Liquor stores are a great business as they are considered almost recession-proof and also because consumer demand tends to remain fairly constant with the added benefit of high seasonal spikes. However, it is a highly regulated industry where customers demand specialist knowledge and look to their local liquor store to provide guidance, recommendations, and an extensive product range.
Apart from ensuring that the shop is staffed with knowledgeable employees, owners also need to invest in a vast inventory to cater to expensive and diverse tastes and all this can be costly!
But with a business model as stable as a liquor store, getting financing from alternative sources is no problem at all! Here’s a look at how owners are leveraging liquor store business financing to run and expand their businesses.
- Upgrade or expand the store – There are several small business finance options for liquor stores such as a short-term merchant cash advance or a large expansion funding deal, which can be used to grow the business. These accessible financing offers can be used for activities such as buying diversified stock, laying on extra inventory to meet seasonal demand like buying more expensive wines for Christmas or taking the business online.
2. Commercial real estate financing – The buying trend seems to be in favor of mega liquor stores. So if there is a big store competitor in the neighborhood, then the only way to stay competitive is to grow in size. Commercial real estate financing is specifically designed to help business owners buy or lease land/building space to expand their businesses.
3. Working capital financing – Stocking up inventory, keeping experts on the roll, along with insurance payments, utilities, license fees, etc. can all add up to become substantial fixed costs. At times when cash flow runs low, a liquor store purchase financing can be used as working capital to ensure all the essential payments are met on time.
Regardless of good times or bad, people drink. Some would say people drink more when times are tough! But this doesn’t mean that a liquor store is not a demanding business to run. There is plenty of competition, consumer tastes and buying trends are constantly changing, and there is a lot of government oversight to deal with. Having access to easy, flexible, and fast liquor store business financing can be a big help to run liquor businesses smoothly AND to grow.