How To Start a Liquor Business in 7 Simple Steps

Owning a small business can be a dream come true. You’ll have the opportunity to build lasting relationships with your customers, share your passion for fine spirits, and make big profits while you’re at it. 

But before you plan your grand opening, there are some essential steps you need to take to set yourself up for success. 

In this guide, we’ll tell you how to start a liquor business and the types of things that liquor store owners need to consider to stand out from the competition.

1. Create a Business Plan

Starting a liquor store without a plan is like jumping into a pool without knowing how deep it is. If you don’t have a solid idea for how your liquor store will operate and stand out from the competition before you open, then you’ll burn through money figuring it out.

Start by creating a liquor store business plan. This document is like a blueprint for your store, and includes:

• The finances you need to get started and how much you’ll need to stay in business.
• Specialty selections, product variety, and other aspects of the store that make it unique.
• Market research that demonstrates your knowledge of industry trends and what it takes to attract new customers.
• The staff, technology, and processes you’ll use to run a profitable business.
• Your short and long-term goals.

A business plan serves two purposes. First, you’ll need a business plan to get investors or a business loan. Second, it will help you stay honest, giving you a north star to measure your business performance against.

2. Size Up The Competition and Define Your Niche

Why do you want to open a liquor store? Are you taking over an old favorite, or do you want to offer something new? Do you have a deep knowledge of whiskeys or craft beer? 

Everyone has their reasons for entering the business, and understanding what makes your liquor shop special is essential for finding success. If you’re not sure what that is yet, the best place to start is by looking at your competitors.

Visit other stores in the area with a critical eye. As you browse your competitor’s aisles, think about things like:

• Selection: What kind of items do they offer? Are there any gaps in their selection that you could fill? 
• Staff and shopping experience: What’s the customer experience like? Do the staff know their stuff? How quickly can you find items and check out? 
• Branding and visual merchandising: Does the store have a distinct look and feel? What kind of signage and displays does the store use to draw customers’ attention?
• Marketing: What kind of deals does the store offer? Do they have a loyalty program or other incentives to keep customers coming back?

Knowing what your competitors do well and where they fall short is your first step in defining a unique brand identity. 

3. Choose a Good Location (and Understand Local Liquor Laws)

The right location is critical for getting customers through the door. Along with budget, here are some factors to consider as you hunt for the perfect spot for your liquor business: 

• Traffic and accessibility: How easy will it be for your customers to find the location? How much foot traffic does it get? How convenient is parking?
• Surrounding businesses: What kind of businesses are in the area? Is a liquor store a natural fit? 
• Demographics: Does the location align with your target market? Will your liquor store’s niche and offerings match the wants and needs of the people living in the neighborhood?
• Proximity to competitors: Are there nearby liquor stores that you’ll have to compete with? How far away are they, and are your offerings different enough to set you apart?

By keeping these aspects in mind, you’ll be better positioned to attract customers and grow your business. 

Note: Many states limit the number of liquor stores in a given area or have restrictions on how close a liquor store can be to a residential area or school. So, don’t get too attached to a location without checking your local liquor laws first. 

4. Create an Inviting Store Layout 

Ever walk into a new store and it just feels right? The atmosphere is welcoming, and with minimal effort, you quickly find what you’re looking for and maybe even stop to look at some of the deals on offer. 

It’s not magic, but the result of great liquor store design.

Create an organized floor plan with clear sections for different types of liquor, fridges for beer, and shelves for wine. Use easy-to-read signs so customers can navigate the store and leave plenty of open space for rotating displays.

Based on your customer demographics and niche, you should have a good idea of what people are looking for. Lay out your store to naturally guide customers towards your bestsellers and popular items while encouraging them to browse some deals and special displays.

You might not nail your store layout right away, and that’s perfectly OK. Listen closely to customer feedback for common questions and monitor the sales data on your point of sale (POS) system to understand your customers.

5. Focus on the Customer Experience and Selection

Prices have been increasing lately, and the average consumer is more cautious about trying new things. While you could compete by trying to undercut competitors and offer the best prices, that is a reactive strategy that won’t help you achieve long-term success.

Instead, focus on offering the best customer experience possible. Many people choose one liquor store over another for selections they won’t find anywhere else. Keep an eye on your sales data or use tools like Bottle POS’ auto ranking feature to understand the types of liquor your customers like the most and expand your selection in those areas.

Beyond a diverse selection, you also want to make the shopping experience as pleasant and easy as possible. Hire friendly staff who can engage with customers and offer recommendations. Create shelf signage that includes tasting notes, cocktail ideas, and staff picks.

6. Take Your Store Online

Offering convenient online sales is another way to modernize the shopping experience and reach customers you might not have otherwise. 

To set up a great liquor e-commerce site, you’ll need a few things:

• A compatible POS system that can manage your in-store and online inventory
• A user-friendly and mobile-friendly website that optimized for local SEO
• Age-verification tools and shipment rules to keep your online sales compliant with local liquor laws
• An e-commerce platform that supports high-risk payment processing

Even if you don’t plan to sell your liquor online, a user-friendly and accurate website is still essential. Over 80% of people find local businesses online first, so putting some time into growing your liquor store’s online presence will pay off in in-person sales, too.

7. Set Your Liquor Business Up for Success With the Right Tools 

To keep your store running efficiently and deliver the modern shopping experience your customers will expect, you’ll want to equip your liquor business with a powerful POS solution. 

A POS system is the engine that keeps your liquor store running. Not only does it process all of your sales, but it also manages your inventory, analyzes your business’ performance, and helps you grow your loyal customer base. 

Let’s explore a few key ways to use your liquor business POS system:

• Streamlined checkout: Create a convenient experience for your customers through built-in age verification and support for multiple payment types.
• Effective inventory management: Keep your shelves perfectly stocked with features like real-time inventory monitoring, automated purchase orders, and case breaking.
• Detailed reports: Monitor your business's financial health with insightful sales reports.
• Customer loyalty: Build your loyal customer base and boost your sales with a customizable loyalty program.
• Marketing: Keep your customers in the loop about your upcoming promotions through SMS messaging and email marketing integrations. 

Choosing the right POS system has a major impact on the success of your liquor store, providing you with all the tools you need to build a thriving business. 

Launch Your Liquor Business With Bottle POS

Starting a liquor store isn’t easy, but with a solid plan and the right support, you’ll quickly become a community favorite. 

Bottle POS is a point of sale solution designed with the needs of small liquor store owners like you in mind. Our POS software is equipped with robust inventory management, customer loyalty, reporting, and marketing capabilities, and our team is here to help you put these tools to work as you build a booming liquor business. 

Schedule a live, personalized demo today to learn more about how Bottle POS can help you achieve more.