Diary of a Would-Be FFL

[SURVIVOR619]

It's coming along!! Sweet!!


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[TheExpertish]

06/06/2012

Hey Calgunners,

So rethinking the eCommerce side. Magento Go is over my head, and we'd be limited by my ability to add products at my limited IT knowledge pace. As it turns out several distributors now offer turn-key solutions direct from their catalog to your site. Only issue is the monthly and setup fees are a bit hard to swallow if just starting out on your dime. However, you can basically pay to have access and sell an entire distributors catalog which can be close to 250k products in some cases, and still have room to add your own.

Also, I'm taking my first NRA Instructor certification course this weekend (pistols) so I can offer beginner classes and be HSC certified. It's an extra tool to help better the business.

[SURVIVOR619]

Smart idea on the NRA certification!!


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[TheExpertish]

09/12/2012

Okay, as a long overdue update here's where things stand; Things are literally at a dead standstill. I have not signed the lease and subsequently have not applied for my FFL. This is due to errors on my part and a lack of longer term planning instead of just trying to bulldoze my way through the process. Biggest issue is still money. Here's my tips to avoid getting stuck.

1. Do Your Homework First - If you're read this far and followed the proper steps this should be a no brainer.

2. Have Cash - Granted it won't take alot to get things afloat, but it sure helps to have it in advance, or enough of a revenue stream from a current job or otherwise to support the operation til it can support itself. In other words, don't quit your day job. It is possible to start small or even from home in some counties.

3. Get A Website - It's the 21st century. If you're not prepared to go eCommerce then at least have a page dedicated to showing people where you are and what you offer. If you're not tech savy add it to the tally of expenses you need to be able to cover. It's not cheap either.

4. Use Credit Wisely - As a new company you will find distributors willing to give small lines of credit to newbs. It's just like personal debt and has to be used in line with a marking and/or business plan. Err on the conservative side.

5. Group Buys - As a new retailer it can be tempting to use Calguns to meet some of those lofty distributor buy-ins with a group buy. To some they can be advantageous if you're experienced with the dynamics of a GB. To others they can be a bane from hell. As a retailer, my suggestion would be to let an experienced member be middle man and run it for you. If you want good examples of GB's run right look no further than AIMSMALL. If you want to see one go badly, well...I'm sure you know where to look.

[Curtis]

Great thread Expertish!

I have set up 5 companies. The first on was set up by a lawyer before I was on board. The other companies were incorporated using www.incorporate.com. They were cheaper and easier than Legalzoom. They even have an option to expedite the filing with the state.

LLC vs. S-Corp vs. C-Corp: I asked everyone I knew in business to explain the difference between LLC and Inc. The only answer I got was "LLC has 40 years of case law; Inc. has 180 years of case law." I finally found an answer in an old text book on corporations. Inc. require buy-in money and profits payouts (K1's) to be based on the number of shares owned. With an LLC you can buy-in or payout based on any agreement made between the members. Also an LLC has less internal paperwork. However, the state charges an additional $700 tax to LLC's.

Other advice. When renting, don't personally guarantee the lease. Places are hurting to get space filled. There is no need to take on any additional personal liability. Business credit cards are personally guaranteed. So keep that in mind if things go bad. I would also suggest you put all your private property in a family trust as well as buy an umbrella insurance policy.

Good luck and keep us updated.