The liquor store market is currently struggling, although profits should grow slightly in the near future. This industry derives most of its income from discretionary spending.
Unfortunately, the recent recession has led to significantly less discretionary spending. As incomes return to normal, more spending on alcohol is expected at restaurants.
Despite competition from restaurants, liquor stores are expected to generate more profits in the near future.
Liquor Store Business
The most significant challenge in this industry is managing labor costs. About 6% of all spending is on labor. And, this market is expected to continue to require more labor in the future.
Consider a liquor store business for sale, as overall market prices are fairly even at this point.
Before you make your purchase, be sure to have a business plan in place. Beware of the potential challenges of running this kind of company, including the labor expenses.
One of the main considerations is to find an appropriate location. This can be difficult, as most jurisdictions do not allow this type of company near schools, churches, or hospitals.
In other localities, there are also may be too much competition. Acquiring the necessary operating licenses often proves difficult.
Licenses are given to the location as well as the individual. This means that if you change your location, you will need to apply for another license.
And, your hours of operation are often restricted, although the details also vary with the jurisdiction.
Next, register your business with all local and national authorities.
Next, develop relationships with local and regional distributors. Lists of these companies are typically available at your state government's administrative offices.
Finally, advertise the opening of your company like you've never advertised before. Be aware of any local regulations regarding the advertisement of alcohol.
In many cases, you should be able to advertise in local newspapers and on the radio. Offer free hamburgers and hot dogs to give people a great reason to go to your location instead of others.
If you are looking at selling a liquor store business, then now may not be a bad time. The market is relatively flat, so prices are stable. However, if you identify a great competitive advantage, consider buying a liquor store business.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .