3 Things To Educate Yourself On When You Purchase A Liquor Store

A liquor store is a good investment that will provide the owner with a steady income. Liquor store purchase financing solutions can help potential owners to procure the capital required.

Educate yourself on the licensing regulations

The rules that govern liquor stores are different in different cities and states. Educate yourself on the various regulations, licensing regulations. Understand the rules that must be complied with and ensure timely compliance to avoid penalties. The capital required for such compliance can also be sought through liquor store purchase financing. All the information pertaining to rules and regulations can be found on the government website of the Alcohol and Tobacco Trade and Tax Bureau (TTB). One can use this information to verify compliance or information relayed by the seller or the broker.

Educate yourself on the operational expenses

The operational costs are often overlooked while calculating the capital investment required. This can prove detrimental to the business and create cash crunches right as the store opens. Operational expenses like inventory expenses, payroll expenses, expenses for advertising and implementation of marketing strategies, expenses for improvements in the store or renovations, etc. should be calculated. An estimate of all of the above operational costs and the cost of purchase should be added up to calculate the cash required throughliquor store business financing.

Educate yourself on customers and competition

Before you even begin to run the business, analyze customer preferences and study the competitors in the market. Use the cash advance obtained through liquor store business financing to provide to customers, more than the competitors. Ensure that everything in the store caters to the customer preferences observed in the market. This will help you hit the ground running as you open a liquor store.

3 Ways A Liquor Store Can Use Small Business Alt-Financing

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.

  1. 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.