$18K - Gun Shop? - Page 3

$18K - Gun Shop?

This is a discussion on $18K - Gun Shop? within the General Firearm Discussion forums, part of the Related Topics category; In regards to location conversation earlier, North Florida would be prime location due to the laws in the great state, just you're sales in silencers ...

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Thread: $18K - Gun Shop?

  1. #31
    New Member Array JohnnyJohnny's Avatar
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    Consider Florida More

    In regards to location conversation earlier, North Florida would be prime location due to the laws in the great state, just you're sales in silencers (due to it being the only state where said item are legal) alone would secure a great deal of the investment, proper licensing is not that expensive either, online would be the base of my advertisement and most orders would understand any delay due to the nature and rarety of such an item (to my belief).


  2. #32
    Member Array krisspy's Avatar
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    Holy old thread!
    Rock and Glock likes this.

  3. #33
    Distinguished Member Array dben002's Avatar
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    First you will need a Federal Firearms License to sell guns. You will need either counter or wall space behind the counter to display your inventory, you will need computer systems, cash registers, safes, credit card processing machine, ammo for every caliber of gun you sale plus shotgun and rifle ammo and you will need a high end security system to include steel bars to protect windows and doors from smash and grab break-in's. Then you will need inventory, nothing worse than going into a gun store and they don't have good choice inventory. Then add in power bill, telephone bill, internet bill, etc...etc...etc......IMO you really need enough money to last a minimum of a year to pay all expenses if you don't make a dime profit to have a chance to start, grow, and build a thriving business. And....can you devote 8 hours a day 6 days a week to operate a business by yourself or are you going to have to pay help?
    There are two types of people who carry concealed weapons...Responsible ones and Irresponsible ones...which are you...

  4. #34
    Senior Member Array DMan's Avatar
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    Just remember that most small businesses don't make a profit the first couple of years in business, and the IRS really doesn't expect a profit on a new small business for the first 4-5 years. Unless your looking at a loan of some kind (good luck getting a SBA loan for a gun shop), the rent verses available capital doesn't add up. The associated costs include far more than inventory, and personal living expenses, electrical bills, security systems/alarm subscriptions, INSURANCE/LEGAL COSTS, and such. Remember that the legal costs for many gun shops can be significant depending on the area your operating in. In some area's guns shops have been sued for "Improper" security and a gun stolen from it latter used in a crime. (Never did hear the outcome of the frivolous lawsuit). It would be very wise to have a lawyer on retainer.

    With Rent at $1,900 a month, in 6 months 11,400 dollars will have been burned through. If your average new gun cost you $300, you can have 22 guns in stock (before accessories & ammo), and pay 6 months rent BEFORE the tons of overhead (utility, security, insurance, Business License, FFL, etc, etc, etc). How many guns stores have less than 25 guns to choose from?

    Now if your using the 18K as a down and getting a loan... the picture changes somewhat. (Former small business owner - it ain't cheap, and hundreds of "unpaid" hours of work to make it a success).
    "Gun Free Zones" is where only criminals carry guns.

  5. #35
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    Ah guys, this thread is 2 years old.
    Rock and Glock and mkh like this.

  6. #36
    Member Array krisspy's Avatar
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    Quote Originally Posted by ctr View Post
    Ah guys, this thread is 2 years old.
    Closer to 3.
    Rock and Glock likes this.

  7. #37
    Senior Member Array DMan's Avatar
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    Re: $18K - Gun Shop?

    Oops.. I hate it when that happens!

    Sent from my DROID BIONIC using Tapatalk 2
    "Gun Free Zones" is where only criminals carry guns.

  8. #38
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    I don't know how it is where you are, but around here, a small gun shop would have a rough start. We have a number of pretty large stores, and even more small shops. There is one store in particular that advertises heavily, has a price-match guarantee, and seemingly endless inventory. This is the store with lines wrapping around the block on Black Friday. But, I hate going there because it is always busy, and finding an employee to help you is a 30 minute proposition.

    I would think that a niche exists in the market for a "layman's" gun store. Something that caters to the non-gun (but gun-friendly) crowd. Those people who may have never thought of owning a gun, but aren't terrified at the idea, know nothing about guns, and don't want to spend a lot of money on something that they aren't sure they'll be interested in (or hopefully never use). I would think that the market for the gun-lovers is pretty much covered.

    Either way, $18k seems a little low.
    "Your mind is the weapon, all the rest are just tools." --gasmitty

  9. #39
    Member Array Moops's Avatar
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    Oops. That's what I get for not reading to the end.
    "Your mind is the weapon, all the rest are just tools." --gasmitty

  10. #40
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    That ain't a lot of money to get started. Good luck.

  11. #41
    Distinguished Member Array Fitch's Avatar
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    Quote Originally Posted by Sig229 View Post
    I just want to run this past some of you folks to get an opinion.

    This summer I may have 18K to play with after selling some property.

    There will be a very nice retail space in a great location up for lease at $1900 per month with 2,400 sq. feet. It is also already set up for retail usage.

    What Im wondering is, how feasible do you think it would be to start a small gun sales business?

    I have worked in retail, but have never been a small business owner.

    I dont know what gun dealers pay for inventory, so any info and/or opinion would be welcomed.

    To start out, I would focus my stock on lower-medium priced pistols and tactical rifles and shotguns. Focus on the average Joe gun owner. And depending on the season, throw a decent selection of hunting rifles.

    I look forward to hearing everyone's input.
    My LGS pays cash for his inventory. He has about $300K in guns in stock. He says financing inventory is a sure path to bankruptcy.

    All three gun dealers I know, who have been in business for 20 years, pay cash for their inventory.

    Two of them started as gunsmiths and built their businesses a little at a time. The third bought out a dealer that was going to retire.

    Before you spend a nickel, put together a business plan and a timeline including obtaining your FFL. It will be almost entirely a financial plan with a quantative market analysis as the basis for estimating sales in a documented fashion. You will need it to take to the bank. $18K isn't going to be nearly enough capital.

    Business is all about markets, sales, cost of sales, cash flow, and profit. In other words, money and money management. The business plan is almost entirely in a spreadsheet. You need to put together a business forecast including cash flow plan. The fact that you are asking says you might want to get a book and read it.

    Fitch

    PS: I had a business. I put myself through college with it. I saved the cash to start it while I was in the Army. I sold it before I started my last year of college. One of my college degrees is a bachelors in engineering, the other is a Masters In Business Management.

    frw
    “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety), by menacing it with an endless series of hobgoblins, all of them imaginary.” by H. L. Mencken

  12. #42
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    Re: $18K - Gun Shop?

    While this thread is old and all the negatives are very close to the facts of the matter regarding starting a gun shop or any other small business...

    I'll throw this out there...

    A local gun dealer, who sold only at gun shows on weekends, and from the house, by appointment, was seized by theIRS... Just last year. His kids kept the business going...

    He settled with the IRS this year, he let them keep 460,000 bux. ONE YEAR'S unreported... Yes unreported income...

    He used to be the chief of police in the small town in which he ran the biz... Shoulda known better, I suppose.
    Rats!
    It could be worse!
    I suppose

  13. #43
    Senior Member Array Devilsclaw's Avatar
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    Not a very good idea at all. Gun shops usually only work well if they are a "sideline" or out of your house. Plus all the types of guns you mentioned are low profit items, so that shows just another reason for "no". The real money is for accessories, and most importantly--the trade. High-dollar shotguns sold to high-dollar bird hunters, custom, antique and C&R collectables, are about the only guns that you can really make money on. And then, you have to really have a knack as a horse-trader.

    Do the math. Figuring an average new sale price of $500, you'd have to sell around $13K every month just to pay that rent (25 of em)....and that doesn't even begin to pay for all the other overhead costs, and breaking even isn't much of a goal. If you go much over 15% on new "working Joe" type gun, they'll just go somewhere like Bud's and want you to do the transfer. Now, you can double that margin if you work the trade right, but still, you are going to have a hard time making that work either.

    Not trying to kill your dream, but I don't want to see you lose your money.

  14. #44
    mkh
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    Quote Originally Posted by ctr View Post
    Ah guys, this thread is 2 years old.
    And the OP hasn't been on since 09/10/2010.

  15. #45
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    Re: $18K - Gun Shop?

    Quote Originally Posted by mkh View Post
    And the OP hasn't been on since 09/10/2010.
    Probably has a gun shop and has made millions, or not...
    mkh likes this.
    Rats!
    It could be worse!
    I suppose

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