liquor shop business plan in india

Wine Shop Income Per Month [Is It A Profitable Business?]

Table of Contents

1. How Much Money Can You Make Owning A Liquor Store?

2. owning a liquor business in india, 3. liquor shop profit in india, 4. profit margin in liquor store in india.

5. Profit Margin In Liquor Business & Factors Affecting It

6. How Much Does Liquor License Cost In India?

7. what are the different types of liquor licenses, 8. wine shop license price in india, 9. how to get a wine shop license in india, 10. documents required to get a wine shop license in india, 11. key takeaways.

Can you think of one business that is never affected by the many recessions that hit an economy? Well, yes! You guessed it right– the liquor business! There is no dearth of beer and liquor shops in India, it always is looked at as a profitable business. But, is it so? Let’s understand the economics of the liquor industry and how profitable a liquor or beer shop can be.

One of the main driving factors that make a liquor business a popular one is a never reducing demand. In a young country like India, craft beers have gained popularity. This has given rise to many microbreweries and set off a virtuous cycle of increased demand. Before we understand whether a beer/liquor shop is profitable, let’s look at what goes into setting up this business. You must know what your target market is, and who your customers are.

It is rather obvious that your target customers, in this case, are people who prefer to buy their drinks and enjoy at home with friends and family, rather than a drink at a bar or lounge. In India, the target includes this category of people, and a large part of the target customer are youngsters who enjoy house parties. Another important aspect to take note of before setting up your business is to research what the most sought-after drinks are. The right menu of drinks goes hand-in-hand with the right target group.

Getting this combination right is the key to a successful liquor or beer shop. The next important factor is the perfect location. You would want your shop to get the most attention, and be located close to residential areas or business districts for high sales. One of the most important factors to pay attention to, while setting up a liquor or beer shop in India, are the licenses and permits. Getting these permissions and running your shop as per the rules and regulations of the state and central governments of India is a bit of a challenge for most people setting up their first shop.

Getting right to the point– Is a beer/liquor shop a profitable business in India Well, the answer is Yes! No matter what the country’s economic state is, the government makes a lot of profit by just keeping liquor shops open. One of the most recent incidents that prove this, is the fact that liquor shops were the first ‘non-essential’ shops that were opened by the different states as part of ‘unlocking’ during the coronavirus pandemic in 2020. This clearly shows the huge demand for liquor shops.

Here are a few reasons that make liquor shops a highly profitable business:

1- High Public Demand

• No matter hail or storm, recession or a booming economy, liquor shops are always popular among people.
• While those with money enjoy a couple of drinks to celebrate and relax, those with less money splurge their scanty savings on buying liquor to dunk their sorrows in.
• So, no matter what happens in the country, your liquor shop is sure to stay afloat, even in the most uncertain economies.

2- High Profit-Making Business for the Government

• The government of India levies huge taxes on liquor and imposes hefty amounts of money to obtain a license or permit to sell liquor.
• For this reason, the liquor business per se is extremely money-making for the government.
• When the country's economy was dwindling, and the states were running out of money in their coffers in the middle of the covid-19 pandemic, they allowed liquor shops to open, as that was a sure-shot way to fill in the state coffers.

Also Read: Whisky Brands in India

3- Huge Margins For Liquor Shop Owners

• Just as the government makes huge margins on liquor sold in shops, liquor shop owners have a lot of margins to make profits.
• This enables liquor stores to expand their range and variety of liquor, or expand to set up more shops in different localities.
• All in all, a great way to make money!

4- Recession-Proof Business

• As we have seen earlier, a liquor shop is profitable at all times and is recession-proof.
• In fact, with more stress comes people’s dependence on alcohol, as it enables them to relax and bust their stress.

5- Year-Round Demand

• There is always a demand for alcohol.
• Some months the demand rises, whereas, during the religious months of Ramzan and Navratri or other festivals, the demand drops.
• However, there is always a consistent demand for liquor, and your liquor store is never going to run dry of customers.

5. Profit Margin In Liquor Business & Factors Affecting It

While setting up a beer/liquor shop is profitable, there are a couple of factors that affect how profitable your liquor shop is likely to be.

1- Competition

As we now know, liquor shops are highly profitable in India. This has resulted in many stores cropping up in neighbourhoods close to where people are more likely to buy liquor. You are always going to have to compete with nearby liquor stores. However, to keep up the sales numbers and profits, you must have great offerings to your customers to stay ahead of the competition.

2- Sales And Service Strategies

While your basic goal is to serve your customers and sell your inventory, you must devise your sales and service strategies. For example, with alcohol delivery becoming legal in the country recently, adding ‘home delivery of alcohol’ to your list of services will bring you lots of loyal customers. Especially if your neighbouring liquor shops are not providing this service. Another great sales strategy is to run ‘Best Offers’ that are attractive to your customers and brings them to your shop.

3- Country’s Economic State

Though the liquor business is recession-proof, at certain times of the year when the markets plunge, liquor sales do take a slight hit. However, this is more of a speed-breaker and not a complete standstill for your shop.

4- Product Costs & Price Points

A differentiating factor that can make your liquor/beer shop business profitable is your product costs and your price points. Getting your Math, strategy, and sales on-point will help you turn a very normal liquor shop into a mega money-minting machine.

5- Range Of Liquor Available

To make lots of profits in your liquor/beer shop, you must ensure you have a good range of liquor and a good mix of different types of alcohol. The two reasons for this being:

• More range would attract different types of customers
• More liquor variety would ensure a good amount of profits, as different alcohols have a different profit margin.

First things first you absolutely need a wine shop license to sell alcohol. The price of a liquor license in India varies from state to state. A wine shop license or regular liquor license monitors the following things:

• Which businesses can sell alcohol?
• Where and when the companies can sell alcohol?
• Charges and quantity of alcohol being sold?
• Type of alcohol being sold
• Manufacturing and distribution of alcohol
• Who to sell the alcohol?
• Beer & Wine Shop License ( mild liquor )
• Restaurant Liquor License or All-Liquor License
• Brewpub Liquor License ( For microbreweries )
• Tavern Liquor License ( 50% profit from liquor )
• P-10 ( Serving alcohol at a particular function in the city )
• P-13 ( Hotels serving Imported liquor )
• L-10 ( For Retail selling )
• L-9 ( Retail selling of foreign liquor )
• L19 ( Clubs serving imported alcoho l)
• L3/L5 ( Hotels serving imported liquor in the room service/bars )
• L1 ( Wholesale liquor supply to other license holders )
• L6 ( Retailers of Indian liquor and beers )
• Temporary Liquor License: For less than 100 members – INR 7,000 and for more than 100 members – INR 10,000.
• FL-4 License: For private flats, resorts- INR 13,000.
• Permit Room License: For restaurants and wine/beer shops INR 1,50,000 and to serve in permit rooms – INR 5,44,000

Other prices include anywhere between INR 5000 to INR 15000 depending on the state. It also depends on the tier type of city on a yearly/annual basis like:

• Tier 1 Cities- Rs. 10 Lakh per year
• Tier 2 Cities- Rs. 7.5 Lakh annual
• Tier 3 Cities- Rs. 5 Lakhs per annum
• Tier 4 Cities- Rs. 2.5 Lakhs per year

It's best to consult a lawyer before applying for a liquor license in India . Other things include-

• The type of license.
• Then visit State Excise Department’s official website
• Download a Wine Shop License application form
• Fill in all mandatory information like- premises for business, type of license, background details, and type of liquor.
• Submit supporting documents to the authorities.
• Pay the prescribed application fee during the time of submission.
• After getting verified, you'll get a notice at your submitted address as proof.
• If no objections occur, you will receive your liquor license.

Every state has different requirements in terms of liquor license. This is a standard list of documents you will need to get a wine shop license in India .

• Affidavit confirming applicants no pending dues
• Affidavit ensuring applicant doesn't have any criminal records
• Applicant's Recent photograph
• MOA and AOA for companies
• Application form with personal plus business details
• Latest ITR copy
• Municipal corporation’s & Fire Department’s NOC
• Business address proof or premises proof
• Applicant’s Identity Proof
• Applicant’s Address proof
• If you are looking to set up your own beer/liquor shop, it is a great investment.
• With a growing young population in the country and increasing disposable income in modern, nuclear families, the culture of drinking is definitely on the rise.
• Be it restaurants, clubs, bars, or at home; you are surely never going to run out of customers asking for their favourite poison.
• Get out there, and seal your profits!

1) How Does the Beer Industry Work? 2) How does the cigarette industry work? 3) How does the packaged food industry work? 4) Offline Business Ideas In India

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Q. How much does a liquor license cost in Mumbai?

Ans- A liquor license in Mumbai costs around 15,000 Rupees. It also requires obtaining temporary party permits for bigger parties or a club license to get approved.

Q. Can we sell liquor online in India?

Ans- No, Legally you are not allowed to sell liquor online in India. No laws have been previously formed regarding the same, every state has different rules in terms of liquor control.

Q. How much profit does a liquor store make in India?

Ans- In India, on average a liquor store can incur profits of around 4 to 5 Lakh rupees. It also depends on the type of store, whether it is an all under one roof kind of store or just a standard beer and wine shop. The profit margin remains higher on imported alcohol.

Q. What is the profit margin on alcohol?

Ans- Standard liquor margins can range up to 80 to 85 per cent, while draft beers hold a margin of around 80%. For bottled beer brands the margins come around 75% while the general average comes to 60 and 70. Imported liquor have more margin than domestic alcohol brands. per cent

Q. Is a liquor store a good investment?

Ans- In a generic statement, liquor stores are amongst the best retail investment compared to other business investment opportunities. It pays off generously in the long term.

Q. Is a liquor store a good business to start?

Ans- If you have got a good amount of funds/investments a liquor store can be amongst the most profitable and stable businesses to start. But always be sure to weigh the pros and cons to enter this industry before putting in all your money.

Q. How To Grow Your Liquor Store Sales?

Ans- These are some of the most-effective tips to help you grow your liquor store sales :

• Offer a variety of products plus offers in-house.
• Host workshops, events, and impromptu classes.
• Reach out to bars, pubs, bistros, hotels, and more to increase business partnerships.
• Find reliable financiers/investors.

Q. How much money do you need to open a liquor store in India?

Ans- The initial cost of starting a liquor shop in India can range anywhere from 50 Lakh Rupees to 70 Lakh Rupees. Some major factors being- location, licenses, permits, taxes, and brands.

Q. Can I sell drinks online?

Ans- There are some websites and online applications that let you set up an online wine store in India. Other than that, alcohol is not officially allowed to be on other food-based apps like the USA for sale commonly.

Q. How do I start a wine selling business?

Ans- Follow these steps to understand how to start a winery in India:

• Step 1- Choose a Business Entity & Business Name
• Step 2- Create a Solid Business Plan
• Step 3- Obtain all your Licensing, Taxes, and Permits.
• Step 4- Finalise a Budget
• Step 5- Get funding/investors for your Business.

Q- How much does it cost to get a liquor shop permit in India?

Ans- Getting a liquor shop license and a permit is a slightly expensive affair. It involves depositing a huge sum of money to the state government where you wish to set up your liquor shop.

Q- What is the profit margin for selling beer in India?

Ans- Profit margins of selling beer in India varies from state to state but can lie anywhere between 23-35% on the MRP. For example, the taxes levied on alcohol in states like Goa is much lesser. Therefore, it is very profitable to sell liquor in these states.

Sukanya Mukherjee

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How to Start a Liquor Store Business in 10 Simple Steps

Do you want to start a liquor store business? If yes, you have landed in the right place. Here in this article, we list down all the important steps one must follow to start and run a successful liquor shop.

It is without saying, a liquor store is one of the most profitable retail businesses across the world. Liquor has a steady demand both for personal consumption as well as for parties and social gatherings. However, you have to do good research on several things like the location, the demand of a particular type, target customers, and legal formalities.

You have to follow certain steps to start a successful liquor shop. Let us check out the most essential steps below:

Here are the 10 Steps to Start a Liquor Store Business

1. create a liquor store business plan.

The first thing to do after you decide to start a liquor shop is to craft a well-researched business plan. It is better to write down the business plan thoroughly so that everything is clear in front of you.

Your business plan should contain the necessary points for starting your liquor shop, like the source of funding, amount to be invested, inventory, accounting method, target customers, pricing, break-even period, and profit.

Your business plan will also have the details of the number of persons you wish to hire for your liquor shop and the specific role they are going to play. Focus on your role and responsibilities also. You can also take the help of experts for a proper business plan.

Some of the basic topics that must be addressed in your liquor business plan document are as follows:

• Initial and recurring costs
• Target customers
• Pricing strategy
• How do you plan to sell liquor to prospective customers?

2. Choosing the location of the Liquor Shop

Before you go ahead with the plan or invest money, you have to select a location for your liquor shop. Remember, a lot depends on the location of your shop.

Try to find out a populated place where there are not many liquor shops nearby. It will be easy for you to develop your business in such an area. Do good research on the drinking habits of the people of the area, so that you can stock up your liquor shop accordingly.

Do not go to a very large place or an expensive place at the beginning. Start with a small shop and grow up your goodwill.

3. Choosing the Name of your Liquor Shop

Find a suitable and well-thought name for your liquor shop. Remember, people will recognize your shop by name. So, think carefully and find out an attractive and easy-to-remember name.

Do not forget to check the availability of a similar domain. Make a list of a few names so that, in case of unavailability, you can continue with the other name.

Check:   How to Name Your Business

4. Legal Formalities for a Liquor Store Business

After you finalize the name of your business, you have to register your liquor shop as a business entity. You can choose from different types of business organizations as provided by your respective state or country.

For example, if you are from the United States, forming an LLC is a good option as helps in protecting your personal assets and makes the annual filing of taxes easier.

The next step is to obtain the necessary permits and licenses for your liquor shop as per the Government and local administration norms. You have to register for taxes. Another important formality is to buy proper insurance for your business.

It is highly recommended to hire a competent lawyer as liquor shop businesses generally face a lot of restrictions from local authorities in most parts of the world.

5. Opening a Business Bank Account

It is extremely important to open a bank account in the name of your business. This will help you to keep track of the capital, fixed and variable expenses, and profits of your liquor shop.

6. Create a Marketing Plan

Creating an effective marketing plan is one of the most important factors for the success of a liquor shop business. You have to chalk out effective marketing strategies suitable for your liquor shop. Do good research on the choices of the people near your liquor shop. Try to make your inventory according to that.

Try to remember individual clients and their preferences as much as you can. This gives a personal touch to the business, which brings back the customer again.

Try to offer some discounts or gifts with the purchase of a particular volume. Also, try to keep some accompaniments with drinks like dry snacks or juices, etc.

7. Create a Website

Having a website is essential in today’s business. This is also true about your liquor store. Make a website in the name of your store and keep it updated with your stock, new additions, discount schemes, and special events.

Make your website equipped with your inventory and also arrange for online sales through the website. Also, make arrangements to receive online payments.

8. Advertising & Publicity

Advertising and publicity of your liquor shop are very important for the growth and revenue of your business. Share the link to your website on social media accounts.

You can also open social media accounts in the name of your liquor store and keep them updated. Carry interviews of your satisfied customers on those pages which add to the publicity and credibility of your business.

You can advertise your liquor shop through flyers and posters in the area of your shop. Flex and glow signs are also effective tools for advertisement and publicity. Tie-ups with local bars and restaurants also boost your sales.

Go for some sponsorship in local events like sports competitions or corporate parties and events. This will help to spread the name of your liquor shop.

9. Setup Accounting Processes

From the very beginning of your business, you have to keep a good and effective accounting system . This will enable you to understand the flow of funds, expenses, profits, daily sales figures, and the shortfalls if any.

You need the service of an expert in this regard. A close watch on the cash transactions and the inventory are also to be maintained for the smooth running of your business.

10. Profit & Growth

There is a good scope of profit in the liquor shop business as people always need drinks, no matter what the season, condition, or occasion. You just need to slot your liquor shop in the right place and make people aware.

Normally, the approximate margin of profit is more than 25%.

As the prices are fixed, your margin is also more or less fixed.  Moreover, there is a good difference between the price you pay to buy the drinks and the price at which you sell them.

The liquor shop does not need many employees. You need only a handful of employees. So, there is not much expense needed for the salaries of staff.

After your liquor shop has a steady client base and several satisfied and captive customers, you can plan on the expansion of your business by adding more expensive and premium drinks to your inventory. You can also open more branches of your liquor shop and establish your growth and maximize your profit.

Effective Tips to Start a Liquor Shop

A) some knowledge about liquor.

Before you open your liquor shop, do some serious research on liquor: its types, brands, composition, and demands. These impress your customers and often help first-time buyers with proper guidance.

b) Research about the Local People

After you choose the location of your liquor shop, find out the profile of the majority of people in that area. That will help you decide on your inventory as per the choice of your prospective clients.

c) Make your Liquor Shop Different

Opening a liquor shop and selling popular brands will not fully serve the purpose of standing apart. Try to do something unique to build up your USP. You can hold discussions on the history and heritage of different kinds of drinks or hold special weekend sessions on some drinks etc.

d) Seek Suggestions

Give the Utmost value to the opinions of your customers. Ask for their opinions about your liquor shop and seek their suggestions regarding the steps you should take to improve the quality of service or the inventory of your liquor store.

Frequently Asked Questions

How much investment is needed for a liquor store in the us.

Depending on the location of the liquor shop, the cost may be a little higher or lower. However, to start a liquor shop in the US, you need approximately $100,000.

How much investment is needed for a Liquor Shop in India?

The location factor remains in India also. The investment needed for a liquor shop in India is approximately more than 50, 000,00 INR.

How to Get a Liquor License in the USA?

In the United States, each state issue liquor licenses separately. Most of the licenses are under the jurisdiction of the laws of that particular state or area. So, you will need a liquor license from the authorities of the state where you want to set up your liquor shop.

What is the cost of a Liquor License in the USA?

It varies from state to state. Approximately, full liquor licenses can vary from $12,000 to $400,000, while beer and wine liquor licenses can be just $3,000. You have to renew the license for between 1 to 3 years.

How to Get a Liquor License in India?

In India, you have to get a liquor license from the Excise Department of the concerned state, where you want to set up your liquor shop. Remember, there are few states in India where alcohol is banned. These states are Bihar, Gujarat, Lakshadweep (Partial), Manipur (Partial), and Nagaland.

Is the Business of Liquor Store Profitable?

It is a very profitable business. After deducting the expenses, it gives you a comfortable margin of profit.

What is the Profit Margin of a Liquor Store?

The profit margin of your liquor store may vary between approximately 25-27%.

How to Get Funds for the Liquor Store Business?

First of all, you need a very good business plan. You can sell or keep your assets as collateral. If you have a good credit record and are able to give 10% of the estimated cost, you can apply for a business loan.

How to Procure Inventory of the Liquor Shop

Inventory is the biggest expense head, but you should spend judiciously. Start your inventory by stocking up on quick-selling items. After the sales increase, try to make it bigger with more varieties and expensive items.

How to Control the Inventory of the Liquor Shop?

Controlling inventory is very important for taking stock, analyzing sales, deciding on restocking, and most importantly, checking misuse or theft. You can do it manually, by counting the stock after closing the shop, by using several people to count and count according to the varieties. Otherwise, you can take the help of software for inventory count.

This is all about starting a liquor shop. With some research and knowledge and of course proper funding and planning, you can succeed in this business.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.

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How to Start a Wine Business in India? | Complete Guide on Investment, Licensing, Tips & More

Abinaya Arangarajan

Some businesses take a perennial time as well as taxing tasks to succeed well in the future, and one such business is the wine business. Just like farming, the wine business also takes time, say, for 3-5 years to get the implacable extraction of the grape. However, the return on investment that we get from a wine business is twice or thrice the amount we initially invested in it.

Besides, owning a wine business brings prosperity as it is an elite business, where royal or rich people rely more on it. Generally wine business or winery was quite a renowned business in the 18th and 19th centuries, as it is cited that those who are owning any wineries or a wine business must be highborn.  

As we know in history, people prefer wine to any other drink as it is considered to be a royal drink that literally took more than 100 years to mature or reap. Additionally, commencing capital in a wine business or winery is legal but requires plenty of documents to be approved as it is illegal to sell wine in some countries.

How to Start a Wine Business in India? Investing in Wine Business Licensing Requirements of Wine Business FAQ

How to Start a Wine Business in India?

Determine the investment required.

As is the case, investing or starting a wine business requires a copious amount and the result will be manifest in the future, only if the wine augments the brand. Because prepping wine is a laborious activity as it takes more than years to get ready. If your ancestors owned any wineries, then it would be good as you don’t have to invest any beans in it.

There are two ways, where a businessman or an entrepreneur can look into starting a wine business- either lending land to harvest wine or buying a thriving winery.

In case, you have superfluous funds in the idea of running a wine business, then acquire wineries- where the building or a place produce fine wine for years. So, plan according to the capital you want to invest in the wine business.

Find a suitable land for the wine business

Select a place that should be soil friendly and large square feet where the grape should grow fine as well as enriched. The place should be suitable for a warehouse along with a tasting room, where matured grapes can be tested & stored for the procedure of wine. Make sure you have at least 20 acres of land. Furthermore, Examine the winery or wine production place that should be in suitable vegetation as it will generate seasoned grapes.

Get approval

As I said before, planning to start a wine business demands a lot of approval, documents and permission from the government. Besides, the wine business should apply for a permit and register to pay the tax. Until the licence is not procured, the wine business or wineries have no right to proceed with its market of wine in the country.

Arrange business requirements

In order to trade your wine in the market, you just need transport to transfer or carry out the wine, wine crates to store the wine, tanks in case to preserve it for years, wine pallets to arrange the wine according to their categories like- number of years, flavoured wine or enriched wine etc.

Apart from that, a wine business requires an office to maintain its record of transactions like a computer, staff to supervise the office as well wine production. The investment required for the wine business is approximately 4 crores to 7 crores.

Connect with clients via retailers

Before marketing your wine to anyone, decide whether you want to trade your business through retailers or wholesalers or direct to the consumer. If you are looking for a retailer, there are plenty of opportunities knocking at your door, where those potential retailers connect your business with expecting events such as weddings, ceremonies or jubilant celebrations. Because these events demand drink and that too fine-flavoured wine. In this way, you can also earn reputable & credible clients for your future business transactions.

Select a brand name

Selling wine itself is an elite business in some countries, but that ilk of wine should come from a brand name. For instance, E & J Gallo stands as the top-notch wine production company in the whole world. And people would definitely go for E & J Gallo wine, as it tastes heavenly plus branded for sure.

Broaden your channel of distribution

Owning a wine business connects you widely particularly among high society because in history producing & selling wine was considered a reputable business. Besides, starting a wine business casts you as an aristocracy in the eyes of highborn society.

Just investing money in the wine business and waiting to burgeon is tantamount to waiting for the grape to reap or mature. Think of an ingenious way to sell your wine like making special offers for your potential & first-ever customer to bring trust in your business .

Furthermore, advertise your business in a reliable and creative way like selling a romantic-flavoured wine to a couple by coming up with a romantic tale behind the wine taste.

Investing in Wine Business

Draw a budget for your wine business and according to that, plan and work. Investing a plethora of money in the wine business really reflects prosperity earnings or returns in the future. The price of the land you are looking for in a wine business is determined by the square feet and whether there is the availability of necessary amenities for the production of wine.

Generally, investment in the wine business starts from approximately 4 crores to 7 crores. as ferreting a suitable land to set up the prepared wine to the market requires tons of money. On the other hand, you can just buy thriving wineries to expect profit soon, and demand a lot more money than starting up your own wine business; But, you can get up to 50% of the loan.

Licensing Requirements of Wine Business

A wine business is tolerated only if the wine label must be approved by the government of the Food Safety Standards Act. Besides, the wine business will function, only they have registered in Alcoholic Beverage Control by concurring all terms and conditions of the state and local of India. The license is given to the merchant only if the payment of sales charge, excise tax and other related taxes are paid.

If your wine business is trading goods and services overseas, you should get the license. Pay off the state and excise sales tax with the help of prescribed rates.

The license for the wine business is valid only for a period of 1 year, and the license should renew each year in order to function wine business in the nation.

According to GST , all the alcoholic products subsumes- Wine is levied tax at 18% rate and state & local excise tax differ in each state of India but doesn’t exceed 25%.

Investing in a wine business will cherish your life in the future, remember that grapes take time to mature. But in case you want to meet profit soon, then go for wine vineyards or wineries as they have connectivity in the market for years because of the business existence period. Once, you are well developed in the wine business and there’s no turning back because you will have already reached one of the top-richest businesses in the world.

How much does it cost to start a wine business?

An investment of approximately 4 crores to 7 crores is required to set up a wine business in India.

Is winemaking profitable in India?

Yes, winemaking is a profitable business in India but requires high investment.

How much does a wine shop owner make in India?

A liquor store owner in India earns an average profit of 4 to 5 lakhs per month.

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How can I start a Wine Shop in India – Detailed Guide

“Drinking liquor has always been a stigma in Indian Society. Drinking is common in European countries. They often drink wine, beer, vodka, scotch, rum, etc. Due to globalisation and cultural exchanges, many things have changed in Indian Society. Now, drinking in higher-class society has become a normal thing and is not considered taboo.

They often drink at parties, marriage, office parties and event celebrations. Consumption of liquor has also increased in middle class society. A few decades ago drinking  was limited to the higher class of society and was the symbol of royalty.  Drinking was limited in middle class society and was considered as a stigma  in lower society. 

Due to globalisation, change in corporate life, drinking has become common in middle class society. It is now accessible to lower society.  Due to the rising trend of liquor in lower and middle class society, the demand has multifold increased. These days wine or liquor shops are doing a huge profitable business.  Now, selling liquor is also not considered a stigma in society.

If you want to start a new business, the government has eased out the law of selling liquor. So, why do you delay,  get the licence and start a huge profitable business?”

Wine Shops and Law in India

Opening of liquor shops is restricted in every part of the world because it is taken beyond the limit, it leaves a bad effect on health. Besides individual health, it creates a huge impact on the family and finally on society. Therefore, drinking of liquor is restricted under the law of the land of every country.

Read More : Top 11 Tea franchise in India

India is a temperate country and its temperature is quite pleasant. Therefore drinking liquor has not been very common in India. European countries are seasonally very cold. To keep the body warm, eating meat and drinking wine is a common culture of Europe. But in India, due to its climate and culture, drinking liquors has been always taboo in society.

Earlier there were strict laws for consumption of liquor in India.  To sell alcohol in India,  you must have a licence. At present time, liquor is served in bars, hotels, certain restaurants, clubs, pubs, and discos. Hence, entrepreneurs must get a wine shop license from the Excise Department.  Importing and exporting foreign liquor are under the Central Government control whereas selling or supplying of liquor at local level comes under State Government.

There are different types of licenses issued for selling liquor. The licence category depends upon the type of shop, nature service and business type. Here is a list of different types of licenses  issued by the excise department to operate selling and supplying of liquor in india.

Type of liquor licence in India

• Beer and Wine Shop Licence: This category of licence is issued by the excise department for selling mild liquors, such as- beers and wine, vodka etc. Beer and Wine Shop license is not applicable for hard liquor.
• Restaurant Liquor License or All-Liquor License:   This category of licence puts a limit on the selling of liquor. A restaurant can not sell more than 40% of Restaurant income.
• Tavern Liquor License: Issued to the establishments that get half their profits through the selling of liquor.
• Brew up Liquor License: This licence is issued to those that make/ brew their wine and beer.
• L1: is issued for Wholesale license to supply liquor to other license holders.
• L3/L5: under this category of licence hotels are allowed to serve foreign liquor to customers in their rooms/in bars(L5)
• L6: Applicable for retail vendors of Indian Liquors and beers.
• L19 : is issued to clubs that serve foreign liquor.
• L49: under this category licence is issued to a person who wishes to serve liquor at a party.
• L-9:   for retail sale of foreign liquor
• L-10: is issue for retail sale of Indian and foreign liquor
• P-13: is issued to hotels for serving foreign alcohol for a specific function
• P-10:   is issued to serve the alcohol at a particular function within the city

Document Required for getting Wine Shop License

Selling and supplying of liquor at local level is controlled by the state government. Each state has its own provision to regulate the selling and supplying of liquor in India. Hence numbers of documents and type of documents required for obtaining licence could be different. However, there are certain essential documents that are required for every state to issue a liquor licence for selling liquor. Below are the names of the document required for liccese-

1. Identity proof

2. Address proof

3. Aadhaar Card

4. Address proof of Premise/shop where for licence to be obtained

5. NOC from Municipal Council or Corporation and Fire Department

6. Application letter with personal details

7. Getting MOA and AOA for the company

8. ITR copies for last 3 years

9. Photographs

10. An affidavit confirming that the applicant has no criminal record.

11. An affidavit declaration confirming no due is pending to applicant

How to get a Wine Shop Licence in India

Before going to apply for a licence, an applicant should follow the following steps in order to get a license.

• Take the consultation from a professional lawyer. The lawyer will explain what are the laws and regulations about selling and supplying liquor.
• After consultation, decide the type of business you want to start off.
• Go directly to the Excise Department office or  apply online whichever is available and applicable.
• From the website, download the application form, take the print out.
• Fill in the Application form correctly.
• Paste the photographs on Application from wherever is required
• Attached the required documents
• Go to the excise department and submit it
•  Pay the Application fee to the department
• The excise department, after reviewing documents and application details, issues the licence.
• Or Department may asked background verification certificate
•  If the department asks for any further documents or details. Applicants must provide them.
•  If the Department is satisfied with details and documents and affidavits, then issues the licence.

Wine Shop Licence Fee in India

Licence fee varies from type of licence, business size, nature of business and nature of liquors are served or supplied. Below is the list of licence fees applicable in order to run a liquor business.

Temporary Liquor Licence Fee :  Under this category of licence, Licence holder can throw small parties or events in a town that population does not exceed 20 lakhs.

• For less than 100 members – Rs. 7,000/-
• For more than 100 members – Rs. 10,000/-

FL-4 License

• Under this licence, the licese holder can host a party with liquor in a resort or private flat. 
• The license Fee- Rs. 13,000/-

Permit Room License:

• To serve in permit rooms – Rs. 5,44,000/-
• For restaurants and wine/beer shops Rs. 1,50,000/-

State Liquor License

• Is issued to anywhere between Rs. 5000 to Rs. 15,000 depending on the state
• Annual license fee in Tier-1 cities - Rs 10 lakhs
• Annual  license fee in Tier-2 cities - Rs.7.5 lakhs
• Annual license fee in Tier-3 cities- Rs. 5 lakhs
• Annual license fee in Tier-4 cities- Rs 2.5 lakhs

Globalisation is one of the prime factors of changing culture and market. Due to the advent of technology, manufacturing and transportation have become faster and easier. Globalisation has greatly changed the market and culture of every country. Due to change in Indian culture, drinking liquor like- beer, wine, vodka, Soda, whisky, etc are no longer taboo in society and  have become more common. Therefore, the demand for liquor has greatly increased.

The state and central government of India have also eased out the law of issuing licence for selling and supplying of liquor. Now, even foreign liquors are easily imported and are being supplied in restaurants, bars, hotels and parties. India is still lagging in the rate of consumption of alcohol in comparison to Europe and other western counties. High quality wines are mostly imported from Italy and france. There is huge demand for liquor in the Indian market. Therefore starting a Wine shop business is really going to be the most profitable business.

How to write a business plan for a liquor store?

Writing a business plan for a liquor store can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a liquor store business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a liquor store?

• What information is needed to create a business plan for a liquor store?
• What goes in the financial forecast for a liquor store?
• What goes in the written part of a liquor store business plan?
• What tool can I use to write my liquor store business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a liquor store business plan is so crucial.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your liquor store. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your liquor store to be in the next three to five years.

Once you have a clear destination for your liquor store, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your liquor store's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed liquor store business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your liquor store has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a liquor store, let's take a look at what information is needed to create one.

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Information needed to create a business plan for a liquor store

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your liquor store business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a liquor store

Before you begin writing your business plan for a liquor store, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your liquor store.

Your market research could reveal that customers may be attracted to specialty liquors, such as craft beer and small-batch spirits. Additionally, customers may be interested in purchasing higher quality liquors, which could indicate an increased willingness to spend more on their purchases.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your liquor store.

Developing the sales and marketing plan for a liquor store

Budgeting sales and marketing expenses is essential before creating a liquor store business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of a liquor store

As you embark on starting or expanding your liquor store, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A liquor store might incur staffing costs such as hiring employees to manage the store, stocking shelves, and helping customers. Equipment costs could include purchasing shelving, coolers, point-of-sale systems, and other necessary equipment for the store.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your liquor store's financial forecast?

The objective of the financial forecast of your liquor store's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a liquor store are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a liquor store shows how much revenue and profits your business is expected to generate in the future.

Ideally, your liquor store's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established liquor store. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your liquor store

Your liquor store's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your liquor store's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your liquor store's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

A projected cash flow statement for a liquor store is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your liquor store business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the liquor store is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a liquor store.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the liquor store, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a liquor store business plan is understood, let's focus on what goes into the written part of the plan.

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The written part of a liquor store business plan

The written part of a liquor store business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a liquor store business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your liquor store's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your liquor store's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

As you build your liquor store business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your liquor store, you may want to emphasize its potential for success. You could explain that it is located in an area with strong foot traffic, and that there is a large population of potential customers. You could explain that the store is situated in an area with a high concentration of restaurants and other establishments that could benefit from purchasing liquor. You might also explain that the store is close to other retailers and businesses in the area, which could make it convenient for customers to stop by. Additionally, you may want to discuss the potential for growth in the market, as the area may be rapidly growing and the demand for liquor may increase.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your liquor store might offer a broad selection of beer, wine, and spirits from around the world, giving customers access to the latest trends in craft beverages. You might also provide mixers and accessories, such as bar tools, glassware, and cocktail syrups, to help customers build their home bars. Finally, you might offer delivery services, enabling customers to shop conveniently without having to leave their homes. These products and services would allow customers to enjoy a wide variety of beverages and entertaining experiences in the comfort of their own homes.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When presenting your market analysis in your liquor store business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your liquor store, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your liquor store is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include Millennials who like to entertain. They typically live in urban areas and are eager to try new drinks and cocktails. They may also be looking to purchase high-end spirits to serve guests at their events.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your liquor store.

5. The strategy section

When writing the strategy section of a business plan for your liquor store, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your liquor store could face financial risks. If customers don't come in as often as you expect or if new competitors enter the market, your profits may be affected. Your liquor store could also face legal risks. Depending on your location, there may be laws or regulations that you need to follow in order to stay in business. Failing to adhere to these laws could lead to fines or other legal repercussions.

6. The operations section

The operations of your liquor store must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your liquor store - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have key assets such as a customer list or a distribution network. These assets may be key to helping the liquor store reach more customers and increase profitability. Additionally, the store may have intellectual property such as a unique logo or a specific product blend that could help them stand out from other liquor stores. These pieces of IP could help the store establish a distinct brand identity and draw customers to their store.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a liquor store business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my liquor store's business plan?

In this section, we will be reviewing the two main options for writing a liquor store business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your liquor store's business plan

Using online business planning software is the most efficient and modern way to write a liquor store business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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Hiring a business plan writer to write your liquor store's business plan

Outsourcing your liquor store business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your liquor store business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your liquor store's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a liquor store business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my liquor store business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a liquor store business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a liquor store. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a liquor store? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Liquor Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Wine Business ideas » Wine & Liquor Store

Do you want to start a liquor store and need to write a plan? If YES, here is a sample small liquor store business plan template & FREE feasibility report.

The liquor business indeed has come to stay and this is thanks to the huge amount of liquor brands, as well as the people who purchase them. One of the best things that you could possibly do is to start a stress free business like the liquor one.

A Sample Liquor Store Business Plan Template

1. industry overview.

One of the easy to enter and thriving business line that an entrepreneur how is looking towards starting a business of his or her own is to go into retailing business. The retail business is indeed a wide business of which liquor store business falls under.

Simply put, a liquor store is a retail shop that that is licensed to sell prepackaged alcoholic beverages usually in bottles to customers who are likely to take home or elsewhere to consume.

In the united states of America, the Liquor store business is a regulated business which is why The Twenty-first Amendment of the United States Constitution gives states the power to regulate the sale and consumption of liquor and other alcoholic beverages.

It is important to note that State regulations vary widely. Most states In the united states of America have laws that clearly define which alcoholic beverages must be sold in specialty liquor stores and which may be sold in other venues et al.

The Liquor, Beer and Wine industry is indeed a very large industry and pretty much thriving in all the parts of the world. Statistics has it that in the United States of America alone, there are about 41,285 licensed liquor stores responsible for employing about 170,399 employees and the industry rakes in a whooping sum of $48bn annually.

Activities in the Liquor, Beer and Wine Stores industry is on the increase in the last 5 years (i.e. from 2010 to 2015), even though the revenue generation have not shown remarkable growth within the stated period. Owing to the obvious increase in consumer confidence, more consumers have purchased high-margin products such as craft beer, boostingthe industry profitability .

Additionally, the legislation on the liquor, beer and wine market in many states in the U.S has allowed more entrepreneurs to open their own liquor stores. Revenue in the Liquor, Beer and Wine Store industry is expected to grow over the next 5 years as stores generate greater sales especially of high-margin products.

The Liquor, Beer and Wine Store industry is known to be heavily concentrated in the most densely populated regions and cities, mainly in the Mid-Atlantic, which comprises 24.2 percent of total liquor stores. Statistics has it that within the region, New York accounts for 8.5 percent of total liquor stores and trails only California which has 11.6 percent with the largest percentage of industry liquor stores.

So also, the Southeast and Great Lakes regions are heavily concentrated with industry liquor stores, and account for 17.9 percent and 15.4 percent of total liquor stores, respectively.

Comparatively large liquor stores, in terms of employment and revenue, tend to be located in the Mid-Atlantic region. Nevertheless, the industry is small business oriented, with 68.0 percent of liquor stores employing four or even fewer full – time employees per time.

Over and above, the liquor, beer and wine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. Executive Summary

Pappy J & Sons Liquor Store is a neighborhood liquor store that will be located in centralized area between a residential neighborhood and a busy business district in downtown Long Beach, California.

We aware that online in most states in the U.S California is one of the states that allows individuals to operate a liquor store and also sell other alcoholic drinks which is why we have decided to launch our liquor store in Long Beach, California.

We have been able to secure a 10,000 sq. ft. facility for our liquor store as required by the law in the United States of America.

We are in the liquor store business to make profits at the same to give our customers value for their money and time; we want to give people who patronize our liquor store the opportunity to choose not only from a wide range of both locally and imported liquors but also from a wide range of beers and other alcoholic drinks that are manufactured in the United States of America.

We are aware that there are several large and small liquor stores all around California, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and our outlet is well secured with the various payment of options. Much more than selling liquors and other alcoholic drinks of top brands in the alcohol industry, our customer care is second to none in the whole of Long Beach California.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our liquor store and also to become our loyal customers and ambassadors. Pappy J & Sons Liquor Store will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions that will directly or indirectly affect them.

Pappy J & Sons Liquor Store is owned by Mr. Jeffry Jordan who has successfully managed several bars and night clubs in Los Angeles and Las Vegas prior to opening his own liquor store. It is a family business that will be managed alongside his immediate family member.

3. Our Products and Services

Pappy J & Sons Liquor Store is going to operate a standard and licensed neighborhood liquor store that will retail a wide range of liquors, beers and wines just like any other licensed and standard liquor store in the United States and in any part of the world.

We are in the liquor retailing business to make profits and give our customers value for their money. These are some of the products that we will retail in our liquor store;

• Beers (Bud Light, Coors Light, Miller Lite, Budweiser, Michelob Ultra-Light, Natural Light, Busch Light, Bush, Redds Apple Ale, Sierra Nevada Pale Ale, Keystone Light, Pabst Blue Ribbon, Bud Light Lime, Bud Light Platinum Lager et al)
• Locally Crafted Beers (Pale Beers, Amber Beers, Dark Beers, Hebrew Beers, Gluten Free, Organic Brews, Cider et al)
• Distilled spirits
• Non – alcoholic beverages

4. Our Mission and Vision Statement

• Our vision is to establish a one stop liquor store in Long Beach – California and in other cities in the United States of America.
• Our mission is to establish a liquor store business that will make available a wide range of liquors, wines and beers from top brands at affordable prices to the residence of Long Beach – California and other cities in the United States of America and Canada where we intend opening our outlets and selling our franchise.

Our Business Structure

Pappy J & Sons Liquor Store do not intend to start a liquor retailing business like the usual mom and pop business around the street corner; our intention of starting a liquor retail business is to build a standard liquor store that will be a one – stop shop for liquors, beers and wines which is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more especially when we start selling our franchise. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Store Manager:

• Responsible for managing the daily activities in the store
• Ensure that the store facility is in tip top shape and conducive enough to welcome customers
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Interfaces with third – party providers (vendors)
• Control the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Help to ensure consistent quality of liquors, wines and beers on our rack
• Responsible for the purchase of wines, beers and liquors for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Manage the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the store manager in an effective and timely manner
• Consistently stays abreast of any new information on Pappy J & Sons Liquor Store products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
• Responsible for cleaning the store facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager.

6. SWOT Analysis

Our intention of starting just one outlet of our liquor retail store in Long beach – California is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over California and also sell franchise through the United States of America and Canada.

We are quite aware that there are several liquor retail stores all over Long Beach and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Pappy J & Sons Liquor Store employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Pappy J & Sons Liquor Store;

Our location, the business model we will be operating on (physical store and online liquor store), varieties of payment options, wide range of liquors, wines and beers (locally crafted beer inclusive) and our excellent customer service culture will definitely count as a strong strength for Pappy J & Sons Liquor Store.

A major weakness that may count against us is the fact that we are a new liquor retail outlet and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

• Opportunities:

The fact that we are going to be operating our liquor retail store in one of the busiest district in Long Beach – California provides us with unlimited opportunities to sell our liquors, wines and beers to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our liquor retail store; we are well positioned to take on the opportunities that will come our way.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new liquor retail outlet in same location where ours is located or even the arrival of a nightclub and bar.

7. MARKET ANALYSIS

• Market Trends

In the United States of America, most of the states have strict control on liquor stores hence it is not easy to secure license to open one.

In California and in few states in the U.S, individuals can actually open their own liquor retail store and it is the practice for them to sell loads of assorted alcoholic drinks and not only liquors; they are known to retail liquors, wines, beers and even tobacco et al.

If you keep tab with liquor store business and retailing business generally, you would have noticed that It is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies.

No doubt data collected from customers goes a long way to help retail stores serve them better. Another common trend in the retailing industry is the pricing system.

Aside from having varieties of alcoholic drinks in a store, one of the easiest ways for liquor retail stores to sell the drinks on their racks as fast as they can and keep re – stocking is to ensure that the prices of their drinks are a bit lower than what is obtainable in elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200. Liquor stores are also known to follow the rules and regulations regulating the industry in any state that their store is located; regulations like not selling alcoholic drinks to any person who is under – aged.

8. Our Target Market

When it comes to selling liquors, wines, beers and locally brewed beer, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who drink liquors, wines and beers and those who would want to try out liquor.

One thing is certain, our liquors, and other alcoholic drinks will not be sold to people who are under aged. In view of that, we have positioned our liquor retail store to service the residence of Long Beach – California and every other location our liquor retail stores will be located all over the United States of America and Canada.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a liquors and a wide range of alcoholic drinks to the following groups of people;

• Corporate Executives
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women (with the exemption of under – age)
• Students (with the exemption of under – age)
• Every adult in the neighborhood where our liquor store will be located.

Our Competitive Advantage

Pappy J & Sons Liquor Store is launching a standard and licensed liquor retail shop that will indeed become the preferred choice of residence of Long Beach California and in every other location where our outlets will be opened.

Our liquor retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Long beach and few meters away from a busy business district. We have enough parking space that can accommodate well over 20 cars per time.

One thing is certain; we will ensure that we have a wide range of liquors, wines and beers available in our store at all times. It will be difficult for customers to visit our store and not see the brand of alcoholic drinks that they are looking for.

One of our business goals is to make Pappy J & Sons Liquor Store a one stop alcohol shop. Our excellent customer service culture, online store, various payment options and highly secured facility will also serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Pappy J & Sons Liquor Store is established with the aim of maximizing profits in the liquor, wine and beer store retailing industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of products to a wide range of customers.

Pappy J & Sons Liquor Store will generate income by retailing the following alcoholic products;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with liquor retailing business, the larger a liquor retail store the larger the numbers of customers that will patronize them.

Although we may not be as large as the biggest liquor retail store in the United States, but we will ensure that within our capacity we make available a wide range of liquors, wines, and beers et al from different brands both local and foreign in our liquor store.

Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $75,000
• Second Year-: $250,000
• Third Year-: $700,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Pappy J & Sons Liquor Store, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Long Beach – California and in every other cities where our outlets will be opened.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the liquor, wine and beer retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Long Beach – California.

In other to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Pappy J & Sons Liquor Store will adopt the following sales and marketing approach to win customers over;

• Introduce our liquor store by sending introductory letters to residence, business owners and organizations in and around Long Beach – California
• Open our liquor store with a party
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Direct marketing
• Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our liquor retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our liquor retail store.

Pappy J & Sons Liquor Store has a long term plan of opening outlets in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Long Beach California before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Pappy J & Sons Liquor Store;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Long Beach – California
• Engage in roadshow from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our liquor retail store is located.

12. Our Pricing Strategy

Pricing is one of the key factors that give leverage to liquor retail stores, it is normal for consumers to go to places (liquor retail outlets) where they can get liquors, wine and beers et al at cheaper price which is why big player in the liquor, wine and beer retail industry like attract loads of consumers.

We know we don’t have the capacity to compete with other bigger liquor retail store, but we will ensure that the prices of all the brands of liquors, wines and beers et al that are available in our liquor store are competitive with what is obtainable amongst liquor retail stores within our level and in our location.

• Payment Options

At Pappy J & Sons Liquor Store, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

When it comes to starting a liquor retailing store the major areas that you look towards spending the bulk of your cash is in of course renting or leasing a standard store facility. Aside from that, you are not expected to spend much except for paying of your employees and the stocking of your store.

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in California – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Pappy J & Sons Liquor Storein the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of liquors, wines, beers, tobaccos et al) – $70,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $250,000 to successfully set up our liquor retail store in Long Beach – California. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Pappy J & Sons Liquor Store

Pappy J & Sons Liquor Store is a private business that is solely owned and financed by Mr. Jeffry Jordan and family. We do not intend to welcome any external business partner, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $75,000 and soft loan from family members $25,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If any of these factor is missing from a business (company), then it won’t be too long before the business close shop.

Pappy J & Sons Liquor Store will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers,electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products ( liquors, beers, wines, and tobaccos et al)that will be available in our store : Completed
• Establishing business relationship with vendors – wholesale suppliers of various brands of liquors, wines, beers, and tobacco et al: In Progress

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Liquor Store Business Plan

Things to Consider Before Writing a Liquor Store Business Plan

Get the necessary licenses and permits.

As a liquor store business, you’ll need quite a few permits and licenses to operate your store before getting started. Depending on the location of your store, several federal and state permits can help you stay on the good side of the law. The easiest way to ensure that you don’t miss out on any important documents is to have a checklist of all the required permits.

Pick a good location

A good location makes or breaks any business , especially if you are in a business where customers have to visit your store. The same holds for a liquor store as well. The more accessible your store is to your customers, the more likely it is to work and become profitable. Hence, take your time to pick a location that would work best for your business.

Get your store insured

Getting your store insured is another important step before you get started. As you are dealing with stuff that can get damaged easily, getting insurance helps you make sure that it doesn’t serve as a huge blow to your business. Also, having insurance helps you rest assured and focus on what matters.

Choose a legal structure for your business

The legal structure of your business impacts your business in several ways. From deciding the taxes you’ll pay, to the liability on your assets, the legal structure of your business decides it all. Hence, it is important to choose the right one for your business.

Chalking out Your Business Plan

You don’t need to worry about it if you plan on opening a liquor store. All you need is a liquor store business plan to combat competition and to have a thriving liquor store business.

Reading sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample business plan for you to get a good idea about what a perfect liquor store business plan should look like and what details you will need to include in your stunning business plan.

Liquor Store Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Mission Statement
• Vision Statement
• Customer Focus
• Success Factors
• 3 Year profit forecast
• Business Structure
• Store Design
• Startup cost
• Products and Services
• Industry Analysis
• Market Segmentation
• Market Needs
• SWOT Analysis
• Sales Strategy
• Direct Mail
• Public Relations
• Advertising
• Ongoing Customer Communications
• Pre-Opening Events
• Pricing Strategy
• Robert Moore
• Personnel Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan to modify the required information, and download your liquor store business plan pdf . It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample liquor store business plan

Need help writing your business plan from scratch? Here you go; download our free liquor store business plan pdf to start.

It’s a modern business plan template specifically designed for your liquor store business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Liquor Store Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Liquor Store Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Liquor Store Business Plan

You’ve come to the right place to create your liquor store business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their liquor stores.

Business Plan Sample for a Liquor Store

Below are links to each section of your liquor store business plan template:

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Liquor Store Business Plan FAQs

What is a liquor store business plan.

A liquor store business plan is a plan to start and/or grow your liquor store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your liquor store business plan using our Liquor Store Business Plan Template here .

What Are the Main Types of Liquor Stores?

The liquor industry encompasses a few different types of liquor stores, including those that sell all types of alcohol and other liquor stores that specialize in a specific offering such as craft beers, wine or spirits.

What Are the Main Sources of Revenues and Expenses for a Liquor Store?

The primary source of revenue for liquor store owners is liquor sales.  Secondary sources include other items like tobacco and lottery. 

The key expenses for a liquor store are the cost of goods sold, rent, and salaries. Marketing expenses also contribute to the expenses of the business.

A profitable liquor store hinges on several key factors. Firstly, location is paramount; it should be easily accessible, visible, and situated in an area with good foot traffic or in a community that lacks adequate competition. Diverse inventory tailored to local tastes and demands can significantly boost sales, as can offering a range of price points to cater to different customer segments. Effective management of inventory to reduce waste and optimize stock based on seasonal trends and consumer preferences is crucial. Additionally, knowledgeable and friendly staff can enhance customer experience, encouraging repeat business. Implementing a robust marketing strategy, including a strong online presence and targeted promotions, can attract new customers and retain existing ones. Lastly, staying compliant with local regulations and adapting to changing laws is essential to ensure uninterrupted operation and to avoid legal pitfalls.

How Do You Get Funding for Your Liquor Store Business Plan?

Liquor store businesses can be financed through various lending facilities. Some options are business lines of credit, merchant cash advances or business term loans. Other forms of funding for liquor stores are angel investors, friends and family loans and credit card financing. This is true for a business plan for a liquor or a wine shop business plan.

Read more about how to get funding: Seeking Funding from Angel Investors vs Venture Capitalists .

What are the Steps To Start a Liquor Store Business?

Starting a new liquor store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Liquor Store Business Plan - The first step in starting a business is to create a detailed liquor store business plan that outlines all aspects of the venture. This should include market research, potential target market size, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your liquor store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your liquor store business is in compliance with local laws.

3. Register Your Liquor Store Business - Once you have chosen a legal structure, the next step is to register your liquor store business with the government or state where you’re operating from. This includes obtaining liquor licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your liquor store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Liquor Store Equipment & Supplies - In order to start your liquor store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your liquor store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful liquor store business, or grow your existing liquor store:

• How to Open a Liquor Store Business

Where Can I Get a Liquor Store Business Plan PDF?

You can download our free liquor store business plan template PDF here . This is a sample liquor store business plan template you can use in PDF format.

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Small Liquor Store Business Plan Template

JUN.10, 2021

Small Liquor Store business plan for starting your own business

One of the most lucrative businesses that you can get into right now is a small liquor store. That’s why we have brought this business plan for a liquor store so that you can easily start your own business. This business does not require a lot of starting capital or any experience.

If you are looking to learn how to write a business plan for a liquor store, you are in the right place. We will introduce you to all the aspects of writing such a business plan and will also give you a franchising business plan that you can use to expand your business after you start making profit out of it. This will be somewhat similar to a microbrewery business plan .

Small Liquor Store Business Plan Summary

2.1 the business.

This business plan for starting a liquor store will be based on the example of Harry’s Liquor Outlet, a small liquor store situated outside Detroit, Michigan. The business will be registered and licensed to sell Liquor.

2.2 Management of Small Liquor Store

If you want to know how to start a business plan for a liquor store, the most important thing for you to learn is the management of the business. Harry’s Liquor Outlet will be headed and owned by Harry Castle, a former bar tender. He will hire a cashier and a manager to run the store.

The manager will oversee all the operations of the bar will any matters that arise. The supreme authority in this business plan startup liquor store will rest with Harry and his verdict will be final in any matter regarding the business.

2.3 Customers of Small Liquor Store

The next thing that you need to consider when writing a writing business plan for investors is determining the customers of the business who will bring in all the money. Just like a distillery business plan , the main customers here will be the people looking for alcohol.

2.4 Business Target

Our targets are:

• To establish and maintain more than 95% customer satisfaction score.
• To start generating at least $23k in profit a month in 2 years.
• To expand to at least three more cities by the end of the 3 rd

Company Summary

3.1 company owner.

Harry’s Liquor Outlet will be owned by Harry Castle. He knows this industry inside out as he has worked as a bar tender for more than 10 years. He has recently won a lottery and wants to invest the money and that’s why we are basing this wine and liquor store business plan on his business.

3.2 Why the Small Liquor Store is being started

The next thing to discuss in this liquor store business plan sample is the reason behind starting this business. As stated above, Harry has a lot of experience and interest in this business, so that is the main reason. Another reason for starting this business is that there is no good liquor store in the area and this market gap can be capitalized easily.

3.3 How the small liquor Store will be started

Step1: Create small liquor store business plan

The first needed to start a small liquor store is to have a valid liquor store business plan example pdf. All the aspects of the business from the starting costs to the staff required and the market to be targeted will be included in this business plan. Just like a brewery business plan , having figured out all the details of the business before starting is the most important thing if you want this business to be successful in the longer run.

Step2: Define The Brand

The next step is to make a brand. People these days like to shop from established brands rather than a simple shop. Advertisement and marketing will be used to make a presentable brand for Harry’s Liquor Outlet.

Step3: Establish Physical & Web Presence

We will have to make the store as well as a website. It is noted that more than 50% of the customers prefer to order their liquor online rather than going to a store. We will make a website to cater the needs of these customers.

Step4: Promote and Market

The last and the most important thing to do is to market the brand in such a way as to make it a household name in the area to attract as much business as we can.

Services of Small Liquor Store

The next point this liquor store business plan template needs to touch is the services it will be providing. You can use this business plan for existing liquor store or start a new business around it.

The services of the liquor store will be focused more on products because this is more of a products business than a services one. The services of Harry’s Liquor Outlet will be:

• Liquor Supply

As there are no good liquor stores in the vicinity, all the retailers who sell liquor in the area will be buying it from us. We will deliver them the products on weekly or monthly basis, as they prefer.

We will also supply liquor to retail customers, bars, and for parties.

• Signature Drinks

We will experiment with different famous liquor drinks and brands and will make cocktails and our own signature liquors to bring diversity in the business.

• Spirit Supply

We will arrange and provide spirits for medical and cleaning use. This will not be a regular service and we will entertain these demands on request of buyers.

• Remote Bar Services for parties

Anyone looking to arrange a party in the area has to buy the liquor from other cities. We will cover all the parties in the area and will provide take-away and delivery services for party liquor supply.

 Marketing Analysis of a Small Liquor Store

Marketing analysis refers to the process of conducting a thorough market research to determine whether or not starting a business makes economic sense. If you want to know how to write a business plan for a liquor store, you need to know how to do marketing analysis.

Here are the details of the marketing analysis that we performed prior to starting a liquor store.

UK Start-Up Visa Business Plan

5.1 market trends.

One of the key reasons for we are going foropening a liquor store business is that this market is growing at a fast pace. The global liquor industry was worth $1.4 trillion in 2019 and is expected to be worth $2 trillion in the year 2024.

Another reasons for starting the business that we think is worth mentioning in this liquor store business plan example is that the trend of drinking is changing from bars to homes. More people are buying alcohol to consume in the comfort of their own home than are going to bars. So, just like a seafood restaurant business plan , we have an opportunity here.

5.2 Marketing Segmentation

Another important thing to note before we start this business is the marketing segmentation of the industry we are going to enter. Marketing segmentation focuses on the various categories of the market we will be targeting.

The main market segments this liquor store business will be serving are the following:

5.2.1 Individual Customers

The main customers of our products will be the people who need a good drink at the end of a long day. We will cater for the needs of these customers and will make sure that they get the best liquor from us.

5.2.2 Retail Stores

Retails stores in the area source liquor from other cities and that is not feasible for them. We will offer them better rates and they will purchase the products from us on a regular basis.

Bars will be one of the bulk customers of our products. They will buy large amounts of liquor on a regular basis. We might offer them a lower rate as a wholesale discount. These customers will pay us on a routine basis and not individually for every purchase/delivery.

5.3 Business Target

Our business targets are:

• To establish our name as a dependable and reliable supplier of Grade-A liquor.
• To expand to more locations and make our business a chain of stores.
• To provide the best products and services and gain high customer satisfaction while we are at it.

Great service

Great service. Good turnaround time and quality work. Thanks!

5.4 Product Pricing

The prices will be mainly based on the prices of the manufacturers we will be sourcing the stuff from. However, we will keep out profit margin low and offer lower prices than the competitors to earn some customers and then we will increase the prices when we have made a name for ourselves. This is the same approach as we used in the gourmet food store business plan .

 Marketing Strategy of Small Liquor Store

Now that we have established all the things necessary for starting a small liquor store, the next thing to focus on is the liquor store marketing plan. There can be a lot of liquor store marketing strategies but we have to find out the one that works the best for our case.

The things that influence the marketing strategy are the following and they are more or less the same as those for a butcher shop business plan .

6.1 Competitive Analysis

Harry’s Liquor Outlet will have the following competitive advantages:

• The owner of this business has a lot of experience in the liquor business.
• There is no reputable liquor store in the area where we are going to start this business.
• We are offering all the major liquor brands and all of them are decided after asking the people of the area which brands they will buy.

6.2 Sales Strategy

• We will use all the social, electronic and print media channels to advertise our business in the area.
• We will have social media pages and our own online store to market and sell the product.
• We will offer discounted rates for the first two months to boost sales in the start.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

The next thing we need to talk about in this business plan for alcoholic beverage store is the people that we will need to start and run the business. We need to plan the workforce in such a way to run the business with the maximum possible efficiency without being an unnecessary load on the business.

7.1 Company Staff

Here is a list of the people who will run Harry’s Liquor Outlet:

• Harry Castle will be the owner and CEO of the business.
• 1 Manager will be hired to run the day-to-day operations of the liquor store.
• 1 Cashier will be needed to manage the register.
• 1 Web Developer will be hired to run the online store and social media pages of the business.
• 3 Drivers for the home delivery of products ordered online.
• 2 Cleaners.
• 1 Accountant.

7.2 Average Salary of Employees

Financial plan.

Lastly, we need to discuss the cost that will be incurred by Harry to start this business. Let’s see we need how much to start a liquor store.

Harry will have to arrange money for the following:

• Acquiring a location to start the store.
• Buying the stock to start the business.
• The money needed for the salaries of the staff for the first 3 months.
• The money needed to buy vehicles for delivery.
• The cost of making an online store and the allied social media pages.

8.1 Important Assumptions

8.2 break-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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Table of Contents

• Creating a Liquor Store Business Plan 101
• 1. Don't Forget to Include Insurance In Your Business Plan

2. Don't Start Your Business Plan Without Research

• 3. Do Develop A Financial Plan
• 4. Don't Be Consumed By Day-To-Day Operations

5. Do Spend Time on Choosing the Right POS System

• A Liquor Store Business Plan Designed For Success

Creating A Liquor Store Business Plan: 5 Do's And Don’ts

Opening a liquor store can be an exciting business venture, but creating your liquor store's business plan shouldn't be an afterthought.

The liquor industry can be an incredibly lucrative business opportunity, but only if you tackle it with a well-thought-out strategy and business plan. There are 40,612 liquor stores in America, so it's essential to put in the time to research the market so you can compete with established stores.

With over 20 years in the liquor industry, we're always happy to lend our expertise and knowledge to aspiring liquor store owners. If you're contemplating venturing into the liquor industry, here are six do’s and don'ts you should consider when creating your business plan.

Creating a Liquor Store Business Plan 101  

A liquor store business can be an incredibly exciting and prosperous investment opportunity. With a clear and definitive business plan, you can avoid missing essential factors or critical considerations in opening your store. 

A liquor store business plan will help you prepare for the challenges of operating your business and set you up for success in growing your store. Your business plan should provide an overview of your liquor store and a three- or five-year plan. 

It should also serve as a checklist to ensure you're getting all the proper licenses, technology, and resources to operate your business on a day-to-day basis.

Not all business plans are made equal, and there are a few do’s and don'ts when creating your plan.

1. Don't Forget to Include Insurance In Your Business Plan  

Every business requires insurance. Insurance protects all stakeholders involved with your business in the event of injury, theft, natural disaster, or sickness. 

With any operation, there is always some physical risk or opportunity for injury, and it's important to have liability insurance in case any accidents occur in the workplace.

Your store can also be subject to crimes like robbery, fraud, theft, and embezzlement. If you don't have coverage, you'll be bleeding money and paying out of pocket to correct any damages.

Property damage can come from theft, but it can also come from environmental factors, depending on where you live. It's essential to get coverage in case of things like floods, earthquakes, or any natural disaster.

Cyber attacks should also be considered, given the digital age we live in. They happen fast and under the radar, and you could face serious setbacks without coverage.

Temporary closure due to health issues or any emergency that leads to loss of income or revenue for the store can be a huge concern. It's important to get the right kind of insurance to protect yourself in any emergency.

Forgetting to cover all your bases when it comes to insurance leaves you with many risks, and you should only operate a business with all things covered.

Your research should include all opening and construction costs, operational costs, and potential profit margins. Liquor stores require a good amount of cash upfront, so you need to understand the size of your investment and line up financing to make it happen.

You also need to consider what products you'll offer. Some staples are basically required for every liquor store: big-name beer and wine brands, the most popular whisky, vodka, and the mixers to go with them. But there are also hundreds of different products that different segments of customers will purchase. From rare liquors and craft beer to seltzers and ready-to-drink (RTD) beverages, you’ll need to study up. 

You won't become an expert overnight, but knowing your products can help you figure out how to sell them.

This is why a solution like Bottle POS is a  great option for new liquor store business owners, as a pre-populated liquor database can make it easy for any new owner to fill their inventory with popular products. Bottle POS’ centralized database makes it easy to manage stock and helps you select products that are most likely to sell.

3. Do Develop A Financial Plan  

Once you've done substantial research, it's time to start documenting costs and developing a financial plan. You'll need to consider inventory, equipment, rent, building maintenance, security, and all the permit costs necessary for legal operation.

Besides labor costs and operational expenditures, inventory is one of the most significant financial considerations.

How much do you order, what should you order, and how often should you order?

Your POS system should give you insight into sales and inventory data for reordering. If your POS system has automatic restocking and autonomous receiving for inventory, you can save time and money and simplify an otherwise timely process.

Your POS insights will help you quickly identify the brands that drive your sales and the overstocked products that cost you. Think of it as the guide, partner, or sidekick to your store.

4. Don't Be Consumed By Day-To-Day Operations  

Your day-to-day operations include ordering alcohol, unloading deliveries, labeling liquor bottles, and accounting for any shrinkage.

The right POS system can help you optimize your day-to-day processes, so you spend less time processing and more time automating your functions. Invoicing can take tons of time. With automation, you can save hours on manual data entry every week.

There are so many things to account for, and working with a modern liquor store POS system can help optimize your store's efficiency.

A cloud-based liquor POS system can take your liquor store business to the next level.

Using a secure network, you can access all the data surrounding your inventory management from a simplified user interface in the comfort of your own space,  or on location.

A cloud-based POS system will help you quickly identify which brands drive your sales and which are overstocked or dead stock.

This can help you determine what products to bring in and what to avoid.

Sales trends can also show you when people buy the most product, and other data points to help you develop promotional campaigns or sales. With the right POS system, you can see important data to guide your business decisions.

With key sales and product data, you can create forecasts and document revenue trends, ultimately enabling you to plan and create long-term goals designed to see your business grow.

A Liquor Store Business Plan Designed For Success  

Opening a liquor store starts with creating a solid business plan, but putting together a business plan is more complex than just documenting the steps you need to take before you can open your doors.

It's important to consider things like liquor licenses, business insurance, and other operational necessities that ensure you run your business compliantly and with protection. 

On top of that, it's important to conduct market research, become a product expert, and consider your day-to-day operations before and after you open. Regularly analyzing store data and revenue trends are key to developing long-term goals and growth plans.

Many factors go into creating a business plan to set you and your store up for success, and it's easy to miss or overlook something important. However, the right POS system can make your job significantly easier.

Inventory management, databases, stock replenishment, secure technology, robust data analysis, and reporting are just a few ways a point of sale system like Bottle POS can help optimize your processes so you can focus on your customers and grow your business.

If you're ready to venture into the liquor industry and want to work with a POS system that can help take your business off the ground, get in touch with our team.

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Download Liquor Store Business Plan Sample Template + Doc

Want to open a neighborhood liquor store? This how-to guide gives proven business plan templates you can download and update for your future business in addition to providing tips so you have the best possible chance of success. Ready to get into the real-deal business planning for a liquor shop? Let’s get started.

In this guide, we’ll help you draft an independent liquor store business plan and provide sample templates so you can participate in the $59+ billion industry in the United States. Here’s an outline of the guide so you can jump to the section that interests you the most.

Page Contents

Introduction

Executive summary, company description, mission statement, customer focus, market analysis, management structure, target market, industry analysis, competitive analysis, product line and services, sales and marketing, financial plan, funding request, financial projections, operational plan, download liquor store business plan sample template.

Liquor store in Las Vegas.

Introductions are not written for formality’s sake. They’re there to inform the reader and give a bird’s eye view of what your liquor store business is so they’ll know what to expect when they continue to read your business plan.

Everyone understands the basics of a liquor business so you don’t need to go deep into the basics of this. But you should provide context into what makes your retail location different from everyone else locally. Will you specialize in wines? craft beers? Do you offer in-store tastings? Will you have a drive-thru window ?

Here’s an example:

Bottoms Up! is a 3,000 sq. foot liquor store located in Long Island. Married couple Lisa and Sam are the owners of this small business that carries a line of alcoholic and non-alcoholic beverages that’s open from Mondays to Saturdays.

Bottoms Up! will feature the largest selection of local craft beer selections within a 50 mile radius of our store. We will be a meeting ground for craft beer lovers with in-store tastings and educational events.  We will also provide delivery of craft beer within 15 minutes of our retail store free of charge to consumers with a $50 minimum purchase. We will also embrace technology, including online ordering to make our store the obvious choice for customers. 

With this brief introduction, you can already pinpoint major details such as the name of the business, the location, the type of ownership, the proposed store schedule, and the inventory they’ll be carrying. This is the first step in casting your vision for the retail or online store.

Inside a liquor store.

We know just how exciting it is to dive into the technicalities of your liquor store business and explain the product line and concept at once. But let’s ease it all in first by starting with an executive summary.

This section of the business plan will include a brief introduction about your liquor store, a short company description to discuss the background of your business, the services you offer, and the target customers you’ll be catering to.

An outside party like an investor or partner should be able to understand the nuts and bolts of the business after reading the executive summary and have some conclusions or recommendations based on the research found inside the document.

Buttom’s Up is a liquor store serving a wide selection of wines, hard liquors, and tequilas, but our specialty is craft beer. Craft beer is a rapidly growing part of the beer market now making up 25% of total beer sales according to industry reports. Craft beer drinkers are typically a higher income demographic than typical beer customers. 

Our goal is to create a community hub for this growing demographic of drinkers and provide a higher-level of service other retailers aren’t able to offer. Here’s what makes us different: 

• We offer free delivery within 15 miles of our retail store on orders over $50. This option will add a level of convenience that traditional liquor stores don’t offer. We will provide deliveries on Fridays and Tuesdays only to make the logistics simpler and cut cost. 
• We will offer in-store tastings and invite representatives into our store from local breweries to provide free educational opportunities.  
• We have an app that will allow customers to order product online 24/7. These orders can be picked up at our location or delivered on Tuesday or Friday. 

The local beer store.

A company description is simply a little background on the operations behind your new liquor store business. Let’s take Bottoms Up! for example. You already know that a married couple owns the store. You can then provide why they decided to put up such a business.

It may be their experience from being bartenders when they were young or their love for wines. You can also describe their roles such as who will be doing the managing and who will be in charge of purchasing supplies. Again, you don’t need to get too deep into this. Just a brief description will do. This should not exceed more than one page in length.

Related Reading: 148 Brilliant Liquor Store Name Ideas You Can Use

To strive for success, have your business focus on a mission statement that you can rally around. This mission statement should be shared regularly with guests and future employees alike. This is not something to write down in a business plan and forget about. The mission statement should guide all major decisions for the business.

Here’s a mission statement example for Bottoms Up!: Our mission is to provide to become a gathering place for craft beer lovers to connect and discover new beverages. We also want to support the local brewing community by helping others discover the local beer options that are available and support the local economy. Our mission is to  Bottoms Up! also aims to provide avenues for their customers to buy online so they can enjoy our products with the click of a button. 

With this mission statement, you can already tell that Bottoms Up! aims who they plan to support and how they’ll make sure their store is always online so that their customers can order with just one click away.

In writing your mission statement, make sure it’s achievable and can be practiced throughout your operations. You will build the operation plan around your mission statement.

Tasting events can be an effective way to bring in new customers to your shop.

Give a brief account of the services you’ll be providing in your liquor store business. Here are a few you can include:

• Free delivery within a certain distance
• Online payments
• Mobile bar (for events)
• Cocktail classes
• Taste testing

We know how excited you are to get into this one by one but save it for the Product Line and Services section later. For now, keeping your readers informed of the services you’re offering is enough.

Knowing which customers you’ll be catering to will help form your brand better. This is also where you can get targeted advertising ideas. As you know, Bottom’s Up isn’t trying to market to everyone in their town. They’ve identified the craft beer drinker as their ideal customer. This makes marketing much simpler.

List your customer focus down just like you did in the services section above and save all the detailed explanation for later on in the Target Market section.

Writing down the concept for your liquor store business is one of the fun parts of the business plan. All the ideas you’ve had stuck in your head can now be organized into a formal plan. We encourage you to get in as many details as you can.

Many will agree that when you write down the company concept, you’ll come to realize what works and what doesn’t so you can improve your business further.

Conduct research on the demographics and income of your market.

Analyzing the liquor store businesses around you is going to give you an edge over all your competitors. It’s like going into battle. You have to know what to expect and who your competition is otherwise you’ll start out unprepared and end up losing more than what you expected.

In our market analysis section, take the time out to explore the industry, your competition, and expound on the target market for your business to become successful.

One simple step you should take in your market analysis is to visit other liquor store competitors in your area. When you visit these stores, make a list of what you like and don’t like about their business.

We also recommend spending time outside of these retail locations to track how many customers are coming in and out of the establishment. What do their customers look like? Does this seem like a profitable concept? Taking the time to observe and take notes on other businesses is one of the best ways you can get a hold on what’s working in a market. It doesn’t cost you anything to complete this step either aside from time.

Management structures serve as a guideline for you as the owner and for your entire personnel. It’s important to set clear roles and boundaries so that no task overlaps with the other and no redundancies happen. It’s also to avoid conflicts in the workplace.

Here is a proposed management team for you to consider hiring:

• Store Manager
• Sales and Marketing Staff
• Inventory Team
• Delivery Team

The number of people you hire depends on how big your liquor store is going to be. If you’re just going to be a small store then there’s no need to hire so many people so you don’t spend too much on the payroll. Many first time liquor store owners start out with only one or two part-time employees to keep costs low.

What does your dream customer want?

Knowing which customers you’re targeting for your business makes it easier for you to form your brand. Wine lovers differ from cocktail drinkers. Likewise, there is a different crowd for artisanal beer lovers and just regular beer drinkers. Knowing your target market helps you conceptualize better and list down the products you’re going to sell.

Though we’ve pointed out earlier that liquor is enjoyed on every occasion, you’d still need to do an industry analysis on whether or not it’s feasible in the location you’re going to set it up.

You might just find the market oversaturated in your area and it would be advisable to put up your business elsewhere. Or, you might just find your proposed area to be the perfect location. Either way, to know these things, conducting an industry analysis is always helpful.

Doing this type of research will be time consuming, but it’s 100% worth it. The last thing you want to do is open a more high-end bottle shop in a low-income neighborhood. This analysis can help you avoid making the wrong decision.

As a sole liquor store, you will have competition over a lot of other shops, even the ones that don’t even sell liquor as a main item. Treat the grocery stores with their small wine section as a competitor.

Do the same for convenience or grocery stores that have a bit of overlap with your business. List down their strengths and their weaknesses and write down yours as well so you know what you already have and what you’re lacking so you can fill in those spaces.

In this section, you can finally write down all the beverages you wish to sell in your liquor store. Include the prices so you can get a gist of how much you’ll be spending to order in supplies. Remember that wholesalers get a discounted price than just stuff you buy in retail.

You can also include more than just drinks. You can include wine glasses, shot glasses, margarita glasses. You can also add different accessories such as wine aerators or corkscrews.

Audio Lesson:  How I Started a Craft Brewery for $50,000 and How You Can Do the Same

As for services, do you wish to provide cocktail classes once a month? This could help reel in a loyal list of customers who constantly check out your products. Are you up for a mobile bar? This could be a gig you can do during events such as weddings.

What should be clear in this section is that by the end of writing all of this down, you know what your product line is and whether or not you can find a reliable supplier for all of these. This part of the business plan will be especially important if you’re seeking money from investors or a bank. The anticipated cost / profit from each sale is something every lender will need to understand.

Craft beer consumption has become a global phenomenon.

One big question to ask yourself is how are you going to market your liquor store? Will you be putting an ad out on the local newspaper or place a nice jingle on the radio for the listeners? Whatever your strategy may be, write your plans down here.

You may also like to consider marketing your liquor store using the following platforms:

• Social Media
• Joint venture events with local breweries or wineries
• Radio Stations
• Tie-ups with bars
• Monthly giveaways
• Partnerships with catering services
• Special drinks classes

With these strategies, your business is sure to get a nice growing niche of loyal customers in your area.

Having a financial plan on the ready helps you figure out how much capital you need to put up your business, the expenses you’re going to make, and how much do you need to make on a daily basis to achieve break-even. Yes, it’s going to get a little technical. But this is what operating a business is all about.

But know that we’re only looking out for you by saying that this is why it’s important to do this plan before starting on your operations so you know what to expect.

Outside a biker bar and liquor shop.

Some people start a business by tapping into savings. Others take out loans from the bank while some invite investors to help them start up their small business. Crowdfunding is another option used by many new food and beverage founders. In this section of the business plan, write down how and where you’re going to get the money to fund your liquor store.

One reason why you’re writing down this business plan is for this very purpose. For instance, when you loan from banks, they might ask you what your strategies are in putting up a liquor store. This is when you present to them the business plan you’re writing. It is to help convince them that the business you’re going to start is profitable and deserves to see the light of day.

Attention Founders: Join Our Community of 40,000+ Food and Beverage Entrepreneurs and Get our Free Business Plan Canvas

It’s also the same thing with investors. This business plan is going to be read by people who will help you see your liquor store come to fruition so make it as easy to understand as possible with all the necessary details jotted down.

You’ll want to know whether your liquor store I going to be profitable or not. In this section, list down all the major expenses such as:

• Rental space
• Construction materials
• Refrigerated cabinet displays
• Wine chillers and displays
• Point-of-Sale system
• Cash registers
• Electricity
• Off-sale liquor licenses (these can be very expensive depending on where you plan to open)
• Business licenses
• Vans or trucks for delivery

Don’t forget the proposed monthly payroll for your staff and the electricity and water bills. With all these factors, you can compute your price range for your products and services and the targeted sales for the day to reach break-even.

To make sure that your plans are going to happen, write down a schedule of the tentative dates of when you plan to execute all this.

Here is an example:

Date Plan [Insert Date Here] – Process all business documents and permits for your liquor store.[Insert Date Here] – Start construction.[Insert Date Here] – Start hiring and training of staff as well as marketing the business.[Insert Date Here] – Start operations for the liquor store.[Insert Date Here] – Reach break-even.

It does not have to be a detailed operational plan but it does help guide you on the steps you need to take to get things going.

Don’t forget the appendix! This section will hold all the permits, copy of the liquor license, business documents, designs of your store, and all other documents you acquired in the process of putting up your liquor store business.

• Liquor Store Business Plan Template PDF
• Liquor Store Business Plan Template Word Doc
• The more your business engages with the customers, the good will you’ll build. Those cocktail classes you hosted? Customers will remember where they learned these tips and spread the word about the services you’re offering. It’s all about interacting with them so make sure to include that in your marketing strategy.
• Get educated on the different types of drinks. Don’t just put up a liquor store business without understanding the types of drink that are growing in popularity. For example, hard seltzers is an area of growth right now. Listen to feedback from customers on the types of alcoholic beverages they prefer over time.

Liquor stores will continue providing an important service to local communities. When consumed responsibly, they make events more relaxing, fun, and act as a social lubricant. With your careful and detailed planning on this business, your liquor shop can be a profitable business longterm.

If you’re serious about opening a liquor store, be sure to join our community of beverage entrepreneurs . When you sign up, you’ll get access to our weekly case studies that include revenue numbers from different businesses.

Want to start your own food business?

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Report: proposed brentwood liquor store will become small business support center instead, residents protested addition of liquor store near school.

Aaron Farrar , News4Jax reporter

JACKSONVILLE, Fla. – The site of a proposed liquor store in Brentwood will now become a small business support center, according to News4JAX news partner The Jacksonville Daily Record.

Mayor Donna Deegan made the announcement about the Golfair Boulevard property during a luncheon on Thursday.

The mayor said the support center will open in early fall if all goes as planned and will focus on workforce development and entrepreneurship.

The city of Jacksonville bought the site for $1.8 million last November after months of backlash from Brentwood community members that included several protests to stop the building from opening as a drive-thru liquor store.

Residents argued the store was inappropriate because it is right across the street from Kipp Voice Academy.

The mayor’s office said it will release more details about the business center at a later date.

Community members have also fought against bringing a new medical examiner’s office to the same neighborhood, but construction is already underway right next door to the future support center.

News4JAX is working to find out if there are any changes to that plan in light of the new business center.

Copyright 2024 by WJXT News4JAX - All rights reserved.

About the Author

Aaron farrar.

Morning Show reporter

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