First Year Expectations

Discussion in 'NFA/Class 3 & FFL Discussion' started by silverado113, Sep 2, 2011.

  1. silverado113

    silverado113 New Member

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    Alright so I am begining the process of starting my home based dealer business. I built my cash flow worksheet and was wondering for those home based FFLs; what was your "roughly" calculated first year profit?
     
  2. hiwall

    hiwall Well-Known Member

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    Most businesses don't make a profit the first year. The lucky ones make a profit the second year.
     

  3. silverado113

    silverado113 New Member

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    That is your traditional business model, however with the lower overhead costs and the lower start up capital needed I think with sales, transfers and some minor repairs there could be a decent profit margin in the first year.
     
  4. hiwall

    hiwall Well-Known Member

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    If you are going to be selling stuff, you must have an inventory. If out of your home, no one will know about you unless you advertise. If you are going to do some repairs you will need tools and equipment. Insurance? Security? All of this costs a lot of money. And sales will be VERY slow for quite some time until you build a large customer base. You will have relatively low overhead but your customers will know that and expect low margins to match. If you plan on having no inventory and just being a catalog store I just don't see much business coming your way. Opening any business requires much thought. Just a thought, you might want to consider including a pawn shop with the gun shop. A lot of money in pawning crap. And if you only know about guns then only do gun pawns. No matter what you decide I wish you the best of luck.
     
  5. silverado113

    silverado113 New Member

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    Thanks for your insight.
     
  6. tellmaster207

    tellmaster207 New Member

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    I have a friend that did $2300 on his first year for doing transfers. With minimal overhead.

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