Even with the high taxes on liquor sales, people still buy alcohol regularly. A liquor store can be a highly profitable venture, especially if you go the franchise route in which the franchisor helps you through the entire set-up process. However, you may want to buy an existing liquor store. As part of the process of securing finance, you need a business development plan.
Indeed, you need a business development plan for the liquor licence application as well. The simplified steps in setting up, even if you buy an existing store, are:
- Apply for the liquor licence once you have secured the premises, whether you buy an existing store or set up a brand-new one. In the first instance, you must arrange for a new liquor licence – it cannot be transferred.
- Complete the business development plan for submission to the bank or crowdfunding if you need finance for the venture or purchase.
- Locate and establish contact with the major liquor suppliers in the trade.
- Shop-fit the store if not already done. If brand new, you need professional assistance to ensure the correct layout of the premises for maximum sales, security, and functionality.
One of the most important aspects regarding the business development is the lease contract. It is extremely difficult to get out of a commercial lease. So, make sure it is the right location and that the terms of the lease agreement are favourable. It is difficult to negotiate for lower rent once the contract is signed. As such, make sure the rent is affordable right from the outset.
As part of the creation of a plan, we conduct the preliminary research on the population make-up, target audience, competitor analysis, traffic, crime in the area, and more. This information is valuable when it comes to accurate projections. It also helps to determine what to stock and whether you cater to the high-end market, mid-range income group, or lower income group. Why is it important? It determines the inventory, profit margins, and buying patterns.
Our team of accountants and industry experts understand the requirements for liquor stores in South Africa right down to the province and municipality in which you plan to open or buy one. With experts working on the creation of the business development plan, you are assured of accurate projections, professional wording, and comprehensive information for the licence application, business development, and funding.
Tap into the profitability of liquor stores in South Africa. Get in touch for professional help to set up the business development plan.