How to Open a Hunting and Fishing Store
Start an outdoor store by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your outdoor store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening an outdoor store?
Your first task is to decide on a location. Try to pick an affordable space with ample foot traffic and parking. The business' short and long-term goals should play a factor, as should the condition and setup of the space. Balance is key - you want something you can grow into, but your space should not feel empty while you're building your inventory. While rent and deposit costs vary by region, plan on budgeting for $4,000 - $5,000 to secure a location.
Once you've found a place to call "home," you can start designing and filling the space. Include these items in your budget:
- Construction costs for customizing the store - $3,000 to $8,000
- Fixtures - purchase racks, shelves, mannequins, counter/checkout area, and lighting. This will account for approximately $3,500. Many of these items can be purchased used, reducing your overall budget.
- Clothing hangers - up to $1,000
- Inventory - this number varies depending upon the specifics of your store and the retailers you choose to work with.
- Computer, accessories, internet, and phone system - $1,000
- POS software, customized to fit the needs of your retail business - $1,000 - $3,500
- Website - $1,500 - $3,500, depending upon your specific needs
- Marketing materials - exterior and interior signs, logo design, business cards, coupon design/printing - store owners have reported spending close to $9,000 on these materials.
- Grand opening event - this is a great way to introduce the business to your community. $1,500
- Insurance - cost will vary depending upon the specifics of your business
The Outdoor Industry Association and American Outdoors Association both offer industry insight and advice to help start your business and market for long-term growth.
What are the ongoing expenses for an outdoor store?
There are a number of factors that will influence your ongoing expenses. The size of the space you occupy, how much inventory you order each month, and the number of employees will all factor into your monthly budget. Retail shop owners advise budgeting for between $6,000 and $21,000 per month.
Who is the target market?
Your customer base will individuals ranging from the novice outdoorsmen, eager to learn everything about their new hobby, to experienced individuals. You have a unique opportunity to build a relationship with each of these classes of people. It is also important to converse with and listen to your customers, as you will be able to gain a better understand of activities that you are not as knowledgeable about, and you will also be able to survey the needs and wants of your customers.
How does an outdoor store make money?
A retail business generates money from the sale of each item. Many outdoor stores offer additional services, such as equipment rentals, which serve as an additional source of revenue and an effective marketing tool.
How much can you charge customers?
Pricing varies from product to product. Items are purchased at cost and marked up to ensure a reasonable return on your investment. If you're inexperienced in pricing merchandise, ask your manufacturer for assistance.
How much profit can an outdoor store make?
Owners typically report earning little to no profit the first one to three years (standard for most startup businesses). With the right business plan in place, however, several have reported a profit of up to $64,000 going into their third year. To ensure profitability, keep up with the latest outdoor trends and invest in inventory with a higher profit margin whenever possible.
How can you make your business more profitable?
To increase your shop's annual profit, consider implementing some of these strategies:
- Research any special events that are held in your area targeting specific activities/hobbies.
- Approach event coordinators and offer to volunteer, sponsor, or vend at the events.
- Host classes geared towards various activities such as how to tie fishing flies or how to properly use cutting edge hunting calls. Make sure you make yourself available to every skill level.
- Host "field trips." Such trips can include hiking, fishing, or hunting trips. These can be educational and social events, offering customers a chance to bond with people of similar interest. Approach your retailers to see if they'd be willing to send a representative to the event.
What will you name your business?
Choosing the right name is important and challenging. If you don't already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Outdoor Store Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your outdoor store is sued.
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can start an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate an outdoor store. Learn more about licensing requirements in your state by visiting SBA's reference to state licenses and permits .
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk's office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
An outdoor store is usually run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a storefront :
- It is generally the landlord's responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an outdoor store.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a storefront :
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for you business' location to ensure your outdoor store will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company's financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you're unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it's a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers' Compensation Insurance. If your business will have employees, it's a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market an outdoor store
Prior to devising a marketing strategy, research your target demographic. Get to know their outdoor needs and market specific products. Outdoor Retailer is a trade show specifically designed for outdoor specialty retailers. This is a unique opportunity to test out the latest products and to network with distributors and sales reps. These connections stand to offer valuable insight into who you should be marketing to, and how to do so.
How to keep customers coming back
Consumers have a number of larger retail stores to choose from, so it's critical that you ensure your business stands out from the competition. Pricing and customer service are your two most powerful tools for retaining customers. Make sure you price competitively, without selling yourself short. Offer unique products and be as knowledgeable as possible on each outdoor activity you cater to. Make sure each customer has a memorable experience each time they visit.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it's out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn't delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That's not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We've reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2021 to find the best phone service for your small business.
Recommended Business Phone Service: Nextiva
Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
How to Open a Hunting and Fishing Store
Source: https://howtostartanllc.com/business-ideas/outdoor-store