I am looking to maybe get an FFL and do some business.

[Cody01]

Hello, I am considering getting the buy/sell ffl and the one for importing from outside US. I work fulltime and want to slowly transition into my own business starting kind od small but am willing to throw some money at what ever I do. Is there any money in doing this as a business when there is sporting goods stores both local and gun/ammo sales online?

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[solv3nt]

Hello, I am considering getting the buy/sell ffl and the one for importing from outside US. I work fulltime and want to slowly transition into my own business starting kind od small but am willing to throw some money at what ever I do. Is there any money in doing this as a business when there is sporting goods stores both local and gun/ammo sales online?

If there was, I suspect everybody would be doing it. Most businesses fail. If you can support yourself without needing this income, you could make it work. That said, I don't believe the margins are that great.

 

[Nosferatu]

Like any retail business, you get out of it what you put into it. Prepare for it to suck up your life.

You have the added benefit of ever-changing legal hoops that are on fire to jump through.

I've worked in the firearms industry as a manufacturer. Not something I'd personally get into again, especially from the retail end.

But there are plenty of people that do it and thrive, so it's all about you.

Look around at open retail spaces in your area and see what the lease runs. There's your absolute bare-bones amount you'll need to cover. Not everyone wants a gun shop in their strip mall either, so be prepared for some pushback. There's also legal requirements such as not being within 1 mile of a school, that needs to be considered. Shop for business insurance too, it's becoming more and more difficult to get coverage now that companies have gone woke.

 

[Cody01]

This is the kind of feedback I am looking for. The industry I am currently in has endless amounts of work and job security but I work for someone else and work 55 hours a week. I would prefer to to work for myself and do only 40 hours. I feel this is doable because I have saved a lot and have no debt. For someone with a truck payment, house payment, and childcare starting a new gig is scary. I do need to start my own gig but I would prefer it be profitable so maybe an FFL isnt the way.

 

[CountryGent]

I've run a side business FFL for some years now. I've made money and enjoyed some of it, but I will not likely renew in a couple years.

To answer your question about making money, yes, it can be done; particularly if you find a niche. I don't know what your business model will be, but once you've developed a consistent client base, there will be an income. If that income level is enough to cover your expenses and is to bother with is a personal call.

Good luck with your venture. If I can answer any questions, well, shoot. No pun intended.

 

[arakboss]

A big advantage that is, that FFL holders are often exempted from state gun restriction laws.
There is also the potential to be able to get newly manufactured machine guns.

 

[Alexx1401]

A big advantage that is, that FFL holders are often exempted from state gun restriction laws.
There is also the potential to be able to get newly manufactured machine guns.

That is a different FFL than just the buy and sell and its expensive. If you wan to get one to have dealer samples, or manufacture for Law Enforcement you can do this. I have long said if I ever won the lotto and money was no problem it would be fun to get one at least for a while just to be able to play. To get the ATF to grant you the license they also make you show you actually have some way to market the stuff. So even with the disposable income you can't just buy the license and pay the tax fee. They still want you to jump through some hoops for easy to see reasons.
Here is some good info for anyone who might want to look into this:

Federal Firearm Licenses Explained

What is a Federal Firearm License (FFL)? Learn all about FFL's and FFL Dealers.

www.ffldealernetwork.com

 

[billdeserthills]

Truest joke I've heard about FFL's is;
Wanna make $1 Million as a gun dealer?
Just start with 2 million

 

[Nosferatu]

Truest joke I've heard about FFL's is;
Wanna make $1 Million as a gun dealer?
Just start with 2 million

Start with 10 mil with todays inflation.

 

[oremike]

It is possible to make money buying and selling guns but I'll tell you right now that you will put in way more hours that your day job.
I'd look at learning to be a gunsmith rather than just a gun dealer. I own an ammo company and see a lot of gun dealers come and go. Most that disappear buy their inventory with a credit card and can't keep up on the payments. There is a real need for real gunsmiths not just AR and 10/22 builders.
As far as starting small you'll need to make enough profit for the business to carry itself or pay the bills out of your pocket.
Good luck and if I can be any help just ask.

 

[Alexx1401]

One thing I had not thought of till now. Is an existing small business, where someone is already renting store front, wonder if it might be worth it to get an FFL for nothing more than just doing transfers/ orders kind of thing? That way they are not going into debt to lay in inventory and they are already renting a space? So would just be the cost of the FFL. Some places seem to have plenty of places to go for a transfer but others seem to have no one close by. Someone in one of these area's might be able to make it worth their money to get the license just for transfers or orders?? That is if the Feds allow this? Don't know if they do or not.

 

[AK0perator47]

If you get the FFL you can make money. Newer firearms is not where the money is at. It's from the buying and reselling. The margin for profit on a new Gen5 Glock 19 is less than $100 on average. Compare that to buying a used Gen5 Glock 19 for $260 and reselling it for $425-450. Like any business client base is one of the most important things.

Gunsmith and even Cerakote are usually easier to make money. However, it's not as profitable if you don't have time. From what I have seen the person that can pin and weld. Thread and cut. And fix the old "my grandpa's 1903 30-30" is where you can potentially make really good money.

 

[ktgee]

This is the kind of feedback I am looking for. The industry I am currently in has endless amounts of work and job security but I work for someone else and work 55 hours a week. I would prefer to to work for myself and do only 40 hours. I feel this is doable because I have saved a lot and have no debt. For someone with a truck payment, house payment, and childcare starting a new gig is scary. I do need to start my own gig but I would prefer it be profitable so maybe an FFL isnt the way.

I think selling guns at gun shows as a side business and maybe find a better job might be a better option. Firearm business is a tough risky business with a lot of liabilties. My opinion is don't dump all your effort and money into it. I am one that tried it FFL Gun business and failed 30 years ago. It was more of a hobby and had a job and was doing the gun show circuit.

 

[aksu747]

Do what you want but keep in mind the firearms business is very competitive, if you can't beat or come close to the pricing of other FFL's in your state then you might not do so well, I know two FFL's no longer in business partly because they had $100-200 higher pricing on handguns I've seen elsewhere. Another shop(#3) had good pricing, a great location, and some of the nicest people running a gun shop,they too went out of business.

 

[billdeserthills]

One thing I had not thought of till now. Is an existing small business, where someone is already renting store front, wonder if it might be worth it to get an FFL for nothing more than just doing transfers/ orders kind of thing? That way they are not going into debt to lay in inventory and they are already renting a space? So would just be the cost of the FFL. Some places seem to have plenty of places to go for a transfer but others seem to have no one close by. Someone in one of these area's might be able to make it worth their money to get the license just for transfers or orders?? That is if the Feds allow this? Don't know if they do or not.

My existing small business was my Lock & Key shop, I got an FFL & added gun transfers & sales in the same building. I never made enough to pay the rent on transfers or gun sales tho. Only reason I ever managed to sell most guns was I only raised the prices $50 over what I paid & I went to lots of gun shows.

There was very little to be made selling guns, unless I was at a gunshow & could sell 20+, mostly I just spent my Lock shop profits on my gun shop purchases

 

[Alexx1401]

My existing small business was my Lock & Key shop, I got an FFL & added gun transfers & sales in the same building. I never made enough to pay the rent on transfers or gun sales tho. Only reason I ever managed to sell most guns was I only raised the prices $50 over what I paid & I went to lots of gun shows.

There was very little to be made selling guns, unless I was at a gunshow & could sell 20+, mostly I just spent my Lock shop profits on my gun shop purchases

That's kind of what I figured it would come out to. Was the other business able to be worth the store front though? This is what I meant getting an FFL as a supplement, not stand alone. If someone is already paying for a storefront and it is worth having, as in makes money, then add the FFL to make some rather easy extra? I keep hearing some live in places where there is no FFL around so its a good drive to one. Some times the same trip twice if its a transfer between two people. So in a place like this thought someone might be able to get some extra business filling that niche. I was not even sure the Feds allowed this. Since they let you I have to guess they are ok with this then.

 

[billdeserthills]

That's kind of what I figured it would come out to. Was the other business able to be worth the store front though? This is what I meant getting an FFL as a supplement, not stand alone. If someone is already paying for a storefront and it is worth having, as in makes money, then add the FFL to make some rather easy extra? I keep hearing some live in places where there is no FFL around so its a good drive to one. Some times the same trip twice if its a transfer between two people. So in a place like this thought someone might be able to get some extra business filling that niche. I was not even sure the Feds allowed this. Since they let you I have to guess they are ok with this then.

My shop was pretty small, we had boxes of rifles taking up most of the free space, with racks full of holsters both leather & kydex on the walls. After the ATF told me I needed 'secure storage' I got a big AMSEC 2,000 pound burglary/fire safe (later learning that secure storage at the ATF is a locking glass door) and some display cases that slid into the safe that I crammed all the handguns into. The lock business easily paid the expenses but I usually lost more at the weekend gun shows trying to sell guns because I was unable to do lock work, than I made at the gun shows selling guns, ammo & holsters.

It was a lot of work & I lost a bunch of customers but I had a good time & it kept me busy plus I already had the shop. Of course now that I've had the opportunity to get to know the ATF on a more personal level I can say that I would rather sell guns private sale, than have the ATF around my shop


Too bad you can't do a mobile gunshop

 

[Alexx1401]

Too bad you can't do a mobile gunshop

Damn now that would be cool. Hassle now the way they do it with all the damn delays but if you could just have them bring the gun shop to you? Hell that would be great!

 

[Aero Denezol]

Becoming a gunsmith is a great choice. Gunsmiths are always in demand around here.

Retailing guns is not a very good business. Especially new guns. The margins are slim. Used guns can be good if you luck into the right used guns and have a good eye, but the Internet has eliminated most of that.

We got an FFL because we occasionally bid on Federal contracts that require it. Later on we considered to manufacture lowers but waited too long and missed the boat. I still transfer guns for people in the community and I enjoy doing that but there's not much money in it.

If Measure 114 passes in Oregon I might just get out of the FFL business altogether. While it's true I would be exempt from many of the restrictions my customers would not be exempt so I would have to deal with the BS anyway.

Of course you might have a little bit more time to enjoy your freedom in Montana than we do here. Hold the line and good luck.

 

[arakboss]

I contend that operating as an FFL even at a tiny profit over total expenses is worth it to avoid gun restrictions.