Liberty Arms & Supply

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Liberty Arms & Supply is a federally licensed firearms retailer and shooting accessories shop in Knoxville, Tennessee, owned by David and Sarah Harmon. The store will sell new and used firearms, ammunition and accessories to qualified customers, offer transfers and consignment and teach safety classes.

Why this fits. Interest in training and safe ownership has grown, and customers value a local dealer with strong compliance and knowledgeable staff. A careful, well-run store can build trust and repeat business.

Here is what our numbers show. In Year 1 we plan about 350 firearm sales, 4,000 ammunition and accessory sales, 500 transfers and consignment services and 150 class participants. That brings in sales of $448,000, growing to $1,274,880 by Year 5. We expect a loss of about $61,500 in Year 1, a loss of about $38,000 in Year 2, a profit of about $22,400 in Year 3 and a profit of about $104,900 by Year 5. The opening inventory, the lease, staff pay and insurance are our largest costs, and the plan counts all of them.

We need $270,000 in total. Of that, $186,000 is startup costs (display cases, a vault, an alarm and camera system, a point-of-sale and records system, licensing and insurance, a lease deposit, opening inventory and a grand opening), and the rest is cash for the first months. We are putting in $70,000 of our own savings and asking for a $200,000 SBA 7(a) loan.

We are David and Sarah Harmon, owners of Liberty Arms & Supply. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Liberty Arms & Supply will be a limited liability company (LLC) in Knoxville, Tennessee, owned and run by David and Sarah Harmon. David is an experienced firearms dealer and certified instructor with a clean record, and Sarah has run retail operations and handles compliance records and the books. They want to run a safe, well-organized store.

What we do:
- New and used firearms sold to qualified customers.
- Ammunition, holsters, safes and shooting accessories.
- Transfers and special orders.
- Safety and basic handling classes.
- Consignment of used firearms.

Who we serve: Law-abiding adults, hunters, sport shooters, collectors and gun owners in the Knoxville area.

Licensing and insurance. David holds the federal firearms license (Type 01 dealer) we will apply for and maintain with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and we will register the LLC, obtain the state and local business licenses, carry firearms dealer liability, property and workers compensation insurance and follow all federal, state and local firearms laws. For every sale we require valid identification, complete the federal transaction form and run the required background check, keep the required records, refuse any sale we believe may be unlawful, a straw purchase or unsafe and report suspicious activity. The store has a written security plan, secure storage and inventory controls.

Our promise. A safe, knowledgeable store that follows every rule and treats customers with respect.

Where things stand today. The business plan, compliance procedures and security plan are written. The next steps are the federal license, the lease, the security systems and the opening inventory.

Problem & Opportunity

Gun owners and new buyers want a local dealer that is knowledgeable, safe and fair, and many stores are crowded, careless or pushy.

What customers run into:
1. Stores that treat safety and compliance casually.
2. Little guidance for first-time buyers.
3. Limited selection and high prices.
4. No safe place to learn the basics.

Why it matters. Firearms carry serious responsibility. Careful dealers protect the community, and knowledgeable guidance helps customers choose and use equipment safely.

Products & Services

Liberty Arms will be the Knoxville dealer that does it right, every time.

What makes us different:
1. Strict compliance and background checks on every sale.
2. Knowledgeable, patient staff.
3. Safety classes and storage guidance.
4. Fair prices and transparent policies.
5. A clean, secure store.

How a sale works:
1. The customer visits the store and talks with staff about needs.
2. We help choose a product and explain safety and storage.
3. We complete the required forms and background check and release the item only if the sale is lawful.
4. We follow up with safety resources and invite the customer to classes.

Why customers stay. Customers return for ammunition, accessories and training and recommend a dealer they trust.

Market Analysis

Who we serve:
- Hunters and sport shooters.
- First-time buyers and home protection customers.
- Collectors and enthusiasts.
- Students in safety classes.

How we sized the market. Our Year 1 plan is about 350 firearm sales, 4,000 ammunition and accessory sales, 500 transfers and consignment services and 150 class participants, a small share of the firearms retail market in a metro area this size. Replace this estimate with your own count of customers and dealers near you.

Why now. Interest in training and safe ownership has grown, and customers value a local dealer with strong compliance.

Competitive Landscape

What customers can do today:

1. Large sporting goods chains. Wide selection and impersonal.
2. Other local gun shops. Varied in service and compliance.
3. Online retailers with local transfers. Cheap and limited in guidance.
4. Gun shows. Wide selection and variable standards.
5. Private sales where allowed by law. Cheap and unregulated in some cases.

Where we fit. Liberty Arms will be the local dealer that does everything by the book and helps customers choose and use equipment safely.

Marketing & Sales Strategy

How customers will find us.

Before opening:
- Meet local hunting, shooting and gun safety groups.
- Publish our compliance and safety policies on our website.
- Set up a website and a Google Business Profile.
- Host a grand opening focused on safety education.

After opening:
- Ask customers for reviews.
- Host monthly safety classes.
- Partner with local ranges and clubs.
- Offer safe storage and locking device resources.
- Keep records and audits current.

What we will measure. How customers heard about us, how many visitors buy and how many customers return.

Operations Plan

How the business will run.

Season and schedule. Hunting season and holidays are busy times. We plan inventory ahead and keep regular hours with extended hours in peak periods.

Team. David runs the store and compliance. A sales associate and a part-time clerk work in Year 1, and we add staff as sales grow. Every employee passes a background check and is trained on the law and our policies.

Quality and safety. Firearms are stored unloaded and secured, ammunition is stored separately, the store has an alarm, cameras and locked display cases and all staff are trained on safe handling and the law. We refuse any sale that raises a concern.

Equipment. We will buy display cases and racks, a vault or safe, an alarm and camera system and a point-of-sale and records system.

Paperwork and money. Customers pay at the register by card, cash or check. Layaway and special orders require a deposit. We keep every record the law requires, reconcile inventory weekly and set aside money for taxes and insurance every month. We keep the books in simple accounting software.

Management & Organization

The people who will run Liberty Arms & Supply.

David Harmon, owner and responsible person on the license. He runs sales and compliance. Sarah Harmon, owner and operations lead. She keeps records, inventory and the books. (Replace this paragraph with your own background.)

Team. One sales associate in Year 1, growing to three, each background checked and trained on the law and safe handling.

Office. Sarah handles records and the office with part-time help.

Outside advisors. An accountant, an insurance broker, an attorney who reviews contracts and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner / Store Manager $52,000; sales Associate $34,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (5 months ahead): obtain the federal and state licenses, sign the lease, install the security systems, buy the opening inventory and train staff on the law.
- Year 1: about 5,000 sales and services with David and one associate; $448,000 in sales and a loss of about $61,500.
- Year 2: about 7,100 and a second associate; $639,040 in sales and a loss of about $38,000.
- Year 3: about 8,700 and a larger sales floor; $841,460 in sales and a profit of about $22,400.
- Year 4: about 10,100 and more classes; $1,047,100 in sales and a profit of about $44,400.
- Year 5: about 11,500 and a third associate; $1,274,880 in sales and a profit of about $104,900.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: sales by category, inventory on hand, gross margin, class attendance, compliance audits and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $270,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $186,000, listed item by item in the Startup Costs section: $18,000 for display cases and racks, $10,000 for vault or safe, $8,000 for alarm and camera system, $4,000 for point-of-sale and records system, $6,000 for federal license fee, entity registration and attorney review, $14,000 for dealer liability, property and workers compensation insurance, first payment, $12,000 for security deposit and first month's rent, $6,000 for signs, branding and website, $5,000 for grand opening marketing, $100,000 for opening inventory, $3,000 for compliance training.
- The cash the business uses before it breaks even, about $37,100. Sales build over the first months, so the store pays rent, staff and insurance before volume reaches its normal level.
- A cash cushion of about $42,500: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $79,600, and the three pieces add up to about $265,600, rounded up to the nearest $500: $266,000.
We are raising $4,000 more than that, $270,000 in all, to cover a slower first season than planned. With this funding, the lowest year-end cash balance is about $122,400, at the end of Year 2.

Where the money comes from:
- Our own money: $70,000.
- SBA 7(a) loan: $200,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances small businesses, backed by our savings and the equipment as collateral.

How we will pay it back. We expect a loss of about $61,500 in Year 1, a loss of about $38,000 in Year 2, a profit of about $22,400 in Year 3, a profit of about $44,400 in Year 4 and a profit of about $104,900 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 10.5% over 10 years, $2,699 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: the equipment and a personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: open with a focused inventory and a smaller sales floor, which lowers the startup costs and the loan.
- Phase 2: once sales are steady, expand the selection, add classes and staff and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your federal firearms license application and approval and state and local licenses.
- Proof of insurance and your security plan.
- Your lease or letter of intent.
- Your compliance and record-keeping procedures.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Firearm Sales: about $650 in Year 1, rising to $732; about $520 in direct costs, rising to $585; about 350 in Year 1, growing to 840.
- Ammunition and Accessories: about $45 in Year 1, rising to $51; about $30 in direct costs, rising to $34; about 4,000 in Year 1, growing to 10,000.
- Transfers and Consignment Services: about $45 in Year 1, rising to $51; about $8 in direct costs, rising to $9; about 500 in Year 1, growing to 1,300.
- Safety Classes (per participant): about $120 in Year 1, rising to $135; about $30 in direct costs, rising to $34; about 150 in Year 1, growing to 620.
- A firearm sale averages about $650, an ammunition or accessory sale about $45, a transfer or consignment service about $45 and a class about $120 per participant.
- Prices rise about 3% a year.
- Equipment ($40,000 in Year 1) covers display cases and racks, a vault or safe, an alarm and camera system and a point-of-sale and records system, and later years ($4,000, $6,000, $4,000 and $6,000) replace and add equipment.
- Pay (a full year, per person): owner / Store Manager $52,000; sales Associate $34,000.
- Other yearly costs in Year 1: store Lease and Utilities $42,000, insurance $12,000, security and Alarm Monitoring $8,000, marketing $8,000, software and Records $6,000, compliance and Admin $8,000. These grow between 3% and 5% a year.
- Customers and payers pay about 7 days after service, so at the end of Year 1 about $8,960 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs