Admittedly, few industries have seen an economic boom quite like liquor store businesses through the pandemic. As an owner, this may have you considering whether or not now is the right time to sell a liquor store in Charlotte, NC. On the one hand, liquor sales are performing exceptionally well – so it’s not a bad time to sit back and cash in. On the other hand, businesses in well-performing industries are being overvalued, especially those whose success will likely be sustained following the pandemic.
YOUR GUIDE TO SELLING A CHARLOTTE, NC LIQUOR STORE FOR TOP DOLLAR
During the early stages of coronavirus, when Charlotte area residents began staying home more, liquor sales soared nearly 30% higher than usual across all Alcoholic Beverage Commission (ABC) stores. Prospective liquor store buyers in Mecklenburg County are aware of this upturn and are willing to come in either right at or even slightly above the preset asking price.
Of course, if you are happy with where you’re at, it could be best to hold off until you’re ready to list your business for sale. But, now is a good time to begin the process if you’ve already been contemplating your exit.
However, keep in mind that it takes a while to sell a business. Even if you get started preparing right now, you have at least months of work ahead. In the meantime, you should continue to invest in your liquor business. The following considerations can help optimize your chances of selling quickly.
1. INVEST IN YOUR REAL ESTATE
Your property doesn’t have to be the most pristine – you’re selling a liquor store, after all, not a fine dining establishment – but you should still go above and beyond to make the most of your space. Tidy up counters and shelves, remove clutter, make sure there is clear signage that works, and invest in good organizational storage.
2. FIND WAYS TO BOOST PROFITABILITY
The pandemic itself has led to increased profitability for most grocery stores, gas stations, and other businesses that sell alcoholic beverages. But, your liquor store buyer will likely be around long after COVID is over, and they’ll want to see that you have a business built for long-standing success. So, you should start looking for other ways to generate more revenue for your business – whether that’s offering exciting new promotions, finding cheaper suppliers, investing in better advertising, or another long-term solution.
3. NURTURE RELATIONSHIPS WITH SUPPLIERS
Speaking of suppliers, now is a great time to evaluate your current relationships and decide if any may drop off once you step down as owner. In either case, it’s best to nurture your supplier-retailer relationships as much as possible, which includes paying your bills on time each month and maintaining friendly, professional communication upon each visit.
4. PREPARE FINANCIAL RECORDS
This last tip is pertinent to selling a business in any industry. Before you go to market, it’s important to evaluate your financial situation and prepare all records from at least the last three years of business. Complete transparency is a must when establishing that buyer-seller relationship, so you’ll want to be upfront about your current and projected earnings.
VR Business Brokers is the team to partner with when listing liquor stores, convenience stores, bars and distilleries, and other businesses for sale in Charlotte! Our team of experts is well-prepared to help you find buyers interested in your liquor store listing. Want to learn more? Get in touch today to begin discussing your exit strategy!