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I am interested in buying a liquor store, what are some things i need to know any advice would be great

I have one in mind i wanna pursue just a little unsure how to read the financials, could anyone help me?

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Answers (10)
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Speaking from personal experience, the #1 key to your business thriving is your license. We were subject to a sting and nearly lost our liquor license for not properly ID'ing customers. Do yourself a favor and invest in a quality ID scanner that has audit trail functionality that can prove to law enforcement that you're properly ID'ing customers. This mistake nearly cost us our business.

Jan 4, 2013
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It's a good thing you don't live in Australia. My American husband and myself own a liquor store in an upmarket area in Melbourne Australia. What we didn't know about this business is.... we have to purchase most of our stock at retail places. Wholesale is a joke here. So we run to Costco and other places to get our stock, bring it back to our store and put a mark up on it. What a joke, we can't wait to get out of it. Also don't employ other people. We have 4 staff and they try to look after themselves. It's a cash business, so got to watch the money!!!. Good luck

Sep 26, 2011
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Liberty Brokers
GA
Premium Broker

Cory, I am a business broker in Metro Atlanta and have sold several liquor stores. Your main problem is going to be "cash available to buy inventory". Here in Ga. all the distributors drop the price in direct proportion to your order. So if you cannot order in large "Deals" then you will not be able to match the bigger dealers price. Also you will need to carry quite a large inventory compared to other businesses hence you will have a lot of your money sitting on the floor earning nothing. Good luck.
Parupkar Gill (Liberty Brokers LLC)

Jun 22, 2009
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I owned a liquor store in the Myrtle Beach area. What appeared to be a "nice" location did not attract the clientle that initally visited me. (stake out the situation day & night and several days during the week). Check out the competition and their prices compared to the store you are buying. I actually had folks come in and use cell phones to compare prices in different surrounding stores. ......good luck!

Jun 21, 2009
NIRVAIL SINGH
Western Singh Business Brokers
San Joaquin County, CA

most important figure out the reason for sale

Jun 20, 2009
Vivian Phillips
NuFreedom
administrator
Los Angeles County, CA

When I hear that many brick and mortar businesses have so much of their time devoted to inventory, then handling personnel and scheduling, I wonder why more people are not doing what I am doing in a business that doesn't require any of that, but leaves me time freedom and flexibility, more time for family and high income potentials quickly. It's an option many have been glad they have researched.

Jun 20, 2009
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Jay's Elektric Beach
Owner
Berkshire County, MA

Cory are you getting the help you need? it's Jay, let me know if you need me to review anything or help where I can.

Jun 18, 2009
Michelle Orr
Wells Fargo SBA Lending
Business Development Officer
Fairfield County, CT

Cory,
I am a commercial loan consultant and former lender with over 10 years of small business lending experience. I can review the financials to determine the cash flow available to service a loan; and let you know exactly what a lender is looking for to approve your request. Please contact me to discuss further. I can be reached at 203-345-6118; or you can email your contact information to me at morr@orrcommercialcapital.com.
Best regards,
Michelle Orr

Jun 10, 2009
David Collins
Glentyde Capital Advisors, Inc.
CEO / Owner
Mecklenburg County, NC

Cory, with respect to "reading the financials", having a good accountant at your elbow will probably be very helpful. Fundamentally, you've GOT to fully understand the store's cash flows (its patterns and timing, exactly what its drivers are, how it might change, how YOU might change it).

The financials won't spell out the cash flows on their face, but a good accountant will know how to translate the financials into the data you need to properly analyze the CFs.

As Mr. Jang's post indicates, there's a lot more to the acquisition due diligence exercise than just parsing the financials, but it's certainly one prominent piece of the puzzle.

Best of luck!

Jun 10, 2009
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1. CHECK THE AREA (RESIDENTIAL, INDUSTRIAL, COMMERCIAL, WHAT PEOPLE)
2. DO NOT MUCH EXPECT POTENTIAL. FOCUS ON CURRENT INCOME BASE.
3. CHECK RETAIL PRICE HAVING A PROPER MARGIN OR NOT
4. CHECK THE EXTRA INCOME (CHECK CASHING, LOTTO & LOTTERY, MONEY ORDER, BILL PAYMENT, WATER, PHONE CARD SALE AND OTHERS) , EXTRA INCOME REFLECTS BIZ VALUE
5. RENT PER SQFT, ESCALLATION AND LEASE TERM
6. ANY COMPETITION, WHAT BIZ IN NEXT DOOR
7. OPEN HOUR
8. REASON FOR SALE (RETIRMENT OR BACK HOME IS MOST RELIABLE)
Send me e-mail to sangwoojang@gmail.com for more advice.

Jun 10, 2009

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