How do you start trying to get investors?

[BigDaddy]

You are going to need $2-$10 million of startup for a quality project.

How can that possible work? $10/ 1/2 hour. $15/rental, 10 hours a day x 365 days x # shooting positions.

You can't move into just any building. It's got to be big enough, it may well require a zoning variance, not to mention a sympathetic landlord. The backstop and it's maintenance and lead disposal will be a major expense. The recent attempted suicide at On Target means that insurance isn't going to be cheap, either.

Range time and lessons isn't going to be enough. You will have to be a retailer too. Nothing wrong with that but the dirty word INVENTORY. $$

All the local gun ranges seem to be prospering. It is a business with an extremely high barrier to entry, meaning you are a local monopoly. However, I doubt they started $10 mil in the hole.

 

[Jim12]

National Shooting Sports Foundation
http://nssf.org/

NSSF's Indoor Range & Retail Development Workshop DVD Package
http://nssf.org/ranges/workshop/

 

[AssMan]

I'd start by trying to find a HBR case covering a similar business. Even though they're partially make-believe, there's lot's of good info in them.

 

[mtnwisdom]

How can that possible work? $10/ 1/2 hour. $15/rental, 10 hours a day x 365 days x # shooting positions. You can't move into just any building. It's got to be big enough, it may well require a zoning variance, not to mention a sympathetic landlord. The backstop and it's maintenance and lead disposal will be a major expense. The recent attempted suicide at On Target means that insurance isn't going to be cheap, either. Range time and lessons isn't going to be enough. You will have to be a retailer too. Nothing wrong with that but the dirty word INVENTORY. $$ All the local gun ranges seem to be prospering. It is a business with an extremely high barrier to entry, meaning you are a local monopoly. However, I doubt they started $10 mil in the hole.

Ask them...
You may very well be surprised to learn that that they did indeed have $1-2M in capital 'at risk'.
the SBA along with their key finance partners are more than willingly to underwrite a loan package for $1-3M IF you have done your part (biz plan, investors, personal risk, etc), so add the $1-3M to the investors (if your have done your work, $1-2M) and that gives you $2-6M.

As for Instructional facility only... I wholeheartedly agree, there needs to be and should be BOTH a recreational shooting component and a retail (both physical and online) to increase cash flow. And there we arrive at the crux of the whole issue: cash flow-hence the larger amount of the capital.

The property manager, not necessarily the landowner (usually a 'Trust' or other property investment entity-but not A person) will be more than happy to 'finance' any physical changes required for the occupancy-in the form of the lease payment. There is the cost of the backstop & ventilation system risk mitigation. IIf the planning is done properly, both the brass and the projectiles will be collected and processed as recycle items; gaining cash flow AND a minimal nod from the 'Greenies'.

The ranges are indeed doing well, so well that there is always-always an 'unacceptable' (customer perception) wait for lanes to open at each and every indoor range I have taught or fired at in the Baltimore Metro Region. And that is specifically why I sincerely support this individual's 'dream'! But, I hope the next indoor range has more than 10-15 lanes...

Here is an example-at the corner of Campbell Drive and Franklin Square Drive, in Baltimore County zip 21237, there is a building available for lease. It is a former distribution center for Time-Warner . It is a multi-story, masonry construction with access to I-95, Perfect! This IS a major project, not Billy-Bob's Shootin' range, and will need (as all good projects) substantial capital investment (defined as over $3 million) to make it go.

The marketplace WILL support such an endeavor, as long as it addresses the demands of the market.... Capitalism works.

Sorry, for the speech.... But

I share this man's dream!!!

Fortunately (good and bad), I get invited to teach at many very well appointed and highly respected firearms venues nationally, and it breaks my heart when I come back to Maryland and go to my local indoor range (a very nice establishment with 10 lanes) only to have to wait 30-90 minutes to get "Swept" by irresponsible firearms owners with little to no training.

-Chuck

 

[mtnwisdom]

National Shooting Sports Foundation http://nssf.org/ NSSF's Indoor Range & Retail Development Workshop DVD Package http://nssf.org/ranges/workshop/

Excellent reference!

 

[BigT]

Find your local SCORE office and make a appointment with them.

I second Coopermania's advice - SCORE has been great for me! I just completed their 4 week starter course and I am working with a mentor now. I am also reired mil and they seem to be able to fill in the gaps for my lack of actual business experience. If your plan is sound they will let you know - if it needs some work they will let you know! I highly recommend you get involved with them... Good luck!