Are you about starting a gun shop? If YES, here is a complete sample gun shop business plan template & feasibility report you can use for FREE.
Owning firearms as civilians has always been a constitutional right in the United States of America. Ownership of guns by civilians have been on the increase especially with the rising security situation where there have been mass shootings and more home invasions, leaving people to look for a means to defend themselves.
Also, more people easily own a gun in the united states of America due to easy background checks that make the licensing of guns for individuals very easy. This means that this is a lucrative business for any entrepreneur to go into as there will always be people looking to buy new guns or upgrade on what they previously had.
A Sample Gun Shop Business Plan Template
Table of Content
- Industry Overview
- Executive Summary
- Our Products and Services
- Our Mission & Vision Statement
- Job Roles and Responsibilities
- SWOT Analysis
- MARKET ANALYSIS
- Our Target Market
- SALES AND MARKETING STRATEGY
- Sales Forecast
- Publicity and Advertising Strategy
- Startup Expenditure (Budget)
- Sustainability and Expansion Strategy
The United States of America is the largest producer and distributor of firearms and ammunitions globally. While the firearm market is segmented on the types of guns manufactured, there is however basically two categories of guns long guns and hand guns.
The firearm industry is expected to grow exponentially especially as there is an increasing demand for firearms, apart from the demand from the military, for self-defense and for games shooting and hunting. According to IBIS World, the gun and ammunition manufacturing industry has an annual revenue of .5 billion, while those gun and ammunition shops pull in a revenue of $478.4 million.
In the year 2013, there were about 4,441,726 pistols, 752,282 revolvers, 1,203,072 shotguns, 3,979,570 rifles and 495,142 miscellaneous firearms being manufactured in the United States of America. 4% of the manufactured guns were exported with the remaining percent remaining in the United States of America.
According to Pew Research Center, there are about 310 million guns in the United States, with close to 264,000 people employed in the industry. The impact of the gun and ammunition industry on the economy has been estimated to be $42.9 billion.
As at 2014, there were close to 21 million background checks initiated, which according to the Federal Bureau of Investigation (FBI), did not mean that all those who had a background check initiated purchased a gun. The number is however a huge increase from 1999, where only a little above 9 million background checks were initiated. Most gun owners owned an average of 5 guns, with a few owning more than 25 guns.
According to NORC, 31% of households in America had guns, with 29% of these households in the suburbs, 43.7% in urban areas and 55.9% in rural countries. 60% of Americans who owned guns, according to Gallup, says it is for their own protection and personal safety.
According to IBIS World, the projected growth annually for the industry from the period of 2010 – 2015 is 8.9% from about 5,700 gun stores in the United States of America. There are no gun shops in the United States of America with a dominant share in the industry; however the gun shop business industry is valued at $3 billion.
The reason for the rapid growth experienced in the industry between 2010 and 2015 is due to the fact that concerns about security and regulatory oversight have increased over the recent years. Women have also been increasingly buying firearms from 2010 and usually purchased firearms such as semiautomatic handgun, revolvers, modern sporting rifles, shotguns, muzzleloaders and traditional rifles.
Dollop Gun Shop is a standard gun shop business established in San Francisco – California, USA with the intention of selling firearms and ammunitions as well as security related accessories to our various clients.
Our location is very strategic as we are close to several security agencies and also close to a prominent shooting range which will ensure that we generate our revenue and make profit in quick time and also grow and sustain our gun shop business.
We also intend to offer other services as well such as gun smithing for our clients, helping clients clean their guns for a fee as well as consultancy and training services. We will also direct our clients on where they can go to learn how to shoot their guns.
Our vision is to be the preferred gun shop business for individuals and agencies here in San Francisco. We also intend to be recognized as an authority on guns and ammo here in San Francisco – California which is why we intend to build a solid business structure that will allow us achieve our desired goals and objectives.
We intend to ensure that we source for and hire the right employees that are not only professional and competent but also identify with our goals and core principles and are committed to ensuring that they work to help us attain and achieve our intended goals and objectives.
We intend to ensure that our employees are well paid and have a great welfare package, which is the best across similar start-ups such as ours. We believe that ensuring that our employees are well paid is very important as this will boost their productivity.
We also have the best customer service available in the industry as we take our customers very seriously and intend to retain a very high percentage. We have trained customer service executives that ensure that all our customers’ complaints and inquiries are promptly attended to.
Finally, our owner Bob Dollop is an ex-law enforcement officer was in law enforcement for more than 30 years, and not only has the necessary experience needed to make the business a success but also has the qualifications and necessary network to ensure that we become the preferred gun shop here in San Francisco – California.
Our Products and Services
Dollop Gun Shop has been established to deal in the sale of firearms and its accessories from our primary location here in San Francisco – California. However, due to the fact that we intend to expand our revenue generation and boost our bottom line, we intend to ensure that we provide other services in addition to our core service.
This will include consultancy services as well as trainings. Our additional services are one that will be run under the permissible laws of the United States of America. Therefore some of the products and services we would offer our customers at Dollop Gun Shop are:
- Sale of guns and other security related accessories
- Gun cleaning
- Consultancy and advisory services
Our Mission & Vision Statement
- Our vision is to be the preferred gun shop business for individuals and agencies here in San Francisco. We also intend to be recognized as an authority on guns and ammo here in San Francisco – California.
- In order to achieve our vision, we intend to ensure that our employees remain updated about the gun industry and are also competent and experienced enough to help us achieve our objectives.
Our Business Structure
Because we know how important having the business structure is in ensuring an organization starts off smoothly, we are taking our business structure very seriously by making sure that we build a structure that is not only perfect but one that aligns with our core values and principles as a business.
This means that we intend to go the extra mile in ensuring that we pick the right employees to work in Dollop gun shop here in San Francisco – California. Asides from ensuring that our employees are competent, we also intend to ensure that they are well paid especially in comparison to similar start-ups such as ours in the industry. This we believe will enhance their productivity.
We intend to make sure that all our employees are suitably trained in customer relations and that they work in an environment that is conducive and will aid them in achieving the needed tasks and intended goals for the organization. Below is the structure we intend to build at Dollop Gun Shop;
- Chief Executive Officer
- Purchasing Manager
- Store Manager
- Admin and Human Resources Manager
- Marketing Team
- Customer Service Executive
Job Roles and Responsibilities
Chief Executive Officer
- Makes strategic decisions on behalf of the gun shop
- Ensures that the gun shop achieves its intended goals
- Sources for high placed clients on behalf of the gun shop
- In charge of procuring firearms from manufacturers
- Ensures that the purchasing contract is well reviewed
- Keeps an inventory of the number of firearms in the store
- Notifies the right department for depleting stock
Admin and Human Resources Manager
- In charge of performing administrative functions in the gun shop
- Sources for and recruits competent employees on behalf of Dollop Gun Shop
- Carries out induction and orientation for new staff
- Carries out marketing on behalf of the organization
- Uses different platforms to ensure that awareness about the gun shop is created
- Drafts marketing strategies on behalf of the gun shop
- Helps Dollop Gun Shop take care of all financial related information
- Carries out an internal audit on behalf of the company
- Prepares tax reports and submits them to tax authorities
Customer Service Executive
- Attends to inquiries, requests and orders from customers
- Possess an up-to-date information about the industry and company in order to pass along relevant information to the customer
- Keeps an accurate database of customers and ensures that it is updated on behalf of company
- Ensures that the premises is kept clean always
- Ensures that cleaning supplies are always in stock
- Carries out any other duties as assigned by the human resources manager
In order to ensure that we build a business that is based on excellence, we have decided to take a look critically at our business concept with the help of a reputable business consultant here in San Francisco, to help us decide if our business will make it in the strong competitive environment we are intending to venture into.
In looking through our business concept, the business consultant evaluated our SWOT (strengths, weaknesses, opportunities and threats) analysis so as to use in determining how we best fare in this industry. Below is the preview of the SWOT analysis that was conducted for us at Dollop Gun Shop;
Our numerous strengths lies in the fact that we have a service advantage that allow us to also offer other services in addition to selling guns, ammo and other security related products to our various clients. We also have a strong brand presence that has attracted and allowed us to retain lots of customers to our gun store.
We also have ensured that we employ only competent and experienced employees to handle all our various customers. Finally, we have a strong management as our owner; Bob Dollop has all it takes to ensure that we become a success.
In an effort to ensure that customers get the best services and also offering some services for free, we have had to deal with a high debt burden. However, there are plans and processes in place to ensure that we lower our debts significantly.
We also have not showed a strong presence online, and so in comparison to our competitors we are weak online. We however intend to overcome this by laying strategies that would enable us have a strong presence online.
The opportunities available to us are the fact that new technologies are drawing in more gun enthusiasts to purchase guns. Also, there are loosening regulations for civilians to own guns especially in some areas. The gun shop also offers entrepreneurs the opportunity to offer new services to their clients and therefore attract more customers to the business.
Even though the gun shop business might seem lucrative, there are still threats that those who intend starting the business or are running it are going to face or are already facing. The threats that we are likely to face are; government regulations, depending on the government in charge, policies regarding the manufacture and sales of guns might change.
Bad economy, a poor economy will lead to less people having the disposable income in which to buy or own a gun. Also, owning a gun can be politically risky. We are however prepared to face any threats that are likely to crop up during the course of starting our gun shop business.
- Market Trends
According to the Pew Research Center, there are about 310 million guns in the United States of America, which means almost every one person owns a gun. This is made possible because judges and legislators in the United States recognize that individuals have the constitutional rights to bear arms. This has made guns and ammunition sales to grow into a $15 billion dollar industry that is still growing.
However, this has made the industry become so controversial as there are strong debates about how gun rights are eroding public safety. According to the Centers for Disease control and Prevention estimate, about 85 people die every day in the United States from being shot by a gun, which makes the country one that has the highest gun ownership for civilians as well as the highest firearm-related deaths across developed countries globally.
Between 2008 and 2013, the gun and ammo manufacturing industry grew tremendously especially as revenue grew to .7 billion in 2013 which meant it grew at 8.4% per year. The impact on the sales of guns also improved in 2001 especially after the September 11 terror attacks, which caused the sales of guns to increase to 22% and then increase by 19% in October.
This shows that more people bought guns because they did not know what to expect from the government as regards passing new regulations – especially after shooting events – tightening policies on guns.
Gun manufacturers such as Smith and Wesson reported a 43% profit in the year 2013, thereby hitting a record $588 million. Gun manufacturers like Sturm Ruger & Co. also saw profits increase for it to $492 million in 2012, which showed that there was an increase in the sales of gun after events like the elections or mass shootings.
Our Target Market
The target market for the gun shop business is quite huge as more people are getting concerned about the lack of security and are looking towards protecting themselves by procuring a gun. Earlier, only the law enforcement agents and security outfits could own guns but nowadays getting a gun is simple as walking into a gun shop, filling certain forms, and then having a gun.
In order to accurately determine what target market w need to draft our several strategies for, we intend to conduct a marketing analysis that will help us understand who our target market is, what characteristics they would display as well as what they expect from us as a business.
Therefore, from the conclusion of our market research, we are operating our gun shop business to sell guns to the following groups of people;
- Security agencies and outfits
- Celebrities and high ranking personalities
- Military men and women
- Corporate executives
- Business people
- Law enforcement officers
Dollop Gun Shop business is one that has not only been established to generate revue and make profit but is also intended to compete favorably against others gun shops here in San Francisco – California. It is due to this reason that we have laid down several competitive strategies that will allow us have an advantage on our competitors.
The first competitive advantage we intend to have over our competitors is the fact that we would be offering other services such as security consultancy and training in addition to our core service and we know that this will give us the edge we need over our competitors.
Secondly, we are located in a strategic location here in San Francisco as we are not only located to a gun range but we are also close to several security outfits. The mall is also not far from our location and this means we are in position to attract a wide range of customers.
We highly believe in having a sound business structure and as such we intend to ensure that we hire competent and experienced employees who understand the market and also strive to remain updated about industry trends in order to ensure that customer’s inquiries and questions are accurately answered.
Also, we intend to ensure that our employees are well paid and that they work in a conducive environment as this we know will make them more committed in helping our gun shop business attain its desired goals and objectives.
Finally, the owner, Bob Dollop, a retired law enforcement officer is the best fit for the business as he has all the necessary experience and contacts required to make sure that we achieve our intended goals and objectives as a business.
SALES AND MARKETING STRATEGY
- Sources of Income
At Dollop Gun Shop, we intend to ensure that we sell guns and related security accessories, as well as offer other related service to our different customers here in San Francisco in order to not only generate revenue from the business but also to ensure that we improve and boost our bottom line.
Therefore, Dollop Gun Shop intends to generate revenue for our company by offering the following services;
- Sale of guns and other security related accessories
- Gun cleaning
- Consultancy and advisory services
More people are buying guns due to the poor security experienced especially as mass shootings are increasing and more peoples’ homes are being invaded due to poor security measures by the law enforcement and relevant government agencies.
San Francisco is a thriving city and has a whole lot of celebrities and high ranking personalities as well as wealthy people who need themselves, families and properties guarded and are ready to pay for this protection, which in turn has led to the springing up of security outfits to close the gap left by the law enforcement agencies. These law enforcement agencies usually need to have their personnel work with guns.
Asides, the law security agencies, a large number of these celebrities and wealthy people also own a gun which they keep for their personal security purposes. This means that we are quite optimistic about not only generating revenue within the first year of business but also ensuring that we make profit within the first year as well.
We intend therefore to conduct a thorough analysis of the market in order to garner accurate facts as regards our chances in this industry. The information and data that would be used will be sourced from similar start-ups here in San Francisco – California.
The sales projections conducted on behalf of Dollop Gun Shop business based on certain trends and assumptions during the course of carrying out the evaluations are as follows;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $500,000
- Third Fiscal Year-: $750,000
N.B: It should be noted that we conducted the above sales projections based on certain factors and assumptions that were available during the time the evaluation was done. The assumptions used in this case were that there won’t be an arrival of any major competitor and that laws regarding guns won’t become stricter which is hoping that the Democrats do not lead the majority in the house of congress.
However, should there be any change in the assumptions, it will probably lead to an increase or decrease in the above projected figures.
- Marketing Strategy and Sales Strategy
The gun shop business is one that requires marketing in order to generate revenue just like any other business. Marketing is what helps a business grow through revenue generation as well as boosting of the bottom line. Asides from generating revenue for a business, marketing also ensures that the right awareness is created for the business.
This is why we intend to conduct a marketing survey that will allow us draft the right marketing strategies necessary to help us grow the business. Also, conducting a marketing survey will help us gather the right information and data necessary to penetrate the target market and get a huge share of customers.
Asides generating revenue and gaining the right customers for our business, our intention is also to be able to favorably compete against other gun shop businesses no matter how long they have been established. In order to compete, we have added additional services such as gun cleaning and security tips and advices which our marketing team will use as one tool when trying to convince customers to use our services.
We have sought for and hired the services of a reputable business consulting firm that is adept in marketing and thoroughly understands the industry we are in and the kind of business we will be running as well the environment in which the business will be running. The business consulting firm will ensure that they help us draft strategies that will best suit our corporate policies.
Also, our marketing team has been empowered to also draft and ensure that they implement the right marketing strategies that are in line with our core values as a business. They will need to network with gun shooting ranges, security agencies and other reliable networks that will ensure that awareness is increased for Dollop Gun Shop.
Therefore, some of the strategies which we intend to adopt in marketing our gun shop business here in San Francisco – California is;
- Engage in direct marketing and sales
- Throw a grand security related opening party in order to create the right awareness for our new business
- Use social media platforms such as Facebook, Gun and security forums, as well as our website to market our gun shop business
- Ensure that we are listed in offline (yellow pages) and online directories
- Ensure that we introduce our gun shop business to relevant potential customers such as gun shooting ranges, security agencies as well as individuals and other stakeholders in order to create awareness about our business
- Attend security related seminars and fairs and network with security professionals in order to promote our business
Publicity and Advertising Strategy
Due to the fact that people are more security conscious, guns have been getting a lot of attention, as it allows people to be able to defend themselves from attack till law enforcement officers can arrive on the scene.
This does not however mean that we would not engage in publicity and advertising strategies for our business as there are still people who are not aware of the benefits of owning a gun and would require increased publicity to enable them know the importance of owning a gun.
In creating awareness for dollop gun shop business, we intend to explore different means that would enable us not only generate more revenue that would increase our bottom line but also allow us penetrate the market in order to gain a huge share of the market.
The publicity strategies we intend to adopt are those that will also make us compete favorably against our clients here in San Francisco – California, and also around the United States of America. Some of the platforms we intend to use in order to have an advertise as well as positively promote Dollop Gun Shop business here in San Francisco are;
- Ensure that we network with as many gun shooting ranges as well as law enforcement facilities as much as we can
- Send out monthly press releases on the importance of being security conscious and the importance of owning a gun
- Use social media platforms such as Facebook, Gun and security forums, as well as our website to positively promote our gun shop business
- Position flexi banners at strategic and conspicuous positions in the location where our customers are likely to see it
- Ensure that we distribute handbills and paste our fliers in strategic locations
- Sponsor relevant programs in the community where we are located
Our Pricing Strategy
The pricing strategy that would be determined in order for us to sell our guns and other related security artifacts is an aspect that has to be taken seriously as there are several factors that determine the rate at which we will sell our guns to our clients.
First, in determining the price, we have to consider factors such as how much we are getting the guns from major vendors and manufacturers, what our overheads and running expenses are, as well as what our competitors in same location are offering.
In ensuring that we attract the right number of customers into our business, we would ensure that we lower the prices for our guns and related accessories for a period of three months. This is so as to be able to penetrate the market and ensure that we gain a large share of the market, as well as boost our bottom line during this period of offering our customers a discount.
Having conducted a critical evaluation of what revenue we might likely generate this month, we are confident that we would not run at a loss during this period.
- Payment Options
As a standard gun shop business, we intend to ensure that our different customers have different payment options that will suit their preferences as well as lifestyle, as well as Dollop gun store as well. Therefore, the different payment options we intend to offer to our various clients are;
- Payment via cash
- Payment via check
- Payment via online payment portal
- Payment via Point of Sale (POS) Machine
- Payment via credit card
The above payment platforms were carefully chosen by our management for the best interest of our business and will offer work for all our clients without hitches of any sorts.
Startup Expenditure (Budget)
Starting a gun shop business is dependent on what budget is in place to start the business with in the first place. Also, it depends on the scale of business that you intend to start up which will affect how the capital will be spent. In spending our start-up capital, we intend to spend the bulk of our capital in paying our employees, paying for utility bills and also purchasing the necessary equipment required to start the business.
Therefore the key areas where we intend to spend our start-up capital on are;
- Total fee for incorporating the gun shop business in the United States of America – $750
- Other legal expenses such as obtaining of several licenses and permits, and accounting software – $2,250
- Cost of purchasing different guns and accessories for sale – $70,000
- Cost of hiring a business consultant – $1,500
- Insurance coverage (General liability, property liability and workers’ compensation) – $5,000
- Marketing and publicity expenses (grand opening promotion expenses and general marketing and publicity expenses) – $5,000
- Operational cost for the first 6 months (payment of employee salaries and utility bills) – $80,000
- Other start-up expenses (furniture, phones, stationeries, computers and printers) – $5,000
- Cost of store equipment (security, cash register, signage) – $7,000
- Cost of launching a website – $500
- Cost of throwing an opening party – $5,000
- Miscellaneous – $18,000
From the above break down, we would need the sum of $200,000 in order to fully start and run our gun shop business successfully here in San Francisco – California. It should be noted that the bulk of the capital would be used in buying guns and also paying the salaries of employees amongst other things.
Generating Funding / Startup Capital for Dollop Gun Shop Business
Dollop Gun Shop is a business that is owned by Bob Dollop, a retired law enforcement officer with the necessary experience needed to ensure the business becomes a success. In order to source for capital for his business, Bob has decided to restrict his sources to just three, as he does not want to invite a private investor.
Therefore the three major sources where Bob Dollop intends to generate his start-up capital from are;
- From personal savings
- Soft loans from friends and families
- Apply for loan from bank
N.B: Bob Dollop was able to generate the sum of $30,000 from his personal. Soft loans gotten from friends and family members amounted to $20,000. After approaching the bank for a sum of $150,000, our documents have finally been signed and approved and the amount is likely to hit our account within two days according to our accounting officer.
Sustainability and Expansion Strategy
Just like any other business which has been established to make profit, we are in business to ensure that our business not only grows but is well sustained and we intend to do this by adopting the following strategies such as; building and having a sound business structure, retaining a high number of our customers, as well as ensuring that enough publicity is generated for the business, thereby creating the right awareness.
Having a good business structure is very necessary if we intend to go very far in this business and run with as less hitches as possible. This is why we intend to ensure that we hire employees who are not only competent and have the right experience but ones who also now more about our business and are committed to seeing that we grow to our desired level.
We intend to pay our employees well with a welfare package that rivals that of similar start-ups such as ours in the economy. We also intend to ensure that our employees work in an environment that is not only conducive but one that would not limit their creativity especially in handling situations that might arise during the course of running the business.
Retaining a high number of customers is necessary for a business to grow as constantly having to attract customers is very expensive for a business. In order to ensure that we retain a high number of customers and make them loyal to us, we intend to give out special discounts to customers who have bought from our gun shop more than three times.
We will also ensure that we give special incentives to those that help refer us to other customers, by ensuring that we create a loyalty program that works even online. Also, we intend to offer some free services to our clients in order to make them patronize our services more.
Finally, we have drafted publicity strategies that would ensure that we get the right awareness for our business and which will also allow us penetrate the market more easily. We know that if we follow through with the above strategies, we would be able to sustain and also expand our business.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed