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Guide on How to Open a Brewery

Josh Reynolds profile image
Josh Reynolds

Published on June 7, 2024

How to Open a Brewery

If you're passionate about craft beer and have always wondered how to open up a brewery, you've come to the right place.

Starting your own brewery is a business venture with tons of opportunities and a few challenges and rewards. The craft beer industry is booming, and folks are always on the lookout for something new, unique, and tasty to try. 

Before you dive into launching your own beer business, make sure you plan and prepare. This guide will walk you through the essential steps to help you open your brewery successfully. 

Research and Learn

First things first, before diving into how to open a brewery, you’ll need to research the local market. 

Check out what other breweries are doing in your area, find out who your target customers are, and see what kinds of beers they love. Knowing this info helps you launch and sustain a unique brewery that stands out. Plus, it gives you a solid footing in the community and sets you up for success.

Make a Business Plan

Think of your business plan as your roadmap to success. It’s where you’ll lay out your goals, who your customers are, and how you plan to market and sell your beer. Don’t forget to include detailed financial projections — they’ll be crucial when you’re looking for funding. Take your time to make it thorough and realistic; it’s the foundation of your future brewery.

Secure Funding

One of the biggest challenges in opening a brewery is locking in the necessary funding. You might use your savings, get some investors, or secure a small business loan.

Small business loans are fantastic options because they usually have lower interest rates and flexible terms. With the right funding, you can cover costs like equipment, your location, and your initial inventory. Explore all your options and choose what works best for you based on thorough, patient planning. The last thing you want to do is rush when it comes to your brewery’s finances.

Get Required Permits

You can’t brew beer legally without the right permits. You’ll need federal, state, and local clearance to get started. 

Begin with the TTB permit, which is necessary for all breweries. Then, check your state’s specific licensing requirements, including liquor licenses. Getting these in order early will save you a lot of headaches down the line by making sure that you’re brewing and selling beer legally.

Choose the Perfect Location

Whether you're purchasing an existing business or starting from scratch - picking the right spot for your brewery is crucial. Think about accessibility, your target market, and any zoning restrictions. Look for areas with lots of foot traffic or nearby businesses that complement your brewery. Make sure the property fits your budget and has everything you need. The right location can attract customers and set the stage for your brewery’s success. Plus, it helps create the vibe you want for your place.

Buy Your Equipment

How to Open a Brewery - Selecting the right equipment

Investing in the right equipment is key to making unforgettable beer. You’ll need fermenters, brew kettles, cooling systems, and more. Decide whether to buy new or used equipment based on your budget — pre-owned can be a viable option when you buy from a trustworthy dealer. Quality equipment helps you craft consistently delicious beer, and it can save you money on repairs down the road. 

Set Up Your Brewery

Time to set up shop! 

Designing and building your brewery takes some planning. Think about the layout for efficiency and future expansion. Make sure you have enough space for brewing, storage, and a tasting area. 

Plan for an easy workflow and make sure you meet all safety standards. A well-thought-out setup will make your operations smoother and create the best possible experience for your customers. 

Hire and Train Your Team

Finding the right people is key to your brewery’s success. You’ll need to fill essential roles like brewers, managers, or bartenders if you plan to open a bar with your brewery.

Look for passionate industry professionals who share your vision and bring valuable experience to the table. Once you’ve hired your team, invest in their training and development. Well-trained staff provide excellent service and create a welcoming atmosphere for your customers. 

Promote Your Brewery

Building a strong brand and marketing your brewery is essential. Use social media to connect with potential customers and showcase everything you have to offer. 

An active online presence helps you reach a wider audience. Plan a buzz-worthy grand opening to draw in a crowd. The more people know about your brewery, the more likely they are to visit. Keep your promotions fun and engaging to attract and retain customers.

Launch Day: Open Those Doors!

The big day is finally here! 

Make sure everything is in place for a smooth opening. Consider a grand opening event with special promotions and fun activities to start building your customer base. This is your chance to make a strong first impression. Celebrate your hard work and enjoy the moment – you’ve earned it.

Additional Tips

So, do you think you're ready to open a brewery? Before you knuckle down, check out these pro tips we have to share with you:

Learning how to open a brewery

Get Involved in Your Community 

Engaging with your local community can boost your brewery’s reputation. Find ways to get involved in local events, sponsor activities, and support local causes. Building strong community ties helps create a loyal customer base and shows that your brewery cares about the people it serves.

Focus on Sustainability 

Implementing eco-friendly practices in your brewing process is not only good for the planet but also attracts environmentally conscious customers. Use sustainable ingredients, minimize waste, and promote recycling. Market your brewery as a green option to stand out and appeal to a growing segment of eco-aware consumers.

Connect with Other Brewers 

Networking with other brewers can provide valuable insights and support. Join brewer associations and head to industry conferences to stay updated on trends and best practices. Learning from others in the industry helps you grow and improve your brewery. It’s also a surefire way to build relationships and find collaboration opportunities.

How To Open a Brewery: Conclusion

Opening a brewery is an adventure, but it takes dedication, creativity, and a lot of passion. By researching your market, creating a solid business plan, securing the right funding, and building a reliable team, you’ll be well on your way to success. 

Don’t forget to promote your brewery and engage with your community – these connections are key to building a loyal customer base. Most importantly, enjoy the process and celebrate each milestone along the way. Cheers!

How To Open a Brewery: FAQs

The cost of opening a brewery can vary quite a bit based on size, location, and the type of storefront you want to open. On average, you might spend between $250,000 and $1 million. This total includes costs for equipment, permits, lease or purchase of a location, and initial inventory.

Opening a brewery is challenging but incredibly rewarding. It takes thorough planning, significant investment, and a lot of hard work. You'll also need to navigate permits, find an ideal location, purchase equipment, and hire the right team.

You'll need several permits and licenses to open your own brewery. Start with the federal TTB (Alcohol and Tobacco Tax and Trade Bureau) permit, which is essential for all breweries. You'll also need state-specific licenses, including a liquor license, and local permits.

There are several ways to fund your brewery, and you can combine multiple funding options to get the capital you need. You can use personal savings, go for investor capital, or apply for a small business loan. Small business loans are especially helpful as they often come with favorable terms and lower interest rates.

Starting a brewery takes several key pieces of equipment, including fermenters, brew kettles, cooling systems, and storage tanks. You’ll also need smaller gear like kegs, bottling or canning lines, and quality control tools.

Location goes a long way for the success of your brewery. You want a place that’s easily accessible to your target market and has good foot traffic. A solid location can attract customers and create a welcoming atmosphere, setting the stage for your brewery’s success. Don’t forget to check zoning regulations and ensure the location supports your business needs.

Make sure you have all of the necessary licenses and permits required by local, state, and federal regulations. If you're not a doctor, consider partnering with a management services organization (MSO) to meet legal requirements. Plus, we recommend that you regularly review compliance to avoid legal issues.
 
Josh Reynolds profile image

Josh Reynolds

Josh Reynolds brings to business journalism a diverse career spanning technology, marketing, and finance, with a deep dive into private equity and FP&A. His articles demystify complex financial concepts, making them accessible and actionable for small business owners.