How to Start a Small Liquor Store

Owning a liquor store is the ideal business for many entrepreneurs, as well as for many customers. It is a business that is in demand and has no shortage of consumers. It is also a business that generates a degree of loyalty among customers, creating a base of core customers who only shop at one liquor store and shop there one or more times a week.

Things You'll Need

• Local residency
• Photo identification
• Business location
• Investment capital
• Liquor suppliers

Instructions

How to Start a Small Liquor Store

1. Write a business plan. Regardless of what type of business you intend to start, your first step should always to be write a business plan. This step will plan how your business will grow, how it will be managed and advertised, and how you will overcome common challenges, should they present themselves. You can download free templates for business plans on a number of websites, and then fill in the template with details about the business you plan to start.

2. Research potential locations for your business. You will need to pay close attention to local zoning restrictions. Most places have restrictions that prohibit liquor from being sold near schools, churches, libraries and hospitals. Other communities may also have more liquor stores than the local population requires, making it difficult to convince the city council to issue an additional license. Conducting detailed research into local regulations is a critical step to opening a liquor store.

3. Buy a location for your business. After researching local restrictions and evaluating potential properties, select a location and purchase it. You could get by with leasing the property, but keep in mind that your liquor license will be issued to the location as much as the individual. This could cause problems if you are ever in a situation where you have to change locations, which is why buying the building is preferred. If you do choose to leave the premises, make certain that you have a lengthy lease that gives you an absolute option to renew the lease at the end of the term.

4. Register your business. Registering your business makes you a legally recognized company. This allows you to pay taxes on profits of your business, and also allows you to obtain a Federal Employer Identification Number so that you can tax the salaries of your employees. Contact your local city clerk's office or county clerk's office for directions on where to go to register your business. You can also register directly through the Secretary of State's office in the state where you will be conducting business.

5. After you have established your company from a legal perspective, apply for a liquor license for that company, at the address of the building your purchased/leased. The process of applying for a liquor license varies from state to state. There is typically an Alcoholic Beverage Control Board at the State level, with local approval also needed from the local City Council. Contact the City Clerk's office in the town where you wish to do business for more information on how to apply for a liquor license in your area.

6. Open accounts with liquor distributors in your state. Every state has liquor wholesalers who warehouse and sell alcohol to businesses that hold a liquor license. You can obtain a complete list of these companies from the Alcoholic Beverage Control Board or the equivalent office in your state.

7. Advertise your grand opening. Note that there may be local restrictions on advertising the sale of alcohol. If no restrictions prohibit it, advertise the date of your grand opening in local newspapers and on local radio. It is generally a good idea to provide the community with a reason to visit your liquor store, such as offering free hamburgers and hot dogs.

Tips & Warnings

• It is almost always worthwhile to use the services of a local attorney or liquor license consultant to help you with starting any business that deals with alcoholic beverages. These individuals have more experience with the process, and typically have more insight into the people who will be in a position to approve or deny your application for a liquor license.

References

• Small Business Administration: small business planner

Resources

• Professional Liquor Store Business Plan