Realistic business plan for new gunsmiths?

[JRS]

If you can afford it… go for it. Nothing ventured, nothing gained

 

[rap36case]

If you have property its was cheaper to have your own shop and no overhead.

Best thing to do financially is do not get in debt with it. But tools when you have CASH to buy them.

a debt free business will prosper more as you gain client base. With cost of tools you cant afford a bill from a loan when you have little or no business. Start small and grow. You will have to do it part time for a long while.

Keep business account separate from your personal account.

Save up your personal money and buy tools with that after your own bills are paid. Your home and food is more important.

Im a finance guru... my advice WILL pay off in the end...

Thank is sound advice and thank you. Staying out of debt is important to me and I doubt any bank will lend to an old timer anyways.

 

[rap36case]

The old standard for small businesses was to own the property as a proprieter and the actual business (corporation) rents from the owner. The business had a lease agreement that stated that it was responsible for all maintenance and repairs. Equipment would have been purchased by the business corporation. The reason for this was that if the business failed, the property would still be yours (subject to a mortgage, probably). There are probably a number of things that have changed over the years, but the basic concept is still good.

For pricing, let's suppose you decide a fair rate is $60/hour. How many hours a year do you want to work per year? How many do you think you'll actually get paid for? Most employees work about 2,080 hours per year. This will be your revenue model, and your labor is predominantly what will pay the bills.

I would suggest that you not get involved in purchasing parts for people with long lead times, even if your customers pay you the deposits/full price. The headache of administration will be an issue--if they really want it, have them accumulate the parts and deal with/pay the suppliers.

Labor standards will be an issue. Will you charge the first several thread/chamber jobs your actual 5-6 hours while you get up to speed, or will you charge the labor standard of say, three hours, for what it will take you to do once you are up to speed?

If someone wants you to work on their Glock sear, will you freehand it or will you buy the Brownell's fixture for $300 and each insert for each pistol model sear for $??? Or turn the work away?

Learn to shoot well, reload, and attend local matches where you show that you know what you are doing, if that's the kind of work you want to do.

Excellent advice and thank you very much. The separate corporation for real estate idea came from dental school lectures (another sad story). This lessons liabilities in some situations. I have 2 years of gunsmith school to think about it and research.
Pricing by incremental or marginal costs instead of the average market for labor is probable more realistic. At my age, I am not looking to make a fortune, just keep the wolves from the door.
Quality is primary to me, as I was a quality manager and believe in that stuff. If I can't do a job with top quality at a reasonable ROI, I plan to turn it down.
I have a problem shooting prone, and I am trying to fix that. I get 2" groups at 500yards off the bench so far. I want to participate and not necessarily compete as that can be very costly.
Thank you for the sound business advice.

 

[shortgrass]

I have always wanted to get my liscence and be a gunsmith. Well long story short I never did and after reading all of this I cant help but to wonder if it is even worth it nowadays. Something else to think of is where you are located. In my area the best smith could not do well unless it was all through the mail. I really checked around my area a few years back and there just is not enough people who want much done. It would just be mounting scopes and bore sighting. And a few cleanings or repair work rarely. Which I find odd as Ky is such a big on guns sate. I believe most in this area are just hunters and collectors.

When I set-up shop, it is in an area of hunters/collectors. There's never been any shortage of work, except during the 'crash' of 2008/2009, and then there was still enough to keep me going. There must not have been a reliable 'smith that could do much in a 75 mile radius, and there still must not be, as 'locals' are still willing to make the trip. When I graduated from gunsmithing school, everyone wanted to 'specialize' in custom rifles, that was over 25yrs. ago. Only 4 out of 23 managed to set-up shop, and those who 'specialized' didn't last. I believe I am the only one left from my graduating class that's still in business. The vast majority of my work is rifles, from re-barrels to simple muzzle break installs to complete builds (custom wood or synthetics). But, I'll still take in a quality made handgun or shotgun and it'd get down right boring if I didn't get to get into the 'inards' of a quality made double gun when the opportunity presents itself. I have as much double gun and rifle work shipped in as comes to me 'locally'. I've always got a bit of a back-log. I won't work on junk, I don't discount my rates, and I'm not interested in doing restoration work, even though I can. My customers seem to appreciate being able to go to the same 'smith that fixed their S&W or 1911, repaired their favorite 'bird gun', rust blue the double that's seen many a good hunt, fixed their ol' Marlin '93 so that the lever doesn't 'hang-up', and build them a fine 'custom' rifle to their specs. Those same customers that appreciate fine rifles appreciate fine firearms of other configurations, too. If I just specialized in one type of firearm, I'd probably get bored to death and loose interest! Coming straight out of school and 'specializing' sounds like a good way to go broke, to me. The only "specialty" that comes to mind that has a very good chance of being successful would be a bluing shop that's doing 'guild quality' metal finishing, and then it would take a bit of time to establish yourself (set-up a couple of tables to display your work at the SCI show and Tulsa for max exposure). Few are interested in 'tackling' bluing on a full time basis, if at all!

 

[Rustystud]

Asking this question shows you have a business sense. The are many types of Gunsmiths. Your skill set will determine what direction you want to go. Are you a good carpenter, mechanic, welder, machinist, electrician, painter, and jack of all trades. There are generalist gunsmiths who can do it all. They make a living off of cleaning, adjusting, and parts replacement. There are Black gun, Hand gun, Bolt gun, Shot gun, Stockers, Lever Gun, specialist. You can work your self into the poor house taking on work that will pay the bills. I recomend you not take on full time gunsmithing until you know what direction you want to follow. Find an established Gunsmith that you can apprentice for until you are established at doing the necessary task.
Just my two cents worth. I began doing my own work in the 1960s, worked for others, went to schools, and started my own shop in 2005. Working 50 plus hours per week and putting every dollar back into my business. Now I have a quarter million dollars worth of tools, equipment and parts inventory. My work load has gotten unbearable. I have recently decided to quit gunsmithing and become a manufacture of turn key rifles.
The government imposes more and more expense and regulations. It now will cost the average gunsmith about $8,000.00 per year to open your doors. Can you recoup that and make a living at Gunsmithing.
Nat Lambeth

 

[COLT45SA]

Everyone has covered most of the pertinent issues. The one thing I'll add is don't quite your day job and marry into money. It took me probably 5-7 part time years to get to where I was making money which I promptly burned up shooting. Unless you carve out a niche in the market that separates you from the pack, it's tough for a one man shop to survive.

My gunsmith has done great work for me with any job I've taken him. He's a "one man band" with a relatively small shop, and he does anything but blueing and stock work. At the same time he is a "serious competitive shooter" shooting .308 and 6.5 Creedmores that he built. I saw his last match-winning 600 yard target today shot with his .308 with a group at .287". Pretty dang good I'd say~!

 

[Sniperhandle]

6 year old thread, I wonder if the OP made it in Gunsmithing?

My gunsmith has done great work for me with any job I've taken him. He's a "one man band" with a relatively small shop, and he does anything but blueing and stock work. At the same time he is a "serious competitive shooter" shooting .308 and 6.5 Creedmores that he built. I saw his last match-winning 600 yard target today shot with his .308 with a group at .287". Pretty dang good I'd say~!