Gun and Ammunition Store Industry Facts
The gun and ammunition store industry has, and is continuing to, rapidly grow, mainly due to fears of gun regulations during the Obama administration, and during the 2016 campaign year before the Republican nominee won. Experts have shown that every single election year, gun and ammunition stores see record breaking sales, and this past year was no different. Actually, in October of 2016, the FBI processed over 2.3 million background checks across the United States, which is most background checks for gun purchases being run in October. That 2.3 million background checks were 350,000 more background checks than in October 2015! Studies have also shown that gun sales rapidly increase during times of “panic”, such as mass shootings.
While this past year has allowed for rapid growth in the gun and ammunition store sector, unfortunately, experts have also shown that once a Republican president is in office, gun sales decline. This is once again due to the “panic” factor for sales in the gun and ammunition store industry. Every time a Democratic president takes office, gun sales drastically increase due to the overwhelming fear that gun laws will be changed, leading to many people running out to buy guns and ammunition. The past year showed record sales because of the election, but with the new Republican president, many gun and ammunition store owners are cautious for the next year in terms of sales.
The gun and ammunition store sector plays a vital role in the United States economy through the large amount of decent paying jobs these gun and ammunition businesses offer, as well as providing a significant amount of jobs and tax payments. The gun and ammunition industry directly employs over 132,000 jobs; when including indirect jobs such as suppliers and other related businesses, the gun and ammunition store sectors employ more than 280,000 people. These same gun and ammunition businesses generate an economic impact of over $49 billion annually. This has led to over 10 million pistols, revolvers, rifles, shotguns, and other miscellaneous firearms being manufactured in 2013 (which is the latest full year available).
Gun and Ammunition Store Trends
Over the past few years, many gun and ammunition store dealers have been struggling to figure out what the latest trends are before it is too late to adopt. The gun and ammunition store sector is highly competitive, as well as incredibly resilient regarding regulations and consumer preferences. Here are some of the most important gun and ammunition store trends this year:
- Regulations: As everyone is aware of, there is a new president in the White House – a new president that has promised lenient gun laws and limited restrictions. While this is great news for the gun and ammunition business owners everywhere, there is still a lot to be seen from the new president. Most business owners are sure that most of his related measures will help their gun and ammunition businesses, however this has not been made a priority for the new administration. So really, only time will tell what will happen with current gun and ammunition regulations, but making sure to stay up to date on everything relating to the gun and ammunition store sector is importantl.
- New Key Demographics: The gun and ammunition store world has seen new prominent consumers: urban participants, young participants, and female participants. As many gun and ammunition business store owners are aware of, older males dominate the business, but the past few years have shown major shifts in business. This has forced many gun and ammunition store owners to start advertising and marketing to this new consumer, however even after a few years of this trend taking place, many gun and ammunition store owners are still unsure how to connect with these key demographics. Many gun and ammunition retailers have seen success through offering a variety of product selections that are customized towards females and/or younger generations. However, this demand is also coupled with the cautiousness of most gun and ammunition store owners to have very limited inventory. This is where technology based inventory management platforms can be essential.
Gun and Ammunition Store Financing Needs
Many gun and ammunition stores are faring well, however others major players have seen difficulties. This is expected to continue as sales typically decrease during a republican presidency, but as mentioned above, there are still plenty of unknowns for the gun and ammunition store sector. It is incredibly important to remember the variety of funding options for gun and ammunition stores.
- Gun and Ammunition Store Financing for Technologies: Technology software’s and platforms have become essential in every business in the United States today. For the gun and ammunition store sector, differentiating a business platform can make or break a gun and ammunition company today. There are many gun and ammunition store financing options for vital technologies that can enhance the consumer experience while easing the burden of daily managerial tasks.
- Gun and Ammunition Store Inventory Loans: Inventory is vital for many gun and ammunition store owners, however, as mentioned above, managing inventory for this particular type of business can be overwhelming and difficult. Many gun and ammunition store owners have the ability to utilize gun and ammunition store inventory loans to purchase needed inventory, or to purchase and implement effective inventory management technology systems.
- Gun and Ammunition Store Funding for Marketing, Advertising, and Social Media: Marketing and advertising through social media is the best way to advertise in all types of businesses today – and the gun and ammunition store sector is no different. For gun and ammunition business owners, reaching key demographics is essential to growing their gun and ammunition business while attracting younger generations (and females). All gun and ammunition business owners have been relatively slow to adopt this vital technological marketing and advertising practice, especially because understanding how to effectively utilize and understand social media and content marketing can be difficult. There are plenty of gun and ammunition store loan choices to help with these necessities.
Gun Store Bank Loans
While bank bank loans are never an easy form of financing for any small business to acquire, when a business does obtain it they are they getting the best rates and terms available for any company. With rates starting in the mid single digits, and terms ranging up to 25-30 years, bank financing is clearly the most affordable type of financing available. Bank business loans are used for a variety of uses, including purchasing of commercial real estate and property, purchasing new inventory, paying employees on time, etc.
Documents needed for a gun store bank loan:
- Tax returns
- Financial statements
- Debt schedules
- Personal financial statement
Alternative Gun Store Loans
Alternative business loans are the perfect option for small businesses and gun shops that have been declined for more conventional and traditional business loans. There are many different types of alternative business loans — each with their own requirements and lending criteria. Many of these lenders are “fintech” companies, that rely on technology to underwrite the loans, while some rely on human underwriting. Uses for fintech loans are generally used for working capital and other operating capital needs.
Alternative gun shop loan documents:
- Tax returns
- Debt Schedule
- Bank statements
Gun Shop Cash Advance
Gun shop merchant and ach cash advances are the best option for gun stores that aren’t able to get approved for traditional financing, or who need to obtain immediate business financing. Cash advances aren’t really loans, but are the sales of future gun shop receivables in the form of merchant credit card processing statements and/or business bank accounts. To obtain financing the gun shop would sell a percentage of their future deposits, receive immediate cash, and then repay the loan each business day by having a small percentage of their bank deposits or credit card transactions withheld and given to the funding company until they are repaid.
What you’ll need to get a health food store cash advance:
- Bank statements
- Credit card statements