Setting up a liquor store is easy provided that you comply with all the requirements set by the state laws governing alcohol. In California, all entrepreneurs who wish to sell or serve alcoholic beverages must be eligible to secure a license to operate. Liquor is a regulated product under alcohol control laws that aim to preserve public safety and prevent it from being accessible to minors – plus you want to gain customer trust.To help you understand legal matters regarding alcohol beverage compliance, it is best to seek help from California Alcohol Beverage Compliance Attorneys. With long years of experience and in-depth knowledge about federal and state licensing, a competent lawyer will guide you through the process, prevent penalties and fines. Whether you are just starting or already operating, an alcohol beverage compliance lawyer is your best ally to maintain a legal and profitable business. He can help you modify the ABC license, add new inventory of liquor, change business hours, offer additional entertainment and services, or expand inventory. Moreover, having someone to deal with legal matters help you focus on your business and leverage the pros and resolve the cons.Pros
- Low competition
Every state in the United States is given the leeway to form its own alcohol beverage regulations including its importation, sale, and distribution within the jurisdiction. This allows the local authorities to limit the number of operating liquor stores in various areas. If you’re planning to put up one in your locality, securing a license as soon as you can, is extremely crucial especially if there are only a few spots allocated for retail businesses.
- Year-round demand
Alcohol beverages enjoy consistent demand year-round, in particular during special occasions and holidays that call for celebrations. Events, parties, gatherings, and dinners are not complete without everyone’s favorite drinks. People turn to alcohol during victories, defeats, and in-between phases of life.
- Recession-proof
Liquor stores are not affected by the constant uptrends and downtrends of the economy. Its recession-proof characteristic makes it a perfect business for entrepreneurs who are looking for a safe and stable retail venture. Alcohol sales continue to display good numbers even during the worst scenarios.
- Long shelf-life
In general, most wines and liquor drinks are shelf-stable and do not require specific temperatures or extended storage in cool, dark storage to sustain their premium quality. They can last for months or even years before losing the distinct taste. With this advantage, you can stock up your inventory and not worry about restocking for a long time.
- No need for advertising to attract customers
Since liquor manufacturers take care of the advertising and promotional campaigns, you don’t need to spend a lot of dollars to promote your business. You can easily leverage their ad campaigns to draw new customers to your location by using social media platforms and your business website.Cons
- Big startup capital
Alcohol products are expensive, even when you are buying at wholesome prices. Adding them to operational costs like rent, utilities, insurance, payroll, and so on, you would be needing up to $100,000 or more. Liquor licenses and real estate property rental can also be costly, depending on the location. In business, location is the key, so be ready to pay a substantial amount if you want a thriving business.
- Low profitability
The profit margin is not as high as you expected, especially during the initial phase of business. Being a liquor store owner sometimes means working along with staff and making contacts. It isn’t a cash cow that brings regular passive income. Some days, sales can be good and other days, the profitability is low.
- Legal restrictions
Getting a liquor license is more complicated than other businesses. It requires paperwork, attending hearings with local officials, and putting up public announcements in newspapers. If there is no available permit due to the limited number in the area, you may need to purchase one from an existing business or from an auction. However, auctioned permits can cost you up to $250,000.TakeawayNow that you understand the basics of venturing into the liquor business, you know what to do and where to seek guidance. Having an alcohol beverage compliance lawyer would make it easier for you to secure a license. They will walk you through the process and help you navigate the various aspects of the regulatory laws.