The Basic Steps to Owning a Liquor Store Due to strict federal, state and local regulations, there are many steps that you must take before you can consider owning a liquor store. These following steps will help to put you on the right track to liquor store ownership.
1. Determine Eligibility
The Department of Treasury’s Alcohol and Tobacco Trade Bureau requires every seller and wholesaler of wine and spirits to register, pay special taxes and keep very detailed records of inventory and sales transactions. Before making the decision to own a liquor store business, it is important to consider the increased taxes and tight controls associated with its operation. You will also have to carefully check your personal background eligibility for liquor store ownership.
2. Research State Laws and Regulations
The most important step in owning a liquor store is checking out your state’s regulations. A good place to start is the Alcohol and Tobacco Trade Bureau Liquor (www.ttb.gov). Control laws and liquor regulations vary from state to state, and the bureau website features a comprehensive state directory featuring contact information and links to each state’s specific website. State regulations must be followed in addition to federal regulations, and can be even stricter. It is important to keep in mind that if you have been registered and approved on the federal level, that does not automatically qualify you for a state license.
3. Register the Business
Registering the business will make you a legally recognized company. This establishes the mechanism to pay taxes on the profits of your business generates, and also enables the business to obtain a Federal Employer Identification Number so that you can tax the salaries of your employees. Contact your local city clerk’s office or county clerk’s office for directions on where to go to register your business. You can also register directly through the Secretary of State’s office in the state where you will be conducting business. Seek advice from your attorney and accountant as to the best type of business entity to set-up, based on your financial situation and strategic business plans.
4. Research Location and the Competition
Research potential locations for your business. You will need to pay close attention to local zoning restrictions. Most places have restrictions that prohibit liquor from being sold near schools, churches, libraries and hospitals. Other communities may also have more liquor stores than the local population requires, making it difficult to convince the city council to issue an additional license. Conducting detailed research into local regulations is a critical step to opening a liquor store. When scouting a location for the store, consider not only the direct competition, but also the indirect competition, such as supermarkets and wine stores. Consider how many similar stores exist in a certain area vs. how densely populated the area is. Research competitor inventory stocking, pricing and marketing strategies. Also consult the local government or Chamber of Commerce to determine if a site is eligible. Local zoning laws and ordinances limit the number and location of liquor stores in most areas. A visit to the city or town’s official website will provide contact information for the person responsible for determining the eligibility of your location.
5. Buy a Location
After researching local restrictions and evaluating potential and eligibility of certain properties, select a location and purchase it. You could get away with leasing the property, but keep in mind that your liquor license will be issued to the location as much as the individual. This could cause problems if you are ever in a situation where you have to change locations. This is why purchasing the building is the preferred course of action. If you do choose to lease the premises, make certain that you have a lengthy lease that gives you an absolute option to renew the lease at the end of the term for an extended period of time.
6. Apply for the Appropriate Licenses and Permits
After you have established your company from a legal perspective, apply for a liquor license for that company, at the address of the building you purchased/leased. The process of applying for a liquor license varies from state to state. There is typically an Alcoholic Beverage Control Board at the State level, with local approval also needed from the local City Council. Contact the City Clerk’s office in the town where you wish to do business for more information on how to apply for a liquor license in your area. Once you have studied the laws for your state, you can begin the process of license application. Copies of the liquor sale applications are available for download from each state website. The controlling agency of each state is slightly different, but is generally referred to as “Department of Alcohol Beverage Control” or “Liquor Control Board”.
7. Get a lawyer familiar with Liquor License Law
Once you have determined that you will be able to comply with the federal and state regulations to own and operate a liquor store, your next call should be to a lawyer or other professional who can assist with the navigation of the various legal issues you will come across. He or she can help you determine what kind of business entity to set-up and assist you in protection against liability issues and the purchase of special liability insurance. Because liquor store hong kong are a high-risk endeavor, insurance can be expensive.
8. Research Insurance Coverage
Research adequate insurance coverage with several insurance brokers and your attorney. Also research the amount and type of state mandated insurance coverage.
9. Locate Financing
Most people looking to open a small business will need to visit the bank and apply for a small business loan. Once you have determined that you qualify to own a liquor store hong kong, writing a business plan is essential. It will be presented to potential investors and bankers. It is extremely important to include information about the steps you are taking to obtain liquor licenses and permits, because investors will be very interested in the availability, eligibility and legal issues associated with selling alcoholic beverages.
10. Choose the Right Licensed Suppliers
Once you have discovered the perfect location for your store, you will have to stock it full of items that are more likely to sell in your area. As you go through the process of opening a liquor store, contact potential authorized wholesale suppliers in the area and research the distribution system in your state. A simple Internet Google search should provide a list of contacts to start this process. Open accounts with several authorized liquor distributors in your state. Every state has authorized liquor wholesalers who warehouse and sell alcohol gin hong kong to businesses that hold a valid liquor license. Obtain a complete list of these companies from the Alcoholic Beverage Control Board or the equivalent office in your state.
11. Choose the Right Inventory Based on Area Demographics
Market and demographic research will not only determine whether your business will be popular, but will also aid you in determining which products will be your best sellers. Areas with a large university population, for example, will see a higher sale of beer kegs, and Spanish demographics prefer certain rum brands.
12. Prevent Underage Drinking
Do not risk your license by selling to underage customers. Learn how to avoid selling alcohol and gin hong kong to minors and train your employees to follow the rules. This can be one of the most dangerous issues for a liquor store owner. Consult with your lawyer about the best ways to avoid this most serious of legal and liability problems.
13. Set up Security Measures
Consider the safety of your store personnel and the security of your liquor store hong kong. Liquor stores are, without a doubt, one of the most targeted stores for crime. Thoroughly research how you are going to protect your investment. Restricting access during certain hours, and/or installing high-tech gadgetry and video surveillance equipment, and posting security personnel in and around your store are options you may want to consider and enforce, but constant vigilance and a plan of action are always the key to thwarting those who are most likely to attempt a hold-up or outright thievery.
14. Role of Technology
Before you open, make sure to purchase or lease a good computerized cash register (POS System). A good one is about $3000 but you’ll make it up in time with better stock inventory management, less inventory shrinkage, and better employee management.
15. Advertise Grand Opening
Research whether there are any local restrictions on advertising the sale of gin hong kong. If no restrictions prohibit it, advertise the date of your grand opening and any special promotions in local newspapers and on a local radio station. It is generally a good idea to provide the community with a reason to visit your liquor store hong kong, such as offering free mixed drink recipe booklets, and/or wine and cheese samples.
16. Initiate Employee Training Program
Train employees how to recommend wine and food pairings, differentiate brand qualities and convey common mixed drink recipes.
