Free Liquor Store Business Planfor Loans

Obtaining Business Financing

When obtaining a business loan for a liquor store business, it is imperativethat you have a properly structured business plan that will assist you inshowcasing how you intend to operate your Liquor Store, how the business willoperate, how you intend to market the business, the anticipated financialresults of your company, and how you intend to repay your debt obligations.This sample loan business plan will provide you with the framework that youneed in order to acquire a business loan for starting or expanding this type ofbusiness.

Executive Summary

Introduction

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

Liquor Store, Inc. (“the Company”) is seeking a business loan of 0,000 inorder to launch the operations of a Liquor Store business that will be based inSan Francisco, California. The Company was founded in (Insert Year). Thebusiness was founded by Mr. John Doe.

Products and Services

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

The Liquor Store will provide its customers with a broad array of wines,beers, and spirits for sale to the general public. At all times, the LiquorStore will comply with all applicable state and federal laws regarding the saleof alcohol to the general public. The business anticipates that it willgenerate gross margins of 40% on all alcoholic beverage products sold throughthe liquor store.

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

Business Loan Terms

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

At this time, Mr. Doe is seeking a conventional business loan in the amountof 0,000. The interest rate, loan terms, and loan covenants are to bedetermined during negotiation. However, this business plan assumes that thebusiness will receive a seven year business loan with a seven percent interestrate due on the outstanding principal balance.

Management Biography

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

Mr. Doe is a highly experienced business person that has years of experienceregarding the direct ownership and management of business. He will be able toeffectively bring the operations of the Liquor Store to profitability whileensuring that the business loan’s payments and its covenants are met at alltimes.

Financial Statements

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

Expansion Plans

One of the most important aspects of your business plan is how you intend toexpand the business over a three to five year period. Banks and financecompanies always want to see that the business will experience a moderate tostrong level of growth. This is especially true in business lending because asyour business grows the cash flow that secures your business loan will decreaseproportionality against your monthly credit obligations. An example of how thisis stated is as follows:

The Liquor Store will continue to expand through organic means includingincreasing the Company’s advertising budget via the reinvestment into the aftertax cash flows of the business. Additionally, if the business is highlysuccessful then the Company may seek to establish additional Liquor Storelocations 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 ofthe business loan will be used. An example of this would be as follows:

Liquor Store Establishment – ,000 Opening Inventory – ,000 Working capital –,000

Management Equity

In this section of the business plan you should discuss the percentageownership 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 whoserves as the board of directors. For small businesses, usually the ownerserves 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 intendto do with the business over a set period of time. Many business owners willdevelop and expand a business with the intent to sell the company to a thirdparty at a later time. When drafting this part of the business plan you shouldfocus on what you intentions are in regards to potentially selling thebusiness. This is often worded as:

Mr. Doe would most likely sell the Liquor Store to a third party for asignificant earnings multiple. Liquor Stores usually sell for approximately oneto three times earnings given the financial strength of the business. In thisevent, the business would be sold by a business broker and the business loansought in this plan would be repaid according to the covenants of the businessloan agreement.

Products and Services

When developing a business plan that is appropriate for obtaining a businessloan or other business credit facility you need to clearly showcase theservices or products that you will be offering to the general public. Anexample 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 sale of wine as itproduces the highest margins for the business. At all times, the business willhave appropriate checks in place to ensure that people under the age of 21 donot buy alcoholic products from the Liquor Store.

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

Industry and Market Analysis

The Current State of the Economy

It is important to let your financial institution know that you are wellapprised of the financial situation of the general economy when you areapplying for a business loan. This is especially true in today’s environmentwhere lending has become more difficult and will remain more difficult in theforeseeable future. Specifically, you should gear this section of the businessplan analysis towards the industry that you are operating within. Forexample:

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

The Liquor Store Industry

In addition to providing your business loan officer with an understanding ofthe general economy, it is important that you showcase that you have an equalunderstanding of the industry in which you are operating within. As such, youwill need to provide you business loan institution of a brief overview of yourindustry and any potential changes that may affect the way that your companydoes business. An example of how an industry overview is as follows:

On a nationwide basis, there are more than 45,000 stores that specialize inthe sale of liquor, wine, beer, and other spirits to the general public. On anannual basis, these businesses aggregate generate more than billion of revenueand employ more than 200,000 people. This is a mature industry and the futureexpected growth rate of the business is expected to mirror that of the generaleconomy.

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 nationalmarket if applicable). This section should discuss how many people live in yourarea, the anticipated number of people that would require the use of LiquorStores, the median household income of people living in the area, poverty linestatistics, and any applicable laws that would apply to your operation ofLiquor Stores.

Competition

Many people that are developing new businesses or expanding existingbusinesses often feel that their business does not have any competition orlimited competition at best. However, this is almost never the case. Unless youhave re-invented the wheel – you will have competition. When applying for abusiness loan, you should clearly showcase your competition in your businessplan. This is especially important to your banker as they will be able to gaugeyour ability to be successful in your targeted market. Many business loanunderwriters will aggressively confirm that competitive nature of your localmarket and your local industry.

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

Marketing Plan

In addition to all of the above information that we have covered, yourbusiness loan officer is also going to want to know how you intend to marketyour business to the general public. Most people do not quite understand how toeffectively market their business outside of prominent signage or flyerdistribution. When applying for a business loan (again in this difficultlending climate), your banker is going to want to see that you have a clearmethodology of how you intend to market your services or products to thegeneral public. In this section of the business plan – we will overview how toshowcase your services/products to the general public.

Marketing Overview Example

The Liquor Store will place prominent signage on the facility to draw asignificant amount of foot traffic. The business will maintain listings in theYellow Books. The Liquor Store will also maintain an internet website thatshowcases the Company’s operations, hours of operation, and relevant contactinformation.

Marketing Strategies Overview

Additionally, you will be required to further drill down (in your businessplan) how you intend to implement your strategies when you launch or expandyour business’s operations. In this section of the business loan and businessplan 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 createinstant traffic and customer flow to the Company’s location. These strategiesinclude not only using prominent facility and road signage, but alsodistributing flyers to people that fall into he Company’s targeteddemographics. The business will also regularly take out advertisements inlocalized newspapers that showcase the Company’s hours of operations, liquorstore products, and specials that are occurring within the store on a regularbasis.

The business will also maintain a highly informative website that showcasesthe Liquor Store’s products, its hours of operation,  liquor productlisting information, licensure information, and other relevant information inregards to the Company’s services. This website will be listed on major searchengines such as Google as many people now use the internet to locate localbusinesses.

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 applyingfor a business loan or any other type of credit facility. Ultimately, thissection of the business plan showcases not only what your anticipatedprofitability will be, but also how you intend to repay the funds that you haveborrowed through your business financing facility. An example of how thissection is structure is as follows:

Assumptions

Liquor Store, Inc. will have an average annual growth rate of 10% per year.Mr. Doe will acquire 0,000 through a business loan in order to launch theoperations of the business.

Proforma Financials for a Business Loan

Now it is time to showcase how you intend to repay your loan, generate aprofit, and increase the book value of your business over a three to five yearperiod. BusinessPlansForLoan.com has developed an easy to use financial modelthat you can use when drafting out the financial model for your business planand business loan application. Through your business loan application, you willbe required to have the following:

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

Comments are closed.