Wondering how to start a brewery? It’s an excellent idea. But you’ll need to be aware of the federal and state laws involved with this business model. And other things like equipment costs. There’s a lot to think about if you want to start a small business in the craft beer industry.

Any new business is concerned with the bottom line. A new venture in the brewing industry is no exception. Here’s some numbers budding entrepreneurs can mull over.

Overall, the beer market in the USA was worth $94.1. billion in 2020. The craft beer market market was $22.2 billion.

You need to spend money to start one of these small businesses. Many breweries will set you back $500,000 to $1 million.

Both major expenses and smaller ones need to be covered in your startup costs. These include staff salaries, ingredient prices, utilities, rental fees and of course cost for equipment to name just a few.

Don’t forget to put a market analysis focusing on the craft beer community in your business plan.

Starting your own business is about more than just figuring out start up costs. You might be looking to turn your home brewery into a business, so there are many options. Use the following steps as a guide and watch your craft brewery take shape.

Brewing beer is competitive. Get excellent stats here. But you’ll need to have an account.

Look into neighborhood features and demographics. And what other breweries are doing as well as problems facing the beer industry.

Brand identity will separate you from the competition. A good name gives customer a first impression. It should be meaningful and distinctive. You need to trademark it. And you’ll get more sales when it’s visual–suited to graphics and packaging.

Choosing the right niche is a big part of being successful when you’re selling craft beers. There’s several options that appeal to specific craft beer drinkers.

A good business plan is a financial road map. It’s also an overview detailing things like the startup capital needed. And it includes numbers like projected cash flow.

Here’s a few boxes to check.

The right business format is critical. The one you choose dictates your smb structure.

Opening a business bank account leads to a business credit card. Buy equipment and supplies. You’ll need an Employer Identification Number and other documents like a business license.

There’s costs involved with breweries. You’ll need funding. Here’s a few options.

Choosing the right location is about how much space you’ll need. Craft breweries should consider the following.

Other considerations include local zoning regulations and leasing considerations.

You need to remember a brewery is connected to alcohol production and sales. That means there’s state regulations to follow. Check with your local government or the feds for:

There’s both government and state taxes you’ll need to pay. Here’s the main ones a brewery will have to dole out.

Business insurance is another must. A brewery owner needs these standard types.

Don’t forget why you opened a business. How you brew your beer makes all the difference.

Most breweries start with a milling and mashing process. Down the list is boiling and fermentation.

Equipment prices are important to consider. The right brewery equipment is as critical as the suds themselves. Getting the most from brewing equipment ultimately depends on your skill level.

These items need to be on the list. Some are the same as for liquor stores.

Other items include kettles, boilers and storage tanks. Some items are the same for companies that sell alcohol.

The average markup for beer is as much as 300 percent. The same price works for draft, bottles and canned beer.

A contract brewing company needs distributors, Look for clearly laid out policies.

Good employees make everything happen.

Beer drinkers are loyal customers. But you still need to reach out and market to them. Here’s a few proven ideas.

A successful brewery is a big part of the lucrative alcohol industry. This post doesn’t constitute legal advice. But it supplies a proven framework.

Your new brewery is waiting. Take these ideas and get started today.

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