Cryptocurrency Regulation

FinCEN apparently has a broader definition of a money services business than the state of Minnesota.  From the former:

  (uu) Money services business. Each agent, agency, branch, or office within the United States of any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the capacities listed in paragraphs (uu)(1) through (uu)(6) of this section. Notwithstanding the preceding sentence, the term ‘‘money services business’’ shall not include a bank, nor shall it include a person registered with, and regulated or examined by, the Securities and Exchange Commission or the Commodity Futures Trading Commission.
  (1) Currency dealer or exchanger. A currency dealer or exchanger (other than a person who does not exchange currency in an amount greater than $1,000 in currency or monetary or other instruments for any person on any day in one or more transactions).
  (2) Check casher. A person engaged in the business of a check casher (other than a person who does not cash checks in an amount greater than $1,000 in currency or monetary or other instruments for any person on any day in one or more transactions).
  (3) Issuer of traveler’s checks, money orders, or stored value. An issuer of traveler’s checks, money orders, or, stored value (other than a person who does not issue such checks or money orders or stored value in an amount greater than $1,000 in currency or monetary or other instruments to any person on any day in one or more transactions).
  (4) Seller or redeemer of traveler’s checks, money orders, or stored value. A <15>seller or redeemer of traveler’s checks, money orders, or stored value (other than a person who does not sell such checks or money orders or stored value in an amount greater than $1,000 in currency or monetary or other instruments to or redeem such instruments for an amount greater than $1,000 in currency or monetary or other instruments from, any person on any day in one or more transactions).
  (5) Money transmitter—(i) In general. Money transmitter:
  (A) Any person, whether or not licensed or required to be licensed, who engages as a business in accepting currency, or funds denominated in currency, and transmits the currency or funds, or the value of the currency or funds, by any means through a financial agency or institution, a Federal Reserve Bank or other facility of one or more Federal Reserve Banks, the Board of Governors of the Federal Reserve System, or both, or an electronic funds transfer network; or
  (B) Any other person engaged as a business in the transfer of funds.
  (ii) Facts and circumstances; Limitation. Whether a person ‘‘engages as a business’’ in the activities described in paragraph (uu)(5)(i) of this section is a matter of facts and circumstances. Generally, the acceptance and transmission of funds as an integral part of the execution and settlement of a transaction other than the funds transmission itself (for example, in connection with a bona fide sale of securities or other property), will not cause a person to be a money transmitter within the meaning of paragraph (uu)(5)(i) of this section.
  (6) United States Postal Service. The United States Postal Service, except with respect to the sale of postage or philatelic products.

From the latter:

The Minnesota Department of Commerce licenses and regulates individuals and businesses that cash checks, transmit money, own and operate ATMs, and provide electronic funds transfers.

The MN license is $4k.  Didn't see a price on the FinCEN one.

Gabees Honey

From several months ago, a discussion at Patrick's cafe regarding a bee-related project.

• The parked site, gabeeshoney.com
• Connecting a domain to the Wix-hosted site
• Generating a QR code for the URL to put on the business card

Apparently the lady's gone to Argentina to look for bulk honey....

Certified Scales

To weigh metals in trade and gunpowder for repackaging and resale, a certified scale is necessary.  That is, one with a pedigree traceable back to standardized weights, which is legal for business use.  Required accuracy and maximum load determine what kind of scale is needed.  For 1-gram accuracy, the CAS ED series looks good.  For 0.1-gram/0.005-ozt accuracy, there's the Citizen CZ1200.

Seven Steps

I've heard repeated mention of the "seven step" method to sales.  At length, I finally looked it up, but there appear to be varying definitions.  From one in particular that's most straightforward, the steps are:

1. Greeting
2. Establishing a relationship with the customer
3. Qualifying their needs
4. Presentation, demonstration, and information
5. Transforming interest to desire
6. Overcoming objections
7. Closing the sale

Now I know I'm a lousy salesman, but those steps could be useful for "selling" other things like Appleseed.

Ammunition Manufacturing Business

In case anyone's thinking about starting an ammunition manufacturing business, I found a useful bit of info on THR regarding the requirements:

You will need
to comply with local zoning for a firearms and manufacturing business
Type 06 FFL $30 for 3 years
ITAR registration* for $2250 per year

*ITAR is the International Trade in Arms Regulations and is the US State Department's jurisdiction (ie the ATF can't and doesn't enforce it directly). Basically in a nutshell everything firearms related including ammunition and components is a "defensive article" and the manufacturers must be register and pay that stupid fee. I have found an exception and will share it, but will not hold anyone's hand during the process or offer any additional advice beyond what's posted here.

If you are a manufacturer of "whatever" and intend on solely selling it to
Domestic civilains
Domestic dealers or distributors or wholesalers
Domestic civilian law enforcement agencies (ie cops)

you can submit a Commodity Jurisdiction Request to the US State Department requesting determination of whether your products are "defensive articles" having a military application. This must be a letter from scratch (no form letter is provided or "out there") detailing what you make, whom you sell to, and whom the end user is. You will need to submit drawings, blueprints, techinical documents, etc. If they determine you are not manufacturing for any military or paramilitary force, they will not make you pay ITAR.

That's it for the licensing BS.

Now the business aspect.

Marketing is fun and a PITA all at the same time. Buy the book "Guerrilla Marketing" and read it cover to cover. Not the gospel but gives a different perspective than "buy a magazine ad and wait for the phone to ring" mentality of marketing. The book explains it all but here's my perspective:

Marketing isn't about getting a sale. It's about setting up a client relationship. The last thing you want is a customer. A customer comes in, buys some ****, and leaves. That's not good. You want a client. You want long term, loyal, repeat business. Marketing is showing them your product/service, informing them of the value, and showing how you will be there to support them after the sale.

OK, now insurance. If you think you can form a fancy corporation and be protected you are dead wrong and I just saved you millions of dollars. GET LIABILITY INSURANCE!!! It's a couple thousand dollars a year (as in less than $200 per month) for a basic $1 million policy. If $2,000 a year is too much, STOP. You are not cut out for this business. Operating without liability insurance is simply retarded for any business. That's settled. Get insured or go flip burgers.

Equipment. Have to go blue here. Dillon is your brand. Learn it, love it, live it. For the type of loading you are doing, you will need volume but not primer pocket swaging. Get at least one Dillon 650 press with case feeder for each press. Get one set up for small primer and large primer. Then change out the other stuff for caliber changes. This will give you 800-1000 rounds per hour production. That's a good start. If you can't load at least 500,000 rounds annually, it will be a hard living, even as a part time retirement income source.

Then there's the FET or Federal Excise Tax (I don't care if it helps wildlife crap, it's retarded and a burden to my business and you end up paying the tax anyway because me and every other manufacturer rolls it into the cost of the ammunition). Tax is 11% on the sale price of ammunition you load. Exceptions are
Local (non-federal) law enforcement agencies
Department of Defense including the Coast Guard
Reloading customer brass

Hit up www.ttb.gov for more info. Basically if you buy brass, load it, and sell it as ammo, FET is due. If you sell to law enforcement other than federal or DOD, no tax due. If you reload customer brass and you ship it as ammo (no substituting your brass for their brass or replacing worn brass with your brass to make even count), no tax due. Tax on ammunition is 11%.

That's about it. The rest is on your own just like I learned the hard way. Give 'em hell!

The excise tax kind of impacts profit, and the ITAR registration and insurance definitely eliminates anyone thinking of a small-time operation.

C Products LLC

Aw shit.  C Products is going through a "transition"--apparently they've been sold.  Except there's a lot of hijinks going on as far as where standing orders are, and who's responsible for what.  LCJ Wholesale is apparently the new retail outfit.  At this point it's not clear who the buyer of the MFG operation is.  A thread on Arfcom has remarks from the old staff Larry (the owner?) and Chad (director of sales?).

This explains why CDNN doesn't really list C Products mags anymore.

Netwealth-e Int'l

So I met the owner of this online business, Netwealth-e International, over at Ikea a few weeks back. I finally checked out his website, but still don't have a good idea of what they do. Weird, I would've thought it should be clear from the pitch, I mean if one wants to line up capital as well as talent.