Starting and growing breweries has been a very lucrative venture in the hospitality industry. The idea of having different strains made, assessed, and presented to the market has enticed most investors to try out the luck.
Like any other business, starting up a brewery without the correct information and budget can be pretty challenging. This is why you need to have the least basics to ensure that you carefully start up the venture, achieve your goals, and find it profitable. Are you looking into starting a brewery in 2024? Below is everything you need to know about starting a brewery and what to expect?
Create your startup cost
Most people make inquiries about the initial cost when braced with the idea to start a brewery. You need to understand that the size of your brewery and the varieties you want to include is what determines the price. You need to fully prepare as a result of the expenses that tend to come up during the startup process.
Below is some of the cost you should expect when putting up a brewery today:
- Rental fees and building expenses
- Salaries
- Raw supplies
If you have never been in the brewery business before, it is advised for one to start up with a small-sized brewery first. With this, you are in a position to manage your finances, learn the ropes and grow the brewery to what you would have preferred initially.
Brand development for your brewery
The only way to stand out as a business is to possess your unique brand. This means that you need to choose the best name, labels for your products, and other necessary graphics. It would be best to understand essential things when building your brand as a brewery owner.
Choosing a name for your brewery
If you are not creative enough with coming up with a name for your brewery, consider hiring a professional to do it for you. Coming up with memorable and persuasive characters can help you attract and retain customers.
- Designing your business logo
The kind of elements you use in your business logo determines how much you ought to remain relevant in the industry and noticed by new customers.
The elements include:
- Badges
- Animals and characters
- Wooden barrels
- Creative icons
- Choosing a color scheme for your brewery
One needs to choose the right colors to appear on the logo and the brand name. Go for your complimentary color but ensure that you retain professionalism to provide the best outlook.
Choosing the best location for your brewery
If you are an existing brewery owner and still cannot meet your target sales, the biggest problem must be located. The brewery’s location plays a considerable role in determining the kind and number of customers to receive and the number of sales to make.
Understanding the rules and legal requirements for the particular location where you want to put up the brewery is also essential. Below are the main factors to consider when choosing the best place to put up a brewery.
- Demographics
It is essential to understand your target customers perfectly before you put up any business. Ensure that you are well versed with details on the kind of people who live the locations, the places that they consider best to visit for entertainment, as well as their choice of beverages. Putting up a brewery in a place where people prefer ordering drinks than going to the brewery must be a big miss for your business.
- Attractions
Many factors make breweries flourish when set up in a specific location. This might be because the site has several tourist attractions and is highly populated. This might attract more customers to your business, hence increasing sales.
- Competition
Identify other breweries in the area where you want to set up your own. It will help you come up with your strategies to beat the competition and make you identify the tips used by these breweries. To understand this better, consider doing searches as follows; breweries and taprooms near me, best local brewery, and other helpful ways such as asking around.
Choosing a building layout for your brewery
Do not come across a particular building design and conclude that it will be the best for your brewery.
Below are some of the things to consider:
- The initial space required for the entire brewery
You should at least have your design and plan on the kind of brewery you want to have. This is to help you prepare a budget that you can work with and use the available resources.
- The kind of customers you will be expecting to receive
Depending on the size of the brewery and the equipment and furniture you want to get, you should at least have a rough idea of the number of customers you will be expecting.
- The purpose of the brewery building
You need to understand whether the same building is where you will brew your beer and receive customers. Therefore, this should guide you to have the best layout and utilize the space carefully.
Preparing a brewery business plan
A business plan is an essential tool that you will use to grow your brewery and reach out to clients and potential investors. The business plan should be clear, articulate, and ready upon provision should you be required to submit it.
Below are essential parts of the brewery business plan:
- Executive summary
This is the foremost important part of the business plan; it should summarize everything that has to be included in the brewery business plan.
- Business overview
This part should include the primary and most important details about your brewery; contacts, address, and legal name.
- Business description
This should explain the goals and intended purpose of putting up the brewery.
- Market analysis
This should analyze the location’s history with other breweries that have been set up before and the demand for the brewery as well as its products and services.
- Consumer analysis
This should analyze your expected consumption rate and what to do to achieve the targeted amount of people.
- Competitor analysis
It would be best if you understood the rate of competition to expect and strategies put into place to handle the competition. You can learn about this by researching the breweries and taprooms near me. It would be best if you keyed in the name of your exact location for the best results.
- Marketing
Depending on the location and the type of customers you expect, you should develop marketing strategies that ought to favor the determining factors.
- Operations
This should explain the kind of activities to be expected in the brewery, the number of staff, and their responsibilities.
- Financials
This should include all the costs you expect to cater to the many expenses that call out the brewery to run correctly.
Brewery equipment
When starting and managing a brewery, you need the right equipment to ensure that you produce the correct quantity and preferred quality to meet consumer standards. There are different types of brewery equipment, each designed with a particular purpose.
Consider the following before making a purchase:
- The amount of space you have to store your equipment
Do not just go for equipment you do not need for a startup and lease another space for your storage. The building should be accommodating enough to ensure that the brewery equipment is stored following safety requirements.
- The production levels required.
There are different production levels, and this is done in pursuit of breaking down the raw supplies and coming up with a complete product. Ensure that you are well conversant with the stages and the product to be made and sold.
- The kind and amount of products to be made
You should have a particular amount of products produced at a given period. Ensure that you can meet these targets with the kind and number of machines you own.
- The decision on whether you need new or used brewery equipment
If you are not financially prepared, you can consider using used machines. However, they should be efficient and meet the production standards.
This is the most likely need that will take up much of your budget; this is why you need a professional to guide you on how to acquire quality brewery equipment. Below are some of the essential brewery equipment you should include in your list; boilers, kegs, kettles, cooling systems. Fermentation tanks, filters, refrigeration equipment, beer-labeling machines, waste treatment cleaning equipment, bottling canning lines, and cooling systems are essential too.
Legal requirements for breweries
Legal requirements are always essential; this is to ascertain that the authorities are aware of the production and sales processes. Every location has its own rules on the kind of permits required, and it is essential to seek this through the help of an attorney to ensure that you are legally set up to start and run the business.
A brewery business can be lucrative; only when you choose an excellent place to set it up and get all the requirements. Consider working with a consultant to guide you on how to go about the setup, and you can consider hiring an accountant to come up with a reasonable and reliable budget. This is the only guaranteed way to create your brand and develop and grow your brewery.
