Gun Store setup

[TexasBrandon]

Well, I have been thinking of opening a gun shop here where I live since the only other two shops within 30 miles are over priced and never carry a nice amount of firearms and accessories. Other than a business license, a FFL, and a building, how long do you think it would take to get started? I drew up some plans on costs, layout, and other loose ends in a business course I took when I was getting a degree in IT.

The one store nearby, Guns Galore has a rediculous markup on everything and I think I could definitely do better on prices and compete in the field. I got a few other people I could instantly hire with great firearm knowledge to support the store.

 

[mantawolf]

In addition to the below, you get random visits from ATF to inspect everything, especially the log book...

Copied from Yahoo Answers (How do you start up a gun shop? - Yahoo! Answers)

As a full service Gun Shop/Sporting Goods Store Owner myself. I think I qualify to answer this one. First as you were advised already, a through and complete knowledge of Federal FFL Dealers Licensing, record keeping and regulations,procedures etc. Then the whole thing all over again with State laws and regulations that apply to your area you intend to open the business in. You must even be knowledgeable about zoning regulations and how they pertain to your shop location..Then you must find a location, and as they tell all small business owners starting out that location is in fact everything! You need to be fully insured and bonded against fire, theft. loss and liability. My shop location required 3 million dollars in insurance, and it's not cheap. You need your location to be State inspected by the state fire Marshall since you carry ammunition and explosive gun powders in quantity.A state of the art Security system.
Some major cash or a large bank line of credit at the bank for inventory. A retail sales tax licesnse and a Federal tax ID number Etc, Etc
You must start out at the bottom with distrubutors and prove you can be trusted to pay for your inventory timely. This doesn't happen over night. The distributors of course will give you dealer prices but in this day and age with UPS,Fed-Ex and the other shippers uping their rates you must buy in quanity to get the best deal and paid shipping for what you buy. The rest is just having a working knowledge of what you are selling and customer service that seperates you from the rest of the pack. Knowing first hand about firearms will keep you in business despite Wally mart down the street. It will take time but God willing, and a little hard work you will be successful like I have managed to be. OK Thats the "SHORT" compressed version of what you need to know to get started.



JD knows his stuff.

I'm actually a consultant that helps small business people create business and finance plans, so I'll comment from my perspective.

You MUST have a detailed business plan and you need to fill in each and every detail through research. Realistically, this could take you six months to a year part time and it's well worth it.

My advice always is, do not invest one dollar of your own into a business until you have a professional Business Plan that you could bring to a banker. This means you have researched every aspect of running this business and put your plans on paper.

Just like a banker would not loan you money without a good plan, he also won't loan you money without experience in this business. You need to think the same way.

You need to get yourself a couple of years in the trenches, working the counter, stocking shelves, taking repairs, etc. Can you get a part time job in a gun shop?

See if JD is taking apprentices!

Here's a sample business plan for a bike shop, which covers most of the same aspects as a gun shop will entail.



eHow

• • 1 Acquire a FFL from the federal government. There are lots of rules involved in applying and being approved for your FFL. FFL applicants must pass all scrutiny or they will not receive the license. To get your FFL you must be at least 21 years old. You must not be prohibited from buying or selling guns and ammunition. If you violated any Gun Control Act regulations, you will not get a license. You FFL will be denied or rescinded if you are caught in a lie on your application. Before receiving your license, you must establish a location to buy and sell your guns. If you plan to open more than one gun shop, each must have its own FFL license
    
    
    
  • 2 Find a good location to open your gun shop. You have to have this before you can officially open the shop, but don't make a major financial commitment before you are fairly sure you will get your FFL. Once you do, you must inform the local police of your gun shop opening. You have to get local and sometimes state approval for a gun shop location.
    
    
    
  • 3 Keep a "bound book" which holds all your transactions of gun sales to individuals. It must be kept on the gun shop premises at all times and the pages have to be numbered consecutively in case of an audit.
    
    
    
  • 4 Install gun safes for at night and glass cabinets for during the day. The law requires you to store the guns in a place that is not easily accessible. This minimizes the chance of the firearms being stolen.
    
    

Read more: How to Open a Gun Shop | eHow.com How to Open a Gun Shop | eHow.com
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[TexasBrandon]

Thanks. Gun safes seems a bit obvious but if I have over 500 guns on hand, getting safes for all of them wouldn't be the easiest thing. Guns Galore and Weber's guns here don't use them to my knowledge. I might be wrong though. I've already put a lot of thought into this and drawn up plans. I have a vast knowledge of firearms and a few of my buds know just as much if not more.

 

[cleric]

Not only do you need to know guys. You need to know finance, supply chain, and legal. I have a couple of friends that own businesses and it's complicated.

 

[TexasBrandon]

Finance I can handle, supply I would be new to and legal...well I would need to learn stuff there as well.

 

[stdreb27]

There is a lot that goes into a successful retail store. I really agree before you start a retail store, you need to spend some time retailing.
The work sucks, the hours suck, the customers suck. The employees suck, because you can't attract good people for 10 bucks an hour. But that is all you'll be able To pay them unless you can differentiate your self, and convince people to pay higher prices, then someone down the road or on the internet.

And that isn't even talking the business side of things. Then you add on the wrinkle of the ATF. It isn't fun.

 

[txinvestigator]

You can attract great people for that pay rate. I did it as a Regional Manager for a national company, as in the range business we do it.

OP, I think you will find the prices from distributors are not as low as you may think.

 

[tmd11111]

Between Killeen, Harker Heights, and the Cove your going to have to compete with the 287 pawn shops that also sell guns.

 

[stdreb27]

You can attract great people for that pay rate. I did it as a Regional Manager for a national company, as in the range business we do it.

OP, I think you will find the prices from distributors are not as low as you may think.

Then you have a very marketable skill.... Congratulations. (I mean this with sincerity).

 

[TexasBrandon]

You would be surprised at just how many of those pawn shops are completely worthless when dealing with firearms. Some of them have a nice inventory but god the customer to business interaction is horrid. I have visited many of them here just to see what was for sale. Selling a firearm is one part of business, making the customer feel valued as well as pleasing them financially is another. Like I said, I already know what I am dealing with in terms of competition. I just didn't know how long the period would be between setting up and receiving the firearms as well as what is involved internally. I know the prices from distributers arn't exactly low, but when you have a major gun shop selling firearms for 150% over MSRP and used ones for MSRP, there is something wrong.