Resources for going pro?

Wed Feb 02, 2011 10:07 am

I've been lots of places on the internet, reading up on this sort of thing. I googled around, read a lot of threads on probrewer.com, and so on.

At first, I figured that there was absolutely no way I could go pro without going Huge. But I recently read an article in Beer Advocate about Epic Ales up in Seattle, which got me thinking about the possibility again- the brewery is a one-man operation operating on a super-tiny (1bbl) scale.

I did some math on the situation and preliminary numbers indicate that a 1-10 hL system would yield enough income to keep me in business and making enough money to live on, given certain preconditions- one being actually selling the beer and two being the still-murky regulatory world of brewing. I could probably run such a system by myself indefinitely, possibly hiring help to run the tasting room if business picks up.

I'd done some investigation into this already as part of my first commercial business plan (a subscription model). Living in California makes things somewhat easier, you can self-distribute.

I'm a pretty smart person and good at learning from books and online resources; I'm not going to jump into this blind. I really can't as the startup costs (while relatively low for a small business) are large enough to require financing, and banks like business plans. Anyway, I was wondering if people had any suggestions or experience with small scale pro brewing. Books, websites, people to talk to, are all needed. I'm looking at:

1) Business planning. I'll need to figure out predictions for the actual cost of brewing (right now, I externalize things like water and garbage as they're not really noticeable on the 5 gal scale and they're also part of my regular residential rent) and the likely price points for the products. If I largely self-distribute through a combined storefront / subscription system, I can make more per liter of beer, at the price of actually having to deal with transactions.

2) Regulatory planning. I've talked to some people at the ABC here in CA about this and have a handle on how to start, but I'm still dealing with zoning and health regulations. In particular, I think a tasting room that doubles as a pub (but only serves my beer, which I believe makes it easier to get a permit for) could be a decent anchor for the brewery. No food service planned (don't want to deal with that)- just beer on tap, cases to purchase, and probably a returnable growler filling service. That would be the anchor for the outreach and sales- the rest of sales would be subscriptions, but operating a bar is tricky.

3) Location planning. I'm in the SF Bay (currently living in SF), and cannot move too far. But I could go to Oakland or somewhere else nearby to save on rent. On the other hand, I'm looking to market my product to yuppies (or whatever they're called now), since they're the ones with the money. Anyone know any good resources for finding commercial rental properties in that region? Craigslist isn't all that helpful.
pfooti
 
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Re: Resources for going pro?

Wed Feb 02, 2011 12:03 pm

It'd be great if breweries(from nano to huge) were willing to post their feasibility analyses and business plans online, with their names removed if necessary. We would at least need to know their general region since prices can vary greatly based on geography.
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leaky_porch
 
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Re: Resources for going pro?

Wed Feb 02, 2011 12:24 pm

Yeah, that's one of the biggest informational hurdle I'm facing. Plenty of people in the sf bay area (and all over the country) have opened breweries on lots of scales, but there's almost no information about general business planning for this kind of thing. Dunno if it's secrecy or just no real desire to go out of one's way to post that kind of stuff.
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Re: Resources for going pro?

Wed Feb 02, 2011 12:26 pm

Th hardest part of opening up a brewery or brewpub is the regulations. I can't believe all the shit you need to do just be be licensed. I'm an FFL (federal firearms license) holder and am licensed to manufacture firearms, machine guns, ammo, etc. It was a cakewalk compared to what you'll have to go through for brewing.

Financing would be the next in difficulty. SBA, venture capitalists, or land contract purchase.

What I would do is start networking with small breweries and brewpubs in your area. The 21A seems to be helpful from the Session shows. The podcast from 4-11-2005 is about nanobrewing. Good to listen to and check out for a primer. Also check out the SCORE program with the SBA. It's a free program with retired business executives that help you start a business.

Business plans are pretty easy to draft. They can be as basic or detailed as you want.
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Adam
 
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Re: Resources for going pro?

Wed Feb 02, 2011 12:28 pm

And even more helpful would be a "business plan vs. business reality" analysis for those that have been in business for a year or so. I imagine a lot of them would've planned their capacity differently if they'd known what the actual demand was going to be.
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leaky_porch
 
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Re: Resources for going pro?

Wed Feb 02, 2011 6:30 pm

I watched the documentary 'beer wars' recently and distribution appeared to a huge issue to tackle vs the big guys - assuming the documentary was somewhere near the truth.

Buying a smaller brewery off a growing micro when they decide to upsize could be a good way to get things going.

Good luck with this possible venture.
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raven19
 
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Re: Resources for going pro?

Wed Feb 02, 2011 7:56 pm

Adam wrote:Th hardest part of opening up a brewery or brewpub is the regulations. I can't believe all the shit you need to do just be be licensed. I'm an FFL (federal firearms license) holder and am licensed to manufacture firearms, machine guns, ammo, etc. It was a cakewalk compared to what you'll have to go through for brewing.

Financing would be the next in difficulty. SBA, venture capitalists, or land contract purchase.

What I would do is start networking with small breweries and brewpubs in your area. The 21A seems to be helpful from the Session shows. The podcast from 4-11-2005 is about nanobrewing. Good to listen to and check out for a primer. Also check out the SCORE program with the SBA. It's a free program with retired business executives that help you start a business.

Business plans are pretty easy to draft. They can be as basic or detailed as you want.



There is no way financing is easier than the paper work. Getting your paper work right is an inevitability. Getting the financing together is not.
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ChrisKennedy
 
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Re: Resources for going pro?

Wed Feb 02, 2011 8:52 pm

Adam wrote:The podcast from 4-11-2005 is about nanobrewing.


Minor point of correction. That show is 4-11-2010.
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