Me and a buddy are looking to start a company handling guns and accessories. We are looking to do more high end and competition oriented. We have a location to register FFL and we have access to warehouse space should it start to take off. My buddy is a sponsored 3 gun shooter and already knows several manufacturers in the industry.

We are looking to do reloading and have a working relationship with a brass processor already. Holsters for both Ccw and competion and we each have working relationships with manufacturers here.

Anything you'd like to see? Things to watch out for? The first act of business would be a nice online store followed by an Arfcom dealer account. We each agree that a dealer account on the EE would be critical. Help talk me out of it

Competition is pretty fierce with tons of online stores that have been in the game for years and have established thier "niche".

Don't start a business about guns if you are passionate about guns.  You'll make dumb decisions and lose money.  Start a dry cleaner's or some boring shit because the numbers on the spreadsheet look good, and then hustle to make it happen.  Your success will inspire passion for your work.

 

We have a whole FFL forum dedicated to these kinds of questions.

Figure out if you need an LLC versus corp, then get set up with a Type 07 FFL (will be required for manufacturing ammo) and ITAR registration.

Insurance, and lots of it if you're making and selling ammo.  Look up Chiarello as IIRC Lockton doesn't usually cover manufacturers, just dealers.

For online sales of accessories like high-end optics make sure your shopping cart system is anal about fraud protection, as those items are often purchased fraudulently using a stolen CC and then either forwarded overseas or sold for cash by the dirtbag thief.

Have enough money in the bank to cover 2 years of business losses and lost income. Learn eCommerce and advertising expenses inside and out.

I think it's an overcrowded industry with razor thin margins.  Your competition for high end parts dealing will be companies like Weapon Outfitters and DSG Arms.  If your buddy is a sponsored shooter, find a way to leverage that into a business: build a range and do one-on-one shooting lessons, host small competitions, set up a pro shop with a small inventory of top quality parts.

Your buddy being sponsored is a lot more unique than just two more guys who want to get into the retail business and make some ammo.  Play to the strength.

It's razor thin margins, but there are some retailers that get people to pay full price.

For instance, when I was selling BCM KMRs on eBay @ $269.99 shipped, you have to figure 12.9% goes out the window in eBay and PayPal fees, then $2.07 for a stamp.

Meanwhile, the rail cost you $220 from the distributor, and you have Exile Machine selling the same rail for $229 shipped, making a few dollars per rail. They just drop ship directly from the distributor.