New to plastics

[Skylerh1028]

Hi, I am new to plastics but have taken a huge interest in it and want to turn it into a business. I just have a few questions and I’m hoping someone could help me along the way with just answering various questions or just answering the ones I’m posting.

1. How much should I charge for bag? I plan to average about 10 lures per bag depending on size. I know size of the lure also plays a factor into that but anything will help.

2. I know some companies search forums like this and are looking for a reason to send out cease and desist letters in regards to copyright infringement so is there any universal words for lures that are free to use and are not going to put me into the ground?

3. Would it be best to get an accountant in regards to tax or is anyone here familiar with it and could help me better understand it. 

I’m sure as time goes on I will have more questions but that is all I can think of for now. Thank you to anyone who is willing to help and answer these questions. 

[Travis]

1.  You should know your costs, time, etc... if you don't know that you aren't ready to turn it into a business.  I have no idea how serious you are about a "business".  There are guys here that truthfully lose money on businesses when everything is accurately accounted for.

2. Don't use their names or descriptions and most molds you buy are good to go.  I personally wouldn't worry too much        about this.  Now if you are going to sell knock offs and call it the same or a play on the name you may raise some eyes.  Personally I wouldn't be too worried about companies searching this site.  I think some overplay this concept/idea as I think in some way they think it legitimizes them.   At one time I think more people were more concerned about a few on this site reporting you to the IRS (Form3949-A).

3.  No need for an accountant unless you are truly a big business.  I would search the forum as lots of advice and guidance to at least get you started.  You will get all sorts of advice but your local IRS Taxpayer assistance center may be the best bet.  If you feel better consulting a CPA what you spend on services needs to be routed into answer number 1.

[mark poulson]

Talk to people who are doing what you want to do, so you have a realistic idea of what's involved BEFORE you spend money.

Ask people on this site to send you a private message so you can talk with them privately, and get their honest answer, without any public pressure. 

Just keep whatever you learn from everyone confidential.

[alsworms]

If you haven't made a soft plastic bait, I'd start there, THEN see if you want to turn this venture into a business.  Tons of competition out there now. 

Best of luck! 

[hpssports]

1. Depends on your cost, overhead, packaging, etc. Work out a good business plan & talk to suppliers about bulk pricing. Go as far as writing up and negotiating contracts.

2. Don't use names other companies use. If using off the shelf molds from the usual mold markers that everyone else is using, some of the newer ones are running in the grey area with their designs. Stay away from any of the mold makers in the Ukraine. Most if not all the ones they're machining infringe on U.S. patents. If you start designing your own baits & get molds machined, always consult with a patent attorney. This will save you money in the long run. 

3. Talk to an accountant that specializes in manufacturing businesses & go to your local tax office. In the long run, it's always best to have an accountant to take care of everything. Yes, it's going to cost more but well worth it.

[FrogAddict]

Just my opinion but when I turned this hobby into a business it wasn't much fun. So I stopped and now I give them away or use them myself. Now I'll come home from a 10 hour shift and make lures all evening with a smile on my face. 

In addition to the great advice given here, I recommend doing up a business plan and presenting it to someone that has a wide range of business knowledge/experience. Most cities/towns should have an entrepreneur center or some other resource you can tap into. 

Edited December 28, 2022 by FrogAddict

[SpoonMinnow]

One way to avoid copy - lawsuits is to make unique designs and have molds made for mass production. examples:

  

Of course, you'll want to know which type of angler you're supplying with lures:bass, panfish, muskie, walleye, striper, etc. 

Lure sizes and shapes depend on the species targeted. Many anglers hold their noses when I mention small lures for large fish though I know they catch fish.

Advertising and reaching potential customers is a challenge. Even getting anglers to use free samples is difficult when trying to get them to use something other than proven lures they have confidence it.

Shipping costs affect sales and add to the final costs of production + consumer shipping. They are going up this week BTW. How much can you charge for a package of 10 lures taking the above into consideration? Check Amazon for examples.