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Yes, you'll need insurance.
It would probably be best to affiliate with the IBO, at least to start since you are in the heart of IBO country. Through them, you'll be able to obtain insurance, and will have the opportunity to host an IBO Qualifier which, in your state, should be a big draw.
Reinhardt targets are nice, but also more expensive. Mckenzie targets are the standard for the IBO and probably most common because of the price and discount you'll be able to get if you purchase a large number. I'm guessing it will cost you about $5,000 initially for targets.
It will be a big investment of time and money to start. In at least three years you should be able to get your money back, if you are near a decent population. It would be wise to offer some concessions at your shoots. Bottled water and pop are good sellers, but consider offering hamburgers and hot dogs to really cash in.
The work will be extensive getting started. You'll need cut shooting lanes, make trails, make signs and markers, etc. You'll also need to keep adding to the initial shooting lanes, because shooters will get tired of the same shots everytime.
If you do get into it, then we can talk about setting up a fun, challenging shoot.
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