Yes! Starting a microbrewery in the UK can be extremely profitable due to how much people love beer. Being a microbrewer is a very time-consuming profession, so the main motivation for starting one is a love for beer and the lifestyle that goes along with it. Building a brewery business plan is important after you’ve done extensive research and you have the confidence that you have what it takes to open a brewery. Also, having a microbrewery business plan will assist in smoothing out the more challenging parts of the process.
Let’s dive in!
What Is a Brewery Business?
Small breweries, or microbreweries, can produce up to 15,000 barrels of beer annually. They primarily serve the neighborhood market and sell the majority of their beer at off-site establishments like taverns and pubs. However, because of the shift in consumer behavior, microbreweries now mostly supply packaged beers to liquor stores. A microbrewery may sell its products directly to consumers, wholesalers, or retailers. Prior to opening a microbrewery, you should be aware of the current market trends.
How To Start Brewery Business
Starting a brewery business comes with a lot of processes, but having steps to follow makes starting a brewery business much easier with less confusion.
#1. Get Some Experience and take a Course
A new microbrewery setup is a major undertaking, especially if you have never brewed for a living before. It is worthwhile to gain some industry experience by working alongside a brewer if you have never worked in a brewery or had firsthand experience. Also, seek professional counsel and enroll in a course taught by professionals who can walk you through everything you need to think about before making a decision. The brewing profession is a fantastic one to go into, but be sure to do so with your eyes wide open.
#2. Find a Location
Microbreweries do not typically set up shop where they may have the most space for the manufacturing process, contrary to what breweries typically do. In fact, you’ll do better the closer to the mob you are. You’ll need to estimate the number of customers if you plan to have a bar at your brewery. However, even if you don’t plan to have a bar, you’ll still want to be near the bars that will supply you with beer, and the majority of bars that specialize in craft brews are located in the hottest neighborhoods.
#3. Equipment
Get quality equipment that will make your work easier and the production of your beer faster.Â
Examples of brewery equipment are:
- Heat exchanger
- Mash tun
- Hydrometer
- Filtration technology
- Beer fermenter
- Malt mill
- Cellar equipment
- Brite tank
- Pumps
- Brewhouse
- Dispensing equipment
- Kegs
#4. Take Payments
You already have the product, but in order to sell it and be successful, you’ll need the right technology. You want payments to be processed as quickly and easily as possible when selling to suppliers. The quickest and easiest approach to handling these types of payments is to settle invoices.
If you’re open to the public, keep in mind that while they might be content to return to the fundamentals with expertly produced beer, it’s likely they won’t be as eager to do so when it comes to paying for it. Make sure you are prepared to accept whatever payment method your consumers may use, including chip and PIN, mobile payments, and contactless.
#5. Think of a Unique Selling Point
Every year, millions of barrels of beer are sold in the UK. If you provide something special, you will have a better chance of outselling the competition. To put it another way, you need to develop a brand and get people to link you with something. It can be your distinctive product line, your pricing, or your first-rate customer service. However, other breweries have found success by utilizing distinctive bottles or experimenting with the alcohol content.
#6. Register Your Business
The majority of the time, a microbrewery business is owned by one individual and is a sole proprietorship. You can, however, still establish a partnership or a limited liability company. Choosing a name for the business and acquiring the required paperwork are the first steps in the registration procedure. You must designate a shareholder and a director if you wish to launch a limited liability company. It’s important that you register your business.
#7. Create a Business Plan
Writing a business plan is a prerequisite for even the most interesting ventures. Being your own boss and starting a brewery may be one of the most exciting professional paths you’ve ever chosen, but every journey needs a map, and your business plan is that map.
Download Brewery Business Plan Template
#8. Define Your Costs
Make sure you’ve given the financial commitments you’ll need to make to launch your firm serious consideration, because you’ll need to do this for your business plan anyway. It’s also important that you seek the assistance of an independent counsel.
#9. Marketing
Beer marketing has been redesigned; it now focuses more on attracting a customer’s attention from across the bar with creative branding and packaging. In fact, several brewers have completely abandoned marketing, inviting guests to their tap rooms and brewery tours while allowing their beer to do the talking. Remember that users of your website will need to pass an “Are you 18?” permission wall, and you should never underestimate the influence of social media on the high rate of sales of your beer.Â
Do I Need a Business Plan?
Yes. You could be the best brewer in Britain, but you won’t be successful unless you know your market, have figured out how to finance your company venture, and are confident that you have the internal ability to sell your goods. Building a brewery business plan is very crucial to your brewery company. We advise you to seek a professional like BUSINESSYIELD CONSULT to write your brewery business plan for you, and we assure you that you are in good hands with us because we’ve got the best brewery business plan you surely need!
What Is a Brewery Business Plan
A thorough and detailed microbrewery business plan is also a priceless resource when trying to get money to start your brewery business. Banks and potential investors will want to see that you understand the industry. Despite this, due to the often low return on investment, standard sources of investment are not always the greatest source of funding for a brewery. Due to the increase in interest in craft beer, crowdfunding campaigns that directly target consumers are becoming a lot more effective way to raise money.
Also, your microbrewery business plan should have a polished appearance and be organized in a logical manner. It is advised that you provide short, medium, and long-term objectives when adding content to each section.
How To Write a Brewery Business Plan
Here’s a template to guide you on how to write an effective microbrewery business plan:
#1. Executive Summary
The most crucial section when building a brewery business plan is the executive summary. Aim to keep it to one page in order to keep it concise and to the point. Although the executive summary should come first in your business plan, your brewery business plan should really end with this part. It is an overview of the entire business plan, which explains why.
It serves to save your reader time by summarising the key elements of the plan. If they wish to learn more, they can then go back and examine the portions that most interest them. Keep this section brief while still being inspirational.
#2. Business Overview
A quick overview of your company’s operations is provided in the Business Overview section. You should include information that potential investors might want to know before making an investment in your breweries, such as your company’s legal and trade names, your service organization, your business address, and the date you founded it.
Along with your contact details, such as your email, phone number, and mailing address, you can also provide links to further resources, such as your brewery’s website and social media accounts. You can optionally enter banking information, such as your bank’s branch and account number.
#3. Business Description
Your brewery’s concept comes to life in this part. You can go into more detail about your company here, including how the concept will look, where your brewery will be, and the kind of atmosphere or brand you want to establish. Your company’s description paints an accurate image of your mission and objectives, so do well to add it to this section of your microbrewery business plan.
#4. Competitive Analysis
The key competitors in your local market can be identified here, as well as any future competitors. Describe the advantages and disadvantages of these competitors’ companies and how you think your brand will beat them out.
#5. Marketing Plan
The longevity of your brewery business depends on having a consistent stream of clients. You’ll need to develop a marketing strategy that encourages repeat business to do this. The survival of your business depends on consistent clients and revenue. Therefore, you must develop a marketing plan that will keep customers coming in.
- Positioning
Here, you’ll talk about how you’ll help people remember your brand. Describe any important differentiators, such as what your brewery’s customers can get there that they can’t get somewhere else. Ask yourself the following questions to identify your differentiators:
- Which kind of beer do you produce?
- What makes your company stand out?
- What distinguishes your brewery?
- Pricing Methodology
Describe how your pricing stacks up against the competition in this subsection. You can respond to the following inquiries in your pricing strategy:
- How much will it cost? including all components—materials, labor, and packaging.
- Online promotion
Three typical digital strategies for Internet marketing promotion are listed below:
- Social media: Describe how you’ll utilize Twitter, Instagram, and Facebook to market your business and brand if you intend to set up and keep up profiles on these platforms.
- Website: Describe the overall concept of your website and how it fits with your brand. Offer visual mockups with the primary components and design theme. Mention whether you want to develop the site yourself or hire a professional.
- Advertising: List any paid digital advertising outlet you use, including social network ads, banner ads, and review sites. List any agencies or contractors you’ll be working with here, along with the tasks they’ll be performing for you.
#6. Management Plan
In this section of your microbrewery business plan, you will identify your core team members and the primary business management categories that apply to your brewery. This includes the personnel, management, and brewery consultant, among others. List everyone’s credentials, abilities, and duties, emphasizing how each position will assist you to achieve your corporate objectives.
The topics you should address in this area, which describe the management structure of your organization, include salaries, training, and payroll. You can also describe in detail how you intend to hire and manage employees.
#7. Market Analysis
The objective of this section of the microbrewery business plan is to show that you have extensively studied your target market and can demonstrate that there is a demand for your product or service. Analyzing your competitors’ strategies is a smart way to collect intelligence. Visit your competitors and make notes about their product lines, advertising strategies, operational procedures, costs, and brand positioning.
Also, when building a brewery business plan, you can inquire with locals in the region about how businesses operate there and what improvements they would want to see.
By obtaining as much data as you can, you’ll be able to realistically assess the state of the industry, identify the demands of your target market, and gain ideas for how to set yourself apart from the competition.
#8. Financial Plan
When building a brewery business plan the financial section should illustrate your ability to increase sales. This is crucial if you’re looking to raise money from possible investors.
Include any financial statements, such as balance sheets, cash flow statements, and income statements, that prove your ability to make money when building a brewery business plan. Financial responsibility can also be demonstrated by providing loan and banking statements. All of these documents show that you can manage money and make payments on schedule, both of which are highly regarded by investors.
#9. Products and Services
Here, you can discuss the products you intend to sell and their specific features. You can also describe where you’ll get your ingredients and how you’ll use them to create a special artisan brew.
The following questions will be of help to you in this section:
- What will you be selling?
- What kinds of beers and brewing experiences are you intending to sell, please?
- Describe the various products and services you plan to offer.
- If you’re not going to sell your goods right away, state why, when you’ll start, and how the company plans to fund this time.
- Are you forming a limited company or will this be done as a sole proprietorship? You should also think about registering for VAT.
Final Thoughts
A brewery business plan is a dynamic tool that you can use as a reference to steer your company in the right direction. The method used to write the plan should provide a well-organized framework for the journey and be appropriate for examination by financial lending institutions or investors.
We have compiled a compelling brewery business plan to help save you the stress
FAQs
Is being a brewer hard?
The work is really physically demanding. Cleaning, transporting grain sacks, and working with potentially hazardous chemicals and boiling water are just a few examples. Days might be lengthy, therefore being able to adhere to guidelines is important.
Can I brand my own beer?
Margin growth comes from having your own beer brand, but there are many more benefits to doing so. Here, we take a brief look at the advantages of developing your own beer brand if you work as a product developer, marketer, or buyer for a chain of hotels, bars, or supermarkets.
Is a beer cafe profitable?
The Beer Café is already the largest and most successful alcohol beverage brand in the nation thanks to the enormous reaction.
