{"id":31888,"date":"2024-03-19T10:25:09","date_gmt":"2024-03-19T10:25:09","guid":{"rendered":"https:\/\/swoopfunding.com\/ca\/start-a-business\/https-swoopfunding-com-us-start-a-business-start-a-liquor-store\/"},"modified":"2025-02-28T14:09:07","modified_gmt":"2025-02-28T14:09:07","slug":"https-swoopfunding-com-us-start-a-business-start-a-liquor-store","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/ca\/start-a-business\/open-a-liquor-store\/","title":{"rendered":"Open a liquor store"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tThe old saying goes that no matter what the economy is doing, people still have to eat and drink \u2013 and judging by forecast liquor sales of billions in 2024, drinking alcoholic beverages is also a necessity.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tGet a quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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With sales of liquor expected to grow every year for the rest of this decade, opening a liquor store may seem like a slam dunk \u2013 and if you do your homework right it can be. However, liquor stores are among the most regulated retail businesses in Canada, with laws covering every aspect of the operation. Add in expensive inventory, strong competition, high licensing costs and increasingly savvy customers and it doesn\u2019t take much imagination to see that operating a liquor store can also be hard work.<\/span><\/p>

But let\u2019s suppose your business dream is to own your own liquor store no matter what. How do you get there, what hurdles must you cross and most importantly, what will it cost? Let\u2019s find out. Read on to discover all you need to know about opening a liquor store.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How do I start a small liquor store?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Opening a small liquor store comes with the same fundamentals as opening any kind of store, you can either start from scratch with a brand-new business, or you can buy an existing liquor store with an established customer base. However, that\u2019s about as far as the similarities go, because opening a new liquor store or taking over an existing store can be one of the most challenging of retail ventures.\u00a0<\/span><\/p>

Why is this?<\/span><\/p>

  1. Liquor stores must be licensed at the local, state and federal level. Depending on where your store is located, licensing costs can run into the hundreds of thousands of dollars, although $10,000 is more typical.<\/span><\/span>

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  2. You\u2019ll need good security to protect your premises and fragile <\/span>stock and insurance to cover loss by accident, theft, or disaster as well as any liability to customers, employees an<\/span>d suppliers. You may also need liquor liability cover that protects your inventory from specific events, such as rapid temperature change or cross-contamination.<\/span><\/span>

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  3. Liquor store inventory can be expensive to buy. Some specialist wine and spirits retailers carry stock worth $millions. You\u2019ll also need to learn about different types of alcoholic beverage and shape your offerings to your clientele. Today\u2019s liquor store customers are more discerning and well informed than they were only twenty years ago. They will expect you to know a lot about the products you sell.<\/span><\/span>

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  4. Alcoholic drinks are heavily taxed. You will need to collect and pay taxes to various governing agencies. This can mean a lot of regulatory paperwork and you will probably need to invest in purpose-built software to do the calculations for you.<\/span><\/span>

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  5. Beer, wine and spirits are sold by many types of retailers, not just specialist liquor stores. Big box stores, supermarkets and discount chains typically sell these types of products on low margins, making their profits through high volume. If you\u2019re operating a small liquor store it is unlikely that you can compete on either price or volume, so you will need to find other ways to make customers choose your store \u2013 rare brands, tastings, expert knowledge, wine clubs etc.<\/span><\/span>

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  6. Lastly, your liquor store will be subject to ever-changing laws on alcoholic beverages. (For example, age-identifying laws \u2013 also known as \u2018card laws\u2019 – where you are legally required to check the age of younger customers). You must stay on top of these regulations to avoid fines or penalties that could see you lose your license.\u00a0<\/span><\/li><\/ol>

    However, despite these issues, there is plenty of good news for budding liquor store owners: Firstly, if you get the basics right, running a small liquor store can deliver good income \u2013 typically delivering a <\/span>profit margin<\/span> of 15% to 20% and annual profits of $300,000 to $1million. Secondly, liquor stores can be a good bet for a number of other compelling reasons:<\/span><\/p>