system which they are having trouble finding subscribers for. All I'm wondering is how do I initially get involved with getting customers. Do I need the ad in the Yellowpages (which costs like 20,000) or should i just show up places and start talking to the people who maintain equipment or what? I also have a installer who I have told that I will give him 50% of the install charge. Ill be honest with you guys, im not really in this for the $$, I just want to crush every other half-ass shop in the area, and do it delivering the highest possible satisfaction rate, and the best honest prices on the equipment, I believe if I do that then everything will fall into place monetarily I've ripped people off before at the advice of the old boss (Charged a company $8,000.00 for a $1000.00 combiner) and then to top it all off he took the money to buy the equipment and blew it on items for himself......thats fraud....how is he still got a big shop when all I want to do is do things the right way and build a positive reputation for reliabilty and professionalism? Now that you guys know what resources I am working with....what is your opinion? Oh yeah, if any of you want to come finish my college education for me for free so I can keep my pops happy come on down.....there are kegs here every night and tons of hot girls.
P.S. the name of the shop will be Critical RF

Post by **wavetar** » Wed Oct 23, 2002 9:02 am

Sounds like you got it all worked out, not sure why you even asked for an opinion. I'm a little curious how the guy you know can repair something that needs a $100 part for $25, but I'm not gonna ask. I'd personally stick to the hot girls & kegs as long as I could, you're only young once. Of course, you don't realize that when you are young, either. Good luck again, I hope it doesn't turn into "Critical Condition RF".

Todd

Bugs Bunny · Post by **Bugs Bunny** » Wed Oct 23, 2002 9:14 am

I agree with Todd. Stay in school and enjoy the atmosphere. You are only young once, and if I knew what I know now, I would of had a better time in school. But what I am worried about is your view you will only need to spend a thousand dollars on cables and the rib. If you want to go about this correctly, you should spent the money for the orginal kit. Also you have not addressed the cost of RSS. Sure you can find donated software out there, but you start under cutting an authorized MRSS', they will start complaining to the corporate guys.

Bugs

Post by **/\/\y 2 cents** » Wed Oct 23, 2002 9:59 am

i think polaris cables and ribs are appropriate for the level of equipment I will start off servicing (and I don't care because even the /\/\ dealers use them for their shops)....now if I win a RFQ for a maintinance agreement for spectras or something of that nature, then I would get factory gear....Software isn't an issue and the local guys arent even gonna know what hit em, i'm starting small....Id like to take the customers that the local delaerships think they are too good for. The ones where they dont think they need to show up on time..or blow off a service or sales meeting, these are the ones that I need to scoop up...you have no idea how many deals I have taken that fit that profile, the others are too busy or not enough money made, I love these because I turn them into something good and gain a lifelong customer....If I can do this one at a time, before they know it it will start impacting their customer base. If they want to start complaining, by that time I will have already made enough money to buy legit stuff and it will already be too late for them to do anything about anything . Im trying to do this on a "as needed basis" I feel the worst thing I could do is finance a $20,000 service monitor and computers and pay office rent and trucks and $300 a radio software packages. That's really not needed right now, and when the time comes, those needs will be adressed. I'll tell you what it's going to take right now : 1.)knowledge and resourcefulness, able to take chicken Sh** and make chicken salad 2.) Speed, the abilty to react and implement a working solution for the customer, or get them their stuff when THEY want it and need it 3.) Genuine intrest in the customer's satisfaction and needs being met.
Everything else is BS to me. I dont care about Motorola and their dealers, I dont care about factory vs. generic cables, I dont care about other dealers being mad because I wiggled my way into their customer base and the customer happens to like us better. all I care about is having the customers happy, and trusting our expertise, and creating commerce with us. If we have the clients, then the manufactures will be forced to love me, because I put their product on the street. I try to think of it like Master P gets into radios. Almost like against all odds. Oh yeah, and if Motorola or another irate dealer wanted to get all uppity with me....maybe I'll put them on the phone with a client and let the client tell them why they made the DECISION to switch. Last time I checked it wasnt a crime to switch auto shops because your car kept breaking down for the same reason after you repeadily bring it into some service shop, its the same thing for two-ways. Anyway, im on a rant......write back

RadioSouth · Post by **RadioSouth** » Wed Oct 23, 2002 2:45 pm

Now you're scaring me, chicks and kegs or radios and you'd opt for the radios ?

dvpman · Post by **dvpman** » Wed Oct 23, 2002 2:45 pm

I vote yes to kegs and chicks too.

:wink: :wink: :wink: :wink: :wink:

mike

Post by **/\/\y 2 cents** » Wed Oct 23, 2002 6:18 pm

look...ive been driking kegs and messing with girls since I was 13 or so...to be frank with you, i'm bored with it..I'll admit, they are fun, and I do party alot...but I can't deny what I really like doing and thats radios. I'm trying to get a business going where I can make a difference...besides chicks like kegs now, but after awhile they start to like success even more, with that success I can get the beer and the chicks. What I really want to do is link all of the UHF trunking networks in my area by internet, so that regardless of SMR provider the customer can have decent portable coverage. I believe this, plus attractive incentives to chose the commercial SMR (financing, Better customer service) can steer alot of base-and-fiver's away from nextel. The problem now is that I cant find any systems anymore with good portable coverage. This is because most UHF licenses are not exclusive and there is heavy height and power restrictions due to the way they are designated. Maybe I'm crazy but this seems the only way to be sucessful in the SMR maket to me.....talking around 1 tower only and the guys on the other one 25 miles up the road not being to hear it or get into the other system just dosent cut it anymore. And base and fivers wont pay for all the expensive links (a la easy link plus) that never work well to begin with. If you can't use portables for 90% of the system, the customers will hate you and go elsewhere. If portables work good usually, but for a certain reason they need a mobile, then its ok...but if the system is sold to as mobile only....they will hate it, and the perception of the quality of your system will be shattered, and they will complain and leave you for nextel.

Alan · Post by **Alan** » Wed Oct 23, 2002 7:58 pm

Looks like you have all the answers.

Knock yourself out.

metro121 · Post by **metro121** » Thu Oct 24, 2002 2:05 am

If you are wanting to make the BIG BUCK$, stay in school, finish college, get your doctrine, write a book and give seminars and speaches.
This is where the money is at for the college crowd.

Starting a business today is only for those who do NOT go to college to learn how to start a business.
Take a look at MOST successful business people. They became successfull because they had enough smarts to watch how it works in the real world and then make it work them selves.

If you honestly want to start your own radio business, go out and do it. Call the corporate offices of Kenwood, Icom, Motorola, ect and start pounding them with questions on selling thier products .
Start advertising in you area, knocking on the doors of the city and county entities and letting them know you want thier business.
Send out flyers to all the business's you can .
AND DON'T LET ANYONE TELL YOU YOU ARE WAISTING YOUR TIME AND YOU CAN'T DO THAT.

The secret to everyone success in the real world is doing what everyone told them they could not do. It is not something you can learn in any college , trade school, seminar, ect. It is something that you learn from reality first hand with trial and error.

ricciticcitembo · Post by **ricciticcitembo** » Thu Oct 24, 2002 4:17 am

I'm gonna have to agree with what metro said in his last three
paragraphs.
One time not too long ago my friend and partner came up with the
stupidest idea I ever heard. Here is a very condensed version.
My Best friend who I have known for almost 20 years now (I'm 33)
one bright sunny day in 1997 decided he wanted to be a Public
Utility Company and sell land line phone service. Specifically
Verizon local service under the recently restructured(back then)
telcom laws. He knew really nothing about either. I have always
had a keen interest in anything electronic, and already had a nice
briefcase well stocked with Bell service equipment, and I showed
him how the stuff works to get him started installing phones. Next
I installed a computer network with UNIX backbone to talk to the
Bell servers for setup and ordering of service. I designed and built all of the network and servers from old sun parts that I scavenged from Bell Atlantic, and parts that were "busted" or surplus. He decided to use
his old pager billing software for phone billing. That took another
network to be built. I personally built all of the client workstations
as well from parts commonly available in the nearest trash can.
We STILL have at least three compac 486 33Mhz machine clients
running win98 on the billing system. The servers NEVER crash
and are typically up for over 750 days at a time before I put Brand new disk drives in it or something or other just to make sure they don't quit. And I feel I need to mention that I am a Janitor by trade, never went to college, almost got thrown out of high school,
and as far as I'm concerned I don't reall know $hit about computers.... And I know even less about radios.... But I didn't let
that stop me from building and programming suns or R10000's or outfitting my van
with a pile of spectra's that puts the county emergency vehicles to
shame.

Currently we are certified in three states as a public Utility. Which
I can tell you from experience is not an easy thing to do, letalone
pass all of the "tests" and jump through hoops YEARLY to REMAIN
certified. We don't even have a Lawyer. One lawsuit could put
us out of business at any time . I write all of the 400 Page tariffs
that need to be submitted my self, and just get a Lawyer to look it
over and sign off on it.

Because we are a Public Utility, we must conform to MUCH more
rules and regulations as compared to a "regular business" . Every week we get notices of at least two or more "phone companies"
that have GONE OUT OF BUSINESS. It is very very hard to maintain
certified in this business, and If You don't , The Public Utility Commission WILL PULL YOU OUT post haste! Happens all the time.... Telecommunications businesses have been hit real hard too
lately and go out of business for financial reasons.

I think the main reason alot (read: most or all) of small phone companies go under is that they underestimate the complexity of
the billing/ordering/tracking computer system(s). They hire all
these "computer geniuses" and get nowhere fast. I have been asked, and have attempted to help a few other local telecom
resellers with their "billing" problems, and when I take a look at
what they have set up (a bunch of windows crap) I just shake my head and think "It won't be long now...." (they spent MILLIONS that they borrowed from investors) or should I say WASTED!

So flash forward to right now. Our Phone Company is still here. Never had ANY loans. NO investors. No lawsuits. No Certifications pulled. We still
don't really make any money though. Good thing I still clean toilets and floors and he works construction. My friend doesn't even have a car, he still drives the Phone Company / construction service van. I drive an old saab, and recently He bought me a '97 van at the local auction, Which I am still outfitting with electronics. But you know what?
We are still happy. Every thing is paid for and always has been. We are able to pay the bills and the employees. We
Don't owe any money to anybody, and own the whole thing lock stock and barrel.
Since I'm A fly by the seat kinda guy myself, I can wholeheartedly
say "GO FOR IT!!!!!"
Dealing with Motorola is a Walk in the Park next to dealing with
any Public Utility Commission or Verizon either for that matter.
I'm sure you will succeed. But remember this: Don't put all your eggs in one basket.... Remember I still clean floors, and He still
works construction. The Phone Company is kinda like a Big Ticket
Hobby. I know it sounds bad, but it's true. Also True is the fact that
I don't even really like computers. I just know exactly how they work for some reason or other, but could care less really. It's just
fine with me that I don't have to check on the system for months
at a time.

I think your most important asset is like you said" your knowledge"
especially where the hardware is concerned (repair) and even more
importantly "what the customer wants" and when he wants it. Now of course. Since Customer Service is your main concern, and
thats how you intend to gain your customers from the "other"dealers in your area this type of logic , coupled with extreme frugality (not sure if thats a word) should make you go a long way and everything else wil fall into place.

GOOD LUCK WITH YOUR VENTURE!

and remember that over 8 out of 10 new business fail, so don't become a statistic! (But with your thinking.. you should have nothing to worry about) The trick will be simply getting enough business to sustain your living habits. (rent, food, electric, etc..)
Which really won't be too difficult as long as you don't expect to
get a Lexus right away.

ptemplin · Post by **ptemplin** » Thu Oct 24, 2002 7:56 am

The reason you don't find it fun is because you've spent too much time at the keg. Walk away from the keg, go to class, and start your business when you're done with school.

Six years out of school, people are still noticing that I've got an engineering degree, and it's helping out my job search significantly.

Whenever you look to start a business, you need to be ready to eat your shirt for at least the first year. Any growth needs to be well managed, and your college education will help with that. Look at both engineering and business administration classes as you plan your future, and go from there.

ricciticcitembo · Post by **ricciticcitembo** » Thu Oct 24, 2002 12:11 pm

[quote="ptemplin"]The reason you don't find it fun is because you've spent too much time at the keg. Walk away from the keg, go to class, and start your business when you're done with school.

I just wanted to second that. Especially since you got rich parents,
and they will help you get started AFTER you graduate. After all
it is the most responsible thing to do, as almost everyone who
replied said. You seem just a little overanxious. I never really
had the opportunity that you do. I don't want you to read my
previous post, and infer that it was easy. Because it isn't. It's
possible, but not very likely. Even I'm still amazed.

I just wanted you to basically know that it IS in fact possible to
succeed at what you want to do (against all odds) but if I was you
I would do the smart thing and stay in school unless you like working ALOT.

Nand · Post by **Nand** » Thu Oct 24, 2002 5:26 pm

JimRadioWize · Post by **JimRadioWize** » Sat Oct 26, 2002 3:56 pm

You're ambition is bordering on cockyness, my friend. Your business ambitions should go beyond "gotta crush and undercut the other guys".

Finish college, take business courses and learn the lay of the land. If you want to be a moron and leave college before you finish it and learn a thing or two about running a business, then you will fail and mommy and daddy will have to bail you out.

As someone who knows quite a bit about the small business universe, I have seen many of your stripe come and go. ALl rearing and ready to kick some arse, but get bored with all the tedium and stress that running a business entails. ALl of them are now involved in the exciting world of food preparation.

Learn the ropes first or "Ding! Fries are done!"

RCVMO · Post by **RCVMO** » Sun Oct 27, 2002 5:24 am

Even though I work a Local gov't entity where the radio service part I do in my sleep, I also have the side business. Unfortuantley I also have the task of dealing with other gov't entities locally. Rule one........BE ON THE UP AND UP. BE HONEST AND FAIR. IF THERE IS A PROBLEM THAT YOU CANNOT HANDLE, DON'T STALL THE CUSTOMER FOR WEEKS AND MONTHS SAYING THAT YOU DON'T HAVE A SOLUTION. AND ALWAYS HAVE A BACK-UP PLAN, IN THE EVENT THAT YOU ACCIDENTLY BLOW SOMETHING UP THAT'S ALMOST IRREPAIRABLE, OR THE PROCESS CAN'T BE REVERSED.
I found out the hard way that you cannot just sell and service radios these days. You may want to consider looking into the installation of equipment other radios in fire/rescue rigs such as D-Fib's, power conditioner's, oxygen pumps, lightbars sirens, screens, and the such that invloves most public saftey these days. Don't be afraid to go out to a site as well. On my partime I may travel as much as 50 miles away to go do a job because that person knows what quality work you do.
Be flexible, and heed the sweat.
Good luck ,
Jimmy

Starting a radio business

Starting a radio business

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