Advise needed! Thinking about how to start a gun business.

[thejeanmachine16]

I would love to hear peoples ideas/opinions, especially gun store owners and people who sell guns.

I was thinking what I want to do with my life and my dad suggested I start a gun store. I love guns so naturally I could see how in theory this would be a great idea so I started to do some research. On a side note I do have a business degree and my dad owns a small business so I'm not completely ignorant about owning a business .
Legally I think I would have little problem getting an FFL( I don't have a criminal record ). The problem is the more I looked into it the more daunting it sounded. I figure it would cost a couple $100,000 to get started and I'm not sure how I could get that kind of money. I can't imagine in this economy banks are loaning out large sums of money to people with little collateral. Also I read that there is little money in selling new guns, that the mark up isn't that great. From what I understand there is a small margin for profit which surprised me to be honest . I hear that most of gun store profit comes from selling accessories, ammunition , and used guns.
I was thinking about how I could ease into owning a full blown gun store. Any ideas? I was thinking maybe I could purchase a couple guns and try to sell them at gun shows and see where that would take me. Would this be a viable option if the profit margin on guns is low ?

I looking for advise and opinions ? If someone sees away for me to jump over these hurdles or has a better idea please comment or send me a private message.

If there is anyone out there with a large sum of money and wants to go into business with me let me know hahahhaha

[o1dakota440]

i think that in the montoursville area you would make out like a bandit if you just did transfers at a low price.

[Steve_NEPhila]

Capital is everything, as is a sound business plan. I know that the profit margin is very low for new firearms (the popular ones anyway).

Start writing a business plan. Figure out how much it will cost to lease a property near your target market, figure out your target market, estimate costs... You went to school and studied business so have at it.

A forum like this is going to be a poor place to get advice on running a business. There are very few business people here. Talk to your Father, as he runs a business. Contact some of your former professors...

No lending institution is going to lend you money without a plan, so get cracking.

[ungawa]

I don't know anything about the business except for listening to people in the business and reading posts from them. But it sounds like you've got it figured out. Except for the money.

Right now is a terrible time to be in business. But right now is a great time to start a business. Right now is a great time for anybody that has money.

[Connal]

One thing to remember when you see how little profit is made on new firearms.

I decide I want to start hunting. I come in, pick up a rifle. You make a few dollars on that. Then, I need my license, and while I am there I am going to need wool socks, orange vest, a few boxes of rounds to sight it in, maybe some hand warmers to stuff in my gloves, new gloves, and maybe a piece of beef jerky on the way out.

The important thing is repeat customers. Making a small profit per customer is fine, if you can keep that customer coming in.

Or, you could go with a niche market. Full tactical arms. Custom setups. Training courses. Even a pistol rental and range like other places have done. You won't make big money selling guns. However, you can use that as the start, and build from it.

[hertz]

I attend school here in Williamsport, my roommate and I find ourselves going driving to Jersey Shore to National each time we want to shop. We haven't checked out Tripoli's Triggers yet. Other than those two Gander Mt. is the only other shop that I know of. The more the better. Too much crime in this area for me. I'm definitely a rural person.

[YosemiteSam]

Capital is everything, as is a sound business plan. I know that the profit margin is very low for new firearms (the popular ones anyway).

Start writing a business plan. Figure out how much it will cost to lease a property near your target market, figure out your target market, estimate costs... You went to school and studied business so have at it.

A forum like this is going to be a poor place to get advice on running a business. There are very few business people here. Talk to your Father, as he runs a business. Contact some of your former professors...

No lending institution is going to lend you money without a plan, so get cracking.

You would be suprised how many of us are small business owners.
29 years and counting.

[svltrack]

I would love to hear peoples ideas/opinions, especially gun store owners and people who sell guns.

I was thinking what I want to do with my life and my dad suggested I start a gun store. I love guns so naturally I could see how in theory this would be a great idea so I started to do some research. On a side note I do have a business degree and my dad owns a small business so I'm not completely ignorant about owning a business .
Legally I think I would have little problem getting an FFL( I don't have a criminal record ). The problem is the more I looked into it the more daunting it sounded. I figure it would cost a couple $100,000 to get started and I'm not sure how I could get that kind of money. I can't imagine in this economy banks are loaning out large sums of money to people with little collateral. Also I read that there is little money in selling new guns, that the mark up isn't that great. From what I understand there is a small margin for profit which surprised me to be honest . I hear that most of gun store profit comes from selling accessories, ammunition , and used guns.
I was thinking about how I could ease into owning a full blown gun store. Any ideas? I was thinking maybe I could purchase a couple guns and try to sell them at gun shows and see where that would take me. Would this be a viable option if the profit margin on guns is low ?

I looking for advise and opinions ? If someone sees away for me to jump over these hurdles or has a better idea please comment or send me a private message.

If there is anyone out there with a large sum of money and wants to go into business with me let me know hahahhaha

My advice would be to get a job at a decent sized gun shop. Learn the nitty gritty details on transfers, reloading, etc (I am not sure of your skillset). If you have a veteran worker walk you through these things you will start off well with good fundamentals.

To run a business you must understand what your customers will want and not what YOU want. I have taken personal interest to business many times and have done well. Your passion is your advantage but also can be a detriment if too specialized.

[MaDuece]

A little insight,

3 to 5 months wait on the FFL

Then $250,000. in cap. for a mid sized shop.

Looking at the numbers!

$440, for a new glock in 9mm or 40s&w
Average resale on said glock $499. some places as low as $485.
Based on the $499. you make $59. GROSS profit.
Figure labor at $10. which isn't even a living wage nowadays
Figure your time ordering as well as booking (in and out) said glock 1 Hour
Selling said glock is 1 hour for BSing with the customer and doing the 4473 and SP-113

so PROVIDING that the very 1st customer you show that glock to, buys it.
Your net profit (before physical overhead) on that Glock is $39.

If you are selling at $499. It's always nice to constantly hear (so and so will sell it to me for $485.) thats fine until you give in a few times and then realize your profit has now sunk to a wopping $25. per Glock! It takes quite a few sales to pay 3 to 4 grand a month in overhead. (providing you are doing it all yourself and don't have employees on top yet)


Ammunition

1 box of Federal AE 9mm 115gr FMJ=$9. wholesale
Resale of $12.00
So gross profit on that one box is $3.00
The good thing about ammo is that in 99.9% of the cases it sells itself.

It's always fun to have multiple customers a day remind you that they can buy 9mm at WalMart for less! Try explaining what LOSS LEADER means to the average person and guess what? They don't care!

Cleaning kits and brushes are 100% mark up
Hoppes brushes average .90 each wholesale
Resale is $1.99
So a cool profit of $1.09 on a brush sale
The % looks great on paper but you need to sell a shitload for any cumulative profit.

In my opinion? You would need to be crazy to attempt it in this economy!

[Xringshooter]

Here is some of what you will need (and I've probably missed a few things):

Federal Fireams License (and you will need to prove to the BATFE that you have or can get the next 4 things before they approve/issue the FFL)

PA Firearms license (get at the Sheriffs Office)

Any local licenses and/or approvals

PA Sales and Use Tax license

A storefront business or approval for a home based business from the local government agencies (the BATFE would prefer a storefront, but will give approval for some home based businesses if the locals give their approval)

Set up a business (either LLC, Corp, or sole proprietorship)

Business/liability insurance (unless you are independently wealthy and self insure)

This is critical if you are going to borrow money - A good solid business plan which shows where your money is going to be coming from and what your assets are, what your debts will be, how are you going to pay for the loan, etc., etc.

Then you have to start filing:
state and federal business tax returns (best to get an accountant to help with this)
PA sales/use tax forms
PSP forms
BATFE forms

If you have employees, then your have to take care of everything associated with them (or have an accountant for this).

Remember that no matter what happens, YOU are the responsible party for your business.

You really need to give it some serious thought before jumping in. I can just about guarantee that you won't make a lot of money unless you grow the business to be very large.