Microbrewing dates back to the 1970s in the United Kingdom, although artisanal brewing was already Starting Your Independent Microbrewery practiced in Europe and eventually spread to other countries.
The best markets for this business are areas in which restaurants and beer retailers are growing as well as markets near colleges and universities (a hint: They like to drink). This is because the average microbrew customer is more educated than a typical beer consumer. College and university surroundings have Millennials (and recently Generation Z) who prefer new experiences and hence would favor a developing microbrewery.
How to Start:
Every business needs capital to fund it and this one is no different. It costs anywhere between $100,000 to $1 million, and we found the figure of five hundred thousand dollars to start out to be the closest one to reality. This is because renting an entire space for a whole year costs close to fifty thousand dollars, equipment another 200K-300K, and on top, you have marketing and administrative costs (and licenses, etc.).
Be prepared for operational costs, beginning inventory, storage equipment costs as well as legal costs. Due to the fact that not everyone can afford these costs at once, many opt to begin with a nano brewery, which is a small-scale of a microbrewery.
What are the skills required to run this business?
There are many steps that are required to keep any business afloat as well as to ensure that it is doing well in its respective field.
1. Having a business strategy
It is vital for every entrepreneur to have in mind a business strategy that generally steers the company. This entails the initial costs, target market, and how long it will take them to make revenues equivalent to the costs.
2. Establishing a legal presence
Forming a legal presence ensures security to the entrepreneur. This is because they prevent them from incurring personal losses when their microbrewery is sued. And don’t underestimate this point.
3. Tax Registration
Every business needs to be registered before it is allowed to operate officially.
4. Keeping business accounting records
A well-followed up business account enables the owner to easily manage the finances of the microbrewery as well ensure its stability. This way, the retailers are ensured of trustworthy deals.
5. Investing in a business account
Investing in a business account lays a great foundation for the growth and development of any given business. This is because it helps people to keep track of their money and also comes with a strong sense of responsibility to the customers.
6. Acquiring mandatory licenses
It is of great importance to ascertain that the microbrewery is registered legally in order to obtain a permit to run it. Failure to adhere to these rules can cause the business to be shut down and in the worst-case scenario can lead to the imposition of a large fine.
7. Ensuring the business
Insurance provides business owners a place to fall back on in case of any accident that might occur. This protects both the owner of the business and the employees.
8. Distinguishing the brand
The clientele of any business grows depending on how the business in question brands itself. More often than not, clients tend to go for well-branded products. Therefore, it is essential for any business starting out to clearly define itself to the public. This gives it an advantage over its competitors because it enables them to stand out in its own way.
9. Establishing a strong social media presence
Given the technological advances in the world currently, a strong social media presence is very relevant. Most millionaires are favorites of the diverse platforms that social media offers. It is therefore advisable for any brewing industry to make an impact and advertise itself on social media. The organizations should be present in as many social networking sites as possible. These include Facebook, Twitter, and Instagram. The concerned breweries should also take the initiative to reach out to older citizens and the middle-aged citizens through different channels like television, radio, and newspapers.
Brewery Brewing Consulting:
If you are not a professional brewer and are considering making the transition from home brewing to nano brewery, it is a good idea to find a professional brewery consultant to help you through the first 30–90 days.
The Brewery Consultant will:
- Help expand your recipes.
- Learn how the Nano brewing system works
- Convince potential clients that you are on the right track.
- Be your most reliable “brewery problem solver” partner
- Make your commercial brewery a reality in the near future
if you want to start your own brewing business. Micet Group has been working on microbrewery & beverage projects, we can give you any assistance from 0 to turnkey. Learn more about the professional brewing consulting services we offer.