Forums: Discussions for entrepreneurs and small business.

Hi Adam,

Something you need to check separately from the cost of purchasing the store is the cost of purchasing the liquor license.  In my state for example, a liquor license can easily cost $50,000.  You need to see if that cost is included in the purchase price of the store.  You also need to make sure the license is transferable to you.  Also, before the state issues a license, the state looks into the background of everyone associated with the store. 

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

Hi Adam,

There's a great deal to know about financing a liquor store in Oklahoma, especially given their bevy of laws related to liquor licenses.  In terms of financing, we're getting ready to close the acquisition of a liquor store for our client in Tulsa.

As a commercial lender for the past 13 years, I structure the financing for our clients because I know exactly what banks will finance a start-up and what the requirements are.  That being said, you must have a minimum of a 20% cash (that is 20% of total project costs) to be eligible for a loan.  If you receive owner financing that is unsecured by any assets, then that loan can also be considered part of the owner injection.

Finally, we value the business prior to a client ever purchasing it.  We can tell you whether or not your paying a premium or if you're getting a discount.  We also help you negotiate price and draft the Letter of Intent.  If we can help you, feel free to contact us.

I hate to sound negative but remember your holding a state license to uphold the State and federal laws from the ABLE. The primary licence holder should not actually ever work at the store so if a mistake in sales to a minor is made they won't lose their licence and the doors will stay open. Remember if this occurs you will be handcuffed and taken to jail for committing a State crime and felony. between bonds lawyer fees and court cost you or your employee can be out thousands.

A small store could produce sales from 300 to 1200 on a good day. The average mark-up is around 34% if you can keep your shelf's stocked. And remember if you buy less than a case there is a per bottle handling charge.

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We purchased a liquor store last year without much experience and are finally getting into the groove.  One thing to keep in mind when purchasing a liquor store or c-store is the added costs.  For example, the store we had had loss prevention issues we didn't account for so we ended up forking over a decent amount of money to help protect the investment.

We ended up having to buy security locks for bottles, an ID Scanner, security mirrors, etc. which ended up being an additional 10,000 over the planned budget.  Like any business, be sure to budget for the unexpected and for operational costs.

 

 

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