Imagine trying to craft a new cocktail with no recipe. You’ll be left with lots of tough questions. Which type of liquor is the base of your cocktail? What mixers should you include? Is it meant to be served up or over ice?
Without a guide, you can’t expect to create a cocktail masterpiece.
Launching a liquor store without a business plan is similar. A business plan is your liquor store’s roadmap to success, defining your goals and giving you a step-by-step path to achieving them.
In this blog, we’ll explore the components of a comprehensive business plan for your liquor store.
1. Conduct Market Research
Before you start dreaming up your very own liquor store, it’s important to do some market research and size up the competition.
Consider which types of beverages are popular in your area. Is your neighborhood full of wine aficionados searching for the finest reds, beer lovers always looking to try the newest IPA, or cocktail enthusiasts stocking up on spirits and mixers?
Along with considering the preferences of your potential customers, you’ll want to evaluate your competitors. If there are other liquor stores already operating in your location, what can you do to set your small business apart? Carefully analyze their selling points and shortcomings to ensure that your liquor store fills a gap in the market.
2. Choose a Strategic Location
The next step on your journey to create a business plan for your liquor store is to choose a location.
Along with budget, here are some key factors to keep in mind while hunting for the perfect spot:
- Is the location easily visible and accessible?
- How much foot traffic does it get?
- Are there competitors nearby?
- How much will it take to turn it into a welcoming shopping environment?
- Are there zoning restrictions that apply to the location?
3. Crunch the Numbers
Financial planning is one of the most difficult — but most important — parts of creating a business plan for your liquor store, so we’ll do our best to make it simple. There are two main parts of a solid financial plan: calculating your expenses and estimating your revenue.
First, you’ll need to account for all your startup costs, plus your ongoing expenses. This analysis should include your location costs, renovation, store setup expenses, utilities, labor costs, and inventory.
Next, you’ll need to project your store’s income. To get a close estimate, approximate the prices of each of your products, how many visits you might get daily, and the total value of each purchase.
The most important calculation is your store’s breakeven point, which is when your total revenue matches your total expenses. Finding your breakeven point reveals when you can expect your small business to start making a profit.
4. Secure Licenses and Permits
Liquor stores operate in a heavily regulated industry, and legal compliance is a critical part of your business plan.
Requirements vary by state and county, but in most places, you’ll need a license to sell liquor. Make sure to plan ahead and budget accordingly to secure your license in time for your grand opening.
Along with applying for a liquor license, it’s essential to ensure that your business is in full compliance with all other alcohol regulations. All states prohibit the sale of alcohol to customers under the age of 21, so protect your business and your community with a plan for age verification at checkout.
5. Get Your Space Retail-Ready
Now it’s time to start making your small business dreams a reality! Your business plan for your liquor store should include how you plan to design your space to maximize sales.
Plan out where each type of liquor will go in your store, and consider how easy it will be for your customers to navigate your layout and find exactly what they need.
This is also a good time to budget for retail essentials like shelving, shopping baskets, signage, and counters for checkout to ensure that your liquor store is ready for business.
6. Choose the Right Business Tools
Just like the right liquor is key for the perfect drink, the right point of sale (POS) solution is crucial for liquor store success.
Your POS system is the engine that keeps your liquor store running, processing all of your transactions, managing your inventory, and handling your customer loyalty program.
Your best bet is to choose a POS system designed specifically for the liquor industry. A liquor-specific POS solution will be equipped to handle the intricacies of liquor sales, like complex inventory management processes and age verification.
7. Stock Your Shelves
Whether you’re planning to operate a one-stop shop for all things alcohol or a boutique with high-end spirits, your liquor store business plan should include a thorough overview of the products you plan to carry.
You’ll also want to outline a solid plan for keeping track of all those bottles. Liquor store inventory management can be complex, so make sure to adopt a POS solution that makes it easy to keep your customers’ favorites in stock.
8. Craft a Marketing Strategy
The final piece of your liquor store business plan is a winning marketing strategy.
As a new business, you have an excellent opportunity to attract new customers and convert them into lifetime patrons of your liquor store. Here are a few ideas to give your small business an early boost:
- Launch a customer loyalty program to encourage repeat business
- Offer a special promotion to celebrate your grand opening
- Make sales online through e-commerce integration
- Start an active social media account for your liquor store
Launching your business with an established marketing plan will ensure a successful opening and beyond.
Give Your Small Business a Head Start With Bottle POS
If you’re hoping to launch a thriving small business, crafting a comprehensive business plan for your liquor store is a must. Thinking through each of these factors and making strategic, informed decisions will give your liquor store the best chance of success.
Looking for more help on your small business journey? Our team of liquor industry experts is here for you!
Schedule a personalized demo of Bottle POS to learn how our POS solution designed with liquor stores like yours in mind can get your small business started off on the right foot.
