Sunnyside, I think you already own a business, correct? If so, that’s a definite plus in your column, because you won’t jump into this thing naively. You already know that when running a small business, “If something can go wrong...it will.” That’s an important lesson that too many small business owners learn too late.
That said, I would offer a few generic pieces of advice. (And this comes from my background of having a MBA and doing some consulting for small businesses in the manufacturing sector.)
1. Spend a LOT of time doing market research before opening your door for business. Figure out what people want, that isn’t being readily offered in the marketplace right now.
2. Figure out what your pricing strategy is going to be, and how that is going to translate into your cost structure.
3. Make financial assumptions that assume the worst, and build your plan from that.
4. Figure out how you intend to market your business, so that you actually have enough customers to make the venture worth your while.
5. Figure out how you’re going to leverage the Internet (where most people start these days when searching for services) to market your business. For example, I can’t imagine opening any local service business these days without dedicating at least $6,000 to a six-month, professionally-managed Google Local campaign. You can do this yourself, of course, but you had BETTER know what you're doing. It is very easy to spend a lot of worthless money on Google ads if you don't know what you're doing. A pro will use tools like Google Analytics to fine-tune your ad campaign for maximum impact. Also make sure to leverage local forums like northwestfirearms.com. A well-placed ad there, offering some crazy bargain (see #7 below), will serve you well.
6. Speaking of the Internet, today it's ALL about "social media". Will your business have Facebook and Twitter accounts, and a regularly updated blog? In 2011, it better. (And yes, even "gun guys" use these tools. You might be surprised.)
7. When you first start out, don’t be afraid of money-losing promotions that serve the purpose of introducing your services to firearm owners. For example, maybe for your first six months, you can offer $5 transfers for routine, non class-3 guns. (Plus the required $10 state fee, of course). While you won’t make any money doing $5 transfers, you WILL get a lot of traffic in the shop. The idea is that these people will be so impressed with your customer service, pricing, selection, etc., you will be their new go-to-guy for all gun-related business. The point being, you gotta find some creative ways to get your name out there, and you have to give people a compelling reason to come to YOU instead of the guy down the road.
I know this all sounds basic, and I don’t mean to insult the experience you already have as a business owner. But I’ve seen plenty of businesses fail because they got one – or all - of the above pieces wrong. Too many would-be business owners simply adopt a “build it and they will come” mentality, only to find out too late that opening a business, and finding paying customers, are two distinctly different tasks.
I might use Dual Smoking Guns as a case study here. They’re no longer in business, I believe. Even though they were close to my house, they never gave me a compelling reason to go there. Their prices were not good, they weren’t offering any services I couldn’t get elsewhere (and usually for less), their customer service wasn't particularly good, and in a nutshell, they had no unique value proposition.
I think there’s always room for a new business in any industry, provided that new business is based on a sound business plan, and that it offers some sort of value proposition missing from the current marketplace.