The decision to transition from homebrewing to operating a commercial brewery was extremely significant. The craft beer market is thriving, with more individuals entering the industry than ever before. According to the Brewers Association’s 2018 industry report, the number of breweries in the United States increased by 17% in 2018 compared to the previous year. Compared to ten years ago in 2008, the number of American breweries has risen by 80%, reaching a total of 7,450 breweries.
Tips for Successfully Operating a Brewery
Based on a niche market:
The popularity of craft beer presents both opportunities and challenges. On one hand, you recognize that there is a vast potential audience for your beer. On the other hand, due to the abundance of craft beers available, standing out from the competition can be incredibly difficult. Therefore, it is crucial to avoid producing generic craft beer. You must establish a unique selling point for your beer that will entice customers to choose it over offerings from other breweries.
However, this approach comes with its own set of challenges. How can you achieve differentiation without alienating your target market? As a suggestion, you should research current market trends and consider experimenting with your beer. For example, non-alcoholic craft beer is currently very popular.
Arm Yourself with a Reliable Brewery Business Plan
In order to ensure the financial and commercial success of your new venture, several factors need to be considered. How will you operate your craft brewery? What sets your craft beer apart from competitors’ products? How long will it take for your company to become profitable? Additionally, you need to take into account the scale of your operations, as it will impact utility costs, production volumes, distribution logistics, and the procurement of raw materials and brewery equipment.
Make sure to include the following in your business plan:
- Responsible budgeting: It is essential to have a clear understanding of where your money is being spent and where it is coming from. When purchasing raw materials, ingredients, and other expenses, ensure that you have a clear allocation of funds.
- Realistic goals: When developing your business plan, ensure that your goals are achievable. It is easy to have high expectations and aspirations for a new craft beer business, but setting realistic goals will help you manage your time and focus on actions that will have the greatest impact. Having specific goals provides short-term direction and a long-term vision that will contribute to the success of your business.
- Contingency plan: It is important to have a backup plan and a safety net budget in place to deal with inevitable problems that arise when starting a new business. Whether it’s equipment damage, personal injury preventing you from working, or a customer changing a large order, you will be grateful that you were prepared.
It is easy to dive headfirst into a new commercial endeavor, especially if you have a fantastic craft beer recipe. However, when creating a brewery business plan, it is crucial to thoroughly consider your budget and goals, and develop a strong strategy to promote them. For more detailed information, you can refer to our article titled “Brewery Business Plan Guide in 2022.”
If you are planning to open or expand a brewery and need a turnkey solution for brewery equipment, please reach out to us directly. Our engineers will design and manufacture brewery equipment tailored to your brewing process, and we can also provide a complete turnkey solution. Additionally, if you are considering expanding your brewery, we can offer customized solutions to meet your needs.