Is Starting a Brewery for You?
- Feb 18, 2022
- 161
- tiantai
I remember exactly what I thought owning a brewery would be like before I worked in the brewing industry: I would make beer and people would buy it.
Five years in, giving advice about opening a brewery makes me feel like King Bummer: A brewing company is as much a company as a brewery. If you're going to succeed, you need to treat it that way. Learn about the local regulatory environment, learn about accounting and basic finance, learn about sales. As a co-owner of a startup brewery, I spend way more time working on regulatory compliance than I do making beer. Same with digging through P&L statements and writing budgets. And sales work is endless and exhausting. Owning a brewery is more about running a business than brewing beer.
Prospective brewery owners sometimes forget that beer is a heavily regulated industry. There are federal and state agencies that get all up in the business of any booze maker, and the wastewater treatment folks in your municipality will want to have more than a few words with you before you start operations. There are far more agencies you will need to report to than you realize, and the first thing you should do when you decide to start a brewery is to contact all of them and ask if they have a punch list of compliance items for breweries. More likely than not, they don't, so don't be discouraged when they can't give you advice on getting your operation off the ground.
In my experience, these regulators generally work for agencies that are underfunded, understaffed, and underappreciated, so building relationships is key. The regulations that breweries have to comply with are not one-time hurdles to jump over; there's constant reporting and constant inspection. You're going to spend a lot of time on the phone with public servants and you'll be much happier if you have good relationships with them. Always ask how the person on the phone is doing today and actually listen to their answer; these small kindnesses will translate to helpful people who want to get you through the process as painlessly as possible.
People have told me my love of spreadsheets is freakish, so I'm not sure I can tell you with a straight face that accounting and finance are fun for everyone. But tracking the expenditures and income of our company and projecting those numbers out into the future is a large part of what I do, and fortunately, it turns out that I enjoy bookkeeping. I find it calming to know how we make money, where we spend money, and how we can save. You'll need those spreadsheets; they're a powerful tool for remaining in control of your business (there is no worse feeling than not knowing if you can afford anything), and if you want a bank loan or to bring on investors, they will want to see that you have a solid understanding of your business's financial operations.
Five years in, giving advice about opening a brewery makes me feel like King Bummer: A brewing company is as much a company as a brewery. If you're going to succeed, you need to treat it that way. Learn about the local regulatory environment, learn about accounting and basic finance, learn about sales. As a co-owner of a startup brewery, I spend way more time working on regulatory compliance than I do making beer. Same with digging through P&L statements and writing budgets. And sales work is endless and exhausting. Owning a brewery is more about running a business than brewing beer.
Prospective brewery owners sometimes forget that beer is a heavily regulated industry. There are federal and state agencies that get all up in the business of any booze maker, and the wastewater treatment folks in your municipality will want to have more than a few words with you before you start operations. There are far more agencies you will need to report to than you realize, and the first thing you should do when you decide to start a brewery is to contact all of them and ask if they have a punch list of compliance items for breweries. More likely than not, they don't, so don't be discouraged when they can't give you advice on getting your operation off the ground.
In my experience, these regulators generally work for agencies that are underfunded, understaffed, and underappreciated, so building relationships is key. The regulations that breweries have to comply with are not one-time hurdles to jump over; there's constant reporting and constant inspection. You're going to spend a lot of time on the phone with public servants and you'll be much happier if you have good relationships with them. Always ask how the person on the phone is doing today and actually listen to their answer; these small kindnesses will translate to helpful people who want to get you through the process as painlessly as possible.
People have told me my love of spreadsheets is freakish, so I'm not sure I can tell you with a straight face that accounting and finance are fun for everyone. But tracking the expenditures and income of our company and projecting those numbers out into the future is a large part of what I do, and fortunately, it turns out that I enjoy bookkeeping. I find it calming to know how we make money, where we spend money, and how we can save. You'll need those spreadsheets; they're a powerful tool for remaining in control of your business (there is no worse feeling than not knowing if you can afford anything), and if you want a bank loan or to bring on investors, they will want to see that you have a solid understanding of your business's financial operations.
