A Complete Liquor Store Business Plan Sample

Opening a liquor store is a significant undertaking and requires capital, patience, business know how and the right location to get started. However, there is a reason liquor stores are often referred to as recession proof businesses. In good times and bad people either buy liquor to celebrate, deal with tough times or just to relax and unwind.

On this site you will find a completely researched and intact business plan sample. It is only a guide and we make no claims as to the accuracy of the numbers or exactness. This is merely to offer you a starting point for your business planning and to help you get the ball rolling. Weve also included additional articles to assist in rounding out your knowledge about starting a liquor store.

LiquorExecutive SummaryGeneral Company DescriptionProducts and ServicesMarketing PlanOperational PlanManagement and OrganizationPersonal Financial StatementsStartup Expenses and CapitalizationFinancial PlanResearch & BibliographyLiquor Store Business ArticlesBronson's Liquor Emporium

I. Executive Summary

This business plan discusses a startup liquor store business.

The name of the proposed company is Bronson's Liquor Emporium and it is the concept of Dane Bronson.

Mr. Bronson has been a past user of liquor sales and supply services and found this industry to be highly attractive and promising in terms of future growth and expansion. The liquor sales industry is a multi-billion dollar industry globally and was responsible for global sales of more than $945 billion during the last year alone.

The business targeted location is Lenexa, Kansas which has an underserved population of middle and high-income individuals that would find Bronson's Liquor Emporium business to be both convenient and opportune.

Mr. Bronson is intent on hiring a manager with specific industry experience and he will act as President and as a working director in charge of marketing, strategy, and supplier relationships. Mr. Bronson is contributing $50,000 of his own funds towards the venture and is seeking a small business loan of $75,000 in order to adequately fund his startup venture.

II. General Company Description

2.1 Overview Back To Top Bronson's Liquor Emporium (Bronson's) is the business concept of Dane Bronson.

Mr. Bronson Has been interested in the liquor sales industry for many years and just recently acquired the capital necessary to support a business startup.

The business is to be known as Bronson's Liquor Emporium and is meant to be operated in either a standalone building or in a unit within a strip mall or similar location. However, a location has been found that is suitable for this business and a 5-year lease is presently under negotiation.

The location is in one of Lenexa, Kansas suburbs in an area with a high level of middle to high income workers.

Bronson's will offer standard liquor sales and services as well as eventually moving into cigars and cigar related products such as lighters, cutters, and humidors.

2.2 Legal Description Back To Top The legal name of the business is Bronson's Liquor Emporium and it will be operated as a fully incorporated entity within the city of Lenexa, Kansas.

The official North American Industry Classification System code for the liquor store business is 445310 and is described as an industry that is primarily engaged in activities such as selling packaged alcoholic beverages.

As such, the liquor sales industry falls within the alcohol products sales industry and subject to the laws and regulations that govern that industry.

2.3 Company Concept/HistoryBack To Top Bronson's Liquor Emporium is the primary concept of Dane Bronson who has intended to open a liquor store for over a decade but was waiting for just the right opportunity.

Mr. Bronson recently inherited a sum of money and that money, combined with a small business loan, will provide the necessary capital to start Bronson's Liquor Emporium.

Having found himself in need of competent liquor sales and supply services at times during his own personal life, Mr. Bronson developed the desire to open a liquor store that would allow the liquor store consumer to have his or her choice of a wide selection of beer and alcohol in a timely and convenient manner.

Additionally, considering how difficult it can be to find the time to shopping for liquor products and the constant need of more convenient locations Mr. Bronson felt that the liquor sales industry was a growth industry considering the Census Bureau currently lists some 29,000 liquor store establishments with more than 130,000 employees nationwide.

Thus, the business concept came about and it will be operated in a manner in which the liquor store consumers are held in the highest esteem and a full range of related services will be offered to them so that they will not suffer the negative impact of not having a traditional liquor store located in a convenient location.

2.4 Current StatusBack To Top Bronson's is currently in the early planning stages. Mr. Bronson has sourced a sizable amount of capital to contribute towards startup and combined with a completed business plan Mr. Bronson can apply for a small business loan through a local bank.

Additionally, Mr. Bronson is in negotiations with a local property management company for a property located at Bourgade St. and 87th St. that is ideally situated close to I-435.

Once the property lease is secured, the business plan complete, and the small business loan secured, planning for operations can begin in earnest. Additionally, Mr. Bronson is currently seeking management expertise with liquor sales industry experience to assist him with Bronson's operations and specifically management issues.

2.5 Vision & Mission StatementBack To Top Mr. Bronson's vision is centered on maintaining the convenience factor for Bronson's liquor store consumers.

To this end, Bronson's vision statement states:

Convenience first, Service second, and Profitability third.

Mr. Bronson mission statement is composed to ensure that Bronson's employees all understand the business priorities:

All liquor store consumers will be served as if Bronson's were the last place a liquor store consumer will visit and no liquor store consumer will leave the premises feeling as if they have not been taken care of.

III. Products and Services

3.1 Product DescriptionBack To Top The liquor sales industry is a multi-billion dollar a year industry and as such, there are a host of services that various liquor store companies offer.

However, Bronson's will adhere to a policy of less is best in this regard although the list of its products and services will be enough to support the community for most of its liquor store supplies requirements that are needed on a regular basis.

Bronson's will offer the following services and products:

Full line of Whisky, Rum, Vodka & Tequila ProductsAll the Popular Domestic BeersA Selection of Popular Foreign BeersMixed Drink ProductsCigarettes & Related SuppliesWhile there are other potential services that might be integrated into the business operations such as cigar sales, Bronson's will initially refrain from expanding into these and other services in order to limit expenses as well as to conserve resources.

3.2 Service DescriptionBack To Top The service dimension at Bronson's is a critical part of the business success both in the short and long-term. The liquor store consumers convenience is to be held at premium.

While the nature of the liquor sales industry as well as the overall liquor store supplies industry requires certain resource commitments that might prevent the most personalized service possible, Bronson's employees will strive to ensure that all liquor store consumers are greeted in a pleasant manner.

The company will also ensure that its consumers have their needs met to the fullest extent, and thanked personally with eye contact for their patronage.

IV. Marketing Plan

4.1 Industry OverviewBack To Top The liquor supply and sales industry is a popular one both internationally and nationally. Presently the global alcoholic beverage industry grew by 1.7% to a value in excess of $945 billion recently and is expected to surpass $1,034 billion by 2013.1 Of all alcoholic beverages, beer, cider and flavored alcoholic beverages account for some 50% of the global sales in alcohol products.

Nationally, the character of the alcoholic beverage industry is somewhat similar but not without its peculiarities.

The national alcoholic beverage industry is valued at approximately $151.5 billion and is expected to increase to more than $163 billion by 2013.2 The United States (US) market forms about 16% of the global market in alcohol sales and beer, cider and flavored alcoholic beverages account about 52.9% of all alcohol sales.

Additionally, as the following graphic details, the largest producer and seller of alcohol products is Anheiser-Busch inBev.

Beverage Industry Overview

Most critically, the other category, which amounts to 32.6% of the market, leaves substantial room for independent producers and sellers of alcoholic beverages within which to market and sell these and other producers products.

4.1.1 Market SizeBack To Top The trend for US growth in the liquor sales and supply industry and for consumers is to spend more on liquor sales and supply services because of the growing US population as a whole. However, the industry will still benefit from the baby-boomer generation as it grows older and continues to have more leisurely and free-time to enjoy or partake of alcoholic beverages. Some economists are forecasting average annual revenue growth in the mid 4% range for the next couple of years.1 This implies that the Lenexa area will not only benefit from an expanding population but a generally stable economic climate as well.

4.1.2 Target MarketBack To Top The population in Lenexa proper is approximately 44k according to the most recent estimates:

20062000199044,52040,23834,034However, Lenexa sits in close proximity to Kansas City which itself has a much larger population. Additionally, the location being selected sits adjacent to a major freeway making it readily accessible to potentially many more liquor store consumers.

Lenexa is also a fairly wealthy area compared to national averages with a per capita income of about $30 compared to the national average of $21,000 but it has significant population of middle-income families as well that are underserved because of Lenexas perceived economic status in the area.

Bronson's location will sit abreast of several of these middle and high income areas as the following map illustrates:

The selected location is near 87th and I-435 which is nearest to the low-income area as indicated by the legend below:

Thus, there exists in Lenexa a highly underserved market of thousands of individuals who, not only desire but require liquor sales and supply services for occasions such as personal or professional entertainment, are not having those services conveniently met.

4.1.3 Marketing ObjectivesBack To Top Bronson's marketing objectives are fairly straightforward and simple. This allows ownership the opportunity to focus on operations and service while still achieving sales objectives and service metrics:

Reach 100 new liquor store consumers a month for the first 12 monthsDevelop a word-of-mouth reputationAchieve first year revenues of $2,364,8394.2 Products/ServicesBack To Top Bronson's initial products and services will be limited in scope in order to allow ownership and management to establish a local market and reputation by focusing on operations and sales. The initial products and services offered will be:

Full line of Whisky, Rum, Vodka & Tequila ProductsAll the Popular Domestic BeersA Selection of Popular Foreign BeersMixed Drink ProductsCigarettes & Related SuppliesBy focusing solely on these initial limited services Bronson's can establish itself as the liquor store of choice to the local population. However, after 3 years of operations Bronson's intends expand into other areas of the local metropolis as well as some the outlying metropolitan areas with new locations.

By moving into these expanded areas and geographic regions Bronson's ensures that it will be the liquor sales and supply center of choice for an even larger percentage of the local Lenexa population.

4.2.1 Pricing StrategyBack To Top Since Bronson's services and products will be initially limited in scope, the pricing scheme is more manageable than might otherwise be the case. The main product and service for Bronson's initially is its various alcohol beverages, mixers, and drinking supplies such as glasses, shakers, and carafes.

The following table outlines the graduated average prices that Bronson's will charge for its liquor sales and products:

Bronsons Spirits Average PriceBronsons Beer Average Price (per 6 pack)Bronsons Cigarettes Average PriceBronsons Wine Average Price (per bottle)Bronsons Mixer Average Price (per bottle)$12$8$4.20$8$54.2.2 Promotion StrategyBack To Top The company will have an integrated promotion strategy that begins with a grand opening and extends through local advertising.

However, marketing expense will be gradually lowered over the course of the first 12 months as word-of-mouth is established in the community. The initial marketing and promotion strategy is as follows:

A Grand Opening Week: Grand opening will consist of 10% off all liquor sales and services for all Bronson's products with advertising placed in the local paper for 1 week before grand opening and during grand opening weekMonthly specials printed in the local paper that offer a 15% reduction in liquor store products upon redemptionA monthly radio spot featuring Bronson's service with convenience sales slogan4.2.3 Distribution/Placement StrategyBack To Top Bronson's is a single location liquor store competitor. Bronson's will operate from 1482 Bourgade St & 87th St in Lenexa, Kansas. Bronson's depends primarily on walk-in and drive-by traffic and its services are delivered in a personal manner.

4.3 Competitor Analysis

RIMANN LiquorsBronson'sEnsminger RetailCritical Success FactorsWeightRatingWt. ScoreRatingWt. ScoreRatingWt. ScoreManagement.203.602.404.80Reputation/Branding.152.302.303.45Financial Position.152.302.304.60Services.054.204.202.1Present Strategies.054.203.152.10Locations/Size.052.104.204.20Market Focus.204.804.804.80Fees.152.301.152.30Total1.002.802.503.354.4 SWOT AnalysisBack To Top Strengths: Bronson's primary strength is its insistence on offering the liquor store consumer convenience. Within the target population this is a valuable service feature for which people will return.

Another strength for the business is Bronson's willingness to make its pricing structure more transparent. While it must charge more for certain products this is in-line with industry practice to offset the rising costs associated with state licensure.

Weaknesses:

One of Bronson's primary weaknesses is the founder's relative lack of experience in the industry. However, Mr. Bronson hopes to offset this weakness by hiring a competent manager with a background in the liquor sales industry.

Opportunities:

The liquor sales industry is a growth industry. Bronson's can count on a growing liquor store consumer base. Additionally, research indicates that many people with liquor and alcohol product needs choose a liquor store location because of its community based location and convenience.

Threats:

Bronson's operates in an industry that carries a substantial degree of operating cost because of the amount of inventory that must be carried. However, because of the nature of the liquor sales industry, Bronson's must mitigate risk primarily in the same manner as its competitors and this is through wider margins that compensate for these increasing state and federal standards for alcohol product compliance.

Another threat of course is industry regulation and oversight which is now considered a priority business consideration.

StrengthsLiquor store service w/convenienceProfessional managementTransparent pricing structurePlans for expanded locationsOpportunitiesExpanding market growthUndifferentiated rival servicesConsumer demandNew consumers from the youth marketWeaknessesLack of brand recognitionLack of market experienceDependence on industry regulatorsThreatsSustained price competitionIndustry regulationCompetitor entry into the local market4.5 TOWS Strategy DevelopmentBack To Top TOWS MatrixExternal OpportunitiesExternal ThreatsInternal StrengthsSO: Bronsons service with convenience format/expanding marketST: Bronsons transparent pricing structure/industry regulationInternal WeaknessesWO: Lack of industry experience/market shift from liquor store to grocery store purchasesWT: Lack of industry experience/evolving industry sales & serviceThe tows matrix indicates that Bronson's has several strategic options available to it. Because the nature of the industry is evolving so rapidly, Bronson's ownerships lack of industry experience is somewhat mitigated because the industry itself is making much of its past attributes meaningless. Additionally, this lack of industry experience is also mitigated by the rapidly evolving character of the liquor sales and supply services being offered by these liquor store competitors such as grocery stores and similar.

Combined with Bronson's consumer-centric format and its regulation friendly operations, Bronson's strategy should be based on maintaining high customer service metrics and strict compliance with industry and regulatory guidelines relative to regulations such as no sales to minors and similar.

4.6 Forward Strategy & Future OutlookBack To Top The liquor sales industry is not perhaps as susceptible to new competitor entry and expansion of existing competitors to make the market difficult for single location startups such as Bronson's.

However, it is facing some developing retail sales trends such as the sales of alcohol and related products in supermarkets and groceries nationwide.

Obviously, this trend, which is beyond the liquor sales industrys control, would directly impact Bronson's revenues in the long-term.

Therefore, these and other developments provide the rationale for Bronson's long-term plan to expand its range of products beyond strictly liquor sales and services and into related sales such as cigars and cigar smoking supplies.

V. Operational Plan

5.1 ProductionBack To Top All services and products are to be offered only at the single, selected location initially. Employee training and development as well as liquor store customer service will occur within this lone facility.

Employees will receive liquor sales and supply as well as management training and will become certified in liquor store customer service delivery and management.

5.2 LocationBack To Top Bronson's is a single location liquor store competitor. Bronson's will operate from 1482 Bourgade St & 87th St in Lenexa, Kansas. Bronson's depends primarily on walk-in and drive-by traffic and its services are delivered in a personal manner.

5.3 InventoriesBack To Top Inventories of all products will be kept onsite. Because this is a locally established business, any immediate need of supplies not had on hand can also be met by Bronson's contacting one of the local distributors in the area.

Deposits to the bank will be made twice daily with scheduled pickups by a local armed guard delivery service.

Cash on hand will be limited to daily need and cash needed for daily operations will be picked up in the morning prior to opening.

5.4 SuppliersBack To Top The primary supplier for all of Bronson's liquor products will be Premier Beverage Inc which is located at 14320 W 101st Ter, Lenexa, KS 66215-1123. Premier distributes most major spirits, beers/ales and mix drink products.

5.5 Exit StrategiesBack To Top All companies expect to stay operational and financially solvent however, at times this is not a feasible reality due to market conditions or other unexpected event. In such a case, Bronson's will adhere to several strategies that will allow it to liquidate its business in some fashion that best suits the particular circumstances:

Sale of Business to a 3rd partyLiquidation of assetsBankruptcy through Chapter 13VI. Management and Organization

6.1 Company Structure & OwnershipBack To Top Bronson's will be owned entirely by Dane Bronson. It will be fully incorporated within the state of Kansas and licensed to operate in Lenexa, Kansas. Bronson's will be directed by Mr. Bronson and managed by another individual.

6.2 Core Management PersonnelBack To Top President: Dane Bronson will be the President of the corporation and will act as a working director of the corporation on a daily basis.

Manager: a manager will retained who has specific liquor sales industry experience to oversee daily operations.

Lead Cashier: an employee will be hired and selected to act as lead service representative and to assist the Manager in daily operations.

6.3 Roles & ResponsibilitiesBack To Top President: the President will act as a working director. This role will be fulfilled by Mr. Bronson and he will handle all strategic management for Bronson's. This includes marketing plans and strategies, supplier relations, and product/service selection and introduction.

Manager: the Manager will handle all daily operations. This includes hiring, firing, and training of staff. This also includes scheduling and ensuring compliance with all regulatory compliance issues relating to the sales of alcohol products.

Lead Service Representative: the Lead Cashier will act as a liaison between staff and management as well as work shifts when the manager is not on duty. This individual will monitor and schedule employee breaks and handle liquor store service issues when they need to be escalated.

6.4 Salary StructureBack To Top President: Mr. Bronson will draw a salary of $35,000 annually plus 5% of net once net profits are achieved for the first 2 years. Mr. Bronson will draw a salary of $55,000 plus 5% of net starting year 3.

Manager: the Manager will draw a salary of $30,000 annually plus 2% of net for the first 2 years and $35,000 annually plus 2% of net starting year 3.

Lead Cashier: this individual will draw a salary of $25,000 plus 1% of net and $27,500 plus 1% of net beginning in year 3.

6.5 Key Success FactorsBack To Top The key success factors for Bronson's are an important part of the business plan and operations. Failure to meet key success factors usually implies that a business is being poorly managed or was poorly conceived.

The key success factors for Bronson's are:

Meet first year sales goalsMeet first year liquor store customer satisfaction objectivesAcquire standout manager and supervisorImplement structured liquor store customer service trainingIntroduce 5 new product lines at year 3VII. Personal Financial Statements

7.1 Personal Financial StatementsBack To Top SECTION 1 INDIVIDUAL INFORMATION (Type or Print)SECTION 2- OTHER PARTY INFORMATION (Type or Print)NameNameResidence AddressResidence AddressCity, State, ZipCity, State, ZipPosition or OccupationPosition or OccupationBusiness NameBusiness NameBusiness AddressBusiness AddressCity, State, ZipCity, State, ZipRes. Phone Bus. PhoneRes. Phone Bus. PhoneSECTION 3 STATEMENT OF FINANCIAL CONDITION AS OF _________________________________________, 20__Assets (Do not include Assets of doubt value)In DollarsLiabilitiesIn DollarsCash on hand and in banksNotes payable to banks - secureU.S. Gov't & Marketable Securities see Schedule ANotes payable to banks - unsecuredNon-marketable Securities - see Schedule BDue to brokersSecurities held by broker in margin accountsAmounts payable to others - securedRestricted or controlled stocksAmounts payable to others - unsecuredReal Estate owned as personal residence See Schedule CAccounts and bills dueUnpaid income taxes and interestReal Estate owned for investment purposes See Schedule D (attached)Real estate owned as personal residence Mortgages payable - see Schedule CLoans receivableReal estate owned for investment purposes mortgages payable - see Schedule DAutomobiles and other personal propertyCash value life insurance - see Schedule ECredit card/revolving debtOther assets - ItemizedOther debts - Itemized Total LiabilitiesTotal AssetsNet Worth = AssetsSOURCES OF INCOME FOR YEAR ENDED_____________________20______Personal InformationSalary, bonuses & commissions: $Do you have a will? No or Yes ... if yes, name of executorDividendsNet real estate incomeAre you a partner or officer in any other venture? If so describeOther income (Alimony, child support, or separate maintenance Income need not be revealed if you do not wish to have it considered as a basis for repaying this obligation) Obligations to pay alimony child support or separate maintenance payments? If so, describe Are any assets pledged other than as described on schedules? If so, describe Total $Contingent LiabilitiesDo you have any contingent liabilities? If so, describeIncome tax settled through (date) ______________________Are you a defendant in any suits or legal actions?As endorser, co-maker or guarantor $Personal bank accounts carried atOn leases or contracts: $Legal claims: $Other special debt: $Have you ever been declared bankrupt? If so, describeAmount of contested income tax liens $7.2 Details of Personal Financial Statement:Marketable Securities

Number of Shares & Face ValueDescriptionIn Name OfAre These PledgedMarket Value Non-Marketable Securities

Number of Shares & Face ValueDescriptionIn Name OfAre These PledgedSource ValueValue Real Estate Owned: a Personal Residence

Address & Type Of PropertyTitle In Name Of% Of OwnershipDate AcquiredCostMarket ValueMortgage MaturityMortgage Amount Real estate owned for Investment Purposes

Address & Type Of PropertyTitle In Name Of% Of OwnershipDate AcquiredCostMarket ValueMortgage MaturityMortgage Amount Life Insurance Carried

Name of Insurance CompanyOwner of PolicyBenificiaryFace AmountPolicy LoansCash Surrender Value Bank or Finance Companies

Name & Address of LenderCredit In The Name OfSecured or UnsecuredOriginal DateHigh CreditCurrent Balance VIII. Startup Expenses and Capitalization

8.1 CapitalizationBack To Top Capitalization of Bronson's will be in the form of a personal contribution of $50,000 by Dane Bronson, the founder and President of Bronson's Liquor Emporium.

Further capitalization will be in the form of a $75,000 small business loan undersigned by the SBU but received through Premier Bank.

8.2 Startup ExpensesBack To Top Expense ItemCostRemodel Location$38,500.00Purchase Liquor Store Equipment$27,700.00Purchase PC Hardware$2,000.00Security Systems & Features$1,400.00Initial Inventory$2,000.00Office Supplies$250.00Lease Supplies$3.325.00Electricity Deposit$700.00Water & Sewer Deposit$400.00Gas Deposit$650.00Telephone Deposit$275.00Payroll$2,300.00Liability Insurance$1500.00Grand Opening Advertising$2,500.00Legal Professional Fees$800.00Miscellaneous Expenses$500.00Working Capital$5,200.00Total$90,000.0IX. Financial Plan

9.1 Primary AssumptionsBack To Top Cash Sales: Projected gross sales are based on the average of the monthly sales of liquor store and related products at the single location for Bronson's.

Other Income: This income is provided through the sales of services and products unrelated to alcohol such as cigarettes and related supplies.

Cost of Goods Sold: This figure is based on 35% of revenues which is the industry corporate standard.

Payroll: This is based on one full-time owner and director, one full-time manager, and six part and full-time liquor store cashiers according to the projected labor schedule.

9.2 Summary of Financial ResultsBack To Top 1st Year Salesnet IncomeTotal Bronson's RevenuesInitial Cash FlowsYear Three Net Income2,364,83934,901264,715(00.00)495,409.3 12 Month Profit/Loss Back To Top Profit Loss Forecast

9.4 3 Year Profit ProjectionYear OneYear TwoYear ThreeBronson's Liquor2,364,8395,202,6457,591,132Less the cost of operations2,096,0564,578,3276,604,286Gross profit268,783624,318986,846Less total expenses224,740243,404345,690Net income before taxes44,043380,914641,156Provisioning for taxes914276,184145,751Net income after taxes$34,901$304,730$495,409.5 Opening Day Balance SheetBalance Sheet

9.6 Break Even AnalysisBack To Top The business is projected to turn a profit or produce a net income within the first 12 months of operations. The net income projected is approximately $34,000 and therefore breakeven will occur during the first 12 months of operations.

However, COGS (cost of goods sold) is relatively high because in the liquor sales industry the total amount of revenue must account for the sum of the Bronson's liquor sales and supply related revenues which is a relatively high sum.

This implies that breakeven will not be achieved until the 10th month of the first year allowing for the final two operating months to account for the positive net income reported for the period.

Research Bibliography

Alcoholic Drinks in the United States. (2009). Datamonitor, Industry Profile, 0072-2201.Barnes, S. (2010). Wine-in-Supermarkets Proposal Offers Benefits for Liquor Stores. Times Union, 01(21).Beer, Wine, and Liquor Stores. (2010). Industry Statistics Sampler, U.S. Census BureauEnsiminger Retail Liquor. (2010). Ensiminger Retail Liquor, 11052 Quivira Road, Overland Park, KS.Global Alcoholic Drinks Industry Profile. (2009). Datamonitor, 0199-2201.Lenexa. (2010). U.S. Census Bureau (online).North American Industry Classification System. (2010). U.S. Census BureauRIMANN Liquors. (2010). RIMANN LiquorsLiquor Store Business Articles

Inventory and Equipment for a Liquor StoreHow to Market and Promote Your Liquor StoreHow to Find Money To Open a Liquor StoreCommon Costs of Starting Up A Liquor StoreHow to Launch a Liquor Store Business