Now is an opportune time to start your own brewery.
In 2022, the retail sales volume for craft brews reached $28.4 billion, accounting for nearly 25% of the total U.S. beer market. If you’ve always wanted to start a brewery, now might be a good time. Here are five steps to help you get started.
Create a business plan
A solid business plan is like the blueprint for your brewery. It's like your roadmap as you start your brewery journey. This plan helps you figure out important stuff, like what you'll sell and how you'll make money.
It's also a chance to learn about your competition and think about how your brewery will be different. You can also plan how you'll advertise and get more customers.
The thought of making a business plan might seem scary, but it's actually not as tough as it sounds. If you're feeling unsure, there's a free business plan template available from Hummingbird™ that you can use. And once you've finished, you can team up with a Hummingbird™ mentor to make your business plan even better.
Choose a location
Next, you have to pick a spot for your brewery. The easiest way is to take over an existing brewery, but you can also start from scratch with a new place. Whatever you choose, make sure it's big enough for your brewing stuff and the people who will visit.
Also, think about parking and how easy it is for people to get there. And be aware of any rules about where breweries can be located – usually, they're only allowed in industrial areas.
Decide on the equipment you need
One of the most expensive parts of starting a brewery is all the equipment you need to purchase. But it’s a worthwhile investment, and you can sell any equipment your business outgrows.
Here’s some of the equipment you’ll need to purchase:
- Mash tun
- Brew kettle
- Fermentation tank
- Storage tanks
- Kegs
- Bottles
- Tap handles
Apply for the necessary permits
Any restaurant that serves and produces alcohol must apply for various state and federal permits. Some of the licenses you’ll need include
- Federal brewing permit: Before you can commercially produce alcohol anywhere in the U.S., you must be approved by the Alcohol and Tobacco Tax and Trade Bureau. You can apply online by filling out an application that’s known as a Brewer’s Notice.
- State liquor license: You’ll also need to apply for a state liquor license. To get started, you’ll need to find out what the liquor laws are in your state. It’s a good idea to contact your state’s Alcohol Beverage Control agency to find out what you’ll need to do.
- Food service license: If you plan to serve food, you’ll also need to apply for a food service license. Your local state health department issues these permits.
This list is only a starting point — make sure to check on any additional state-specific permits you’ll need.
Apply for financing
Starting a brewery can be pricey, and it might cost you anywhere from $500,000 to $1.5 million. Most people don't have that much money saved up, so you'll probably want to get a loan.
One good choice is a U.S. Small Business Administration (SBA) loan. These loans have competitive rates and lower down payment requirements. Some of them even provide ongoing help as your business grows.
The most popular SBA loan program is the 7(a) loan, which can give you up to $5 million. You can use this money for things like running your business, getting equipment, and buying furniture.
You can also think about loans from a bank, credit union, or online lender. If you need equipment for your brewery kitchen, equipment financing could be an option too.