Being your own boss should be your goal in this life. You must be a person who embraces the entrepreneurial spirit to move forward. With the current economic downtimes, it is always good to get a venture that guarantees you a steady flow of income. One such venture is a liquor store. The rising demand for wine and spirits ensures you meet your set sales target.
Being a lucrative business idea, you must have a lot of questions on how to open one. Starting a liquor store is not a pipe dream you can do it if you remain focused and determined. Also, with proper strategies and procedures, we can guarantee you a steady income from your venture in the future.
Step 1: Come Up with a Business Plan
You must have a business plan before you start any business. A business plan is an outline that maps your business. You can use a business plan template or write yours from the scratch. Either way there are fundamental questions that your business plan should provide answers to. Here are those questions that your business plan should answer.
Step 2: Name of the business
Decide on the name of your business. You should be creative when coming up with a name. Customers love those names they can pronounce and easily remember. The name should be unique and no other liquor store should be using the name. It is therefore, your responsibility to ensure that the name you choose is available as the web domain.
Step 3: Market research
Your business plan must provide justifications that there is a high demand for liquor products in the area you seek to establish the business. Also, you should have all the information about the competitors found in that area. Devise ways in which you can offer good services than your competitors. It is the uniqueness of your services that places you at a competitive edge.
As you carry out the market research, you should define your target market. In most cases, the target market should be that of people above the age of 18 years. It is highly prohibited to sell alcohol to people below this age. Contravening this rule can see your business closed and pay hefty fines.
Step 4: Costs
Your business plan should give you an overview of the expected startup capital. There are several factors that influence the amount of capital you require to open a liquor store. These factors include; location, number of staff, licensing fees, and beginning stock.
The business plan should help you plan for what you have. If need be you can use the business plan to get capital from financial institutions. Therefore, be realistic about the expenses that your liquor store incurs going forward.
Step 5: Actualize the Business plan
It is important to note that a business plan is just a piece of paper that might remain dormant to eternity if you don’t actualize it. To reap the effectiveness of your business plan, the second step is to put it to work. The first thing is to head to the ground and identify the location to open the liquor business. Your location must have a high potential to meet your sales target. Also, if you seek to get external funding this is the right time to use your business plan to convince the funding agent.
Step 6: Register the Business
After you have the capital and identified the ideal location you should go ahead and register your business. In the business plan, you must have already and identified the name. This makes it possible when it comes to the registration process. The name must be unique and no other business should be using the name.
As you register the name of the business, you should also decide on the business entity of your business. There are pros and cons to each type of entity you choose. Sole proprietorship and general partnership are some of the options you can select. If you don’t want to be held responsible when your liquor store is sued then you can choose limited liability company LLC.
You can consult the attorney or tax professionals to ensure you make the right decision.
Step 7: Get Licenses, Permits, and Insurance
It is a must for every business to have a working permit from the relevant state bodies. You must get a license, permit, and insurance to legally operate your liquor store. Insurance protects your liquor store’s financial wellbeing in case of loss. There are different types of insurance policies. You must be new to this and you don’t know the policy to subscribe. To save from all the confusion, you can start with general liability insurance.
Step 8: Open a Bank Account
You must separate your bank account from the business account. For that reason, we advise that you open a bank account specifically meant for the liquor store. With a business bank account, it becomes easy to track the cash inflows and outflows. The moment you mix the business and personal assets it becomes hard to separate them when the business is sued.
Step 9: Stock Up the Liquor Store
You can launch your liquor by stocking up the beginning inventory. Define your brand and devise ways to attract and retain customers. The process of building your brand does not happen overnight. Pay attention to customer reviews to better your services.