Microbrewing originated in the 1970s in the United Kingdom, although artisanal brewing had already been practiced in Europe and later spread to other countries.
The best markets for this business are areas with a growing number of restaurants and beer retailers, as well as markets near colleges and universities (hint: they enjoy drinking). This is because the average microbrew customer is more educated than the typical beer consumer. College and university areas have Millennials who prefer new experiences and would therefore support a developing microbrewery.
How to Start
Every business requires capital, and microbreweries are no exception. The startup costs can range anywhere from $100,000 to $1 million, but we found that $500,000 is the most realistic figure. This is because renting a space for a year costs around $50,000, equipment costs another $200,000 to $300,000, and on top of that, there are marketing and administrative costs, as well as licenses. You should also be prepared for operational costs, initial inventory, storage equipment costs, and legal expenses. Since not everyone can afford these costs all at once, many choose to start with a nanobrewery, which is a smaller scale version of a microbrewery.
Skills Needed to Run the Business
Expertise is crucial in this line of business in order to meet and exceed customer expectations. The best experience one can gain is by working as an assistant brewer, as it provides the necessary background knowledge. Some even obtain diploma certificates from institutions such as the American Brewers Guild. Home brewing can also provide valuable experience for beginners.
ACE 3BBL MICROBREWERY
Requirements for Running a Successful Microbrewery
There are several steps required to keep any business afloat and ensure its success in the industry.
Having a Business Strategy
Every entrepreneur should have a business strategy that guides the company. This includes initial costs, target market, and the projected time it will take to generate enough revenue to cover expenses.
Establishing a Legal Presence
Creating a legal presence provides security for entrepreneurs, protecting them from personal liability if their microbrewery is sued. This point should not be underestimated.
Every business must be registered and obtain official authorization before operating.
Maintaining Business Accounting Records
Keeping accurate financial records allows the owner to effectively manage the microbrewery’s finances and ensure its stability. This instills trust in customers and retailers.
Investing in a Business Account
Investing in a business account establishes a solid foundation for the growth and development of any business. It helps track finances and demonstrates a sense of responsibility to customers.
Acquiring Mandatory Licenses
Proper legal registration and obtaining the necessary permits are of utmost importance for a microbrewery to operate legally. Failure to comply with these regulations can result in closure of the business and hefty fines.
Ensuring the Business
Insurance provides a safety net for business owners in the event of accidents. It protects both the owner and employees of the microbrewery.
Building a Strong Brand
The growth of any business depends on how well it brands itself. Customers are often drawn to well-established brands, so it is essential for a new business to clearly define its identity to the public. This allows it to stand out from competitors.
Establishing a Strong Social Media Presence
In today’s world, a strong presence on social media is crucial. Most consumers spend time on various social media platforms. Therefore, it is advisable for microbreweries to make an impact and advertise themselves on social media. They should have a presence on platforms like Facebook, Twitter, and Instagram. Additionally, it is important to reach older and middle-aged citizens through traditional channels such as television, radio, and newspapers.