Kenya's alcohol industry is growing. This is clearly seen by the sheer number of people rushing to get liquor licenses for them to be in business.
In determining how to start a wines and spirits shop in Kenya, preparedness will go a long way towards keeping one from losing money. If possible, the person aspiring to operate a wines and spirits shop in Kenya would do well to keep in mind the importance of adequately preparing for what's about to come his or her way.
If you had earlier decided that you wanted to operate a wines and spirits shop in Kenya, then you probably know what we're referring to —running an alcohol beverages outlet is not as easy as one may think. If everything goes right however, it can be both lucrative and rewarding!
Also Read: How to Successfully Run a Wines and Spirits Business in Kenya
Whether you are just starting out and want to set up a small business in your area or you are already running such a business, this guide will serve as an eye-opener. Its focus is on how to set up your own wines and spirits shop in Kenya.
Here are the key takeaways
Conduct an Extensive Market Research
You need appropriate knowledge of the wines and spirits business before venturing into it. You should also know about the various types of wines and what goes into making them. This can help you choose which type of wine or spirit would be suitable for your target market.
For example, if you want to sell liquor in Nairobi city center or suburbs, then it’s important to look at the demographics of the area and determine what kind of wine or spirit will be in demand so that you can stock up accordingly.
Identify the target market
You need to identify the target market before you can start selling your product or service. There may be a lot of people interested in purchasing from you but identifying those who are willing to pay what you want will help increase sales and also save money on marketing expenses.
Get the Right Location
If you want your business to succeed, it's important that you choose a location that has good accessibility and visibility. You can check out places like bus stops where there are high volumes of traffic throughout the day and night. You should also consider areas where there are high concentrations of potential customers such as residential estates and universities that have large student populations.
Don't Compromize Product quality
Your product quality will determine whether or not people will buy from your store. It's important that you choose premium brands with good packaging so that customers will be attracted by them when spotted at the shelf. However, keep in mind that price is also an important factor when choosing products for your store since it will determine how much profit you make on each sale
To start a wines and spirits business in Kenya, you will need to ensure that you have all the necessary licensing and permits. To obtain these licenses, you must ensure that you have an approved premise which you can operate your business from. You must also ensure that all your staff members are legally employed by your company so that they can handle sensitive information about your customers.
Monitor Market Trends and Advertise Wisely
It is important that you keep track of changes in market trends if you want to remain competitive. While at it advertise your business properly so that people will be able to find it easily when they search online or offline.
One thing that has worked against the liquor industry in Kenya is the lack of information on how to start a business in the sector. For example, most people don't know that you have to submit your business name for approval before you begin selling liquor.
Businesses are also required to follow certain rules when it comes to labeling their products. Not knowing these rules means losing out on potential revenue early in your business because you're not following accepted standards.
Liquor stores also lose revenue due to poor bookkeeping and other financial shortfalls. To stay on top of your finances and maximize on sales and revenue, using the most affordable point of sale software in kenya will save you the headache. Sign up to Lipana and get the best out of your wines and spirits business in kenya.