Small Liquor Store Business Plan

Liquor Store Business Overview

A liquor store is a retail shop that that is licensed to sell pre-packaged alcoholic beverages usually in bottles to customers
who are likely to take home or elsewhere to consume.

In Malawi, the Liquor store business is a regulated business which is described under the State List under the Seventh
Schedule of the Constitution of Malawi. It gives the power to regulate the sale and consumption of liquor and other
alcoholic beverages. It is important to note that City regulations vary widely. Most Cities in Malawi have laws that clearly
define which alcoholic beverages must be sold in specialty liquor stores and which may be sold in other venues.

The liquor, beer and wine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and
establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop
business or you can chose to start on a large scale with several outlets in key cities.

Executive Summary

K’Bros Liquor Store is a neighbourhood liquor store that will be located in centralized area between a residential
neighbourhood and a busy business district in downtown Chigumula Market, Blantyre. We aware that in most cities in
Malawi, Blantyre is one of the cities that allows individuals to operate a liquor store and also sell other alcoholic drinks
which is why we have decided to launch our liquor store near Chigumula Market, Blantyre. We have been able to secure
a 850 sq. ft. facility for our liquor store as required by the law in Malawi.

We are in the liquor store business to make profits at the same to give our customers value for their money and time; we
want to give people who patronize our liquor store the opportunity to choose not only from a wide range of both locally
and imported liquors but also from a wide range of beers and other alcoholic and no-alcoholic drinks that are
manufactured in Malawi.

We are aware that there are several large and small liquor stores all around Malawi, which is why we spent time and
resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will
support the growth of the business and also for us to be able offer much more than our competitors will be offering. We
ensured that our facility is easy to locate and our outlet is well secured with the various payment of options.

K’Bros Liquor Store will ensure that all our customers are given first class treatment whenever they visit our store. We
have CRM software that will enable us manage a one on one relationship with our customers no matter how large the
numbers of our customer base may grow to. We will ensure that we get our customers involved in the selection of
brands that will be on our racks and also when making some business decisions that will directly or indirectly affect
them.

K’Bros Liquor Store is owned by Mr. Kalombola who has successfully managed several bars and night clubs in Blantyre
and South Africa to opening his own liquor store.

Documentation

K’Bros Liquor Store would constitute its business in the form LLP which will be governed under LLP Act; 2008.

Limited Liability Partnership (LLP) is a newer form of business which is a mixture of a company and a partnership firm.
While it has benefits and characteristics of a private limited company, it can be operated flexibly just like a normal
partnership.

Compliances are lesser in LLP as compared to a company, yet the partners have limited liability since LLP acts as a legal
entity separate from partners.
Documents required for registering LLP in Malawi

Documents of both partners, as well as the partnership firm, have to be submitted for registering the LLP.

Documents of Partners

1. ID Proof of Partners -All the partners are required to provide their PAN at the time of registering LLP. PAN card
acts as a primary ID proof.
2. Address Proof of Partners-Partner can submit anyone document out of Voter’s ID, Passport, Driver’s license.
Name and other details as per address proof and PAN card should be exactly same. If spelling of own name or
father’s name or date of birth is different in address proof and PAN card, it should be corrected before submitting
to RoC.
3. Residence Proof of Partners- Latest bank statement, telephone bill, mobile bill, electricity bill or gas bill should
be submitted as a residence proof. Such bill or statement shouldn’t be more than 2 months old and must contain
the name of partner as mentioned in PAN card.
4. Photograph -Partners -should also provide their passport size photograph, preferably on white background.

or any government issued identity proof containing the address.

If the documents are in other than the English language, a notarised or apostilledtranslation copy will be also be
attached.

Documents of LLP

1. Proof of Registered Office Address

Proof of registered office has to be submitted during registration, or within 30days of its incorporation.
2. Digital Signature Certificate
One of the designated partners needs to opt for a digital signature certificate also since all documents and
applications will be digitally signed by the authorised signatory.

Additional Requirements
 An application that is addressed to the Excise & Taxation Officer.
 A treasury receipt of MK250 000 (for lifetime permits) and a treasury receipt of MK250 000 (for one year permit)
has to be deposited under the head 039-State Excise.
 Age Proof.
 Address Proof.
 ID Card.
 Permission from State Government.

Our products
K’BROS Liquor Store is going to operate a standard and licensed neighbourhood liquor store that will retail a wide range
of liquors, beers and wines just like any other licensed and standard liquor store in the India and in any part of the world.
We are in the liquor retailing business to make profits and give our customers value for their money. These are some of
the products that we will retail in our liquor store;

 Liquors
 Beers (Amstel, Black Label, Castle Lite, Castle Lager, Budweiser, Flying Fish, Hansa, Heineken, Corona, Lion, Stella
Artois, Windhoek,)
 Locally Crafted Beers (Castel Beers, Kuche kuche Beers, Carlsberg Beers, Chill Beers, Doppel Munich etc.)
 Wines
 Distilled spirits
 Ciders
  Non – alcoholic beverages
 Tobacco Products and Snacks

Our Vision Statement

Our vision is to establish a one stop liquor store in the Heart of the city (Blantyre and in other cities in the Malawi.)

Our Mission Statement

Our mission is to establish a liquor store business that will make available a wide range of liquors, wines, Non Alcoholics
drinks and beers from top brands at affordable prices to the people - Blantyre and other cities in Malawi where we
intend opening our outlets and selling our franchise.

Our Business Structure

K`Bros Liquor Store do not intend to start a liquor retailing business like the usual mom and pop business around the
street corner; our intention of starting a liquor retail business is to build a standard liquor store that will be a one stop
shop for liquors, beers and wines which is why we will ensure that we put the right structure in place that will support
the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, customer centric and are ready to work to help us
build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of
fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their
performance for a period of five years or more especially when we start selling our franchise.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions:

 Chief Executive Officer (Owner)

 Store Manager
 Sales and Marketing Manager
 Information Technologist
 Accountants / Cashiers
 Cleaners

Roles and Responsibilities

Chief Executive Officer CEO (Owner):

1. Creating, communicating, and implementing the organization’s vision, mission, and overall direction i.e. leading
the development and implementation of the overall organization’s strategy.
2. Responsible for fixing prices and signing business deals Responsible for providing direction for the business
3. Responsible for signing checks and documents on behalf of the company
4. Evaluates the success of the organization

Store Manager:

1. Responsible for managing the daily activities in the store

2. Ensure that the store facility is in tip top shape and conducive enough towel come customers
3. Supervises the entire sales staff and workforce
4. Any other duty as assigned by the CEO

Sales and Marketing Manager

1. Manage external research and coordinate all the internal sources of information to retain the organizations’ best
customers and attract new ones
2. Develop, execute and evaluate new plans for expanding increase sales
 3. Document all customer contact and information
4. Represent the company in strategic meetings
5. Help increase sales and growth for the company

Information Technologist

1. Manage the organization website

2. Handles ecommerce aspect of the business
3. Responsible for installing and maintenance of computer software and hardware for the organization
4. Manage the organization’s CCTV
5. Handles any other technological and IT related duties.

Accountant / Cashier

1. Responsible for preparing financial reports, budgets, and financial statements for the organization
2. Responsible for financial forecasting and risks analysis.
3. Performs cash management, general ledger accounting, and financial reporting
4. Responsible for developing and managing financial systems and policies
5. Responsible for administering payrolls
6. Ensuring compliance with taxation legislation

Client Service Executive

1. Ensures that all contacts with customer (e-mail, walk-In centre, SMS or phone) provides the client with a
personalized customer service experience of the highest level Through interaction with customers on the phone,
uses every opportunity to build client’s interest in the company’s products and services
2. Manages administrative duties assigned by the store manager in an effective and timely manner

Cleaners:

1. Responsible for cleaning the store facility at all times

2. Ensure that toiletries and supplies don’t run out of stock
3. Cleans both the interior and exterior of the store facility
4. Any other duty as assigned by the Store manager.

SWOT Analysis

Our intention of starting just one outlet of our liquor retail store in Blantyre is to test run the business for a period of 2 to
5 years to know if we will invest more money, expand the business and then open other outlets all over Malawi and also
sell franchise through the Malawi. We are quite aware that there are several liquor retail stores all over Long Beach and
even in the same location where we intend locating ours, which is why we are following the due process of establishing a
business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business
to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled
equipped to confront our threats.

K`Bros Liquor Store employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct
a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and
objectives.

This is the summary of the SWOT analysis that was conducted for K’Bros Liquor Store:
  Strength:

Our location, the business model we will be operating on (physical store and online liquor store), varieties of payment
options, wide range of liquors, wines and beers (locally crafted beer inclusive) and our excellent customer service culture
will definitely count as a strong strength for K’Bros Liquor Store.

 Weakness:

A major weakness that may count against us is the fact that we are a new liquor retail outlet and we don’t have the
financial capacity to engage in the kind of publicity that we intend giving the business.

 Opportunities:

The fact that we are going to be operating our liquor retail store in one of the busiest area at the chigumula market
provides us with unlimited opportunities to sell our liquors, wines and beers to a large number of people. We have been
able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for
when they visit our liquor retail store; we are well positioned to take on the opportunities that will come our way.

 Threat:

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic
downturn. It is a fact that economic downturn affects purchasing power.

Another threat that may likely confront us is the arrival of a new liquor retail outlet in same location where ours is
located or even the arrival of a night club and bar.

MARKET ANALYSIS

Market Trends

Malawi is one of the fastest growing alcohol markets in the world. Rapid increase in urban population, sizable middle
class population with rising spending power, and a sound economy are certain significant reasons behind increase in
consumption of alcohol in Malawi.

Our latest report “Malawi Alcohol Consumption -The Changing Behaviour” provides a comprehensive analysis of the
market size of alcohol industry on the basis of type of products, consumption in different Cities , retail channel and
imported and domestic. The Alcoholic Drinks market in Malawi has been experiencing significant growth in recent years,
driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer
preferences in the Alcoholic Drinks market in Malawi have been shifting towards premium and craft beverages.
Consumers are increasingly seeking out unique and high-quality alcoholic beverages, such as craft beers and artisanal
spirits. This trend is driven by a growing middle class with higher disposable incomes and a desire for more sophisticated
and diverse drinking options.

Additionally, there is a rising interest in locally produced alcoholic drinks, as consumers prioritize supporting local
businesses and promoting national products. Trends in the market indicate a growing demand for low-alcohol and non-
alcoholic beverages. Health-conscious consumers are opting for drinks with lower alcohol content or completely alcohol-
free options. This trend is driven by a desire to lead a healthier lifestyle and reduce the negative impacts of excessive
alcohol consumption. As a result, the market has seen an increase in the availability and variety of low-alcohol and non-
alcoholic beverages, including cocktails, alcohol-free beers, and spirits alternatives. Local special circumstances also play
a significant role in the development of the Alcoholic Drinks market in Malawi. The country has a strong cultural tradition
of brewing and consuming traditional alcoholic beverages, such as maheu and masese. These beverages are typically
homemade and made from local ingredients, and they hold a special place in Malawian culture. While the market for
traditional beverages remains strong, there is also a growing interest in imported alcoholic drinks, particularly among
urban consumers and the younger generation. Underlying macroeconomic factors contribute to the growth of the
Alcoholic Drinks market in Malawi.
The country has experienced steady economic growth in recent years, leading to an increase in disposable incomes and
consumer spending power. This has allowed consumers to allocate a larger portion of their budgets towards
discretionary items such as alcoholic beverages. Additionally, the tourism industry in Malawi has been growing,
attracting international visitors who contribute to the demand for alcoholic drinks. In conclusion, the Alcoholic Drinks
market in Malawi is developing in response to changing customer preferences, emerging trends, local special
circumstances, and underlying macroeconomic factors. The market is witnessing a shift towards premium and craft
beverages, as well as a growing demand for low-alcohol and non-alcoholic options. The cultural tradition of brewing and
consuming traditional beverages also influences the market, alongside the country's economic growth and the presence
of a thriving tourism industry. Overall, the Alcoholic Drinks market in Malawi is poised for continued growth and
diversification in the coming years.

The Malawi alcohol industry is segmented into IMFL (Indian made foreign liquor), IMIL (Indian made Indian liquor), Wine,
Beer and imported alcohol. Imported alcohol has a meager share of around 0.8% in the Indian market. The heavy import
duty and taxes levied raise the price of imported alcohol to a large extent. Alcohol is exempted from the taxation scheme
of GST.

The trends and pattern of alcohol consumption are changing in the country. With the increasing acceptance of women
consuming alcohol, growing popularity of wine and high demand for expensive liquor, the market scenario seems to be
very optimistic in the near future.

Our Target Market

When it comes to selling liquors, wines, beers and locally brewed beer, there is indeed a wide range of available
customers. In essence, our target market can’t be restricted to just a group of people, but all those who drink liquors,
wines and beers and those who would want to try out liquor. One thing is certain, our liquors, and other alcoholic drinks
will not be sold to people who are under aged. In view of that, we have positioned our liquor retail store to service in
area of Chigumula market in Blantyre and every other location our liquor retail stores will be located all over Malawi. We
have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to retail a liquors and a wide range of alcoholic drinks to the following groups of people;

 Corporate Executives
 Business People
 Celebrities
 Military Men and Women
 Sports Men and Women (with the exemption of under age)
 Students (with the exemption of under age)
 Tourists
 Every adult in the neighbourhood where our liquor store will be located.

Our Competitive Advantage

City Spirits Liquor Store is launching a standard and licensed liquor retail shop that will indeed become the preferred
choice of residence of area near Chigumula market in Blantyre and in every other location where our outlets will be
opened. Our liquor retail store is located in a corner piece property on a busy road directly opposite one of the largest
residential estates and few meters away from a busy business city. We have enough parking spaces that can
accommodate well over 10 cars per time. One thing is certain; we will ensure that we have a wide range of liquors, wines
and beers available in our store at all times. It will be difficult for customers to visit our store and not see the brand of
alcoholic drinks that they are looking for. One of our business goals is to make K`Bros liquor Store a one stop alcohol
shop. Our excellent customer service culture, online store, various payment options and highly secured facility will also
serve as a competitive advantage for us.
SALES AND MARKETING STRATEGY

Sources of Income

K`Bros Liquor Store is established with the aim of maximizing profits in the liquor, wine and beer store retailing industry
and we are going to go all the way to ensure that we do all it takes to sell a wide range of products to a wide range of
customers

K Bros Liquor Store will generate income by retailing the following alcoholic products:

 Liquors
 Beers (Amstel, Black Label, Castle Lite, Castle Lager, Budweiser, Flying Fish, Hansa, Heineken, Corona, Lion, Stella
Artois, Windhoek,)
 Locally Crafted Beers (Castel Beers, Kuche kuche Beers, Carlsberg Beers, Chill Beers, Doppel Munich etc.)
 Wines
 Distilled spirits
 Ciders
 Non – alcoholic beverages
 Tobacco Products and Snacks

Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey
and also some of the assumptions readily available on the field. One thing is common with liquor retailing business, the
larger a liquor retail store the larger the numbers of customers that will patronize them. Although we may not be as large
as the biggest liquor retail store in the Malawi, but we will ensure that within our capacity we make available a wide
range of liquors, wines, and beers from different brands both local and foreign in our liquor store. Below are the sales
projections that we were able to come up with for the first five months of operations;

Assumption:

This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any
major economic

Meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the
above projection might be lower and at the same time it might be higher.

 First Month -: MK75, 00,000

 Second Month -: MK2, 50, 00,000
 Third Month -: MK7, 50, 00,000


Marketing Strategy and Sales

Strategy

Before choosing a location for K`Bros Liquor Store, we conduct a thorough market survey and feasibility studies in order
for us to be able to penetrate the available market and become the preferred choice for residence near Chigumula
Market – Blantyre and in every other cities where our outlets will be opened. We have detailed information and data
that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the liquor, wine and beer retail industry to help us develop marketing
strategies that will help us achieve our business goal of winning a larger percentage of the available market of
Chigumula-Blantyre.
In older to continue to be in business and grow, we must continue to sell the products that are available in our store
which is why we will go all out to empower or sales and marketing team to deliver

In summary, City Spirits Liquor Store will adopt the following sales and marketing approach to win customers over;

 Introduce our liquor store by sending introductory letters to residence, business owners and organizations in and
around Chigumula –Blantyre.
 Open our liquor store with a party
 Advertise our business in community based newspapers, local TV and radio stations
 List our business on yellow pages ads (local directories)
 Leverage on the internet to promote our business
 Direct marketing
 Word of mouth marketing (referrals)

Publicity and Advertising Strategy

Despite the fact that our liquor retail store is well located, we will still go ahead to intensify publicity for the business. We
are going to explore all available means to promote our liquor retail store.

K`Bros Liquor Store has a long term plan of opening outlets in various locations all around Malawi which is why we will
deliberately build our brand to be well accepted in Blantyre before venturing out. As a matter of fact, our publicity and
advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the
platforms we intend leveraging on to promote and advertise K`Bros Liquor Store:

 Place adverts on both print (community based newspapers and magazines) and electronic media platforms
 Sponsor relevant community programs
 Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, etc. to promote our
brand
 Install our Bill Boards on strategic locations all around Chigumula market –Blantyre
 Engage in roadshow from time to time
 Distribute our fliers and handbills in target areas
 Position our Flexi Banners at strategic positions in the location where our liquor retail store is located.

Our Pricing Strategy

Pricing is one of the key factors that give leverage to liquor retail stores, it is normal for consumers to go to places (liquor
retail outlets) where they can get liquors, wine and beers etc at cheaper price which is why big player in the liquor, wine
and beer retail industry like attract loads of consumers.

We know we don’t have the capacity to compete with other bigger liquor retail store, but we will ensure that the prices
of all the brands of liquors, wines and beers etc that are available in our liquor store are competitive with what is
obtainable amongst liquor retail stores within our level and in our location.

Payment Options

At K`Bros Liquor Store, our payment policy is all inclusive because we are quite aware that different people prefer
different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money such as Airtel Money and TNM Mpamba

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches
Start–Up Expenditure (Budget)

When it comes to starting liquor retailing store the major areas that you look towards spending the bulk of your cash is in
of course renting or leasing a standard store facility. Aside from that, you are not expected to spend much except for
paying of your employees and the stocking of your store. This is the key areas where we will spend our start –up capital;

 The Total Fee for Registering the Business in Dehradun–MK10000

 Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines
and other software)–MK1, 50,000.
 Marketing promotion expenses for the grand opening of Liquor Store in the amount of -MK15,000
 and as well as flyer printing (2,000 flyers at MK40 per copy) for the total amount of–MK20,000.
 Cost for hiring Consultant –MK750.000
 Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium–
MK24,000.
 Cost for payment of rent for 12 month at MK150000 per month in the total amount of MK1,8.000,000.
 Cost for Shop remodeling (construction of racks and shelves)

70,000.

Other start-up expenses including stationery (

15,000) and phone andutility deposits (

2,500).

Operational cost for the first 3 months (salaries of employees, paymentsof bills et al)

1,80,000

The cost for Start-up inventory (stocking with a wide range of liquors,wines, beers, tobaccos etc)

–
₹

5,00,000

Storage hardware (bins, rack, shelves, food case)

60,000

The cost for counter area equipment (counter top, sink, ice machine,etc.)

45,500

Cost for serving area equipment (plates, glasses, flatware)

30,000

Cost for store equipment (cash register, security, ventilation, signage)

46,750

Cost of purchase and installation of CCTVs

–

50,000

The cost for the purchase of furniture and gadgets (Computers, Printers,Telephone, TVs, Sound System, tables and chairs
etc)

2,15,000.

The cost of Launching a Website

60.000

The cost for our opening party

70,000

Miscellaneous

₹
10,000We would need an estimate of

19,91,250 to successfully set up our liquorretail store near clock tower

Dehradun. Please note that this amountincludes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for City

Spirits Liquor Store

City Spirits Liquor Store is a private business that is solely owned and financedby Mr. Raj Jain and family. They do not
intend to welcome any externalbusiness partner, which is why we have decided to restrict the sourcing of thestart

up capital to 3 major sources.These are the areas we intend generating our start

up capital;

Generate part of the start

up capital from personal savings

Source for soft loans from family members and friends

Apply for loan from my BankThey have been able to generate about

10,00,000 (Personal savings

7,50,000 and soft loan from family members

₹
2,50,000) and are at the finalstages of obtaining a loan facility of

9,91,250 from our bank. All the papersand document have been signed and submitted, the loan has been approvedand
any moment from now our account will be credited with the amount

Liquor Store Business Plan

Sustainability and Expansion

Strategy

The future of a business lies in the numbers of loyal customers that they have,the capacity and competence of the
employees, their investment strategy andthe business structure. If any of these factor is missing from a business

(company), then it won’t be too long before the business close shop.

City Spirits Liquor Store will ensure that all the factors listed above arereinforced on a regular basis and also we will
engage in continuous capacitybuilding of our workforce. As a matter of fact, profit-sharing arrangement willbe made
available to all our management staff and it will be based on theirperformance for a period of three years or more.We
will make sure that the right foundation, structures and processes are put

in place to ensure that staff welfare is well taken of. Our company’s corporate

culture is designed to drive our business to greater heights and training and re

training of our workforce is at the top burner. We have the plans of

Check List / Milestone

Business Name Availability Check:

Completed

Business Registration:

Completed


Opening of Corporate Bank Accounts:

Completed

Securing Point of Sales (POS) Machines:

Completed

Opening Mobile Money Accounts:

Completed

Opening Online Payment Platforms:

Completed

Application and Obtaining Tax Payer’s ID:

In Progress

Application for business license and permit:

Completed


Purchase of Insurance for the Business:

Completed

Leasing of facility and remodeling the shop:

In Progress

Conducting Feasibility Studies:

Completed

Generating capital from family members:

Completed

Applications for Loan from the bank:

In Progress