If you are starting a business plan to start or acquire a liquor store, there are several things that should be considered. Investors and banks will want to understand that the liquor store is in a profitable location and being managed professionally by a team that understand the local demographics. Pro Business Plans has worked with many liquor stores to create professional business plans for investment. The following article covers what is included in the business plan and how it should be structured.

The success of a liquor store depends upon many unique factors, but mainly the combination between the location and demographics being targeted. Some liquor stores are unprofitable because their location of operations are nearby a lower priced competitor and target a price sensitive market. Others may be poorly managed and even though they have premium space, have a poor brand image by the way they manage customers and their brand identity. The most effective way to communicate the unique strengths of your liquor store is to provide information about the business model, marketing strategy, and financial projections.

The business model for a liquor store depends upon several unique factors, the location and market positioning can literally make the difference between a profitable and failing liquor store. We have seen some along the side of a deserted highway achieve profitability because they tailored to the market demographic. The management will place a key role into the structure and potential of the business model, not only the day to day management, but the ownership. For instance, some may target high turnover of inexpensive liquor at discount prices. Others may only stock a premium selection of liquors staffed by a well-educated team that is knowledgeable about the products.

The marketing strategy for a liquor store business plan combines regional print promotions with social media and word of mouth referrals. It is often challenging for liquor stores to promote anywhere online due to restrictions in Google and Facebook that do not allow liquor promotions. However, there are plenty of other channels such as Yelp!, Google Places, and similar directories that are visible when consumers search. Customer relationship management is also important, as many liquor store consumers are restricted to a geographic area and the success of the liquor store is often contingent upon their repeat business.

The financial projections for a liquor store business plan should be based on the historical performance of the liquor store to be acquired. If the store is new, it should be based upon an analysis of similar stores in the area. Some assumptions will need to be made such as the inventory turnover levels, marketing spend, and profit margins based upon your company’s future strategy. For instance, a liquor store can tradeoff higher sales with a thinner profit margin by reducing its prices or increasing promotions. The typical financial statements provided in the plan include three to five-year income statements, cash flow projections, and a balance sheet.