Boelter Resources

Best practices for starting a brewery

Written by Boelter | July 25, 2019

So you’re opening a brewery! You love your hobby enough to strike out on your own with the encouragement of family and friends. It’s easy to be wide-eyed when the dream is out in front of you. But it's best to focus on the basics before you get out of the gate.

Capital is king

Opening a brewery is chock-full of the challenges and risks of owning a business of any kind. The fact is, you can’t have too much cash or other resources at the ready to finance your endeavor. Undercapitalized businesses simply collapse under the strain of getting off the ground.

Remember, in the beginning there’s a lot of cash going out and very little—if anything—coming in. Equipment, facilities, wages, marketing and honest mistakes will consume cash before you get your brew into customers' hands.

You can always give money back that’s not used or accessed. But you can’t repay creditors, family and friends if you can’t make your brew fast enough—and sell enough of it.

Learn the ropes

There’s nothing like observing a successful business and using that knowledge to develop your plan. Before diving in, see what a well-run brewery looks like first-hand.

You have to consider every detail with the same level of commitment you give to your brew. This includes facility layout, location, parking, production goals, distribution, branding, marketing, staffing, proper labeling, permits, taxes and countless more items, down to the coasters on the tables. You know this deep down already, so get the plan in place, knowing it can and will always be altered.

Then there’s the math behind the volume you brew and the prices you’ll charge. In the end, that’s cash flow – remember, "capital is king." Your hobby just got real, and the realities of it becoming a business start with learning.

Go to market strategy

So you’re making the best beer on the planet, but who wants it? Do you handle distribution yourself? Can you self-distribute in your state? Or, do you bring in a distributor who has instant connections to the marketplace?

Your distributor has to care about your product as much as you do, but understand that they are in business to generate revenue and they’ll do it where they believe they have a real chance of winning. As much as they will sell for you, you have to sell them. There are contractual details to resolve as well, so always consider professional legal assistance. Protect yourself first.

Accounting and compliance

We get it—you just want to brew a great beer and have your customers enjoy it. But a good accountant will help ensure you’re actually making money. It’s not mandatory, but accounting professionals who understand the food and beverage business will be able to provide relevant expertise. Tap into that! Mistakes avoided mean costs saved. After all, that’s the only way you’ll survive to see another day and keep doing what you love to do.

And of course, your friends at the Alcohol and Tobacco Tax and Trade Bureau will be monitoring your operations. Get to know their expectations from startup through ongoing compliance. Everything is spelled out clearly, so you just need to stay within the guidelines. Their online resources will help answer your questions and, more importantly, enlighten you about need-to-know information that never crossed your mind.

Know your buyer persona

You have a unique personality. Your brew will have its own character. Your brand will be a balance of both. And, it all has to suit your customer base. Spend some time thinking about who they are, what they want, how to communicate with them.

What makes them tick? What makes them want more? What makes them become an advocate for you and your product? That personal appeal is the best form of marketing you could imagine. If you get to know your customers, you’ll also get to know their friends along the way.

Start with these guidelines to draft a plan for the brewery you've always dreamed of!