There’s a certain allure to owning a liquor store. Maybe it’s the fact that it provides people with something to take their mind off the stress of daily life or with something to liven up a celebration.
Utah’s Department of Alcoholic Beverage Control shares that there are 41 state stores and 111 smaller package agencies. If you’re considering to adding to that number by opening up your own liquor store, consider a few factors before venturing into the business.
Remember that in establishing your own liquor store, you would need a solid business plan along with well-stocked shelves. Specialty shops like liquor stores face a lower turnover rate, which is why you need to do thorough research to make sure that your business thrives in your intended location.
You need to have ample knowledge about your target market so that you know which products to sell and which ones you need to stock more often.
Once you have a good business plan, you need to look into funding. You may have adequate cash to put up the lease for the liquor store. But you might not have enough to include other expenses: stock, licensing, permit, and relevant costs.
In addition to getting a bank loan, you can seek other lending companies offering lines of credit and working capital loans, to name a few products. Lender ARF Financial explains that having a diverse range of products can help businesses build on success.
The right lending company can help you maximize your potential as a business.
Licenses and Permits
Each state has its own laws and regulations when it comes to putting up a liquor business. It requires obtaining licenses which will allow you to operate smoothly. Without the necessary documents, you may receive penalties and your business may close down.
You would also need to receive an approval from the Alcohol and Tobacco Tax and Trade Bureau.
Owning a liquor store, or any business for that matter, is appealing. But the prospect of financial security for your future can only happen with a good business plan, sufficient access to funding, and compliance with state requirements.