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The Complete Guide to Opening a Liquor Store
When people experience some progress in life, happy moments in the family, or celebrating an important date for themselves, they often want to celebrate it with a glass of quality drink. As a result, opening a liquor store is a very good business idea. However, if you already own a liquor store, or are just starting out as an entrepreneur, then you probably know how popular this business is and how fierce the competition will be.
Because of this, the most important thing you need to have is a well thought out and professionally written liquor store business plan that will prove to potential investors that it would be worthwhile to make a financial investment in your business idea. The beginning is the most important moment of the overall business strategy, so it is necessary to pay attention to this part.
You Can Buy an Already Functional Liquor Store or Start a New One
Many entrepreneurs like to start their business ventures with a clean slate and strike out in an entirely new direction. And in many circumstances, this strategy can be effective, especially if you’re trying to make a living doing something you love.
If you are looking to start a business and make money right away, then buying an existing liquor store might be more profitable for you. Many business owners also offer their liquor store licenses, as well as the inventory, along with their businesses.
Choose a Location
You’re going to need a place to sell or distribute your products, so it’s important that you choose a location that’s convenient for both you and your customers. To set up shop, you need to find a retail location that meets zoning and size requirements.
Choose a location for your business that has nearby foot traffic and enough parking for employees, customers, and deliveries. To ensure your business can pay its staff and day-to-day expenses, you must make sure your rent is affordable.
Establish a Legal Structure
It’s a good idea to set up your liquor store as a business entity if you want your business to be considered legitimate. You’re protecting yourself and the store by filling out this paperwork. The naming process takes place at this stage. In choosing a name for your business, you will have to determine what the business will be legally known as from here on.
The two most common types of legal entities are sole proprietorship and general partnership. By registering your store as an LLC, you’ll enjoy certain legal protections if your business runs into trouble. Before choosing, make sure to contact an attorney who would be happy to walk you through the entire process.
Obtain Necessary Permits and Licenses
When a business is involved with alcohol, it is important to have the right permits and licenses. You’ll need to do quite a bit of research and paperwork before this step can be completed. Getting a liquor license is expensive, so you’ll need to plan your budget accordingly.
To sell alcohol, depending on your state, you’ll have to deal with different rules and regulations. In some places, alcohol can’t be sold on Sundays, or during certain hours. To stay within the law, you must register with the bureau responsible for enforcing the laws regulating your new business, the Alcohol and Tobacco Tax and Trade Bureau (TTB).
Learn All About Your Products
Be certain to know what you’re selling before opening a liquor store. As an owner of an independent business, you may spend the majority of your time on the sales floor. So you need to know that, for example, wine and spirits are more profitable than beer. The discerning buyers who purchase them, however, are quite different from the average beer enthusiast. You will have to be able to give detailed descriptions of the alcohol you recommend to customers.
Who Will Be Your Target Audience
You want your customers to be adults who appreciate the taste of a good drink and are willing to support smaller local businesses over large ones. Do your research about the competition in the area you’re considering before you invest in a retail space. If you’re interested in learning about their products, visit their website or ask someone for information. Once you’ve done your research, you’ll know what to stock up on.
Final Words
Even though a liquor store is a small business, it can still be quite successful. As you learn how to run your own liquor store, you will inevitably encounter everyday challenges faced by small business owners. You knew the road was going to be tough, but you’re prepared for it. Stay positive and carry on as you build your business into something more than just a new venture.
