The average cost to start a new gun store typically ranges from $50,000 to $500,000, depending on several factors:
Initial Costs
- Licensing & Permits: $200-$3,000 (Federal Firearms License costs $200 for 3 years, plus state and local permits)
- Location: $2,000-$10,000/month (rent/mortgage for retail space)
- Initial Inventory: $20,000-$300,000 (depending on store size and selection)
- Security Systems: $5,000-$25,000 (safes, cameras, alarm systems, display cases)
- Insurance: $2,000-$10,000 annually (liability, theft, property)
- POS System & Software: $2,000-$10,000
Additional Considerations
- Employee Costs: $30,000-$60,000 annually per employee
- Marketing & Website: $5,000-$15,000 initially
- Legal Fees: $2,000-$10,000 for business formation and compliance consultation
- Renovations/Build-out: $10,000-$100,000 depending on space condition
A small, basic operation might start at the lower end of the range ($50,000-$75,000), while a larger store with extensive inventory could require $300,000-$500,000 in startup capital.
Keep in mind you'll need to meet all federal, state, and local regulations, which vary significantly by location and can impact your startup costs.
