For sure, craft beer has taken off as one of the most in-demand food products in recent years. Many beer enthusiasts are pushing the limits by coming up with unique concoctions that attract consumers. If you are already involved in the beverage production business, why not consider venturing into a brewery? It is definitely an endeavour that can pay off – but like any new business, it requires a significant amount of planning, patience, and capital. Unlike other small businesses, you need to invest a lot to operate a brewery. With this, we will break down some essential advice to guide you through the process and tell you more about the essential considerations before starting a brewery business.
The equipment you need – and how much it costs
A brewery business needs equipment and machinery. But you may already know that how much you spend will depend on the size of your operation. Some of the essential equipment you need will include:
- Canning or bottling machine
- Fermentation tanks
- Cooling tanks
- Waste treatment facility
- Labelling machine
- Beer can seamer
Although you have the option of buying used equipment, it is best to consider sourcing some of your most essential pieces from one supplier. Check out specialist suppliers that can provide you with production equipment for craft breweries. And if your business plan is to expand your operation, the experts suggest investing in equipment that has 50% more capacity than your initial output. This way, as your business grows, you no longer have to spend more on more significant facilities.
Constructing the right location
You need ample space to operate a brewery. Look for a site that will drain as little of your funds as possible. If you need to do a little bit of construction work to fix the place, calculate how much it would cost compared to another location option that does not require renovation. It is also crucial to plan if you want to expand and grow your business further down the line. The facility should be equipped to handle bigger machinery later on when the need arises.
The potential challenges you may encounter
One thing often overlooked by brewery owners is the cost of flooring. You need flooring that can withstand temperature changes, impact, and acid. If the location does not have the right type of floor material, you need to invest in it.
Another essential consideration is to secure all the necessary permits to operate. If you want to avoid getting tangled in a legal mess, it is best to prioritise all these requirements first. Apart from the permits you need to operate, you may also need a liquor licence if you plan to serve beer within your brewery premises.
Lastly, do not forget to get insurance. It is best to protect your business interests as well as those of your employees if anything were to go wrong. When it comes to the business structure, you can choose whether to set up as a sole trader, partnership, or limited company. For small businesses and start-ups, it is recommended to register as a sole trader, as it is generally easier to manage than a corporation. Good luck!
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