Beer has been around in one form or another for thousands of years. The Sumerians’ first record of beer being brewed was in 4000 B.C. There are so many different beers to choose from, each with a unique flavor; there is something for everyone!
But what if you want your favorite brew on tap in your very own home? That means it’s time to start your brewery! The process isn’t too difficult, but you should know a few things before you get started. Here are just some of the basic steps involved:
Hone Your Beer Making Skills
While it’s not too complicated to make beer yourself, you will need to know how to do it well. If the taste is off or if there’s a skunky smell, no one will want anything to do with it! Get some recipes together and spend time perfecting them. Your friends and family may be the first taste testers for your home brewed drafts.
Determine Your Startup Costs
Once you can make a decent beer, you need to determine how much money you can invest in your brewery. If this is just a hobby for you, maybe $100 or so would be sufficient. You can purchase this equipment on many different websites around the internet. This is where most craft breweries, like Melvin Brewing started, right in the founder’s houses. However, if you want to turn this into a full-time business, it may require some more capital.
If you decide that starting your brewery is the way forward, then understand that most brewery’s startup costs are around $500,000 to $1 Million. The hardest part of calculating your initial costs is the hidden fees that crop up in the initial phases. There are quite a few variable costs when brewing beer, mostly with price fluctuations in the cost of raw materials.
Check For Legal Restrictions
When you open a brewery, some rules and regulations come with it. The most important things to check include local liquor laws, zoning restrictions, sales tax policies, etc.
You also need to make sure you comply with Federal Alcohol Tax laws. One big thing is determining what type of alcohol license you’ll need for your situation.
For example, if you want to sell at farmer’s markets or retail out of your own home, then this would be considered an “occasional license.” However, there are licenses for breweries that allow them to produce beer on-site and serve it so customers can sample the different flavors they offer. This is similar to the brewpub model followed by companies like Melvin Brewing.
Create a Branding Strategy
One of the most important aspects for any business is creating a strong branding strategy. This will help customers remember your brewery and help them make decisions about what beers to try.
Breweries often use creative names and labels that indicate their style or location. It would be best to create a marketing strategy to let people know about your brewery and the beers you offer. There are many different ways to do this, but social media and word-of-mouth are always good starting points.
Create a Business Plan
You may think that a business plan isn’t necessary until after you start and succeed, but creating a business plan is an important step to take before you get started. You should consider the financing for your startup since it will ultimately help determine the viability of your business.
Ensure Your Business is Viable
Doing market research should always be an integral part of starting any company. Knowing what customers want and how they like to purchase their products goes a long way in ensuring successful sales. It also ensures that there’s a need for your brewery, especially if this goes beyond just being a hobby!
Create a Marketing Strategy
There are many different ways to do this, but you need to ensure you don’t start an advertising campaign until you know your customers. You need to understand why they would want to purchase your beer over others like it.
Final Thoughts
Starting your brewery is far easier said than done. However, if craft brewing is your passion, this might be the right path. Just understand that more goes into it than simply making good beer.
Although there are some initial startup costs, selling beer can be very lucrative if you can open the doors. If you’ve got the money to invest and enjoy making new beers, then this may be the perfect business for you!
