Starting a brewery may seem simple, but it requires more work than you might think. Some people figure that since adults enjoy alcohol, there will always be a market. However, profitable markets like this are the riskiest, mainly because there is a lot of competition. Even if you have a concoction that rivals all other beers, there are still a few things you need to consider before starting your own brewery.
Expenses and Finances
The brewery business is costly. For starters, coming up with a good batch will take time and money. It won’t happen overnight. Finding the perfect combination uses up a lot of resources. Make sure you have the funds for this new business venture.
As a starter, you’ll need to consider the cost of equipment and labor. You don’t want to start the business out of your garage. A proper facility helps make the perfect drink. Brewery equipment costs anywhere between $100,000 to $1 million. Come up with a solid business plan to bring to investors so that they have confidence in your brand before they invest money.
Licenses and Restrictions
There are specific permits and licensing you’ll need to ascertain before getting started on production. The federal side of the license is free but your state prices may vary. Start investigating your current location or the location you wish to start the brewery and consider the prices and restrictions.
Factor in the timing, too. The government moves at its own pace. If we’re talking about the federal government, it might take up to four months before getting approval. Consider the timeline you have now and extend it to accommodate any roadblocks you may encounter.
Upkeep and Staffing
Getting the brewery up and running is only half the battle. Sustaining and maintaining it is the second part. There are specific practices you’ll need to implement to keep your brewery clean. These procedures act as security and insurance for your business. Following them will help ensure you achieve success.
Start thinking about your staffing. If you start with a small operation, you may not need more than a few people. However, as the business grows, you’ll probably need to increase your operations. Look over your expenses now and see how much manpower you’ll need versus how much you can afford.
Marketing and Advertising
Finally, it’s time to start thinking about marketing and advertising. This is where you separate the wheat from the chaff. What is the one thing about your brew that makes it special? What’s your brand? Make it solid and build on that.
Research the current market and see what’s in high demand. What do distributors and customers want out of their drinks? Gaining a better idea of those accounts might be the very thing that makes your beer more profitable.
There’s a lot to consider before starting your own brewery, but once you get the ball rolling, it will be full steam ahead. So, saddle up.
