Opening gun shop?

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How would one get the FFL to open a shop? I would have to find zoning laws where I could open a shop, then rent/buy. How much would my FFL cost me and how long does it last?

I would think I need a start of 150,000 to open the shop/decent amount of guns and ammo.

My dream would to be own a gun shop some day.
 
There are many threads regarding this -you should a search and get ready for some reading. You need a business plan and need to have a little more than that to cover insurances, taxes, rent, utilities, operating capital, etc., let alone inventory.
 
To be candid, forgive the bluntness, if you need to ask how to get a license you are not equiped to run a business.
Common sense dictates you ask the people who issue the licenses how to get one.
Gun business is tough and highly competitive. Without a background in business management and retail operations one will have a hard time succeeding.
Initial start up costs are only the beginning. It can be years before a sufficient cash flow will give a return you can live on.
Good luck.
 
rifleman1776 said:
To be candid, forgive the bluntness, if you need to ask how to get a license you are not equiped to run a business.
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What manner of silliness is this? How is one to know without asking? Is digging aimlessly by oneself preferable to asking out loud? How could he know without first asking?

When I opened my pizzeria, I had NO idea how to get a business license, permit to operate, authorization to collect sales tax, how to set up payroll, ANYTHING at all.

I would have loved to have had a forum on which to ask questions, preferably without Holier Than Thou answers of "If you have to ask, don't bother.":rolleyes:

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To the OP,

Information on obtains a FFL is here:
http://www.atf.gov/firearms/how-to/become-an-ffl.html

You should contact your local zoning department, probably the chamber of commerce and an organization like S.C.O.R.E., for starters.
 
The National Shooting Sports Foundation (NSSF,org) has many resources for firearms retailers.

Also, for obtaining an FFL, FFL123.com offers a wealth of information for a very small fee ($40). Yes, all the forms are available from the ATF and others may villify these "help you get an FFL" services, but it can be very helpful and valuable to have a guide that walks you through it when you are starting from scratch.
 
As already stated, I doubt $150 Thou. will even open the door when you think of all the expenses. You are going to need computers, software and initial advertising. The inventory of ammunition, gun supplies and related assessories to include shelving, counters, display racks, and security of the building will eat $150 thou. in the blink of an eye. Then don't forget the expense of a lawyer and an accountant just to get you started in setting up the business.

I can only guess, but I bet reality is more like several million. Loans from banks and even the Small Business administration are possibilites with some a good business plan/study and some security like maybe your home and etc.

Remember, you will have to compete with the big boys and the online suppliers.
 
Remember, you will have to compete with the big boys and the online suppliers.
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Actually, there are many ways to start small and grow to being a full service storefront gun store. Or stay small, if you want. You can partner with the big online suppliers and be very competitive on price.

Don't be discouraged - yet. Do your research on all the options and then decide if you are will to take the risk. Every entrepreneur takes a risk. Some arn't cut out for it, but some are.
 
Then don't forget the expense of a lawyer and an accountant just to get you started in setting up the business.
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That part alone cannot be stressed enough.

As others have mentioned, the first step will be making sure you can be zoned for a firearms business. Start there.
 
I agree don't be discouraged. Some people will always go for cheap, some people like myself are willing to pay a little more for product knowledge and superior customer service.
Owning your own business and being your own employer is a great thing, my father changed up a bit with the way he goes to market about 10 years ago and is now pretty much his own boss. It is empowerment like you cannot imagine.


150K does sound light but that depends on where you live and what you want to carry/sell. If you live in the boonies where land is cheap maybe the land and shop only cost you 50K...maybe even less if its a small shop.
The FFL I deal with on a regular basis just transfers guns he gets off the internet or brings guns in an a per order basis from various gun distributors. His "shop" is out of his basement, from the looks if all it took him was a security system and several large gun safes; far less than 150K.


If you live anywhere near a population center I imagine your biggest issue might be getting the business built and open without a big fuss from the city/town council or whatever you have.

Good Luck and remember in 10 years you will be saying "I Built This!"
 
Another thing to think of is how you're going to differentiate yourself from the competition. Customers are getting less willing to pay a 15-20% markup if you're not doing much more than handing them a box from a shelf and ringing up the sale.

Some shops set themselves apart by having a gunsmith on-site, or incorporating a shooting range. You could also offer training courses, possibly reloading courses if you're planning on stocking reloading components and equipment. Hosting competitions is another option.

In short, I think you're setting yourself up to fail if you're just planning on opening a storefront, stocking it with guns and bullets and expecting the customers to beat a path to your door. (I'm not saying that's what you were planning to do, but I've seen it before).
 
opening a gun shop does not have to be that complicated. It really depends on what you want the outcome to be.

A friend of mine has an FFL and runs a very small gun shop out of his basement. He really carries no inventory, and primarily just does mail order stuff. Originally he just got the FFL to make it easier to acquire firearms for himself, as there wasn't really anyone close by. After awhile it kinda grew on it's on by word of mouth.

If you want to actually make it a business though, I will agree that you will need a business plan, or access to someone who knows how to make that happen. A lawyer may or may not be necessary, there are many legal materials available online these days, but it might not hurt to hire a lawyer to double check your work.

Myself I'm not the entrepreneur type; oh I've got lots of ideas and lots of opinions how to make a million dollars... but I know myself well enough to know I don't have what it takes to run my own business. I'm perfectly happy to collect a paycheck from someone else who knows what they're doing. and while I will never have the money to have the awesome things my business owner has, I also have alot more free time to enjoy the things I can afford.

I applaud your deire to start your own shop. I hope you have a business sense and dedication that I do not, and I wish you the best of luck
 
Some shops set themselves apart by having a gunsmith on-site, or incorporating a shooting range.
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Those things are pretty much a requirement these days.

A clean, well-lit range that passes EPA and OSHA muster will run at least $250,000 to build. You'll need someone to keep it clean, and that means providing respirators and Tyvek suits. On a 3-stage system, the filters can run as much as $1500 a month. It also means paying a service to recover lead.

A gunsmith needs a workshop and tools. Depending on the services he provides, things like a lathe, milling machine, and bluing tanks get get very pricy.

In short, I think you're setting yourself up to fail if you're just planning on opening a storefront, stocking it with guns and bullets and expecting the customers to beat a path to your door.
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I know of many folks who lost their shirts that way in 2009. The demand was booming, but supply dried up. Dealers without a long-term plan were left without inventory, and without cash flow. If they were paying the bills month-to-month, things got bad.

We're about to see a return to that climate in a few months, and most existing retailers have been ordering up on rifles, ammunition, and magazines. Not because we expect a ban, but because our customers do.
 
I thought I'd relate a somewhat humorous tale of a new local gun shop in the town I work in. There's only one other shop near town, a surplus type place with WAY overpriced used junk. So when this new place opened, I stopped in the first week to see what was what.

At that time, about 6 months ago, they had basically an empty shop. The owner was there, and he told me all about his plan to stock a wide variety of guns for great prices. Sounds good so far. Since then I've stopped in three times, and each time found the same thing. Two or three used long guns on the wall, and a few new and used pistols in the cabinet. Prices are a little high but not too bad.

The owner has never been seen again. He leaves his wife/girlfriend running the shop, who can't order anything and isn't real sure about much else. His new policy is, we will order anything you want direct from the distributor, and you pay our cost, plus 10%, plus shipping, plus tax. No stocked items, no ammo, no accessories. As a comparison I had her quote me a Glock 22. Over $620.

My guess is after opening he discovered just how much it would cost to have a real inventory.

So I drive out of my way to a shop with a huge selection, prices that compete with Buds, and employees that actually have the authority to make a sale.

If you're going to run a gun shop, consider having a business plan that attracts, rather than deters, customers.

Sent via teletype
 
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As I said in my first post, you need a business PLAN and as others mentioned, that involves a lawyer an an accountant - BEFORE anything else. The few hundred you spend for an hour of each of their time will be well-spent. There are so many little things you forget about when running a small business - and they add up quickly - those ads in the yellow pages for one, licenses and permit fees from your local government for another. Since this business is pretty much a "destination" business compared to a C-store, location, location, location, isn't as critical, but it can be important - they still do have to find you.

Around here the average rent for a small storefront in a small neighborhood strip center with no main anchor is running about $8/foot - with 1000 sf being the store size - that's 96,000 the first year, plus utilities - before you get to take any home for you

Believe me I am NOT trying to tell you no, but having owned a small business I had to close, I know some of these pitfalls. Mine closed because my wife was running it and had a serious auto accident, and we had no succession plan or way to open it more than 2-3 hours a day after I got off work after that - unexpected things like that need to thought about and planned - even if it is just several days due to an illness. If you cover that scenario with employees, you just opened up a whole 'nother cost center to consider with payroll, taxes, social security, and possibly mandatory health coverage.

Keep your future dream alive by doing some SERIOUS homework NOW, before you spend dime one on inventory and a store
 
I struck up conversations with the owners of two little guns shops around town and both said they would be happy to sell their businesses - unsolicited statements. I'm not sure if that is an indication of their lack of success or if they are both just ready to move on - neither is a spring chicken. In any case, partnering with or buying out a current store could be an option.

I know several people who have opened retailed based business (not guns) and they quickly grew tired of be married to the operating hours. You would certainly want to have your eyes wide open before committing to such a venture...
 
I would get the FFL now and begin to acquire good, saleable firearms at good prices, and good prices only, for future stock. You can buy the cheap stuff later, a few milsurps now and the occaisonal bargain rifle will get you started. You can start raising that $150,000 now by starting with $1000 and turning it into $1250, etc., etc.

As far as a range goes, if there is no range in the area, fine. If there is another range, don't do it unless you have $200,000 to burn. I do think I'd seriously consider a range with a small gun shop adjunct to it, than a gun shop with a range. You want to make money.

Our local shop here, the largest and the best, with constant turnover of stock and supplies, has had at least the very same 25 to 50 firearms in the racks or display cases since I began buying there in 1984. So expect a lot of your cash to sit for 10 or 15 years, just like at the used bookstore, the good stuff goes out right away, the rest resides on the shelf.
 
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