My brother and i are saving money to open our own liquor store. How much is a reasonable amount to start up a store? I have always wanted to open my own store,and my brother and I have about $10,000 saved so far. The store would most likely be in central florida if this helps.I just need a ballpark estimate. What does the liquor license cost? Thanks for any help, 45automan
DOES ANYONE KNOW HOW TO GO ABOUT STARTING UP MY OWN LIQUOR STORE? HELP
- Thread starter 45automan
- Start date
TearsOfRage
New member
Liquor licenses vary trememdously in price from one town to the next. Location is everything, in more ways than one.
It's not so much the cost as the availability. I don't know how things work in Florida but where I live there are only a certain number of liquor licenses per county. If one is not open or they don't want to add another one your out of luck.
Depending on your store rent 10,000 is not a bad place to start. I would go another few grand and start talking to local distributors about carrying products. You'll be surprised at what they'll give you to get your business. Good luck.
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"Some people spend an entire liftime wondering if they made a difference. Marines don't have that problem."
Semper Fi
Depending on your store rent 10,000 is not a bad place to start. I would go another few grand and start talking to local distributors about carrying products. You'll be surprised at what they'll give you to get your business. Good luck.
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"Some people spend an entire liftime wondering if they made a difference. Marines don't have that problem."
Semper Fi
Jeff Thomas
New member
Let me offer a few suggestions:
1. Buy a book on starting your own business ... this isn't just a liquor store, this is a business. Search around on Amazon.Com, and find one that looks like a good overview.
2. Learn about business plans. At least write a short one, so that you force yourself to rationally think through location, competitors, suppliers, store layout, employees, hours, etc.
3. Included in your business plan should be the numbers ... opening balance sheet, cash flow projections, projected income statements for the first few years. This will help you determine how much cash you need ... you need enough to buy the assets (inventory, shelving, signage, liquor license, etc.), as well as a deposit for your lease / utilities, and to cover a few months of probable losses.
4. Also included in that business plan will be your plans for financing. Some industries have wholesalers / manufacturers that will help finance inventory. In other industries, you're limited to bank financing or simply your own cash.
5. Look for a liquor trade group ... I'm sure there is something. Contact them, tell them of your plans, and see if they have any resources. You may be able to join as some kind of associate member before you're in the industry.
6. Contact your state liquor board, and find out about their various requirements. They may have a package set up for new stores.
7. Carefully consider security precautions in your design ... we don't want to be reading about you in some self defense story down the road.
This may sound like a lot, but believe me, it is the minimun you should consider. Many folks may say, 'but gee, I'm just opening a little store!'. But a failure to plan is a plan to fail, and a lot of people have flushed tens of thousands of dollars down a toilet because they started a business with no planning.
Having said all this, recognize that I've never operated a liquor store, but I have worked a lot of business plans and mergers / acquisitions. However, I do occasionally have a drink or a glass of wine ... that makes me an expert, no?
Good luck with your enterprise.
Live and let live. Regards from AZ
[This message has been edited by Jeff Thomas (edited August 07, 2000).]
1. Buy a book on starting your own business ... this isn't just a liquor store, this is a business. Search around on Amazon.Com, and find one that looks like a good overview.
2. Learn about business plans. At least write a short one, so that you force yourself to rationally think through location, competitors, suppliers, store layout, employees, hours, etc.
3. Included in your business plan should be the numbers ... opening balance sheet, cash flow projections, projected income statements for the first few years. This will help you determine how much cash you need ... you need enough to buy the assets (inventory, shelving, signage, liquor license, etc.), as well as a deposit for your lease / utilities, and to cover a few months of probable losses.
4. Also included in that business plan will be your plans for financing. Some industries have wholesalers / manufacturers that will help finance inventory. In other industries, you're limited to bank financing or simply your own cash.
5. Look for a liquor trade group ... I'm sure there is something. Contact them, tell them of your plans, and see if they have any resources. You may be able to join as some kind of associate member before you're in the industry.
6. Contact your state liquor board, and find out about their various requirements. They may have a package set up for new stores.
7. Carefully consider security precautions in your design ... we don't want to be reading about you in some self defense story down the road.
This may sound like a lot, but believe me, it is the minimun you should consider. Many folks may say, 'but gee, I'm just opening a little store!'. But a failure to plan is a plan to fail, and a lot of people have flushed tens of thousands of dollars down a toilet because they started a business with no planning.
Having said all this, recognize that I've never operated a liquor store, but I have worked a lot of business plans and mergers / acquisitions. However, I do occasionally have a drink or a glass of wine ... that makes me an expert, no?
Good luck with your enterprise.
Live and let live. Regards from AZ
[This message has been edited by Jeff Thomas (edited August 07, 2000).]
Definately what Jeff said. You need a Business Plan, the more thorough the better. You can Never over-plan.
I don't know who said it but "If you fail to plan, then you plan to fail" probably learned the hard way.
You will also find financiers, trade groups, distributors, and the like much more receptive when you have a sound, well thought out plan. Professional advice can also be worth many times over what you pay for it.
I don't know who said it but "If you fail to plan, then you plan to fail" probably learned the hard way.
You will also find financiers, trade groups, distributors, and the like much more receptive when you have a sound, well thought out plan. Professional advice can also be worth many times over what you pay for it.
This is a personal observation from an occasional drinker (you'd go bankrupt if you depended on me).
I'm thinking that being a small operator won't get you very good wholesale prices, thus smaller margins. It may well be that a larger retailer exerts influence over your wholesaler to effectively stiffle competition.
I know I can go to a warehouse club, such as Sam's and get my alcohol more cheaply than a liquor store, if I plan ahead, so you'd need a hook to get me.
Also, when I do see mom and pop stores making it, it is because they are in locations that no one would want to operate in, which means they serve an un- or under-represented market. However, the people who live in these areas do seem to drink and are very much unaware of cheaper alternatives (don't forget Lotto tickets and cigarettes as profit sources).
Last, if you are thinking in a "boutique" mindset where you want to cater to yuppies for big bucks, you will need to specialize in rare wines (Tawney Port, Malmsey, TBA) and liquors (Chartreuse, Curvoisier XO, etc.)that aren't price leaders for a warehouse store (no Jim Beam or 7 crown here), so aren't sold there. There are a few places like this around my city, where I can go for Lindeman's framboise lambic.
Also, $10,000 is a very small grubstake and you could spend that putting in good surveilance equipment and bars on the windows.
I'm thinking that being a small operator won't get you very good wholesale prices, thus smaller margins. It may well be that a larger retailer exerts influence over your wholesaler to effectively stiffle competition.
I know I can go to a warehouse club, such as Sam's and get my alcohol more cheaply than a liquor store, if I plan ahead, so you'd need a hook to get me.
Also, when I do see mom and pop stores making it, it is because they are in locations that no one would want to operate in, which means they serve an un- or under-represented market. However, the people who live in these areas do seem to drink and are very much unaware of cheaper alternatives (don't forget Lotto tickets and cigarettes as profit sources).
Last, if you are thinking in a "boutique" mindset where you want to cater to yuppies for big bucks, you will need to specialize in rare wines (Tawney Port, Malmsey, TBA) and liquors (Chartreuse, Curvoisier XO, etc.)that aren't price leaders for a warehouse store (no Jim Beam or 7 crown here), so aren't sold there. There are a few places like this around my city, where I can go for Lindeman's framboise lambic.
Also, $10,000 is a very small grubstake and you could spend that putting in good surveilance equipment and bars on the windows.
To put some more perspective on the question, 13 years ago I borrowed $43,000 from various sources to open my photo studio. That was enough to get started, but the next year I realized that I could not go without air conditioning. Not having the $25,000 I had to lease the system. Business grew, but it always seemed like the growth required more money in terms of equipment and furnishings.
Then, three years ago, the advertising photography market started to get hit really hard. I'm trying to unload equipment, but it's only worth 25 cents on the dollar. Other photographers I know are going under.
I don't want to seem like I'm throwing cold water on your plan. Just make sure that you know as exactly as possible how much you're going to need. Identify your market, and research your competition. Consider what-if scenarios and have a plan for them. You'll be selling something that is exactly the same as your competitors, so you have to either compete on price or service, or both.
On the bright side, people will always buy alcohol.
Good luck.
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
Then, three years ago, the advertising photography market started to get hit really hard. I'm trying to unload equipment, but it's only worth 25 cents on the dollar. Other photographers I know are going under.
I don't want to seem like I'm throwing cold water on your plan. Just make sure that you know as exactly as possible how much you're going to need. Identify your market, and research your competition. Consider what-if scenarios and have a plan for them. You'll be selling something that is exactly the same as your competitors, so you have to either compete on price or service, or both.
On the bright side, people will always buy alcohol.
Good luck.
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
Don't even try it. You will sell the Angostura bitters and maybe a smidgen of vermouth to mix with the 85 gallons of stuff the customers have already bought at a warehouse store.
Your hours will be brutal and you will be a robbery target every night.
The day of the neighborhood liquor store is long past.
If you want a sobering (pun) experience, call your bank and tell them how much you have and what they could get an SBA loan for.
$10,000 won't even cover rent deposits and license and initial inventory.
Hate to rain on the parade but better than losing what you have.
Your hours will be brutal and you will be a robbery target every night.
The day of the neighborhood liquor store is long past.
If you want a sobering (pun) experience, call your bank and tell them how much you have and what they could get an SBA loan for.
$10,000 won't even cover rent deposits and license and initial inventory.
Hate to rain on the parade but better than losing what you have.
Depending on which state you're in, ten grand is only a fraction on what you'd need to spend on bribes to get the license. If you are not a local boy and politically connected, you're chances of getting a license could be very slim.
For any sort of retail store, you generally need to think in terms of hundreds of thousands for starting capital. Which means business loans. Something like 9 out of 10 new businesses fail. Talk to your local bank and the Small business Administration, they will have an idea of the risk and return of most small business startups.
For any sort of retail store, you generally need to think in terms of hundreds of thousands for starting capital. Which means business loans. Something like 9 out of 10 new businesses fail. Talk to your local bank and the Small business Administration, they will have an idea of the risk and return of most small business startups.
oberkommando
New member
Sorry this wont help but it reminded my of a friend I knew who once had a GUN/LIQUOR/GAS station/store, in california. Whats the odds of that happening again? Talk about convenience.
Monkeyleg, you aint got any broncolor lighting or P2 cameras dirt cheap do ya?
Monkeyleg, you aint got any broncolor lighting or P2 cameras dirt cheap do ya?
David Blinder
New member
Personally. I'd find a rich, blonde nyphomaniac whose dad already owns one. That way, when the store has trouble, you'll still be happy.
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by oberkommando:
Sorry this wont help but it reminded my of a friend I knew who once had a GUN/LIQUOR/GAS station/store, in california. Whats the odds of that happening again? Talk about convenience.[/quote]
That must have been in Tracy, CA. I think it was called "Scotty's". I always thought that store was GREAT! Get a tankful of gas, buy guns, ammo, bait and hunting/fishing license, and get a 12pak and a pint of whatever to go. Not that shooting and alcohol mix, but when the day was done, WHY NOT!
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Just one of the Good Guys
Sorry this wont help but it reminded my of a friend I knew who once had a GUN/LIQUOR/GAS station/store, in california. Whats the odds of that happening again? Talk about convenience.[/quote]
That must have been in Tracy, CA. I think it was called "Scotty's". I always thought that store was GREAT! Get a tankful of gas, buy guns, ammo, bait and hunting/fishing license, and get a 12pak and a pint of whatever to go. Not that shooting and alcohol mix, but when the day was done, WHY NOT!
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Just one of the Good Guys
OT reply to oberkommando: Nope. Speedotron and Horseman 4x5's and 8x10's. The Speedo stuff will sell easily, but the large format cameras you can't give away. I just sent a couple of lenses to a dealer in Ohio. Still have an absolutely-like-new Schneider Symmar-S 360 f6.8 that I paid $1400 for 13 years ago. _Nobody_ wants that either.
Sigh.
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
Sigh.
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
45automan, DO IT
Would you let somebody come dump thier garbage on your lawn? Don't let anyone kill or steal your dreams.
Anyways, you need to contact the right office for the state you live in. In Ohio for example most (if not all) liquor stores are regulated by the state. In some cases the state may grant you a contract to own and operate a liquor store in a site that they provide, and even train your staff, IF... you pass through a specific application process and have (for example) 1st months wages for employees and 3 months rent on deposit in a bank which you can prove. Trade off may be that in three years you must re-apply to own the business again, but if you run it good and give the state all the money they need from the sales, your golden. Extreemly profitable.
Many states have these little known secrets in operation, you just have to find them. I've been looking into a particular state mandated situation in Ohio for a while now, but having trouble with part of the application where I need proof of the few months rent and staff wages on deposit. (for me it was near 20 grand) But I'm not giving up.
A liquor store could be a cash bank like a "McDonald's" without having to shell out the 1 million cash and .5 Million in equity to start up. Also, not every state lets Sam's Club (or whatever) sell hard liquor.
Do crap loads of research. Personally, I think that owning your own business is one of the few ways to secure your "freedom" here. And fortunately, america's tax system favors and encourages the independant business owner.
Ya, and of course, as somebody mentioned above...Location, which is not only the right neighborhood, but maybe the right city and state. Good Luck
Would you let somebody come dump thier garbage on your lawn? Don't let anyone kill or steal your dreams.
Anyways, you need to contact the right office for the state you live in. In Ohio for example most (if not all) liquor stores are regulated by the state. In some cases the state may grant you a contract to own and operate a liquor store in a site that they provide, and even train your staff, IF... you pass through a specific application process and have (for example) 1st months wages for employees and 3 months rent on deposit in a bank which you can prove. Trade off may be that in three years you must re-apply to own the business again, but if you run it good and give the state all the money they need from the sales, your golden. Extreemly profitable.
Many states have these little known secrets in operation, you just have to find them. I've been looking into a particular state mandated situation in Ohio for a while now, but having trouble with part of the application where I need proof of the few months rent and staff wages on deposit. (for me it was near 20 grand) But I'm not giving up.
A liquor store could be a cash bank like a "McDonald's" without having to shell out the 1 million cash and .5 Million in equity to start up. Also, not every state lets Sam's Club (or whatever) sell hard liquor.
Do crap loads of research. Personally, I think that owning your own business is one of the few ways to secure your "freedom" here. And fortunately, america's tax system favors and encourages the independant business owner.
Ya, and of course, as somebody mentioned above...Location, which is not only the right neighborhood, but maybe the right city and state. Good Luck
oberkommando
New member
GOODGUY, Glad to hear there was another one, no this one was on Highland street in San Bernardino Calif.
MONKEY, that sucks, I kinda know how that is I got 3 Nikons that I would like to upgrade to 4X5 Sinar but they dont bring anything. Paid 1100 years ago for 80-200 2.8 it is now probably just a paperweight in value. Hard to believe that nobody wants 4x5 anymore, I guess all that digital stuff is here to stay. You still cant beat looking at a 4x5 Chrome on a light table, I dont care what kind of monitor you got.
Guess If I had wanted to make a good investment I would have bought about 6 HK-91s in the eighties and left them in the box. Right now those six in california would have fetched a fortune, of course that would be through a private party transaction outta state.
MONKEY, that sucks, I kinda know how that is I got 3 Nikons that I would like to upgrade to 4X5 Sinar but they dont bring anything. Paid 1100 years ago for 80-200 2.8 it is now probably just a paperweight in value. Hard to believe that nobody wants 4x5 anymore, I guess all that digital stuff is here to stay. You still cant beat looking at a 4x5 Chrome on a light table, I dont care what kind of monitor you got.
Guess If I had wanted to make a good investment I would have bought about 6 HK-91s in the eighties and left them in the box. Right now those six in california would have fetched a fortune, of course that would be through a private party transaction outta state.
Maybe the best advice is to go with what you know. You and your brother should put your heads together to figure out what you're good at and, meanwhile, invest that $10K so you can't touch it and go buy the liquor store that was going out of business the minute before they saw you coming on a whim.
You may find that a good moneymarket or mutual fund would earn you a lot more than a business, but that is short-sighted to the true entrepreneur.
When you guys come up with something that you're good at and can make money at (playing the ukelele while standing on your head doesn't count), draw up the business plan and look for financing, because $10,000 won't cut it.
Get a real accountant (not a relative who took a couple courses in accounting at the junior college) to look things over. This also applies to an existing business that you happen to know something about before you go in (if you're a machinist, then you know something about running a machine shop). You'd best pass on those you don't (if you're a machinist, you have little idea how to be a florist, or liquor store owner).
[This message has been edited by B Shipley (edited August 09, 2000).]
You may find that a good moneymarket or mutual fund would earn you a lot more than a business, but that is short-sighted to the true entrepreneur.
When you guys come up with something that you're good at and can make money at (playing the ukelele while standing on your head doesn't count), draw up the business plan and look for financing, because $10,000 won't cut it.
Get a real accountant (not a relative who took a couple courses in accounting at the junior college) to look things over. This also applies to an existing business that you happen to know something about before you go in (if you're a machinist, then you know something about running a machine shop). You'd best pass on those you don't (if you're a machinist, you have little idea how to be a florist, or liquor store owner).
[This message has been edited by B Shipley (edited August 09, 2000).]