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Discussion Starter · #1 ·
Hey Guys,

I was wondering if any one here is experienced on the subject of opening up there own gun shop?
I am in the first steps on doing research and getting my LLC then applying for my FFL .

I need to find a store front i know that's for sure but what else should I know about before I jump
into it?

I know the FFL will take about a year to get( that's what I hear ) so what I plan on doing in the mean
time is sell knifes, flash light, holsters and tactical gear.

I will mostly be focused on selling tactical equipment and firearms..

Any advice would be helpful .

Thanks
 

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How much money do you have to invest in overhead and the costs of getting the door open?
A gunshop in NY in or near a metropolitan area is about as welcome as a skunk in a small hunting cabin.

The FFL is going to be the easiest part.
 

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Richard Long said:
How much money do you have to invest in overhead and the costs of getting the door open?
A gunshop in NY in or near a metropolitan area is about as welcome as a skunk in a small hunting cabin.

The FFL is going to be the easiest part.
I am no where near the city.

I am up in Buffalo - so there are already a couple here.
 

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[, and only 1 in 10 are income producers. Go to one of the 2 shops and wquote author=aflatau link=footopic=4135.msg14417#msg14417 date=1244707612]
I am no where near the city.

I am up in Buffalo - so there are already a couple here.
[/quote]
Let me begin by telling you a brick & mortag gun shop is at best a 1 in 10 chance of making money. 75% of the people coming through the door are shoppers, not buyers.Go observe one of the shops you intend to immitate and see how few dollars cross the counter.
The business hasn't really changed in 50 years, aand unless you can represent some damn premium guns, and have customers for them, you'll loose your ass.

That said, your first move should be forming a corporation, NOT a LLC since that is a largely untested business form. Then become fully educated on NonPiercing of the Corporate veil, unless you have a large desire to flush your life savings down the crapper.

Then do some traffic studies to determine where to locate the shop. As a new vendor without reputation or following you need a high traffic area.
Next check Zoning to determine if a Gun Shop can be located in the area.
Do some serious study to determine if the community will accept a Gun Shop. If not, find another location.

Find a landlord or buy a building. If you buy you can rent the shop to the corporation for non SSI income and pull any profit from the business.

Select a name for the new Shop. Don't even try anything clever ike Guns Are Us unless you want to spend 9 months and $25,000 fighting a major corporation like ToysR us. The bastards will sue you!

By now, unless your wife is an attorney, you've spent at least $10,000.

Now, youneed to secure the building, bars, gratings etc, don't even begin to think an alarm will satisfy the need. A vidseo system is a good investment too given the current climate. You should also be shopping for insurance, this will take at least a year. If at all possible avoid any policy written as "Inland Marine" because generally those policys don't insure a damn thing, and cost a fortune.

Once the building is secure, don't forget floor and roof, especially in rented buildings or strip malls, you need furniture. Figure another $7000- to cover that for a small shop. Remember none of your merch can be customer accessable without a clerk assisting.

Don't forget the coffee pot, electric frying pan and ssleeping bag because you will spend a lot of time in the shop.

Lets look at initial inventory costs. Unless you can hand a vendor minimally a $50,000 order for guns or ammunition, you will have trouble finding a vendor willing to talk. Thanks to the Internet, with vendors dropshipping, there is no profit potential for 3rd tier sellers.

Do you need tounderstand the cost of opening with respect to utilities too, Gas, Water, Electric, Phones?
You may still be able to operate without a computer id BATF likes you, otherwise add in a computer and hispeed access to that machine for BATF on a 24/7 basis.

At this point in time, were a customer to walk into an ongoing operation I'm aware of with cash to buy many long guns, they could put their cash down and be number 56 on the waiting list expected to be 15 months. Oddly, a lot of customers don't want to do that.

Now, if you'd like to buy a very successful shop that has been in business over 20 years that the owner is considering selling because his kids have no interest in inheriting it, one might be available. Just how much money do yo have to spend?
 
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