Startup Guide: How to Start an Alcohol Delivery Business?

The whole alcohol market was valued at more than $1,438 billion in 2017 and it is anticipated to expand to $1,684 billion by 2025.  

And have you ever thought of starting your own alcohol delivery business? If this thought ever crossed your mind then this startup guide is going to be a gold mine for you. We have created a comprehensive guide to help you start your own alcohol delivery business, including what permits and licenses to apply for, funding options, insurance coverage, and more. 

Here’s the step-by-step guide to setting up your alcohol delivery business. So, let’s scroll down and find out:

Step 1: Make Sure it’s Legal

The first step to starting a delivery service is to know the laws and regulations.  If you live in an area where alcohol delivery is not allowed, or if you have any doubts, contact your local Alcohol and Tobacco Tax and Trade Bureau (TTB) branch office and ask them directly.

Most states allow alcohol delivery as long as the driver has a valid license and insurance and the person receiving the package is at least 21 years old. In some states, such as California, you must register with the TTB to deliver beer, wine, or spirits. Other states may require registration only for wine or spirits. The TTB website contains detailed information about state laws on alcohol delivery.

Do I Need to Be Licensed?

In most states, it’s illegal for anyone other than a licensed distributor or retailer to sell alcohol. If your business operates in one of those states, you’ll need a license issued by the TTB or equivalent state agency before you can start selling beer, wine, or liquor online. This includes online retailing and delivery services that bring alcohol straight to customers’ homes.

Step 2: Plan Your Delivery Fleet Utilization 

If you are using your fleet for deliveries, ensure you have the optimal number of resources. Inefficient resource utilization leads to delayed deliveries and reduces customer delight. 

You can also partner with third-party delivery providers to manage deliveries. They can be helpful, especially during peak seasons.  They also offer specific insurance policies that protect against theft and damage during delivery, which could save money and time

Step 3: Set A Budget

One of the crucial things you need to do when starting your alcohol delivery business is to set a specific budget. You need to know how much money you must invest in running a successful business. 

Your budget should reflect the cost of buying alcohol from the wholesaler and then selling it at retail prices. You also need to factor in any other expenses that might arise, such as insurance and licenses. If you’re planning on hiring employees, you must include their salaries as part of your operating expenses.

Decide where you want to get your products from. You can choose from a wide range of suppliers but remember that not all suppliers are created equal. Some may offer better terms than others, so you must do your homework before making any decisions.

You should also consider choosing suppliers close by so they’ll be able to deliver products quickly whenever needed.

Step 4: Know Your Market

When starting a new business, it’s essential to know your market. What are your competitors doing? How do they compare to you? What can you do better than them?

When you know your competitors, it’s time to figure out what makes your company different from theirs. What makes you stand out from the crowd, and why should customers choose you over others?

Create strategies that solve your customer pain points. For example, offer a  subscription model to help your customer choose from. Or offer exclusive deals after analyzing your customers’ purchasing behavior. 

Step 5: Create a User-Friendly Website 

Your website is the first impression you will make on your customers. It is the first place they can find out about your business, see your products and services, and learn more about your brand.

Ensure your website looks professional and clean to create an excellent first impression. Avoid excessive graphics and colors, as they may distract visitors from reading important information on your page. The website should also be mobile-friendly so people can easily access it from their phones or tablets. 

For example, check out Wix or Squarespace if you’re looking for a simple but professional website. Both sites have excellent templates that are easy to set up and customize, so they’re perfect if you don’t have any experience in web design.

Build a Dedicated App: If you’re going to start your own alcohol delivery business, one of the first things you’ll need is an app that allows customers to order drinks from their phones or tablet device. While many apps allow consumers to make purchases using their mobile devices, they are not explicitly designed for this purpose. As a result, they may not be suitable for your needs in terms of functionality or design.

Step 6: Invest in Inventory & Facilities

Another thing you need to do is invest in inventory and facilities. This means you need to buy a vehicle (or multiple vehicles) with the space and ability to carry your products. You also need to buy the alcohol itself, which will vary depending on the type of alcohol you want to deliver. 

For example, if you’re delivering beer, wine, and liquor, your inventory will be much more expensive than if you’re only delivering beer and wine.

Once you have your inventory, it’s time to get your delivery vehicle ready by installing an alcohol license plate holder and an alcohol sign on it so that people know that they can order from you legally.

Step 7: Hire & Train the Staff

The staff of your alcohol delivery business is the backbone of your company. Therefore, you need to hire only the best people to run your business. You can hire employees with relevant experience or train them yourself. You can also get help from your friends and family members if you don’t have enough time or money to hire employees.

However, hire professional staff because they will be able to provide better service to your customers. You can hire freelancers or full-time employees depending on the size of your company and budget.

Training is vital for all new employees as it will help them understand the company policies, procedures, and customer care skills to provide quality customer service. Freelancers may not require training, but full-time employees must be adequately trained before starting their job.

Step 8: Promote Your Business

Promote your business in a way that will attract customers and make them want to do business with you. For example, you can promote your alcohol delivery service on social media sites like Facebook, Twitter, and other platforms such as Google and other local search engines.

Make sure to use the right keywords when creating your ad campaign so it will show up on search engines when someone searches for alcohol delivery in their area.

You can also use local advertising methods like print ads, billboards, radio spots, and TV commercials. 

Step 9: Use a Route Planner 

Once you have found the perfect location for your business and decided on what type of alcohol delivery service you want, it is time to start looking for the right route planner. It is key to running any successful alcohol delivery business and can be the difference between success and failure.

You will need to find a route planner that fits your budget and offers all the features you need. You must also ensure that it works well with your chosen software program.

NetworkON – An AI-Powered Delivery Management System 

NetworkON is an AI-powered solution to the current chaos in the delivery industry. We aim to enable businesses to run their deliveries efficiently while also helping them reduce costs. The NetworkON platform will allow businesses of all sizes to manage their delivery fleets and assets through a single interface.

Our platform will provide easy access to data on shipments, enabling companies to make informed decisions about how they want to handle each shipment based on its status, destination, etc. Our goal is for NetworkON to become the go-to solution for every company that needs to manage its deliveries.

NetworkON’s core functions include:

Order Tracking & Delivery Notification – NetworkON allows customers to track their orders online using a tracking number printed on their packing slips or included in their shipment confirmation emails from your website. In addition, it allows you to send notifications via text message (SMS) when orders are shipped, delivered, or returned to the sender.

Route Optimization: NetworkON’s route optimization technology seamlessly plans and automates routes on the go. While planning routes, it calculates customers’ delivery slots, drivers’ schedules and breaks, and traffic. 

You can also edit the routes based on priority by simply dragging and dropping the pickup and delivery points. 

Proof of Delivery:  To create a seamless delivery experience, it is important to collect proof of delivery. It increases order accuracy and avoids customer conflicts. Delivery agents can collect proof of delivery on the NetworkON agent app. Some of the types of proof of delivery are barcodes, signatures, photos, and OTP. 

Powerful Integrations: NetworkON is a scalable and flexible solution. You can connect your ERP, CRM, order management, payment gateway, and other utility tools to manage your deliveries. Some of NetworkON’s popular integrations are Shopify (order management), Stripe (payment gateway), Google Maps, and Waze (navigation). 

Step 10: Set Realistic Goals and Keep a Tab

You’ve done the research, put together the business plan, laid out your finances, and now you’re ready to dive into the world of entrepreneurship. The only thing left is setting realistic goals and keeping a tab on them.

While it may seem like you have everything under control right now, there are still many things that can go wrong. You need to understand that starting your own business is not an easy task and will require a lot of hard work from you. So before you get into it, make sure you know what it takes to succeed at this venture.

The Bottom Line

Thank you for reading our alcohol delivery business startup guide! We aim to build a resource that helps entrepreneurs succeed. If you are thinking of starting this business and have any questions, comments, or advice for others starting in this business, please post them below.