PHASE 1 - Search
After defining your business goals and requirements we start the search.
The joys of owning YOUR OWN liquor store
Remember, this project is a business, not an emotion. Stay objective. The retail liquor business can be a fun business that can be enjoyed at dinner conversations, during the holidays, backyard get-togethers and many more times. All the while, you make an exceptional living, in fact in two ways, earning money while you grow the business and then making more money when you sell the business. What's there not to like? That intangible cannot be replicated with other businesses like accounting, Laundromats, car washes, etc. The liquor industry's categories (wine, beer and spirits) are ever changing for the better. It is a fun industry, but only if you prepare correctly and follow the advice of a seasoned veteran. The industry's dynamics are very different that many other business because of various rules and regulations. So let's have fun!!
By visiting our site, you have already made your first decision to be your own boss by owning your own liquor store – congratulations! Now let's get to work to define exactly what and where you want your store. There will be many more decisions to be made, but feel comfortable that you have a retail liquor industry executive guiding you through the process. While no one can guarantee your success, we can use our 39 years of real experience to guide you through all of the issues to avoid and how-to's to narrow any chance of anything but success. Beware of sites on the Internet who "guarantee" your path to success. No one can ever guarantee success. What any smart buyer knows is that a buyers needs to narrow any chance of risk.
There are basic efforts that any retailer in any industry needs to acknowledge and embrace, they are:
- a willingness to work often and hard no matter what your staffing resources are,
- a need to lead,
- a willingness to learn,
- a willingness to manage.
These qualities are the qualities of any business owner especially an owner in a cash business. If you do not believe you have nor want to develop these qualities, then I would suggest the retail business ownership position in any industry, especially the liquor industry, is not for you. If you have and want to embrace these qualities then the retail business ownership path is exactly for you. Are you willing to be a leader? Are you willing to take control of your business life?
IMPORTANT: In the beginning of your search, remember that buying a business is a process; it's a process that needs to build momentum to search, acquire, open & operate in the quickest and most efficient time. If you are unsure of exactly what kind of store you are looking for, don't get frustrated. Talk to the Coach and consult with your team of professionals. Stay focused and get organized. The search process should take place in a preset period of time. Leaving your search period open-ended will work against you efforts! The Coach's will work with you as much as you want or NEED.
During you consultation with Henry Nunez, the Liquor Store Coach will work on these points and many others,
to identify your business needs and initial direction.
- Initial Written Analysis – a written evaluation of the company’s business model
- Today’s liquor store market conditions
- Why is the license type important?
- Do you want to buy an existing business or buy a license and find a location to start a startup at a lower investment?
- Is wine your game? Would you prefer to concentrate on beer or spirits?
- Can the business sustain your lease expense? Assist in negotiations
- Do you understand how the three tier liquor industry works?
- What is your level of product knowledge?
- Are you amenable to pooling your investment with other parties to buy a larger store?
- Why pool your investment money?
- Leveraging economies of scale leads to quicker and larger ROI
- Determine demographic requirements
- Is a local store in the heart of the community for you?
- Is a highway store with lots of traffic for you?
- Search for and identify areas meeting required demographic requirements.
• Where to look for your liquor store
- Why is location important?
- Why street traffic is important?
- Check the competition
- How important is your commute to your business? If you choose to be an owner/operator,
the time and distance for your commute will be an important consideration.
- Search for and identify existing stores/businesses within the identified areas.
- Using my inside industry contacts I can help you find existing liquor/spirits businesses where you will not overpay.
- Why buy an existing liquor store?
- Why sales floor foot traffic is important
- Will you have sufficient parking?
- Are you on the right side of the road?
- Search for and identify available licenses within the areas.
- Why buy a license for a startup?
- Why ordinary stores are sometimes overlooked gems
- Will you qualify to own a liquor license/permit?
- Conduct your search
- Organize your search
- Set a course of action
- Set a timeline for your search
- How to keep track of your potential business targets
- What personal documents you need to begin the search (needed personal financials)
- What is Proof of funds?
- Business brokers, when they make sense
- How the business broker network works
- Understand the motives of a business broker
- The importance of the Coach
- Using the Coach and a broker
- How to review income & expense statements
- Red flags & what to beware
- How the Coach sees through the broker's and seller's stories
- How the Coach sees through the broker's recast financial statements
- The ultimate benefit to look for (profit)
- Are bargains really bargains?
- How to see the untapped potential in a store
- How to take advantage of all store profile information and then ask for more
- Make sense of the seller’s motive to sell
- Make a store visit and ask the right questions