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Free Liquor Store Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a liquor store business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Liquor Store, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will wage you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.

 

Executive Summary

 

Introduction

 

When obtaining a business loan for a Liquor Store, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:

 

Liquor Store, Inc. (“the Company”) is seeking a business loan of $100,000 in order to launch the operations of a Liquor Store business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.

 

Products and Services

 

In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:

 

The Liquor Store will wage its customers with a broad array of wines, beers, and spirits for understanding to the general public. At all times, the Liquor Store will comply with all applicable say and federal laws regarding the understanding of alcohol to the general public. The business expects that it will generate gross margins of 40% on all alcoholic beverage products sold through the liquor store.

 

The third section of the business plan will further discuss the operations of the business.

 

Business Loan Terms

 

Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:

 

At this time, Mr. Doe is seeking a conventional business loan in the amount of $100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.

Management Biography

 

Now that the summary of the business has been provided, it is time to wage a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:

 

Mr. Doe is a highly experienced business mortal that has years of experience regarding the direct ownership and management of business. He will be healthy to effectively bring the operations of the Liquor Store to profitability while ensuring that the business loan’s payments and its covenants are met at all times.

Financial Statements

 

The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should wage an overview of the finance’s of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.

 

Expansion Plans

 

One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is said is as follows:

 

The Liquor Store will continue to expand through organic means including increasing the Company’s advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company might seek to establish additional Liquor Store locations after the third year of operations.

 

 

The Financing

 

Use of Business Loan Proceeds

 

In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:

 

Liquor Store Establishment – $50,000
Opening Inventory – $10,000
Working capital – $40,000

 

Management Equity

In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:

 

Mr. Doe will own 100% of the Liquor Store.

 

Board of Directors

 

When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:

 

Mr. Doe will be the sole director of Liquor Store, Inc.

 

Exit Strategy

 

Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third celebration at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:

 

Mr. Doe would most likely sell the Liquor Store to a third celebration for a significant earnings multiple. Liquor Stores usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.

 

Products and Services

 

When developing a business plan that is appropriate for obtaining a business loan or other business credit artefact you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:

 

The Liquor Store will carry an extensive and diverse inventory of wines, beers, and spirits. Primarily the Company will focus on the understanding of wine as it produces the highest margins for the business. At all times, the business will have appropriate checks in place to ensure that people under the age of 21 do not purchase alcoholic products from the Liquor Store.

During the holiday seasons, the business will generate additional revenues from the understanding of gift baskets that contain wine, chocolates, and other goods. This will substantially increase the revenues of the Liquor Store during the holiday season.

 

 

Industry and Market Analysis

 

The Current Say of the Economy

 

It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today’s environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:

 

The current economy has remained difficult over the past few years. However, Liquor Stores and drinking establishments tend to clean well during difficult economic climates. As such, the Liquor Store will be healthy to remain profitable and cash flow positive in any economic climate.

 

The Liquor Store Industry

 

In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to wage you business loan institution of a brief overview of your industry and any potential changes that might affect the way that your company does business. An example of how an industry overview is as follows:

 

On a nationwide basis, there are more than 45,000 stores that specialize in the understanding of liquor, wine, beer, and other spirits to the general public. On an annual basis, these businesses aggregate generate more than $50 billion of revenue and employ more than 200,000 people. This is a mature industry and the future expected growth rate of the business is expected to mirror that of the general economy.

 

Target Market

 

In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of Liquor Stores, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Liquor Stores.

 

Competition

 

Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is nearly never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be healthy to gauge your capability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.

 

When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.

 

Marketing Plan

 

In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite comprehend how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.

 

Marketing Overview Example

 

The Liquor Store will place prominent signage on the artefact to draw a significant amount of foot traffic.
The business will maintain listings in the Yellow Books.
The Liquor Store will also maintain an world wide web website that showcases the Company’s operations, hours of operation, and relevant contact information.

 

Marketing Strategies Overview

Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business’s operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:

 

The Liquor Store intends to use a number of strategies that will create instant traffic and customer flow to the Company’s location. These strategies include not only using prominent artefact and road signage, but also distributing flyers to people that start into he Company’s targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company’s hours of operations, liquor store products, and specials that are occurring within the store on a regular basis.

 

The business will also maintain a highly informative website that showcases the Liquor Store’s products, its hours of operation,  liquor product listing information, licensure information, and other relevant information in regards to the Company’s services. This website will be listed on major search engines such as Google as many people now use the world wide web to locate local businesses.

 

The Financial Plan

 

Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:

 

Assumptions

 

Liquor Store, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire $100,000 through a business loan in order to launch the operations of the business.

 

Proforma Financials for a Business Loan

 

Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan. com has developed an simple to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:

 

Profit and Loss Statement for your Liquor Store
Cash Flow Analysis for the Liquor Store
Balance Sheet for the Liquor Store
Business Loan Amortization Tables

The marketing plan’s strategic purpose is to document where the business wants to go and how it is going to get there. At the tactical level it details what promotional tools will be deployed to achieve its said objectives and bring to life its defined strategies.

Here is a structure that will fit for most, if not all, marketing plans:

Vision

By definition a vision must be visionary. It is about the “what” not the “why” or the “how”. It should be over at least a five year horizon and is concerned with the huge picture about where the business wants to be. It should be brief – one short sentence will do.

Mission

The mission is about the “why” – the reason the business exists. It should inform all stakeholders in the business – employees, shareholders and customers exactly what the purpose of the business is.

Target Audiences

Sometimes referred to as stakeholders but basically all of the groups of individuals that the business reacts with or wants to react with in the future. The different audiences should be clearly defined in terms of their size, socio-economic profile, geographic location and purchasing activity (if appropriate).

Objectives

Objectives often get confused with strategies. Objectives are the “what”; strategies are the “how”. Objectives should contain precise statements of intent in terms of the business growth and profits that will accrue as a result of the marketing plan being implemented. The SMART method of writing objectives is a good discipline to adopt:

S pecific
M easurable
A chievable
R ealistic
T imebound

Strategies

There can be any number of strategies to support the objectives but ideally there should be no more than five or six. The strategies will define what broad actions are going to be taken to achieve the objectives. It is useful to allot the strategies to apiece particular target audience.

Product Pricing

What price will the consumer pay for the product(s) or service(s)? What is the income margin?

P roduct Distribution

Where will the consumer purchase the product(s) or service(s)?

Promotional Plan

This is where the nuts and bolts of the plan are outlined. The promotional plan can't stand alone; it has to be borne out of the marketing plan to enable it to have its proper context. The promotional tools that are deployed will depend on the nature of the target audiences, the objectives and the strategies. However, it is likely that some or all of the following might be considered:

Advertising
Direct Marketing (including online)
Public Relations
Sales Promotions
Merchandising
Internal Communications

All of these disciplines have a plethora of consultants and advisers who can offer specialist assistance in both the construction and execution of the activity.

Customer Market Research

In larger businesses customer research will exist but it might be spread amongst various disciplines and locations within the business. If there is a market research specialist employed in the business then it is his or her job to a) collate all of the customer data and research that exists and b) instigate new research, where appropriate.

Promotions Tracking or Marketing Research

The other key function of research is to track the effectiveness of the marketing/promotional activity. Again, this is probably ideal dealt with in partnership with a specialist. The Market Research Society can assist in this area.

Budget

The budget is either set in advance by the business and the plan works within its constraints or the budget is borne out of the plan. The latter course is the most effective as it grants the marketing function to propose what is really needed financially to realise the vision and objectives of the business. However, in reality, the marketing plan, more often than not, has to work within the financial constraints imposed on it by the business as whole.

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Get Your Marketing Plan in Shape to Achieve Goals

A well-defined marketing plan is a necessary tool to improve small business marketing. Similar to sport, to become a successful marketer one needs expert consulting and consistency in apiece move. To get your small business in shape, follow the marketing workout plan below. Make sure you review the plan on a weekly or regular basis.

The Marketing Workout Plan

For success of the marketing workout plan, it is very important to:

Set fitness goals
Track progress

Similar to sport fitness goals, a marketing plan should also be healthy to accommodate its initiatives to fit the final goal. Setting and achieving milestone-marketing goals would promote business and sales. Common marketing fitness goals could be:

To help serve more customer needs by enhancing customer support services.
To receive higher rate of response to advertisements by using innovative advertisement tactics.
To achieve a higher visitor hit on the web site.
To increase customer base by 5% apiece month, that would mean 100% cumulative growth apiece year.
To increase income by 5% apiece month, that would mean 100% cumulative growth apiece year.
To increase the conversion rate of prospective buyers to buyers.
To be more successful than all competitors.

It is important to track progress and results. This would also determine the effectiveness of the marketing plan. In addition, results would keep you motivated. This is similar to a sports or workout program. If you are working with a fitness trainer, you would want to keep a track of accomplishments prefabricated in the week. This would enable you to track your progress and would confirm if you are following the right program. To track progress in a marketing plan, you need to:

Track the number of prospects on the register.
Track the number of new leads added during the week.
Track the conversion rates that include advertisements leading to sales, income leading to clients, new clients leading to old clients and cash volume leading to income per client.
Track total income that generated from sales.
Track net revenues.

The three components of any marketing fitness plan are:

Warm up
Strengthening
Cool down.

To reap the full benefits of a marketing workout plan, it is important to perform the warm up tasks. By not doing so, many marketers miss out on important facts. These tasks do not need to be planned in detail and are not meant to be time consuming. The warm up process can help reach that extra mile and would help prevent any setbacks or losses. This task also prepares the marketer to get the right frame of mind to reach the small business’s goals. Common warm up tasks include:

Set out the actions that the small business wants prospects to do in response to the marketing efforts.
Re-evaluate the marketing initiatives and know what is helping and what is not helping the small business.
Simplify the small business marketing effort to enable prospects to take the actions that you want them to take.

Strengthening the marketing plan is very important. This can be done:

By replacing the weak marketing strategy with an effective strategy to catch the attention of prospective customers and their curiosity.
By improving and fine-tuning the marketing message that is sent out. For example, an captivating marketing message on a simple small business website can increase the number of prospective customers to contact you.
By revising website and other marketing apiece now and then, as it is very important to update this material from time to time. Make sure the layout is effective and simple to read and understand.
By increasing the means of marketing by using mailings, websites, online advertising, posters, direct mailings, newsletters, etc. to reach out to more and more people apiece week.
By communicating with customers and building relationships leading to customer loyalty.

The cooling down process is as important as the strengthening and warm up process. The marketing workout plan should be cooled down:

By creating a ‘to do list’ with weekly and monthly tasks.
By appropriate allotment of tasks to employees and sub-contractors.
By scheduling marketing sessions for the next week. It is important to take out time to assess initiatives and goals.

Follow the marketing workout plan at least thrice a week by using your own marketing strategies to see results

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There are several different types of incomes that specifically pertain to investors.  The Substitute Minimum Tax (AMT) might apply to other taxpayer groups such as retirees, small business owners, self-employed individuals, or employees.  Also, please keep in mind that any single taxpayer might find himself in more than one category, simultaneously.  Following, I will discuss the AMT and the investor.

Investors acquire income on dividends, interest, capital gains, partnership, or real estate investments.  This income is variable depending on the amount of cash, bonds, stock, and other investments in one’s portfolio.  Controlling the timing of investment income and the capability to change the investment type are crucial.

While it is true that you can't change the timing of interest income, an investor could, conceivably, change the amount of dividend income attained by changing the strategy of investing.  An investor who maintains a portfolio of growth stocks as opposed to dividend paying stocks will have lower dividend earnings.  A larger and larger number of companies are paying out fewer dividends annually.  This current bourgeois must be considered when preparing your AMT plan.

Capital gains can be entirely within your control.  Taxpayers possessing individual stocks are free to sell at any time of their choice.  This is an option for total control of the timing of that income.  You do not want your Substitute Minimum Tax plans to override your investment judgment, but in the control of your income as it pertains to the AMT, you will do well to think about both when making investment decisions.  Taxpayers should think about their Substitute Minimum Tax strategy when deciding whether or not to make year-end sales.

While you can't control year-end capital gains disbursements, you can control the type of mutual fund investments you make.  If year-end capital gains disbursements are forcing you to pay the Substitute Minimum Tax due to exemption phase out, you could switch to a mutual fund which is more tax efficient.  This should result in a decrease in the amount of Substitute Minimum Tax you would have to pay.

The Substitute Minimum Tax and its restrictions and regulations can get pretty complex, especially in endeavoring to develop the ideal course of action for you, personally.  There are changes you can make in your investments and income tactics that can help.  Your individual investment and income strategy is unique.  Your individualized preferences and priorities must be considered in whatever course you choose.

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There are very few points that everybody in this world concurs upon. And the stock market unpredictability is undoubtedly one of them. Even people with several years of experience are not always healthy to track the stock market dynamics, thus falling prey to faulty decisions. Watertight stock market investing strategy is something that people think about to be elusive. It is something that can be chased, but probably can never be achieved.

But is it a correct notion? Are things like fate, luck, chance, etc., are the only deciding factors in the stock market investments? Or is there any way to approach the stock market in a speculative manner?

The answer to the above question probably lies in the Systematic Investment Plan or SIP (a.k.a. “Periodic Payment Plan” or “Contractual Plan”).

Systematic Investment Plan (SIP) Unlike the one-time investment plans, SIP entails regular payments for a fixed period. It grants investors to garner shares of a mutual fund by contributing a fixed (which is often small) amount of money on a regular basis. And it offers the following advantages readily captivating to any investor.

Reduced pressure on your contract – Through SIP you can enter the stock market even with a paltry investment. Your inability to invest a more-or-less fat amount might have kept you away from investing in the stock market. SIP is an saint solution for your problem.

Building for the future – We have certain needs that can be addressed only through long-term investments. Such needs include children’s education, buying a home of your own, post-retirement emergencies, etc. And SIP offers precious help in this regard. It helps you to save a small amount on a regular basis. And in due time it turns into a substantial amount.

Compounds returns – SIP not only helps you reach a substantial amount after a certain period of time. Rather it helps you to reach that amount at an primeval age, depending when you begin investing. You can amass a notable amount at 70 if you begin investing at 35. An early begin at 25 can enable you achieve the same amount by 60.

Lowering the average cost – In SIP you experience low average cost, courtesy dollar-cost average. You invest the same fixed dollar amount in the same investment at regular intervals over an extended period of time. You are buying more shares of an investment when the share price is low. And you are buying fewer shares when the share price is high. And it might result in you paying a lower average price per share.

The dollar-cost averaging strategy does not try to time the market. Rather it reduces the risk of investing a larger amount in an investment at a wrong time. And it does the same by spreading your investments out over a period of months, years, or even decades.

Market timing irrelevance – The previous two paragraphs tell you that SIP makes the market timing irrelevant for you. The stock market unpredictability and volatility often play a deterrent for wannabe investors like you. In SIP, you are absolutely free from this problem of wrong timing.

The SIP’s mode of function

A typical SIP entails monthly investments over a period of 10, 15 or 25 years. You are generally granted to begin your investment with a modest sum.

You do not have direct ownership of the funds. Rather you own an interest in the plan trust. The plan trust invests the investor’s regular payments, after deducting applicable fees, in shares of a mutual fund.

Things that you should make clear before investing in an SIP

You should make certain things clear to yourself before going for an SIP investment. They include the following –
a. You should be confident about continuing to make payments for the term of the plan. Withdrawal in the mid way will nearly certainly make you lose your money unless you are eligible for a full refund.

b. Check the fees charged by the plan. Also check the circumstances under which the plan waives or reduces certain fees.
c. Study the plan’s investment objectives. Take a note of the risks of investing in the plan. And check whether you are comfortable with them.
d. Check your statutory rights to a refund in case you cancel your plan.