Free VC Directory
With any B-Plan Purchase
425 Page Capital Directory
Through June 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans

Are Updated for 2017

Read Our Reviews
All Plans Available on Amazon


Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through June 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Read Our Reviews
All Plans Available on Amazon

Free Liquor Store Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.



Return to Samples Page

It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Executive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • FREE 30 Page Sample Private Placement Memorandum
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of liquor store while showcasing the expected financials and operations over the next three years. The Liquor Store , Inc. (“the Company”) is a New York based corporation that will provide an expansive line of liquor, wine, and spirits within in its targeted market. The Company was founded in 2009 by John Doe.

1.1 Products and Services

The Liquor Store intends to sell beer, spirits, a wine selection, and a number of packaged goods that customers can take away. At this time, Management is seeking to acquire the liquor license necessary to operate the business within its targeted market The store will also offer a wide selection of tobacco products, non-alcoholic beverages, ice, and lottery ticket sales. The third section of the business plan will further describe the services offered by the Liquor Store.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

The Liquor Store’s mission is to provide its target market with an expansive line of wines, liquors, spirits, and packaged goods at reasonable prices.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Liquor Store, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Liquor Store requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Liquor Store, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Liquor Store. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the alcohol products offered by the Liquor Store.

3.1 Alcohol Products

As stated earlier, The Liquor Store will maintain a facility that specializes in the sale of distilled spirits, wines, and beer. Within its facility, the business will continue maintain an extensive inventory of popular liquors, wines of varying vintage, and a wide selection of domestic and imported beer. During the holidays, Management intends to promote a gift basket service to local businesses that distribute wine as a gift to customers. This will provide the business with a significant competitive advantage over the other retail liquor and wine stores that currently operate within the same target market. These gift baskets will provide the business will a significant amount of additional revenues during the holiday season while concurrently increasing the visibility among people who own businesses

3.2 Ancillary Products

In addition to the Company’s primary alcoholic product business, the Company will also offer lottery tickets and small packaged goods. These additional products will provide a predictable stream of additional revenue. These sales account for approximately ten to fifteen percent of the Liquor Store’s aggregate revenues.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the liquor store industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, Liquor Stores operate with great economic stability as people will continue to purchase alcohol despite deleterious changes in the economy. Some studies have shown that alcohol consumption increases during times of economic duress.

4.2 Industry Analysis

Nationally, there are more than 40,000 companies that specialize in the ownership and management of liquor and packaged good stores throughout the United States. Each year, these businesses collectively generate $40 billion dollars a year of gross receipts, and provide jobs to approximately 170,000 people. The liquor and packaged goods industry is a mature industry with growth that is directly tied to the increases of population. The growth trend among this industry is has remained in step with the general growth of the US economy. Each year the industry adds approximately 2% to 3% to its previous year’s sales. This trend is expected to continue as long as the economy remains stable.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Liquor Store intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Liquor Store.

5.1 Marketing Objectives

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

  • • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.

  • • Establish relationships with gift basket companies within the targeted market.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Liquor Store to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Liquor Store will also use an internet based strategy. This is very important as many people seeking local product providers, such as liquor stores, now use the Internet to conduct their preliminary searches. Mr. Doe will register the Liquor Store with online portals so that potential customers can easily reach the Liquor Store business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the wine, beer, and liquor that the Company is selling.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget



6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • The Liquor Store will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $100,000 of debt funds to develop the business.

  • • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. However, alcoholic products will continue to remain in demand, and the store would need to have its revenues decline by more than 25% before the business becomes unprofitable.

7.3 Source of Funds


7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

 

7.7 Balance Sheet

.

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis


How to Start a Liquor Store

In any economic climate, liquor stores tend to do very well. In some economic studies - it has been shown that liquor stores and similar retail package stores actually have their revenues increase during times of economic recession. As such, these businesses are extremely popular among brick-and-mortar entrepreneurs. The startup costs generally range from $30,000 to $200,000 depending on the location and the initial size of the location. The gross profits are usually moderate with most items having generate 20% to 30% of gross margin. Additionally, the inventory of this business is considered tangible given that excess liquor, wine, and beer inventories can be sold to third parties very quickly. Most banks are very happy to provide capital to liquor stores given their economic stability.

Foremost, when starting a liquor store - you are going to need to determine which corporate structure (if any) you will use to hold the business and its operating assets. What type of entity you use is best determined by your attorney or your CPA. There are tax consequences that need to be accounted for when using specific corporate entities. Most likely, your business advisor will recommend that you use a limited liability company or LLC. These entities have a tremendous amount of flexibility as they are constructed similar to partnerships but are taxed as pass through corporations. One of the reasons that most people choose to use a corporate entity in order to conduct business is so that there is a barrier of protection between the liquor stores and its owner. Most attorneys recommend that for any business that provides liquor, beer, or wine to the general public that the business should operate in a corporate fashion.

Prior to launching operations, you should also work with your CPA to determine which accounting protocols and procedures you will use during the course of your liquor store operations. This is extremely important as inventory management is one of the most important aspects for these businesses. Theft is pretty common within the liquor store industry, and by having proper accounting and inventory control procedures in place - these losses can be kept to a minimum. The accountant can also help you in selecting a point-of-sale system that will seamlessly integrate with your accounting software (such as QuickBooks). It is important to develop these systems early in the planning stages of the business as they will be used throughout the life of your liquor store. 

Once you have determined the proper corporate structure for your business, it is time to decide how you will finance the business. If you have the capital available, you can self finance the business with your own funds. However, liquor stores do have substantial upfront starting costs given that they must maintain an expansive amount of inventory for sale. As such, most people - even if they have the capital to start the business on their own - will still acquire a working capital line of credit secured by the inventory. Banks (via conventional or SBA guarantee) are always happy to provide the startup funding you will need in order to start a new liquor store. However, you are going to need to have a strong credit score in order to obtain bank financing. Generally, you will also be required to make 10% to 20% down payment against the anticipated startup costs of the liquor store. This can be negotiated with the bank. If you have substantial assets and as strong credit rating then you may be able to acquire financing on much better terms from a lending financial institution.

If you are seeking investors for your liquor store then your credit rating will not be as important. This is due to the fact that investors are looking for a strong return from a business investment rather than via interest from a loan. If you are going to approach private investors then you should have your attorney draft the appropriate contract and operating agreement in the event that there is a legal dispute between you, your liquor store, and the private funding party. Investors are usually very keen to place startup funds with these businesses given that a liquor store is able to thrive in times of economic recession. They are considered safe small business investments. A private investor is usually seeking a return of 20% per year on their invested capital. Given the relatively low startup costs and high gross margins generated from spirits, wine, and beer sales - this is a highly achievable return on investment.

Once your capital requirements are determined, it is time to develop the business plan. Your liquor store business plan should feature a profit and loss statement, cash flow analysis, balance sheet, and market analysis of your local area. The business plan should also showcase exactly how you intend to use the funds that you are seeking to develop your liquor store. This should include a breakdown of the amounts required to build out the store, inventory acquisitions, FF&E purchases, and your working capital. You will also need to factor in the costs related to obtaining your liquor store license so that you can legally sell spirits, wine, and beer to the general public while collecting sales tax on all purchases made. Your attorney and your CPA can provide you with great input as it relates to your business plan as well as the required licensing for operating a liquor store within any specific state.

As these steps are completed, you should work with your counsel to begin the substantial process of acquiring the licenses needed to sell alcoholic beverages within your market. Usually, these licenses are granted by state governments. However, some municipalities highly regulate how liquor and related products are sold within any specific market. Your advisory team will be able to properly guide you through this process. You should anticipate that it can take three to six months before the license is granted. For liquor stores, background checks are usually required before a license is issued. You may be required to have already sourced the location prior to submitting an application. It should be noted that in some jurisdictions, a liquor store license is extremely expensive (in some states the license can cost upwards of $100,000). If this is the biggest obstacle to you launching operations, you may want to look into using a license financing company. These businesses provide the capital necessary in order to acquire a transferable licensure on your behalf. In some instances, these fees are paid on a monthly basis as a percentage of sales. Some of these companies provide capital in the form of a traditional normally amortizing loan.

In regards to the location, you will need to have a highly visible retail space from which to operate your liquor store. These businesses only really do well if they have the proper location as competitive threats are always an issue for liquor stores. In any city or town, there are usually two to three businesses that provide these products to the general public. As such, by maintaining a highly visible retail location - you will be able to better compete with other liquor stores in your market. You can expect to need a storefront facility or small stand-along building in order to operate this type of business.

Now that the retail location has been sourced, the capital has been raised, and the liquor store license has been acquired - its time to launch operations. First, you can expect that the build out of your facility will take one to two months. Luckily, most liquor stores are wide open retail spaces that primarily need shelves in order to hold inventory. As such, an experienced contractor should be able to complete the work within a month unless substantial renovations are needed to the facility.

While the build out of the liquor store is occurring, you are going to want to establish relationships with spirits, wine, and beer wholesalers and distributors that operate within your target market. You are going to need to negotiate the terms of credit offered to your business. Most distributors have extensive credit plans so that you can immediately acquire inventories without having to pay for it upfront. However, you are going to need to keep a close eye on your cash flow in order to ensure that you are properly completing your inventory acquisition. Additionally, you are going to want to establish relationships with wholesalers that can provide you with specialty inventory during selected holiday seasons. Most liquor stores source a substantial number of distributors so that they can have access to a wine number of premium liquors, varying vintages of wines, and a large amount of craft beer. These days, craft beer has become extremely popular among younger demographics. Most major alcohol distributors now carrying several thousands of brands for distribution to individual liquor stores. This trend is expected to continue in perpetuity.

For marketing, you are going to need to distribute flyers, take out advertisements in local/regional newspapers, and maintain an expansive presence on the internet. Among all marketing channels, maintaining a presence on the internet is extremely important as almost every person now uses online searches to find local businesses. In some states, the online sale is alcohol is permitted if the addressee is someone over the age of 21. Many liquor stores in states that allow it have integrated e-commerce functionality into their operations. Additionally, some of these businesses have integrated delivery services via online applications. These marketing methodologies allow for a liquor store to effectively differentiate itself from other competitors. You may want to consider using the latest in application technology to set your business apart from the competition.

As it relates to revenue growth, liquor stores have substantial opportunities. First, many liquor stores expand by acquiring facilities that are already in operation. This is known as a business acquisition, and it is a great way for a business to expand given that the risks related to acquiring an existing business are far less than starting a new location. If you have found a liquor store that you intend on acquiring, you should have your CPA review the financials of the business to ensure that they are in line with that of industry standards. One of the common ways that liquor stores expand their revenues, via the current retail location, is to develop gift basket services that cater to people seeking gifts for the holidays as well as corporate clients. This can create a highly predictable stream of revenue for the business on a monthly and seasonal basis. Likewise, many liquor stores that carry an expansive line of craft beer have started to create "beer of the month" clubs so that large divestitures of these inventories can occur on a monthly basis. If done properly, this can be an amazing source of highly predictable income.

Prior to starting operations, your attorney should develop your employee manual. This manual will clearly define the roles and responsibilities of each person on your staff. Most importantly, it will also outline the rules associated with the business. In today's world, lawsuits are common. As such, by having a properly developed employee manual in place - you can mitigate any risks related to having staff at your liquor store. Your employee manual should deal substantially within interoffice employee issues. Each person working for the liquor store should be required to sign it acknowledging that they are aware of the terms of their employment.

In closing, liquor stores are great businesses to own and operate given their highly economically immune revenues and large tangible asset base. These businesses are easy to grow, and can provide their owners with substantial profits on a continuous basis. Additionally, liquor stores are businesses that will not generally change over time. People enjoy going into these locations to select wines and craft beer. Unlike most other businesses, the age requirement ensures that people will continue to have to go to the location to make their purchases. Liquor cannot generally be sold and shipped online. As such, despite recent closings of major retailers, these businesses will always be able to maintain their retail operations. There are no major pieces of legislation or regulations pending that would impact the way that these businesses conduct their operations. It is truly a time tested business.