What to Know Before You Buy a Liquor Store
Purchasing a liquor store can be a great way to dip your toe into the world of small business ownership. Demand for alcohol is generally pretty stable, so fluctuations in sales aren’t something to be concerned with. Your marketing techniques can be more carefree than some other business, too. All around, owning a liquor store can be a fun endeavor. But there are still key things to consider before taking the plunge… let us explain what to know before you buy a liquor store.
You’ll Need to Be Present
Owning a liquor store is one of the more demanding jobs as compared to owning other small businesses—there’s no “absentee ownership” in sight. Why? Inventory management is critical to a business that has so many cash sales, so much desirable inventory, and such high possibility for crime. When you add this to the other tasks associated with owning a small business (think management and training, accounting, purchasing, etc.), that adds up to a lot of hands-on time. Now this isn’t to say you can’t hire a trusted partner to help share in these duties. But if that’s not in the cards for you at the moment, be prepared to spend a lot of overtime running your new store.
You’ll Need to Be Unique
These days, many folks live in areas where alcohol is readily available (this author lives by 4 liquor stores in a half-mile area). If you’re planning on a location that’s already got a lot of alcohol offerings, you’ll need to consider how you’ll stand out in the market. What’s your differentiator? Perhaps you’re a whiskey connoisseur and plan to carry a wide range of them. Or maybe your expertise lies in wines, and your hope is to offer weekly wine tastings. Love cigars? Some liquor stores have walk-in humidors that attract a specific clientele. There are many ways to stand apart from your competition—be sure to nail down your niche before taking the leap into ownership.
You’ll Need Cash
This is an obvious one for any small business in its infancy, but particularly one as highly regulated as liquor store ownership. Inventory, for instance, is crazy in the liquor store business. You can expect to turn over your inventory 8 -10 times per year, which means a lot of money up front. But before inventory even comes into the equation, you’ll need to consider licenses, laws, and guidelines specific to your state (they’re different everywhere). It’s a confusing and intimidating task, which is where the staff at ARF Financial can help you learn what to know before you buy a liquor store.
At ARF Financial, we pride ourselves on hiring only the best in the business—the finance professionals who really know the industries we serve inside and out. When you work with us, we’ll assign an experienced financial consultant to work with you hand-in-hand throughout the entire borrowing process, from the initial paperwork to the approval and funding. You’ve got business goals. And our goal? To make yours come true. Learn more at ARF Financial today.