May 22, 2024

Business Bib

Business & Finance Blog

How to Start an Alcohol-Based Business and Make it Profitable

2 min read

Everybody knows that a business that sells alcohol has the potential of turning a serious profit. That’s because alcohol sales tend to involve a high markup and margin, which can result in a great deal of profit for the business owner.

Getting an alcohol-based business going isn’t always easy though. Depending on where you live, there may be a lot of work that you need to do in order to turn your dream of owning a business that sells alcohol into a reality.

Use this guide to learn more about starting a business built around alcohol and actually turning a profit with your new company. It can be done, but it might be harder than you think.

Find Your Location

Before you can make an impact with an alcohol-based business, you need to find the right location. For most, this is a combination of foot-traffic and an area where people already spend time, even if it is a little off the beaten path.

Once you obtain your location you can begin to get the appropriate permits and licenses so you can actually start doing business and hopefully making some real money.

Get Your License and Permits

Selling alcohol requires cooperation with the city and area that you live in. In most cases, you’ll need a license and a TABC permit to begin selling alcohol in a retail establishment. This process can take some time, so doing it while you search for the correct location is your best bet.

Remember that when you are starting a business, it can take some to get everything going the way it should. You’ll still need to look for employees and meet with suppliers so you can find proper arrangements for your brand during this time.

Market Wisely

Marketing is a major step toward turning a profit as a business owner, and in a market where alcohol is prevalent and consumers have choices, getting them to come to you isn’t always easy. You need to be smart about how much you spend when you first start up as well.

For many small bar or restaurant owners, social media and word of mouth will be the best weapon when it comes to getting new customers. They’re also cost-effective tools that won’t burn a hole in your budget right away.