Can i start a brewery in my house

You have to keep ordering bottles, caps, labels, and boxes. Then you have to apply caps and labels to each bottle. Kegs seemed like the better option as they could be reused over and over. Mike is a Cleveland, OH native that has been homebrewing for about 5 years. He mainly focuses on making good beer, but has also made some bad ciders in the past. His other deep passion is for cars, which led him to get a degree in Mechanical Engineering at the University of Toledo.

He now lives in Columbus, OH with his beautiful wife and 2 dachshunds. In a sense he likes drinking and driving, but of course not in that order. Fast beers and great cars are good for the soul. Yes you read that correctly. Tags commercial brewery commercial brewing going pro how to pro brewing starting a brewery. Government out of control Very interesting story. Thank you for sharing. Too bad it didn't work for you, but you were smart to know when to say when.

Rent, insurance, taxes, utilities, interest on borrowed money, those things all add up. A low volume brewery selling kegs isn't going to produce the cash flow to pay the bills. If you can't sell by the glass at least 4 nights a week, and make money selling some food items as well, you really can't run a small brewery. Now having said that, I know someone who started with a keggle type brewing system, sold growlers only out of a primitive tasting room for a couple of years, sold a few kegs to a very small number of accounts, and now has a brewpub.

So it can be done, but not while holding down a full time professional job. I always figured that the biggest headache in starting any business is all the rules and regulations they pile on business these days. Not to mention that if you are successful they will find a way to tax you to death Sorry to hear that. It was a cool story. Not fully committing to the brewery i. I agree with madscientist that at this size, you HAVE to sell out of your on-site taproom to even hope to run in the black.

I think opening a commercial brewery is a glint in almost every homebrewer's eye including my own! If it is truly what we want, who knows what the future holds Signs you might be a homebrewer All of this in Holland and Toledo? Holland has a craft beer tavern?!?!?! Amazing what goes on in 12 years when one moves away. It's always good to read other people's experiences. And I read a lot of common themes in your story as I've read in others: cart before the horse.

Everyone immediately looks at what brewing equipment they want to buy, go talk to the guys at your favorite bars to see if they'll put your beer on tap, etc. The first place to start is property. If you want to brew in your house, which is almost never acceptable without the space being divorced from the living space and if suitable zoning, take ten minutes and go to your local township building and talk to the permitting guys. They'll tell you immediately if it's ok or not. They don't go in for much runaround like state and feds.

Then you start working a budget plan to see if it's even feasible with equipment, utilities, rent, taxes, incorporation fees, etc. If all that is falling into place, THEN, you worry about what bars will put your beer on tap and what your brewery logo looks like. Otherwise, you've thrown hope and some face into the wind. Stories like this drive me absolutely insane.

My wife and I have had similar experiences. She tried making a go of selling from home two years ago. She can bake all day long, however. We even talked to a few local places to see if they would be interested in buying cupcakes, cookies, etc. Turns out, stores are not allowed to sell home-baked goods. She could have even gone the catering route, if she had a kitchen available, and we know plenty of people and places that would have given her the business.

She is allowed to go to another person's home and cook in their kitchen all day long personal chef, basically , and she is allowed to use onsite kitchens if they are certified she used the kitchen at church to cater a couple of events. And what makes it worse, those people who are somehow able to make a go of it, the government officials in our area are no use and no help to anyone. They give you no instruction on anything Over the last few years they've changed some of their requirements to make it easier to open a brewery.

Still a lot of hoops, but it's nice to see them trying. I'm glad you enjoyed it. I ended up moving 6 months later for a much better job, so I'm happy I gave up when I did!

The finances didn't look great, but it was kind of a "foot in the door of the market" attempt. I was trying to pay for everything out of pocket to avoid loans But with my full time job, I couldn't even brew a lot of small batches to make up for volume. Thats good at least The hardest part at first, was finding who you had to talk to. Every time I called a government agency, they would tell me to check with another department over another possible issue.

Luckily the tax on beer doesn't jump until after 60,bbls in a calendar year which only applies to rather large breweries. The other 4, But you're right about being taxed to death! That is a HUGE tax increase, just for being successful and growing your company over 60,bbls. I was heartbroken, but at least I'm not poor and heartbroken now haha. Glad you enjoyed it!

I'm still holding out for the right opportunity to get into the pro scene. It may not be soon, but as a wise man said, "who knows what the future holds My wife was sleeping off the jet lag and our resort only served 2 beers. What's a guy to do? This was set 3 years ago, so I don't know if that craft beer tavern is still there. I know the owner has since moved too. It was depressing to finally call it quits, but it's easier to see in hindsight or once you've read about it the main reason I pitched this story to HBT.

However, a lot of the planning has to be done simultaneously or it will take you years to open a brewery. If you're stuck on ideas, reach out to a marketing or branding professional to help you figure out what's right for your business.

At its core, creating a business separates your personal assets and liabilities from those your new brewery may incur. If your business has multiple stakeholders, the business structure also clarifies who owns what, who is responsible for what, and the rights each owner has.

Speak with a business attorney to determine the right type of business entity for you. Once you select a name for your brewery or beer, protect your intellectual property with a trademark. Through this process, you'll submit your name to the U. Patent and Trademark Office for consideration. The USPTO will weigh aspects such as the uniqueness of your name and whether another company in a comparable category has the same or a similar trademark already.

While in theory you could submit a trademark application yourself, consider speaking with an IP attorney who can help you navigate the process and overcome any potential challenges with your application.

Your location is key to your success. It sets the tone of the business and dictates whether your brewery is a destination people will go out of their way to visit or a neighborhood spot locals will frequent. Once you choose your location, be sure that your name, address, and phone number — known as your NAP — are the same in every online listing.

What matters most is that your customers can find accurate and complete basic information about where your brewery is located and when they can come enjoy your products. There is a lot to learn if you want to become a successful brewer. Experts recommend that even seasoned home brewers spend time working in a brewery before starting their own. Entry-level work involves a lot of cleaning, sterilizing and other tedious tasks, but you'll learn the daily routines of a busy brewery.

After you put in some time, you can move up and learn additional job skills that pay more, but it's worth your while to learn all the jobs involved in a productive brewery. If you have the time and resources, formal training programs are also available, including university degrees.

States such as Michigan, California, Colorado, Oregon and Missouri offer certificates and four-year degrees in brewery management. International schools are also available in countries such as Belgium, Germany and the United Kingdom.

Alternatively, you can find online courses and even free programs. Portland State University offers a certificate program that focuses on the business portion of running a brewery, while CraftBeer. Did you know? Experts recommend working in a brewery before starting one. Additionally, formal educational resources are available, including university degrees and certificate programs that focus on brewery management. According to many brewers, you should be prepared to pay out twice the amount you think it will cost to launch your business.

Unexpected expenses can pop up, such as additional contractor fees for altering your building, or delays in acquiring permits that push out your production date. Depending on the size of your operation, the number of barrels you intend to produce, and whether you plan on operating a brewpub or a stand-alone brewery, your costs can vary greatly.

A realistic and thorough business plan is necessary to your brewery's long-term success. Investors want to see not just a general plan, but up to three years of projected financials. Even if you have capital saved, you'll still benefit from a bulletproof financial plan. We recommend consulting a professional who can help you create your business plan, provide financial advice and legal assistance, and help you obtain funding.

Before you meet with your consultant, lay out as much information as you can, including your startup costs, expected ongoing costs, revenue projections, business vision , and anything else you think of to help you and your consultant create the best business plan possible. If you are looking to build a new brewery with all-new equipment and asking for large sums of investment or loan money, you'll need to quantify your passion and present it in a way that potential investors will understand.

Unless you already have generous funding set aside, you'll need to raise capital and plan for extra expenses. You'll likely need to obtain funds from multiple sources. Consult a professional on how to obtain funding. Good credit, experience, and collateral will help, but you may also want to secure letters of intent from distributors who have agreed to purchase your product. It helps to get creative when you're starting a brewery.

Many entrepreneurs in the industry are fortunate enough to take over an existing brewery after the previous owners have moved along. Some have been able to partner with restaurants looking to add a brewpub. You may also be able to lower costs by purchasing used equipment or by leasing equipment. Eventually, you should be able to afford your own equipment if you increase your volume.

It is also easier to get funding once you demonstrate what you are capable of, even on leased equipment. The U. The three tiers are the producers you, the brewer , the distributors and the retailers. You sell your product to wholesale distributors, and they in turn sell to retailers, who sell your product to the beer drinker.

The exception is brewpubs, which manufacture the beer and sell it directly to patrons in the pub. Most states have their own distribution requirements and are usually involved in the process. Some of the more prohibitive states, such as Utah and Pennsylvania, exert control at the distribution and retail levels. You'll need to research your state's requirements, as well as those of any other states you plan to sell in.

Depending on your area, you may be able to work with a major distributor such as Anheuser-Busch or Miller, or a distributor that specializes in non-major brands. Consider which company you want to distribute with and the specifics of your contract.

Most states have laws to protect the provider-distributor sales contract which could last years , so you'll want to consider both your current and future needs before signing a contract. Your local brewing group or guild should be able to help you find the best distributor to suit your needs and brand.

You should also visit potential retailers to research the market and talk to them about their experiences with local distributors. Prepare your presentation carefully before meeting with potential distributors. Know your pricing models, advertising and marketing plans, and other incentives.

They need to understand how you will help them sell your beer to retailers and customers. In three-tier states, the distributors have the advantage, since they don't need to work with you.

They make the most profit when they can sell your product at a healthy margin, so let them know how you can help them do that. Depending on your state, you may be able to find alternative ways to get your beer to your customers.

If you own a brewpub, you can likely sell through your pub without a distributor, since the beer doesn't leave your establishment, or you might be able to sell your beer online. Review your state's distribution laws to find the best method for you. State and local laws for breweries vary greatly.

Your local chamber of commerce should be able to point you in the right direction. Regardless of location, here are some things you will need to consider:. We spoke with two sources who work in or provide services for the beer industry, asking them what they would have benefited from knowing when they started out.

Nigel Francisco, CFO of Ninkasi Brewery in Oregon, expressed the importance of obtaining professional assistance to help you with accounting, legal requirements and risk management. He said if you are not a numbers person, you need to find someone who is. So, the protections an LLC offers may be a better fit than a sole proprietorship. The U. Small Business Administration tells us that some form of license or permit is necessary for virtually every business type.

You may need to file multiple permits — those relevant to establishing your business entity LLC, sole proprietorship, partnership, etc. Fortunately, this is not a difficult problem to overcome. This article from CraftBrewingBusiness.

And, you can find a tutorial and get started with your TTB permits here. Step 4 Define your brand. Craft breweries are known and celebrated for their unique brand personalities.

No boring Michelob or Budweiser here! Ideally, your brand should embody the best and most essential attributes of your company. The importance of your brand identity cannot be understated — especially in the world of craft beer. With so much creativity and unique personality already on display, a lackluster brand will fail to take off no matter how good your brews are. In particular, millennials a major buying force want authentic connections with the brands they purchase. Think you can get a perfect score?

Take the free quiz now! Your answers to these questions and others like them will build the core of your brand. All of your future branding decisions should expand on these ideas. Your business name , your company logo , your business website design , your beer can or label designs, and your brewpub or tap house decor should all grow from the concepts you layout here.

So, take the time to think — really think — about your brand from the start. And maintain that brand as your craft beer business evolves and grows. This consistency of brand personality and the quality of your beer will keep loyal customers coming back. You can learn more about the nuts and bolts of establishing and maintaining a consistent brand identity in Grow Your Small Business with Consistent Branding. Smart marketers incorporate one or more psychological principles into marketing campaigns, content marketing, and sales strategy.

Here is everything you need to know about the important principles and theories that can supercharge your marketing and influence people to buy your products or services. Read More Step 5 Crunch the numbers. But for craft beer businesses - which require a large upfront investment in brewing equipment and materials - wrapping your head around the numbers is even more important.

For a complete picture of the cost of starting your brewery, read this article from Nerdwallet. Once you know how much it will actually cost to get you started, compare that with the funds you actually have.

But, be prepared to take out a small business loan. Running smart calculations to determine how much it will cost to start your brewery will allow you to plan. Devin of 7venth Sun Brewing shares these wise words:. Before we got started we did a lot of research on what to anticipate from seasoned veterans in the industry.

All of them said that we should plan for everything to take twice as long and cost three times as much. We approached our plan with this in mind and they were certainly right. Keep the whole picture in mind when it comes to your finances.

Nobody likes surprises — and expensive surprises are the worst. For a deeper look into this complex topic, consider following up with Beer Business Finance. Step 6 Build your brewing infrastructure. The heart of your business is the beer you brew. So, it's vital to give your actual brewing set-up the utmost attention and thought. The facility you choose to brew in and the equipment you put there will determine your brewing capacity for the next several years, at the very least. And, upgrading or purchasing a new system is complex and expensive.

Choosing the right location is a make-or-break decision for every brewery. Start by determining what functions your space will serve and how you will use it. Is it just where you brew your beer?

Or will there be a taproom as well? Will it be a brewpub? If so, how much space needs to be dedicated to the brewery vs. One of the most valuable lessons you can learn from established brewers is to choose a location with room to grow.

Brett from Dust Bowl Brewing Company speaks from experience :. We are in the process of relocating to a new location. Your brewing system is also vital to the success of your craft beer business. The larger the system, the more beer you can produce, and the more beer you can sell. Myles from Borderlands Brewing ran into this issue early on:.

People are thirsty! We started with a 3 barrel brewhouse, and that barely made enough beer to keep our tap room stocked. And the tap room was only open two days a week. But, brewing equipment is expensive. Overspending on your brewing system without an established demand will only backfire. Step 7 Optimize your packaging. Luckily, you have more options for packaging than ever before. But, new technology in materials and labeling means you can make smarter choices for your business. Some breweries choose to bottle or can their own brews on their own equipment.