‍At a Glance

While working as an insurance agent, John Hwang began exploring ways to turn his passion for firearms into a money-making opportunity. He launched Rainier Arms in 2005, growing the business from a small basement operation into a full-scale enterprise with locations in Auburn, Washington; Wichita; and Oklahoma City. Learn how John's approach to entrepreneurship guided by financial discipline, a "how can I?" mindset, and real estate investment made Rainier Arms a successful company generating $50 million in revenue at its peak.

Who is John?

Meet John Hwang, Founder of Rainier Arms!

About Rainier Arms

Rainier Arms was started by enthusiasts for enthusiasts. The company specializes in high end AR15s/M16s, parts & accessories. "If we won't use it, we won't sell it."​ Founded in 2005, Rainierarms.com already has more than 6000 unique products, and is growing. Rainier Arms technical advisory team consists of enthusiasts, law enforcement, & military personnel that continue to make its offerings unique and desirable in the marketplace.

John’s Entrepreneurial Journey

John Hwang's shift from casual gun buyer to firearms business owner began while he was working as an insurance agent. "All of the money I was making was going back to the agency. I didn't want to use any of that profit to buy guns," he recalls. "Because I'm an entrepreneur at heart, I called up gun manufacturers and asked what it would take to become a dealer." The answer: a business license and a minimum order of five units to unlock dealer pricing with a 25% discount. Hwang sold four of the five guns through online communities, effectively getting his own for free.

John established his company in 2004 under the name Tactical Solutions, a widely used term at the time that helped the business gain traction and visibility, before officially launching Rainier Arms in 2005. Reflecting on the last 20 years, he says, "I found a community made up of the best, kindest people on earth – the type you'd want as your neighbor. In the early days, we would accept checks, even personal checks. And I've never had a personal check bounce in the gun community – this was not always the case in insurance."

Business Growth and Revenue Strategies

Scaling Business: From Small Basement Operation to Full-Scale Warehouse Enterprise

John used $100,000 from refinancing his house to invest fully into Rainier Arms. "I was doing business out of a small room in my basement," he remembers, noting that he only had enough product to cover part of a wall. As profits from sales started coming in, he bought more product, and operations began to fill the room, then the entire downstairs. "Eventually, my wife kicked me out," he shares. "I started renting a small warehouse, and the rest is history. From a solo entrepreneur to, at our height, doing $50 million [in revenue] with 150 employees."

Key Factors Boosting Growth at Rainier Arms

The key strategy John focused on to build his business was to buy real estate instead of paying rent. "I started buying assets as soon as I could," he explains. "I got out of my rent, bought a small building, and paid myself rent." For example, a $1 million building purchased with a loan could appreciate to $2 million while the principal is paid down, creating significant equity. During a recent period of losing millions, John sold a building to pay off debt, recalibrate, and ultimately avoid business failure.

Building brand visibility and an audience through social media is also necessary to develop a successful business. "Social media is very important for growth and development," John emphasizes. "Whether you want to do it directly or have other people come in and do it, you definitely need a social media presence today."

Evolution of Company Structure and Leadership

Originally, Rainier Arms operated from a warehouse and retail location in Auburn, Washington, bringing in an average of $20 million with 10 to 15 employees. "Now, I'm spread out. In addition to Auburn, I have a location in Wichita with a retail store and a gun range, and a retail location in Oklahoma City," John says, noting that online business has scaled back due to growing competition.

After nearly 25 years of heading Rainier Arms, John was ready to pass the reins to his sons. Their hesitation to take on leadership responsibility changed once their father's company began to show signs of struggle. "Maybe it's because they realized they might not get a fat inheritance," John jokes. "They jumped in, started working hard, and now they're running the business like it's theirs. They've really turned the company around in the last year or so, and I'm really proud of them."

Innovation and Adaptability

John’s Entrepreneurial Philosophy: Mindset & Execution

It's common for aspiring business owners to believe that without enough money and resources, certain goals are out of reach. John believes a shift in mindset from "I can't do this" to "how can I do this?" is critical to becoming a successful entrepreneur. "You start thinking, 'Maybe I can do this.' Nine out of ten times, those 'maybe I can do it' moments will fail, but one in ten will succeed," he says. "And that's the only difference between somebody who has succeeded a little bit in life and somebody who hasn't."

Entrepreneurial Success: Financial Discipline, Taking Risks, and Real Estate

To be a successful entrepreneur, John stresses, "you need to minimize your life as much as you can and have as small of an expense per month as possible." When he started his company, John pared his expenses down to little more than a basic phone, knowing that this would let him save money even on a moderate income. "You start to realize that you don't need a whole lot to survive. If you don't need a whole lot to survive, you're able to take more risk in business," he says.

John invested his saved money into real estate, developing strategies for creatively acquiring properties, such as assumable loans and owner-carry deals, and generating revenue from them. "The best way that I was able to buy homes later on was through lease-to-own," he says, explaining that instead of renting a house for $2,000, he would rent it out lease-to-own for $2,500, in addition to collecting a $5,000 to $10,000 security deposit. "Now you're having cash flow every month. And the beautiful thing about lease-to-own is that people take care of the property because they believe it's their house and that they're going to be able to keep it." However, in his experience, 85% of the time, tenants don't end up buying. It only takes one property to get started, and making mistakes is inevitable. "The great thing about real estate, all those mistakes get fixed by themselves," he emphasizes, explaining that wealth builds slowly over time. "I paid $315,000 for a $285,000 property. Ten years later, I sold it for $675,000."

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