A wine and liquor store is a retail business, which needs a good location. Traffic and a decent amount of floor space will make the difference between success and failure. Starting one from scratch rapid cash is best way to finance like other businesses has some advantages such as upfront cost, but the established business has a built in immediate cash flow. Which one a person should do is a decision that should be made very carefully. This choice is easier if the potential owner has access to whatever money is needed. Building a new business may be very satisfying to the owner, but it is more difficult than taking over a thriving business. An established business has the customer base already and this can be a factor in almost guaranteeing success
How and where to get the information
How and where to get the information needed to find a store for sale or how to start one from the get-go is fairly easy these days. The Internet is loaded with information on this type of business. You can also locate business brokers with listings in this business class and stores that are advertising their sale on the net.This is a common type of business that comes up for sale in larger cities all of the time. A person could almost decide where they would like to live and then find a business for sale.
In some states, it’s harder to start this type of store due to local laws on liquor. This also could make it harder to find stores that are for sale for the same reason. Stores that have been started in more lenient times may be small gold mines and the owners may be reluctant to sell. If they will sell, they may want a premium for their business. As stated before, this is a business ownership situation that will take some careful study. A person needs to figure the best way to go about getting a business or starting one. A solid business broker can also answer a ton of questions and give very timely advice. There are also many books on this topic and this business type.
Buying the business and money
If you have a decent nest egg, you can probably pull off buying a business without much trouble. If you are a little short and have excellent credit you may be able to get money from a company that specializes in loans to buy a business.Another obvious source is the current owner of the business. If the owner can afford to carry back some paper to make the sale, they may do it for a premium price on their business.
Starting from the ground up is a different matter in that you will need to get the business up and running and then do advertising to let the public know of the new business. This type of business depends on traffic and if the store is in a busy strip center or shopping center it should do ok. A busy corner location is even better for the store. People go to these types of stores as a convenience rather than loyalty. The prices are usually very competitive between stores and so price shopping is not very practical. There are also controls on the selling of spirits and this also keeps the prices in line between stores.
Wine as a special item
Wine is a matter of taste and preference. People who like wine love to find a vintage that few people know about before it becomes well known to wine lovers. A store that develops a reputation for bringing in new brands at decent prices will get some play by their wine loving customers. An e-mail alert system is very good at generating new sales from existing customers. This opens the door to many special wine tastings and weekend specials. Wine has a mystery to it that is not present with any other form of drink. A store owner that becomes a local wine expert will enjoy over a period of time a special place in the community.
One place to consider starting a store
If the city you are living in were growing rapidly, a wine and liquor store in a high traffic area that is in the heart of the growth side of the city would make sense. As stated earlier this is a convenience purchase type of product. People will not drive long distances to buy booze. They will stop at a store that is near their home and purchase what they need for the weekend. A population shift is going to open opportunities for this type of store. If the trend were well in place and substantially growing, this area would be a good location for a store. People shop near their home if they can since it is just easier to do.
Convenience is a big part of where people buy their liquor or wine. Most families will have occasions in their home when they will need to visit a store that sells these types of specialty retail products. A good selection of wines and liquors will go a long way toward making a first time visitor a repeat customer. You can add to the sales total by selling small impulse items that have a high markup per sale
If you can find an existing store that has a good sales and profit history, this may be a better buy than starting a store. You will pay more for it, but the extra cost will be covered by immediate cash flow, which is very helpful in keeping the business successful. This is one of the basic rules in owning a business of you own. Some owners can afford to help in the financing of the purchase. This type of a deal is often far easier to put together and complete the sale. Remember one thing for sure. A retail business is always influenced by location, location and location. Location can overcome many negatives in a small business.
Henthorn is president of Spiral Marketers, a marketing firm which includes a number of partnerships that range from cutting-edge software development, business and personal improvement coaching, online e-commerce businesses, and more.