Liquid Gold

Description of Business
3037 N. Clark St.
Chicago, IL 60657

Phone Number:
773-547-8671
773-LIQUOR1

1,367 square feet

Area
Northern Chicago
Highest density population out of all 77 communities in
Chicago
Median household income: $79,123
Median Age: 32.6
Wrigley field is 0.8 miles away from our store

Mission Statement
Our mission is to keep our neighborhood happy
by providing their desires in a convenient way,
giving everyone a way to relax on their down
time.

Description of Products
Selling peoples favorite brands
like:
Smirnoff
Fireball
Jack Daniels
Captain Morgan
Gray Goose
Absolut
Bud Light

Description of Services
Great friendly and
helpful in store
service as well as a
new revolutionary
liquor delivery
service.

Future Plans and Development

Future Plans:
Opening more Liquid
Gold stores

Development: There will

always be a demand for
liquor. If trends change or
new liquor is released we will
change to match customers
demands.

Demographics
Age: 21 and older
Income range: All
Sex: Both
Occupation: All
Marital Status: Any

Geographics
Nature of Location:
Downtown Chicago-On the north side one of the top
drinking cities in the country.

Area Served:
A 20-mile radius around our store

Market Size & Trends

Size of market:

71 percent of americans reported that they drank in

the past year; 56.3 percent reported that they drank in the past month
according to the NIH.

Growth: The market of selling and buying liquor has always increased.
Most recently the sale of alcoholic beverages was 162.9 billions dollars in the
United States.

Economic and social factors: People not wanting a new liquor

store to open because of the effects alcohol has. We did look into this
problem, and there is no schools or parks around our location.

General Information
Economic sector: Retail
Industry: Beer, wine, and liquor store
Reason why needed is because people need
access to alcohol to fullfill there desires and we
make it readily available to them for their
convenience

Size and Growth Rate of Industry

Revenue
47 Billion Dollars

Annual growth From 2009 to 2014

3.2 %

Employment
150,225 People

Businesses
28,690

Sensitivity to Economic Cycles and Seasonality

9.7 billion gallons of
alcohol were consumed in
2012, even if people are
going through a hard
economic time, people will
always still buy our goods.

Unlike many other entertainment

expenses, alcohol sales even tend
to thrive during most recessions.
People tend to go out to bars less
and buy more alcohol from retail
stores.

Competitor

(3-5 mile radius)

Binny's Beverage Depot - Longtime supplier for beer, wine &

spirits, plus related gifts & cigars. Some have tasting rooms. They
tend to be pricier but have been in the Chicago market for years.

Gold Crown and One Thousand Liquors- Two more

liquor stores around us that have major issues. Gold Crown is
known for having bad service and a poor selection. One Thousand
Liquors is known for having bad equipment.

Competitive Advantage
We will be the only liquor store around this
area that will deliver alcohol. We also know the
problems these other stores have and we are
going to make sure we do not have them.

Future Competition
Other liquor stores might open around us
but we believe the area will give us enough
demand that it should not be a problem.

Market Share
The liquor store with most of the market share
in the area is Binnys Beverage Depot. We
believe we can share and possibly come out on
top of the market because we are strictly a
liquor store so we have a better selection, our
prices are lower, and we will be the only ones
delivering.

Market Vehicles
-Sell from our set location
-Delivery service
-Advertisements, such as: Billboard

Marketing Budget
Billboard- $4000 a month

Hours of Operation
Monday-Thursday: 10 am-12 am
Friday, Saturday: 10 am-2 am
Sunday: 12 pm- 10 pm
Closed on Christmas Day, Easter, Thanksgiving

Employee Training and Education

Employees must know to check id's and
recognize an already intoxicated individual
when selling and delivering alcohol.
EDUCATION
semi-skilled workers, requires some training

Key Employees
Managers will be extremely important because they will
also act as supervisors. They will make sure that the clerk is
checking ID's and noticing when a customer is intoxicated.
Delivery man/woman because we are expecting good sales
from delivery because it is new.
We will work as managers, the delivery service and the
stockers.

Business Image/Message
How does product meet needs?
When buying alcohol, your intentions are obvious.
We provide what you need.
Price issue- delivery fee. $3.00 fee per mile up to $24
dollars. We are trying to provide for the close area
around us.
Ease/convenience of product- If not able to come to
store, we deliver

Compensation And Incentives

Although there isn't much incentive to work
at a liquor store we are confident people will
want to work for us. One reason being they
will be making more than minimum wage.

Management Structure and Style

We plan to be partners in business. The
business will be a Limited Liability Company.
We chose this type of partnership because we
don't want our personal assets to be affected if
we are sued.

Start-up Costs
Exterior- $1600
Interior- $32,529.85
Car Down Payment- $1,500
Setup of Security- $300
Liquor License- $4,040
Building- $75,000

Total Startup Cost

$
114,969.85

Monthly Budgets
Loan Payback
$
861.37
Water
$
60.00
Electric
$
350.00
Heat
$
300.00
Phone
$
110.00
Internet
$
50.00
Cable
$
100.00
Garbage
$
70.00
Security
$
50.00
Salary Employees
$
8,233.33

Insurance
$
800.00
Property tax
$
313.71
Misc. Exp
$
200.00
Car Payment
$
198.00
Car Insurance
$
120.00
Advertising Exp.
$
4,000.00
Inventory
$
15,757.60
Gas
$
400.00

Total Monthly
$
31,974.01

Asking Loan Price

$170,000

Profit
Estimated:
Monthly: $7,025

Yearly: $84,300
22% Profit

Goals
-

Pay back loan

Open more locations
Satisfy customers
Have business succeed

Strategies
Our goals have strategies in themselves. Satisfying customers &
Having our business succeed = profits we need to pay off our loan.
For part of our strategy and evaluation of how we are doing we will
constantly ask ourselves how can improve and get more customers.

What will we do to satisfy our customers?

-Top our competitors by offering more variety at
lower price

Risk Evaluation
- Selling to minors
- Delivering alcohol to already intoxicated
- Not make enough profit