How to Start a Wholesale Liquor Distribution Business

For various reasons, starting a liquor distribution business is more difficult than running any other company. For starters, the liquor industry requires more taxes, rules, and laws compared to other industries. However, the business can be very profitable, and here’s how to start one.

Liquor distribution business

Get a License and Employer Identification Number

When starting a liquor business to sell at a wholesale market, you must first abide by state and federal legislation. Applying for a license and an employer identification number is one of the first things you need to do in order to open your business. The legislation of a license requires to specifically regulate the sales of alcoholic items.

Depending on where you live, some states have a limited number of licenses they’re allowed to give, so if the quota has been covered you would need to wait an extended period of time to apply for it. You will be expected to provide the state with the necessary documentation and business papers which include financial records, tax ID, the outline of the company’s organization, and more. Make sure you have everything required because lost or incomplete information may result in delays or even rejection of your license.

An employer identification number is a nine-digit number that must be collected from companies and corporations when starting a new business and it’s used to identify the company while paying for taxes.

Find a Warehouse Location

Acquiring a warehouse location is another essential thing you need to accomplish when starting a liquor business. All companies liquor-related must provide sufficient storage space for their products. Alcohol manufacturers are legally permitted to own a warehouse where alcohol is stored or they won’t be allowed to apply for licenses or permits.

However, the decision between leasing or buying a warehouse space is generally focused on your financial conditions. It is recommended to start off with a short-term lease and test run the business’ success first. If all goes as expected, you could sign the long-term lease or entirely purchase the space, and if not look for another suitable location for your distribution business.

Find a Supplier

When searching for suppliers, you’ll want to search for partners that will help you progress and benefit your business. A new partnership can stifle your business development so it’s critical to find certain partners that are eager to help you expand. Finding the right vendor will help save money but you need to ensure that you’ve compared pricing with other vendors who are interested and might be able to provide you with the service you need. Good quality and reasonable pricing are critical factors specifically in the wholesale business.

There’s no way to avoid it if the organization is doing negatively in one or more areas unless you have trustworthy associates who can prevent business disruption. But if a provider continues to perform despite the fact that they’re doing it negatively, they could take your organization down with them.

Promote Your Business

Promoting your business, especially in this field, can be quite competitive and for that reason, you need to come up with creative and healthy ways to attract your audience. Try providing free samples of drinks for customers to try out or even gift different hip flasks to choose from along with your product, which will attract the audience and raise your brand awareness. They would be a great, successful strategy to stimulate purchases and attract publicity as well as help you choose the perfect hip flask since they’re of good quality and practical.

Using modern technology for advertisement is more common among many sorts of industries, not only the liquor business. Keep your social media presence active and reach out to new customers as well as engage with previous ones by offering discounts to those who leave feedback about your products.

Find a Convenient Store Location

Finding a good location for your store is also considered to improve the income of your company. Usually, busy environments would help your company far more than a quiet one, however, the one downside is that it will cost you more to rent or buy the property. Consider your area, traffic, sidewalks, and affordability when choosing a place for your business. In addition to that, make sure that the maintenance and electricity rates are within budget so that you can compensate your staff and supplies.

You need to be extra cautious when trying to open your own liquor business since you’re responsible for all legal manners and obligations that other industries might be let loose of. In comparison to other industries, if you fail to complete a required task or ruin some aspect of the business starting procedure, you could face serious legal consequences and in some cases even jail.


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