Hey folks, I'm in a dilemma of investing in Liquor store vs UPS Store. But the problem is, I haven't got a significant knowledge on either. In fact, I have zero idea about UPS store but I've heard that the franchise actually provides trainings.

Are there any knowledgeable folks on here who could help shed some light on this? 

 lol.
What a diversity in your business plans!
Why not invest in a gas station. Make goodwill, sell it and move on...

I am exactly at the same spot....
I dont know either. However, google tells me that you need to have atleast 3 UPS stores to make a decent living. TF, I am going with Liq*. BUT HOW....

 Furke, 

I haven't ruled out the possibility of owning a Gas Station either but I thought owning a Gas Station required a lot of money. 

 If I had the money I would invest in a liqur business. Liquors dont expire, Stale beers are replaced by company. Also you sell lot of lottery and cigs/

Location is key for Liquor. If you can get it in good location you can make tons of Money, believe me, I worked in Liquor store for long time. I dont know where are you located............ may be you dont make that much in southern states...(I heard) but, in MA, you buy all the stuffs on credit..... keep 13-20% margin on beer. Again it depends on brand and size (volume) like you will keep upto 35% margin on single beers (40 oz sales a lot) . You can easily keep margin of 40% on small size of hard liquors and mediocore wines.
Now, it depends on how much you can sale and that depends on location again.
The store I worked before ....... used to sale more than  $25,000 per week and we were only 2 guys working weekends and one on weekdays ( of course there was 2 shifts). There was one spanish guy for restocking only used to work 2 hrs a day)
Do the math.... average margin of just 25% ( just for the sake keep it low)
Monthly sale $100,000 x 25% = 25,000.00
--Rent : 4000.00
Emplyee pay - (130 hour x $10/hr cash x 4weeks) = $5200
Electricity - 3,000 (summer) less in winter.
Miscellenious- theft- credit card transaction fee- 1000. (this should include, if you have to show that somebody is working for you on check as well)
I dont know how much you have to pay for Licence but It again depends on location.
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| Total monthly saving is about $12,000.00 ( of course as a owner, I did not put your own salary here)

I will go with Liquor store. It does not need any season to sale but all the reasons to go for drinks such as family dispute, laid off , depression, you name it. Even in the recession the sales were high.

Thank you all for your input. I've done a bit of research about UPS so far and the start up cost seems to be the main concern. Also, some people suggested that it might take up to three years to break even (forget making profit). And Bhagendra's suggestion was key too. Holiday plus Overtime pay during the busy season will mean the profit wouldn't be the same.

While we're at it, what about Gas Stations? Do people make enough money in Gas Stations? I heard you only make pennies on gas but the actual money is made when people buy goods inside the store. Also, Gas stations require bigger investment.

What about financing? Do people start off with some loans or do you need to pay everything up front?

Gas; just to work for and make side money, as people were talking about.

I meant more in terms of profit that you could make in Gas Stations vs Liquor. I know that the profit margin is huge in Liquor store but sales volume aren't necessarily high.

Hello
Messiah

Where r u planning to open; i mean in which state? i am opening a liquor store too. start up cost is pretty huge for liquor store. Just for the cooler, furnitureand fixtures; you are looking apprximately 60 -70 k. For the inventory, it depends on the size and the volume you are expecting to sell. I heard that licenses can be preety expensive on some state. I was told that i may be able to get some credit from wholesalers too but that is still in the air. I think it depend on your credit; for the SBA loans it mainly depends on the business proposal; i was told it's not easy to receive SBA loan especially if you are opening a brand new store on a new location.
Regarding profit margin; my experience suggest profit margin is not huge; Kakul suggested making a profit of $12000 doing business of $100,000. My estimate is around 10k again depending on the salary and wages you pay;In addition. there are always some hidden cost asociated with business.So, 10% net profit is not huge at all. Imagine, you will make six figure profit only if you do business of $1 million dollar and that's not easy at all.
My 2 cents
Thanks
 

Where do you plan to open it Sagarmatha? I didn't know that the start up cost were that high. What about leasing vs owning? Your reply is sort of confusing as it put me in dilemma.

Hello
Messiah

Startup cost is definetly huge but it all depends on how do you want to open it. 21 doors walk in cooler with furniture and fixture will cost approximately that much amt of money but again you can find a better deal.  You can find a used walk in cooler at 50% price of a brand new one. Also, you can sometime get better deal in Existing stores. POS system alone can cost you $6000. I am getting 2 front pos sytem and 1 back terminal and the price range i am looking is the one that i mentioned you. and then there are a lot of small hidden cost.
For inventory; it depends on how much you want to invest it. for wine and liquors at the state where i am opening they will provide 50% 30 days net; ie if you want to put$80,000 inventory, you have to pay $40,000 and rest is due in 30 days. For beers it's all COD. You have to pay at the delivery time.
I am not an expert (as a owner)on this field; i am a new comers just like you. I have experienced working in a liquor store but that is different than being an owner. You need to deal and know lot of things.
Good luck.

Thanks

Does anyone know in detail about state funded grant for first time small business owners? Also, do banks provide loan for first time business owners?

 Thanks for your input Sagarmatha. I'm guessing you're in California or Massachussets. 

Unfortunately, furke, us Nepalese don't have a tendency of helping each other out when it comes to making money, getting jobs etc. There are tons of gas station, liquor store and other business owners but they don't wanna share their info.