The future of liquor industry is very promising. Industries are experiencing volatile falls and rises and can also fear complete disappearance due to arrival of new technologies and other types of developments. Like any other business, liquor store needs a large amount of upfront money that can come in several ways.
About a liquor store business
Beer, liquor and wine stores have seen a steady growth in revenue, even at the time of recession. Even today, it is considered to be a popular means to socialize, at local bars, wineries, breweries, and at home. The increasing trend of drinking has assisted the liquor store industry to become a booming industry.
The liquor store industry has seen a sudden growth due to increasing expendable income, that is leading towards more acquisitions of high margin products. Liquor store financingprovides a wide range of uses that include innovation, mixology and creativity. These are key factors for the growth of the liquor industry. Doing a partnership with local wineries, breweries, and even restaurants will help in the growth of the user base.
Buy or rent a retail space
Buying implies investing more money upfront. It probably needs you to apply for a decent loan of a minimum of six digits. It benefits the investor to make a long-term investment also. This will appreciate the property value in the future. So, if you plan to sell it, then you can make a reasonable profit on that alone.
Property values do not rise and if it does, then it implies that the owner has to pay higher property tax. Due to which, it is a wise decision to reduce your up-front cost as well as long-term risks by taking a retail space on rent in a shopping center or a strip mall.
Evaluate the total cost of startup
The primary cost that you require is of the stock. It is important to look at the amount of liquor that a location can hold. Also, calculate the full content value in a fully stocked store. Add all the mandatory costs that include business insurance.
Evaluate your resources
It is important to find out the amount of cash that you possess in the bank and the assets that are either available for selling or to be presented as collateral to get a business loan. Some of the common candidates being collectible items, vehicles, real estate and jewelry.
Apply for a business loan
If you got a good credit, and stable financial status and ability to invest minimum ten percent of the total cost of startup, then you need to make the loan secure. You would need to prove that either you obtain a business license or a liquor license. If you fail to provide it, then there are chances that lenders would not consider you.
Liquor stores are recession proof. Businesses have their own ups and downs just like a small business. Irrespective of the trends or situation, people consistently drink whether they have the ability to afford it or not. In this way, it ensures that the money that you put in the liquor industry is not going to reduce. All these ways will definitely prove to be helpful in financing a liquor store.