However lucrative the opportunity may seem, opening a liquor store business is not an easy task. But this article will make the process a whole lot easier for you! Continue reading to get a step-by-step guide on how you can open and run a liquor store.
Liquor store business is one of the most secure and prosperous business opportunities you can consider. And if you are thinking of investing in one, then by now, you must have figured out how the pros outweigh the cons. But we will still offer you an overview of the benefits of running a liquor store business.
Four reasons opening a liquor store business is a good idea:
- The industry is recession-proof as liquor sales go up when the economy goes down.
- The stock and inventory have a long shelf life and are easier to maintain.
- There are no off-seasons when it comes to the demand for liquor. Sure, you might sell more beers in the summers and more wine and spirits during winters, but that’s just a part of understanding the customer and demands.
- You don’t need to worry about promoting different brands as there are no obligations of brand loyalty in the industry.
However, the business does come with its sets of risks. And the best way you can protect yourself from these risk is by investing in good Liquor Store Insurance coverage. But before you jump to that step, there are some other factors that need your attention. They will help you determine the type of Liquore Store Insurance coverage you will need. So let’s get right to them.
Here is a step-by-step guide to opening a liquor store business:
Step 1: Write a business plan
Any business strategy requires a roadmap and the best way to create one is by writing down a business plan. Titled ‘open liquor store,’ you note down everything you have researched about the industry, the pros, some of which we have already provided, the cons, and the kind of investment you may require. You also need to consider the laws and regulations in your area of business, how you can secure funding for such a lucrative opportunity, and any other new business ideas that will help you prosper.
After you have gathered all this information in your business plan, you will have the knowledge to create a business plan that best suits your circumstances.
Step 2: Finding a location for your wine and liquor store
The location of a liquor store is just as important as the business plan. It will determine how much customer traffic you get on a daily basis. The best liquor stores are usually at a junction of your locality, like near a metro station, big mall, or famous club. If there are any other places that you may be aware of in your area, you can opt for them. Just follow the golden rule of business; the more people, the more opportunities for sale. Often, such locations may have a high-rent or sale price, but if your industry is as profitable as wine stores, then you can make the deductions yourself.
Step 3: Researching about licenses, permits, and Liquor Store Insurance coverage
It’s essential to have all the proper documents to run your liquor store legally. You need to do thorough research about the liquor licensing requirements in your state, city, and area before you apply to get the licenses. This can be a long and enduring process, so be prepared with proper paperwork and funds. Apart from that, you will also need to get permits from the local authorities and your chosen business location and prepare for any other legal obligations that you may need to fulfill.
After this, you can consider different insurance carriers for your Liquor Store Insurance coverage. The better the Liquor Store Insurance coverage, the more secure your business will be. So think wisely and look for the best Liquor Store Insurance coverage, including the additional coverages. Make sure your policy includes Business Income Coverage, Business Liability Insurance Coverage, Employee Dishonesty Coverage, Commercial Property Insurance Coverage, and most importantly, Surety Bond Coverage.
Step 4: Secure funding
If you’re following this guide to the tee, then by now, you must have realized that you will need to make a large investment to get the liquor store up and running. The licensing, permits, insurance, rent, renovation, equipment, and inventory will require a lot of funds. You must have already researched most of the requirements. You can look for your local dealers and suppliers that offer the services and products for the equipment and inventory. You can also approach some local interior designers or carpenters for the renovation.
After you get an idea of how much you will need to invest in each department, you will have a rough estimate of the kind of investment you will need to make. So you can consider applying for a business loan at this point and start the process.
Step 5: Start your journey as a Liquor Store owner
You have learned everything you need to know before you begin your journey. So you can bring your plan to action and open your Liquor Store business now. If you’re looking for a guide on how to run your Liquor Store business, then stay tuned. We will provide you with one in the near future.
If you need help with the specifications of your Liquor Store Insurance coverage, then our insurance experts are always here to help you. They can guide you with the Liquor Store Insurance costs, carriers, differences in plans, and anything you may need assistance with. Just get in touch with us on 855-5EXCEED or at [email protected] with your queries regarding getting insurance. We wish you a happy and successful business experience!