Thursday, January 5, 2012

Starting a nano-brewery. It’s a lot of work.

One thing for sure, brewing beer may be the easiest part (and the most fun). There is a lot that goes into starting a brewery, in fact part of it is determining if its even feasible for you to start one. In my case I’ve started a feasibility study; call it a pre-business plan. A good study will provide you with that gut check so you can evaluate a decision to move ahead or not.

I’ve spent about 6-8 weeks on my study so far and I have looked at many topics which I will enumerate below. I’ve gone down a few rabbit holes (too much detail in some cases), but my study is a reflection of me, I like to know the details and be as informed as possible before making a decision such as this. Even with all the numbers and information there are some questions that you have to answer for yourself.
1) How will this impact my family?
2) How will this impact my current job?
3) Do I have the time and capital to invest in this?
4) Can I afford to operate at a loss for an extended period of time?
5) How much money can I pump into this to make it successful?
6) Do I need partners to help with this?

So what is in my study….. here is my list
1) Mission statement, vision, goals, and objectives
2) Legal Structure (Sole Proprietorship, Partnership, LLC, etc)
3) Legal requirements at the federal, state, and local level
4) Zoning and permit requirements
5) ABC licensing
6) Brewing
  • a. Hardware and sizing (how many bbls, number of fermenters required, etc)
  • b. Gas, electric, steam, RIMS, HERMS
  • c. Cooling and Filtering
  • d. Keg options and requirements (rent or buy)
7) Product mix and pricing
8) Cost and Revenue estimation and break even analysis
9) Distribution
10) Promotion and Brand
11) Suppliers
12) Trademarks
13) Packaging
14) Financing and Fundraising

Perhaps this is too much detail, but its helped me to understand the complexity of starting a brewery and how to make decisions and the impact of one decision upon another. Much of this information will serve as input into a longer range business plan. In my case phase 1 is the nano, phase 2 is a much larger 30-30 bbl capacity system. This is likely enough of a post for today, going forward I'll dig into some of these aspects in more detail along with my successes, pains, and learnings,

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