It gets its liquor either from the moonshine stills, or you can steal it from other places. These can be easily hid in breakfast bars, cafes, milk bars and restaurants. This will let you control the strike of the industrial area and can also call on the block vote during an election. Doesn't matter what part of town they go in, as long as they are located in a gym or pool hall. They do best in poorer areas and should be located in general stores, cafes or printers.
Good locations are dance studios, massage parlors and hotels.
Your hoods will depart for their jobs from the local office, so having more then one can improve your gang efficiency. To set up an illegal business, you'll need a front and an empty lot in the center of a block. You should get both of these early in the game. The accountant covers up your illegal money, preventing an FBI raid. The more stars an accountant has, the better he is at this.