How to Buy a Liquor Store

[Biff]

My brother is thinking about buying a liquor store with a buddy and maybe myself. It's a business that has called it quits. The question is "what do we look out for."

I'm guessing the most important thing is "what state are we in"?
Answer: Colorado (Boulder)

Questions I've come up with are:

- Can we transfer the liquor license? How long is one good for? How much does one cost / year
- The normal shit like, is this a new lease, how much is it, how long can we lock in for, is it transferrable?
- Do we have to pay any taxes when the inventory is transferred from one owner to another?

*BONUS QUESTION*
- As long as I pay for a brewer's license, can I sell my homebrew there? Or is there some retarded distribution concerns, like I can't distribute to myself?

Thanks all!

[Henning1966]

biff I would try checking out this site and all of its information and sending any questions after that to them to find out what you need to do http://www.revenue.state.co.us/Liquor_dir/home.asp

That better Bum

[trevmoon]

JUST GO FOR IT. I had the perfect location picked out for a store about 2 years ago. It was in a strip mall next to the only Super Wal-Mart in the county. Would have done a great business, but now the damn thing's a matress store.

Don't be like me and wonder what could have been. Go for it.

P.S. I also had a chance at my dream job in the Denver Metro about 2 years ago but turned it down when my wife said she was pregnant. Now I'm stuck in a podunk town with NO future. So, I know A LOT about regret and going for your dreams. I say GO FOR IT.

[BrewBum]

Henning, are using the number "2" all the time because you don't know how to properly use the correct ones? It drives me crazy BTW, if you care.

Do what Henning suggested. The answer to your homebrew question is also much more complicated than you have made it out. My guess is you can't self distribute in Colorado but I could be wrong. That is just one step though, registering as a brewer with the ATF is a completely different animal.

Good luck though, there is always a need for a good liquor store.

[Thirsty Mallard]

As a guy with a degree in Entreprenuership, I will throw in my 2 cents...

The first question you should be asking is why are they calling it quits. People that have a great business with an amazing revenue stream are usually hesitant to give it up. Is this a situation where the owner wants to retire or is there something wrong with the business? Don't just go on what the current guy tells you... he is trying to unload a business and will say what he has to say.

Don't get too starry eyed on the prospect of owning your own business that you don't do your due diligence. Check the books with a fine tooth comb. Research the area (I know someone who bought a very successful retail store only to have to close his doors and go bankrupt within a few years because the city decided to remodel the highways). Find out what it takes to run a liquor store (it is probably much more difficult than it appears). If you haven't ever owned your own business, I'd suggest doing some reading about it.

Just my suggestions. Sorry to be a downer... YAY LIQUOR STORE!

[Biff]

I'm quite interested in the prospect of doing this! We'll see.

To answer the Thirsty Mallard, I thought of that why the business might be going down and out to begin with.

First of all, it's not the location. It's located in a college town, on a very heavily trafficked area by students. The problem is that they tried to go for a very high-brow wine type liquor store. When's the last time a college student had 20+ dollars to blow on a bottle of wine? I think they're much more likely to spend $7 on a gallon of screw-cap Julio & Gallo.

As much as I hate to say it, the store definitely needs to be selling suitcases of pisswater to do a bang up business. And I would not ban the Big 3 from being sold in the store, but I would definitely stock as much "real" beer as possible and try to help get folks to crossover to the good side.

I'm also wondering about the prospect of giving away a bottle (or more) of homebrew with a purchase of a certain amount. This probably isn't legal, but I'm lookin at it.

In my ridiculous "shot in the dark" world, I'd love to brew beer and distribute it in the liquor store, but there's absolutely no room in the space. So that's out, unless I make a ridiculous amount of money such that I can open a brewery (or brewpub) as a separate venture.

Anyway -- more posted here as I live it!

[Mr DNA]

Regarding the quality of the inventory of the store, just because it's by a college doesn't preclude you from selling good stuff, it just means you can't ignore the potentially fastest-moving products. We've got a shop here in Bozeman that sells very high-end wines, beers, cheese, meat, and other stuff, but being directly across the street from Montana State (on College Ave...go figure) they move more than their share of utility beers in cans and kegs. They've managed to serve both ends of the demographic spectrum very well.
My experience in business (working in, but not owning bike shops and restaurants) is that location and almost as importantly marketing will determine your success. Also, don't piss off your customers. that never gets you anywhere.

[seanhagerty]

I have been in the process of purchasing my own liquor store for quite some time. Although, I must say you are going about it in a much more organized manner. You seem to be planning it out very thoroughly, ensuring all areas that can bite you are considered and advice sought from trusted sources.

I on the other hand have been purchasing my liquor store one bottle at a time..