The liquor store industry is worth more than $60 billion (as of 2019) and is steadily growing year over year. Historically the liquor industry has been a complex arena to operate in stemming from earlier puritanical views giving way to strict regulations through the Prohibition which brings us to now. Most recently, state laws and regulations have been evolving and relaxing to some degree, especially in states like Colorado. Achieving a liquor license can still be quite a process to accomplish which is why the biggest opportunity to own a liquor store starts with buying one.
While there is no completely recession resistant business, liquor stores come fairly close. Buying a Colorado liquor store is a great way to “buy a job” through an owner-operated company or to build passive income by buying a wine and liquor store that comes with employees and is semi-absentee. Alcohol purchases are popular during depressed times, when consumers are trying to save money by drinking at home and during robust economies, when consumers are more carefree with their spending - making this a stable industry to buy into.
Liquor stores for sale come in a variety of types including craft beer specialty shops, wine shops, convenience liquor stores, and specialty food and liquor shops.At Transworld Business Advisors we’ve had experience working with business buyers of every variety and can help you determine the right business for you. Visit our Buyer FAQs page to learn more about what you can expect when buying a liquor store for sale in Colorado.
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Beer, wine and liquor shops are a very inventory dependent retail model. So, the first big benefit of buying a liquor store is taking advantage of the established inventory supply chain. The second advantage is access to existing customers, established cash flow and a leased location in Colorado which can be hard to come by.
The main advantage of buying a liquor store is the transfer of the liquor license. Since obtaining a liquor license can be a difficult process, buying a liquor business allows you to bypass some of the difficulties of applying for a liquor license. Working with a broker and an attorney to manage the transfer will further simplify the license transfer process.
Colorado liquor licensing law is regulated by local and state levels of government through local licensing departments and the Colorado Department of Revenue, Liquor Enforcement Division. There are also three types of licensing: retail, a hotel & restaurant, and a tavern license. Because of the number of regulatory authorities involved, the number of steps, various fees, waiting periods, and background checks, applying for and receiving a liquor license is a difficult process. This is why buying a liquor store in Colorado is a more simple route to owning a liquor store.
Businesses for sale are unique, so depending on the company and factors like location, the business owner’s circumstances, and the financial health of the business, the inventory may or may not be included in the asking price. However, the cost of inventory can be a great place for the buyer and seller of a business to negotiate contract terms.
If you’re considering an exit from your business, Transworld has experience selling liquor stores in Colorado. Schedule a consultation to see if we’re a fit to work together on your business exit goals.