How You Can Run A Business Out Of Liquor Love

Very few entrepreneurs are passionate about their field of business. Passionate entrepreneurs surprisingly are capable of delivering an unbelievable outcome that is rare to achieve. Entrepreneurs with such a mind-set have an exceptional approach towards challenges, which indicates that they are different from the rest.

A friend of mine had a special love for liquor and possessed in-depth knowledge about it – more so than the average Joe. He decided to utilise this knowledge of his for professional reasons and planned to start his very own liquor business. This was two years ago – today, he is planning to open a new shop at another spot across the city as the first one has done so very well.

Here’s how he transformed his liquor passion into a source of income:

Find USP:

There is a difference between a small and big liquor store. The latter enjoys perks like volume sales, better discounts, etc. while the former does not have the same. In order to beat this attributes smaller stores prefer unique collection of liquor than the large stores.

So, the first move is to search for all possible selling options. For example, you can offer vintage or world-class wines or special beers. You can also sell a range of all liquor which is a balanced option and an effective way technique to win potential customers.

The thumb rule is to offer something that the rest doesn’t provide so that you become a destination stop for your customers.

Did you spot the spot?

You may find a perfect spot for your store but it is equally essential to skimp through basic laws pertaining to liquor and drinking. For instance, some cities have laws which do not permit liquor shops around schools, hospitals, churches, etc.

If this is the case then you must consider how far a person can walk to visit your shop and your surrounding competition. It has been observed that if your shop is around a grocery shop where people drop by to run their errands they might visit your shop often.

Licensing is a Must

As mentioned previously you need license to run a liquor store. Since every store has its own rules and regulations for liquor so it is necessary to have a license for each city separately.

There are some specific areas where you need to meet particular qualifying conditions   to acquire license. On the other hand, in some cities liquor shops are managed by government only and store owners are kept under tight supervision by the authorities. Sometimes, they also mention working hours as well for business. 

Reality Check of Capital:

Before you complete your legal formalities and finalise your premise make sure that you have sufficient funds to spend on large volume of liquor and run your business. The investment amount mainly depends on location, inventory, license cost, rent, payroll and other legal fees.

There is possibility that you may need some additional sum besides your estimated capital. In such circumstances, you can always rely on alternative finance which provides you necessary financial support in need of the hour.

You can prepare a basic business plan so that you do not run out of cash right at the start of your business. A business plan gives you an estimate of how much cost is involved in research, licensing, inventory, etc.

Constant Eye on Inventory:

When you run a liquor business, inventory is likely to go haywire. That’s why you need to keep a close watch on it so that it does not go overboard. This will perhaps, save you from thousand pounds inventory lying on your shelves.

Although the volume of your inventory is determined on your capital, estimated sales cost and target audience you focus on. You probably can put on display preferred brands of your customers so that they get sold away quickly.

This way, your money will not stay occupied with inventory lying in your shop and there is constant cash flow to keep the business going. In fact, you get a chance to expand and include more products or open a new branch.

Make sure that you have permission from the state to sell all types of liquor in your store. Possibly, you can check the list from your state’s official liquor board to acquire surety.

Power of Word Of Mouth:

Liquor industry is restricted and has limited liberties as compared to other services or products. One such restriction is on advertising alcohol on various medium of communication.

There are hardly a few states which allow advertising alcohol on television, print or radio. Some cities permit subliminal advertising for liquor on all these platforms but direct advertising are banned.

However, word of mouth is one effective communication tool which allows you to transfer information. Not mere information but accurate and genuine information. For instance, if you have a free cocktail session at your store this information can be passed on to your customers easily and without additional expense.

You can also offer special discounts to regular customers or new customers on their first drink. This will help you to build customer loyalty and a strong customer base.

As compared to other businesses, liquor business has more restrictions, legal formalities and responsibilities. Therefore, it is recommended to carry out significant amount of research before you start your business. You can always enhance your knowledge and understanding by talking to experts and searching it online.

One way to know customer preferences is to ask them to fill a feedback form or provide them a list of drinks and ask them to tick their favourite drinks. This primary data helps you to have a clear idea of what particular brand or drink your customers like.

Every brand of beer, whiskey, rum, scotch and brandy has a particular taste which an individual likes to drink more often than the other brands. Taste and price are two essential denominators on which an individual picks a drink. If you are able to serve them just the right way, and at a competitive price, they are surely going to walk back in your store time and time again.