Did you know that there are over 46,000 liquor stores in the United States? Starting any business is a big and important task and opening a liquor store is not any different. If you are trying to learn how to open a liquor store, you are in the right place.
Keep reading our guide below on all the steps you will have to take to make your dream a reality.
Location
The first step in opening a liquor store business is to choose a location. This step is extremely important because you want somewhere that will have the traffic coming through the door. Because profit margins are pretty low you want a location that is going to make up for this in sales.
Research the average age, income, and marital status of the neighborhood you are considering.
Attorney
When you are selling something like alcohol you will have a ton of different laws to navigate through. There are plenty of laws to regulate the sale and consumption of alcohol. If you are not familiar with the lingo and the laws, an attorney will be your best friend.
The last thing you want to do is break the law and either have a fine to pay or have to shut down. There are places that prohibit certain types of alcohol or the hours that you can be open, etc.
Licenses and Permits
In order to sell alcohol, you have to register with the Alcohol and Tobacco Tax & Trade Bureau. This is the department that regulates taxes and the trade of alcohol and tobacco.
Check with your county and state to see if they require other permits or registrations in their area. Every state varies and you want to stay in compliance with the local law.
Inventory
The biggest part of your budget will go into your inventory. If your store is stocked well with everything from Glenlivet to whiskey to Scotch to wine, expect to have millions in inventory sitting on your brand new shelves.
In the beginning, opt for an inventory that will sell quickly. The more you are selling the more profits you will see and over time you can expand your inventory as you see fit.
Keep in mind that the price of the alcohol you buy is typically fixed by a distributor that has a small monopoly on a specific brand. You might have noticed that alcohol bottles are around the same price in most stores, and this is the reason. You really do not have much negotiation room on the price of each bottle.
Financing
If you do not have all the funds readily available to secure a location, take out permits, register, and buy inventory, you might need to take out a loan. The capital to open up a liquor store is pretty high because of the inventory, registrations, and permits.
If you have a solid business plan it should not be too difficult to find someone that will lend you the money because the demand for alcohol is pretty constant in every state. It is favorable for lenders to lend you money when you are able to give them projected numbers in the form of a business plan.
Employees
Before you open your doors you want to find at least one employee to help you in the beginning. Over time you can add more employees as you find the need. Take your time hiring your first employee because you want someone that is proactive and that you can trust.
You do not want someone that will steal any of your inventory, which is why taking the time to interview, perform background checks, and not rush into hiring just anyone is monumental. You also want someone that is friendly and has great customer service skills to set your store apart from the rest.
A liquor store will always need someone running it, if it’s going to mainly be you that’s fine but having an employee there for times that you can’t be there is very important. In the beginning, it’s normal for business owners to work the store full time, while you get everything figured out and running smoothly.
Have an Online Presence
Every business in today’s world should have an online presence. Most people look up a business online before stepping foot into the brick and mortar location. Do not forget to also create social media accounts for the liquor store and start a presence on review sites like Google and Yelp.
The great thing is that creating an online presence will not cost too much financially, most of it will be your time to get everything up and running.
There are laws that now allow the delivery of liquor. You might want to consider offering delivery either yourself or through third-party delivery services such as DoorDash or Postmates. Before you offer delivery please make sure you double-check with your attorney if this is an option for your location or not to avoid getting any fines.
Now You Know How to Open a Liquor Store
Now that you know how to open a liquor store, it is time to sit down and evaluate if this truly is the right business for you. This can be a very competitive niche, which means that you have to understand the small details of running a business.
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