What To Know Before Buying A Liquor Store

Prospective business owners often find liquor stores intriguing, as the industry has proven itself stable enough to survive economic slumps. However, there are also plenty of considerations to research before buying a liquor store. The following points can be used as springboards to begin your investigation into the industry.

Licensing

Running a liquor store requires certain licenses, some of which can be difficult to obtain. Every city and county has unique laws and guidelines involving liquor licensing. In some areas, you may be able to simply transfer a license from the old owner to the new owner. In other areas, the new owner may need to apply for a new license — which may have a moratorium associated with it. It's important to educate yourself on the process in place in your area, as license issues are the leading cause of liquor store deals falling apart.

Location

As with other businesses, a convenient location is a key aspect to consider when mulling over an offer. You should seek out a long-term lease with favorable terms for a store in an ideal area. Successful liquor stores tend to combine an appealing location with a wide product selection — including lottery games and tobacco products.

Hands-On Management

A liquor store is best run with hands-on management. This is because of several factors including a large volume of cash sales, long hours, popular merchandise and a higher risk of theft. Be sure that you're able to commit time and attention to the business before buying it.

Learning about the industry will help you make an informed decision when it comes to buying a liquor store. And if you decide to go for it, be sure to protect your new business with customized insurance coverage. Call Exceed Insurance at (855) 539-2333 for more information on the liquor store insurance policies we offer.

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