Starting a gun shop is not just a retail venture—it’s a heavily regulated, detail-oriented business requiring proper planning, legal compliance, and strategic investments. Whether you’re passionate about firearms or see a strong business opportunity, this comprehensive guide will walk you through everything you need to know to successfully open and run a gun shop in 2025.

1. Legal and Licensing Requirements

Before opening your doors, obtaining the proper licenses is non-negotiable.

Federal Requirements

  • Federal Firearms License (FFL): You must apply through the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The application fee for a Type 01 Dealer license is $200 (valid for three years), followed by $90 for renewals.
  • Background Check System Access: You must register with the FBI’s National Instant Criminal Background Check System (NICS).

State and Local Requirements

  • Zoning compliance
  • Local business license
  • State firearms dealer license (required in many states)
  • Sales tax registration

Cost Summary (Legal):

  • FFL Application: $200
  • Local Licensing: $200–$1,000
  • Legal assistance: $500–$2,000 (recommended)

2. Choosing a Location and Store Layout

Selecting the right location is critical for visibility, foot traffic, and compliance.

Recommended Locations:

  • High-traffic strip plazas
  • Near outdoor ranges or hunting supply stores
  • Standalone retail spaces in low-crime areas

Lease Considerations:

  • Expect to pay $2,000–$6,000/month depending on region
  • Ensure the property allows firearms retail use

Suggested Layout (1,200–1,500 sq ft):

  • Showroom (500–700 sq ft): Firearms, accessories, displays
  • Secure Storage (300–400 sq ft): Safes, backstock, ammo
  • POS & Counter Area (100–150 sq ft): Checkout & background check station
  • Back Office (100 sq ft): Admin work, record-keeping
  • Optional Gunsmithing Area (100 sq ft)

Buildout and Equipment Costs:

  • Interior shelving, counters, displays: $5,000–$15,000
  • Security system (cameras, alarms, safes): $10,000–$30,000
  • Furniture, lighting, signage: $3,000–$6,000

3. Initial Inventory Planning

The right inventory mix is crucial for serving your market.

Example Starter Inventory:

  • 30 handguns
  • 20 rifles/ARs
  • 10 shotguns
  • 15 scopes/optics
  • 25 holsters, safes, cleaning kits
  • Ammo (bulk boxes of 9mm, .223, .308, 12ga)

Inventory Costs:

  • Firearms: $30,000–$70,000
  • Accessories & Ammo: $15,000–$30,000

Inventory Management:

You must track every firearm by serial number and manage transfers, holds, and sales records. A specialized POS software tailored for gun shops is essential.

4. POS System Requirements for Gun Shops

A standard point of sale system won’t meet the needs of a gun shop. You’ll need specialized POS software that can:

  • Track serialized items (guns)
  • Record ATF-required logs and 4473 digital forms
  • Track background check results
  • Alert for age restrictions
  • Maintain customer history
  • Produce compliance reports

POS Software Costs:

  • Software license: $600–$1,500 one-time or $50–$150/month
  • Hardware bundle (PC, scanner, cash drawer, printer): $800–$1,500
  • Support & updates: $200–$500/year

Investing in reliable POS software improves not just transaction efficiency but also compliance and legal safety.

5. Staffing Your Gun Shop

Start with a lean but experienced team.

Suggested Staff:

  • Owner/Manager: Oversees operations, compliance, hiring
  • Sales Associate(s): Assist customers, process sales
  • Security Officer (optional): For larger stores or high-risk areas
  • Gunsmith (optional): For repairs and upgrades

Payroll Estimates:

  • Manager/Owner draw: $3,000–$5,000/month
  • Sales associate: $15–$20/hour
  • Gunsmith: $25–$40/hour

Plan for 2–4 staff members initially depending on store size.

6. Operating Capital and Financial Planning

Estimated Startup Costs:

  • Licensing and legal: $3,000
  • Lease & buildout: $10,000–50,000
  • Inventory: $50,000–100,000
  • POS system: $1,500–3,000
  • Marketing: $2,000
  • Insurance: $2,000
  • Total: $75,000–$160,000+

Ongoing Monthly Costs:

  • Rent: $2,500
  • Payroll: $6,000
  • Insurance & compliance: $500
  • Utilities & supplies: $500
  • Marketing: $1,000

Have at least 3–6 months of operating cash ($30,000–60,000).

7. Marketing and Advertising

Because many platforms restrict firearm ads, you’ll need creative marketing strategies.

Channels:

  • Google My Business: Local SEO is critical
  • Gun forums & online communities
  • Print advertising: NRA publications, local hunting magazines
  • Partnering with gun ranges & events
  • Email newsletters
  • Loyalty program managed through your POS software

Budget:

  • Initial campaign: $1,000–3,000
  • Ongoing: $500–1,500/month

8. Researching Foot Traffic and Demand

Before leasing a space, study foot traffic and local demand:

  • Use tools like Placer.ai or Google Mobility Reports
  • Partner with a real estate agent who understands retail metrics
  • Talk to local shooting clubs and ranges
  • Use Facebook groups or Reddit to gauge interest

9. Financing Options

Traditional Loans:

  • SBA 7(a) loans (though restrictions may apply)
  • Local banks and credit unions
  • Firearm-friendly lenders (e.g., Tactical Capital)

Alternative Funding:

  • Mainvest or Honeycomb Credit (crowdfunded investment from locals)
  • Angel investors (especially if you have retail experience)
  • Vendor credit terms for inventory

Prepare a professional business plan with projections, which this article can help you draft.

10. Final Thoughts

Opening a gun shop in 2025 requires planning, capital, and compliance, but it’s a business with solid demand and loyal customers. With the right location, proper inventory, legal structure, and reliable POS software, you can build a store that not only meets regulatory standards but exceeds customer expectations.

If you’re looking for a point-of-sale system built specifically for firearms businesses, Alexandria Computers offers POS software tailored for compliance, security, and ease of use. Contact us to learn more or request a free demo.

Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Always consult with professionals before starting your business.