Scale Your Gun Business Across State Lines

If you are a business operating in the Firearms industry, you know just how difficult it can be to expand your client offerings. Once you get set up and operationalized in a certain state, you will get a better understanding of federal and local laws needed to operate within compliance. When your business moves or expands, you will have to relearn the new state and local laws that come with operating in your new location and serving clients there. However, it is important to not let this deter you from expanding your business, as this is a great opportunity to grow your revenue and strengthen your brand presence. As there is an increased demand for firearms and gun-related accessories, establishing a multi-state presence can help you find new clients, and partnerships, and increase your overall bottom line. 

In this article, we will explore everything you need to know about scaling a federal firearms license business, how to navigate complex regulation challenges and logistical aspects you may not have considered.

Why Expand Across State Lines?

If your business is doing well in one location, you might be asking yourself if the return on investment is worth it when expanding across state lines. Expanding your business into multiple states offers a variety of benefits, such as increased market reach, diversified revenue streams, brand recognition, and cost efficiencies. You’ll be able to tap into new customer bases and grow your sales without having to rely on a single market.

Challenges to Prepare For

Scaling your gun business can oftentimes involve more than just setting up your brick and mortar store in a new and exciting location. Let’s dive into a few challenges that you will need to prepare for when expanding your business across state lines.

The first challenge to prepare for is the inevitable complex regulations that you may face. Each state in the United States has its own firearm laws, which can differ significantly from federal regulations that impact the entire country. As a reminder, you will need to obtain an FFL for each state that you operate in, comply with State specific gun laws which include restrictions on the sale of certain types of firearms, and manage Interstate firearm transfers under ATF guidelines. 

Banking barriers are another potential setback that you will need to prepare for. Finding payment processors that are willing to work with gun shops is already challenging, and expanding across state lines can add to this level of complexity. 

Adopting your marketing strategy is to reach new customers in different states that have different perspectives on firearm ownership is also something to consider. Be sure that you have a deep understanding of preferences, political climate, and appropriate marketing strategies to make sure that you are most effective. 

How Do I Expand My Gun Business Across State Lines?

Proper planning and preparation, you can expand your gun shop across state lines. Let’s explore a few critical steps that you will need to take in order to do so! 

1. Research, research, research!Before you expand into a new state, it is important to thoroughly research the laws and licensing requirements of firearm sales. A few key points to look over are local zoning and business ordinances, background check procedures and regulations, and sales tax requirements that will be needed from your business.
2. FLL LicensingOrder to successfully operate in multiple states, you will need to apply for an FFL in each state that you are planning to operate in. Partnering with a compliance expert can help you successfully navigate this to make sure you are ready to do business once arriving in the new location.
3. Find a Reliable Banking SolutionManaging finances across multiple states will require you to have organized bookkeeping and a plan in place when it comes to processing transactions. Working with a partner such as BKW Servicing will help you ensure seamless payments post move, expertise in firearms compliance, and unified banking accounts for multi-state operations.

Banking 101

Baking plays a crucial role in running any business, but this is especially true if you are running a gun shop, which is obligated to oblige by strict laws and regulations. A reliable payment processor will help you ensure compliance and provide you with the tools that are specific to your business. When examining which banking partner to use, here are a few key components to look for:

• Firearms industry expertise: If your bank specializes in the sale of firearms and FFL requirements, this can be a huge leg up and competitive advantage for your gun shop.
• Transparent pricing: Hidden fees are all too common in the world of banking, speak with the providers before committing to a partnership to ensure fair and predictable pricing so that you can better determine your bottom line.
• Integrated solutions: Finding services that combine banking, payment processing, and compliance support can be a challenge. BKW Servicing has your back!

How BKW Servicing Can Help You Expand 

BKW Servicing specializes in financial solutions that are specifically tailored to gun shop owners that are operating in the firearms industry. We offer multi-state FFL banking, which makes us an ideal partner for businesses looking to expand their operations across state lines. With unified baking support, compliance expertise, and competitive rates, it is no wonder we are the obvious choice for gun shop owners across the country. 

If you are ready for personalized support from a team of experts who understands expansion from a licensing and financial management perspective, contact us today to get started!