So You Want to Start a Craft Brewery

If you are reading this article, chances are that you want to start a brewery. You are probably even thinking it is a great idea to open one. If you have the skills to make great beer then you know what it costs to produce it so you should be able to print money, right?

If all you are counting is input costs such as grain, hops, water and yeast, then yes there is a lot of money to be made, especially if you can sell at retail. There are several expenses that many people overlook and I want to show you some costs to start a brewery.

In essence, a profitable brewery business model is more or less a fast food restaurant.

Making money is all about volume. There is a huge upfront capital outlay, and then you have primary operating costs such as rent, salary, marketing and ingredients. Due to the low per unit prices without volume it is hard to offset the high fixed costs.

Then the cost very few compute is the cost of your labor. Sure at this point you are doing it as a hobby but we are talking about starting a business and your time is valuable.

How easy is it to start your own microbrewery? - Telegraph

Without you there is no beer so even at the hobby level your hours may include:. What is your labor worth? Before I get the haters I know as a home brewer you probably did not get into the hobby to save money, but again this exercise is to look at the commercial feasibility of opening a brewery.

While nobody can just answer exactly what will it cost to start a brewery without doing lots of research as it will vary depending on your needs and geography, this list is here to give you some rough ideas to think about.

Costs can go up here too if you decide to buy.

Cost for your ingredients will go down on a per unit cost since you can buy in bulk. Depending on whether you go wholesale or retail there are salaries for production, wholesale, bartenders, waitstaff, management, bookkeeper, janitor, cooks, etc.

Here's How A Six-Pack Of Craft Beer Ends Up Costing $12 | HuffPost

If you want a successful business, every position needs to have a cost associated with it as any successful business owner will tell you.

Then there are the miscellaneous costs: Marketing, packaging, delivery, insurance, payroll taxes, accounting, and the list goes on. The point here is that it is extremely difficult to make a profit in this industry.

How to Brew Beer (and What it Costs) - The Simple Dollar

Consider this — why are there less than 1, microbreweries and brewpubs in the U. I demonstrate this not to discourage you from starting a brewery but to do your homework before investing a considerable amount of time and money into a business that is difficult.

Many people dream and lose fortunes in starting so do your own research and find the actual costs to start a brewery and see if there is potential for you to succeed.

Consider the free resources through your local Small Business Development Center to help you work through the profit analysis and evaluating the costs to start a brewery.

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