How to Start an off-Licence Business

Are you passionate about wine? Do you have great knowledge of the alcohol industry? Starting an off-license business could be a viable business opportunity. Off-licences are continuing to become a regular feature on every high street, with the market worth £3 billion in 2020 . It can be a rewarding vocation that brings good income, stability and flexibility. Wondering how to start an off-licence business? Find out what skills you need, the different paths you can take, important considerations to keep in mind and how to legally establish your business.

What Is an off-Licence?

There are many thousands of licensed premises in the UK. This includes pubs, bars, restaurants, cafés as well as off-licences. Most off-licenses are independent stores while the rest comprise of management run chains. Of the independent nature, many double up as corner shops, convenience stores and/or newsagents; while others specialise in selling varying types of alcohol and pride themselves on their knowledge of good beers, wines and spirits. They may also stock products such as snack foods and the odd lime to squeeze into your gin and tonic on a hot summer's day.

Competition in the off-licence trade is important to consider. You will have to compete with the growing volume of cross channel imports (people who go on day trips especially to collect beer, wine, spirits and cigarettes from abroad), as well as supermarkets taking an increasing share of the off-licence market.

What Qualifications Do You Need to Start an off-Licence?

There aren’t any educational requirements for starting an off-licence business. However, under the Licensing Act 2003 , anyone authorising the sale (by retail) or the supply of alcohol has to hold a personal licence. To qualify for a personal licence, you must hold a licensing qualification as a Designated Premises Supervisor (DPS). This is issued by the local authority after you pass a licensing law course known as the Award for Personal Licence Holders (APLH level 2).

Without a DPS in place, you cannot sell alcohol in your shop, even if you buy a business that already has a licence.

To start an off-license business, you’ll not only need training and a license but also a certain amount of business know-how. This will involve finding the right balance between supply and demand and not holding back on ailing stock lines that are just not selling. It is also recommended that you take courses to hone your craft, such as wine tasting, as this will allow you to deliver a better service to your customers.

What Set-up Options Are Available?

Selling alcohol is a popular career choice, so you’ll need passion and drive to set yourself apart from the competition. To get started, review the three paths you can take:

1. Buy an Existing Business — You might decide to buy an existing off-licence business rather than starting your own venture from scratch. There are several advantages to this, including that the premises and equipment are already in place, stock may be available and you’ll have established customers — so the business can generate income immediately.
2. Buy a Franchise — Franchising can be a good “halfway house” between starting from scratch and buying an existing business. If you purchase a franchise you'll still be setting up your own business, but you’ll benefit from the experience, resources and the name of a business that is already successful. Many franchisors will provide you with any specialised training you require, discounts off stock, help with advertising and marketing, and advice and support on a range of business and technical matters.
3. Set up Your Own off-Licence — Once you have gained sufficient experience, you can choose to set up your own off-licence. To do this you will need to consider setting up a company . Though this will require a lot of work and has high associated costs, it will allow you to be your own boss and create your brand.

How to Start an Off-Licence Business

If you want to create an off-licence business, you’ll need to create a solid business plan before you even think about putting a deposit down on a shop. Research your competition, see what is already out there and find what is lacking in the industry. Which part of town could use a new off-licence? If you can fill a need, you will be more successful. Other aspects to consider when creating your business plan are:

• Where will you sell your products?
• What will you name your business?
• What start-up costs and expenses will you incur?
• Where will you source your products?
• How will you price your products?
• What are your business model and legal structure?
• What is your recruitment strategy for hiring employees?
• What rules and regulations must you follow in retail and marketing (e.g. underage drinking policies)?

Ready to Form Your off-Licence Company?

If you are ready to start an off-licence business, it’s time to form your company. You can form a limited company or go the sole-trader route. Deciding and completing your company formation can be the most challenging part of starting a business, but it’s crucial to your success.

Are you ready to start an off-licence business? At Mint Formations , we help you form your limited company or self-employed business and take away all the stress that comes with starting a business. We’ll secure your brand name and get your company registered fast so that you can focus on starting your new business.

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