How to Do a Business Plan: Need to Know Factors for a Liquor Store
Liquor stores can be profitable businesses. For one, the products sold are in demand throughout the year. But with it being a competitive industry in which several licences and permit requirements must be met, knowing how to do a business plan for a liquor store is essential.
Financial projections, a CV and executive summary, competitor analysis, financial projections, and a marketing plan form part of the proposal. The information is vital if you hope to attract investors. Knowing how to do a business plan for a bottle store in your particular province is imperative for liquor licence approval. And you want the information to help you plan the income and expenses. Many commercial property owners require tenants to submit proposals and projections before they approve lease agreements.
It thus makes sense to know how to do a business plan to meet the mentioned requirements. We have a team of accountants, industry experts, and consultants to help. Get these in place to apply for finance:
- Copy of the liquor licence (if you buy an existing bottle store).
- Copy of your identity document.
- FICA information that includes proof of residence.
- Latest water and electricity account.
- Bank statements or salary slips for the past three months.
- Signed business sale agreement (if relevant).
- A professionally crafted proposal.
To qualify for the liquor licence, the commercial property premises must be over 50 m2 in size and further than 500 m from a place of worship, school, or another liquor store. In many towns, the distance requirement from schools, other bottle stores, or churches is not possible to meet. Thus, make sure everything else meets the requirements to get approval.
Avoid spending money on the shop fitting before you get confirmation from the municipality’s land use management or town planning division that the stand is suitable for liquor trading. Use the plot number of the premises to confirm. Get a zoning certificate, which is also available from the municipality. You also need a lease contract, unless you own the building.
The lease agreement is essential for any retail business, and more so for a liquor store. Rent should be maximum 10% of the store’s yearly turnover. If more, the store will struggle, especially in the second year of rent escalation. Make sure you know how the lease amount is structured. Our consultants understand how to do a business plan for a liquor store, with the consideration of factors, such as lease payments.
The liquor store is more likely to succeed and grow if it has an average nett profit of more than 10% per year. Hence, working with consultants understanding the particular industry and how overheads affect the bottom line enables you to do an accurate and workable business plan. Let us help you to draft a winning proposal for investment, financing, and liquor licence purposes.