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Simple Steps to Start a Microbrewery

Simple Steps to Start a Microbrewery

A microbrewery is a small brewery that produces fewer than 15,000 barrels of beer annually. Typically, microbreweries are independently owned.

If you want to start a microbrewery, you will need to have good knowledge of producing beer. You will also need to have excellent business skills.

With time and effort, there is no reason why you cannot run a successful business.

Get started by checking out the following simple steps to start your microbrewery.

Write a Solid Business Plan

The first step in starting any type of business is writing a business plan, so beginning a microbrewery business is no different.

Your plan will act as a roadmap that guides you through the initial stages of your business.

It needs to contain things like an executive summary of your business, your business structure, an analysis of your competitive environment, a marketing plan, and key financial information.

The last part is one of the most important elements. After all, you need to plan how much your startup costs will be, what your ongoing costs will be, and what your method for raising investment funds will be in order to make your microbrewery a success.

According to the brewery equipment manufacturer Micet Craft, the startup costs for a microbrewery will be between around $160,000 and $254,000.

Secure Funding

You will not be able to start setting up your brewery if you do not have the funds to do so.

Therefore, once you have come up with a business plan and worked out costs, you need to explore ways of funding your microbrewery.

If you have money saved up, you could self-fund your business. But most companies will require additional funds. You can secure funding through business loans, private investors, or crowdfunding.

Choose a Brewery Concept

Another important thing you need to do early on in the planning stages is to determine what the concept of your microbrewery will be.

By selecting the right concept, you can stand out from the competition and potentially gain a competitive advantage.

Choosing a concept includes deciding the type of beer you will produce, choosing a name for your company, identifying your brand, and considering marketing methods.

Apply for a License

In order to legally own and operate a microbrewery, you will need to obtain a liquor license.

Though, as a small brewery specializing in specific types and quantities of beer, you could apply for a less expensive limited license rather than a full license.

Also, be aware that different states have different laws regarding liquor licenses.

Buy Brewing Equipment

Before you can begin brewing, you will obviously need the right brewing equipment.

The precise equipment you will need will be determined by things like the size of your business and the types of beverages you are brewing.

In addition to the brewing equipment itself, you will need items like beer bottling and packaging supplies, keg tapping and dispensing equipment, and refrigeration equipment.

As for the actual brewing equipment, like mixers, you can save money by purchasing affordable commercial mixers that have been used in the past but are just as good as brand-new ones.

Advertise Your Brewery

For your microbrewery to become a success, you need to market it.

Typically, small businesses like microbreweries spend around 1% to 2% of their annual revenue on advertising.

You can spend your marketing budget on online advertising, print advertising, billboards, and radio and TV commercials.

Make sure you begin promoting your business ahead of the launch to drum up interest in advance.

Host a Soft Opening Before Your Grand Opening

The last step is to hold a grand opening.

However, before you do so, you should consider hosting a soft opening so that you and your members of staff can prepare for what a typical workday will be like and check that everything is running smoothly.