Hey everyone, four months ago I opened a nano. I've been brewing for 5 years and I am 26 years old now. I haven't been open too long but I feel pretty comfortable with the business. I still have a lot to learn and a ways to go, but things are going really well. I wanted to share a bit since this forum was always so helpful to me over the years.
Background: I graduated college during the recession. I couldn't find a job that used my degree. I was following a bill in the state legislature that would make it easier to open a nano in Virginia, and had just won a gold at my first comp. I decided to just give up applying for office jobs and go for it. I took a job at a local farm and began writing a business plan. I raised money on Kickstarter and began building my system, a 1.5 BBL kal clone. I also got a small business loan. I got a great location and after I got my brewery license, I opened my doors on July 19th. It's been pretty crazy and a lot of work, but sales are great and the feedback on the beer has been terrific.
Here's a blog post I did recently with some good ground rules for starting a nano. They might seem a bit harsh, but it's based on experience.
1. Nanos are just like any other business. To be successful, you need to make money. Enough money to cover costs, pay yourself and pay off any loans you have to take in a reasonable amount of time. If you are fine with not making any money and just want to have a go at it as a hobby business, you can ignore the rest of what I have written here if you want.
2. Nanos wont work as well in every area. In many places on the west coast, there are nanos everywhere. In other places, the laws arent friendly enough. Having a high median income helps, too. I can charge $4-7 per pint at my place, and still be cheaper than the two bars next door.
3. You need to sell the majority of your beer for on-premise consumption. Remember when I mentioned unfriendly laws? If you arent allowed to sell your beer in pints at your bar, you will have a very hard time being successful. There is no way around this. If you are bottling or kegging and selling to a distributor or retailer, you will most likely not make very much money unless you go with a larger system.
4. Nanos are just like any other business. I say this twice so hopefully it sticks. If you dont want to research zoning laws, obtain the proper permits and licenses, and practice diligent bookkeeping, I would advise you to stick to brewing as a hobby rather than a business. If you are sinking thousands of dollars into a business venture, you should be willing to spend as long as it takes filling out the paperwork.
5. You need to be able to brew good beer. Notice this is four spaces down from number one. The other rules are more important because all the good beer in the world wont save you from bad business practices. However, if you cant brew good beer you shouldnt be in the business. This means that you should consistently be able to score well at BJCP-sanctioned events. It doesnt mean that your friends or family like it, or youve had people tell you repeatedly that theyd buy your beer. That isnt good enough. Your process should be close to flawless if you are considering doing it professionally. I homebrewed for five years, but it was really the knowledge that I gained in the last year that meant the difference between success and utter failure. Also, I probably brewed around 200 batches during that period. Many people say they want to start a brewery after their first couple batches. All I can say is, good luck.
6. Prepare to encounter problems, and brew some bad beer. This goes hand-in-hand with number five. Because even if youre experienced, you are going to encounter problems. I have gained tremendous respect for the brewing industry; brewing good beer consistently is way harder than people realize. I have made friends in the industry and I have learned that even larger breweries with plenty of experience and the latest equipment still encounter problems pretty frequently. You will brew some not-so-good batches from time to time. You will need to identify off-flavors and correct your process. This is very important, and where that experience really pays off. A problem is one thing, but a problem you don't know how to fix is something else entirely. When you have a problem, dump your bad beer if you can. You are doing yourself no favors by serving bad beer. Occasionally you will have to serve some beer that isnt great, because you have nothing else. I have found honesty is the best policy; if someone comments on it, tell them whats going on, and what you are doing to fix it. Refusing to acknowledge flaws and getting defensive will make you look arrogant and ignorant. Patiently explain and work to correct the problems.
7. You need a minimum of a one barrel system. Time is money and brewing more often means less money. You will find yourself in a living nightmare with a ten gallon system. But Sam Calagione started that way! Doesnt matter. My starting system was less money than a Sabco and brews over three times as much beer. There is no reason to start smaller.
8. Research every single detail you can. Listen to people with experience. Entrepreneurs arent risk takers, theyre risk eliminators. You want to leave no stone unturned so that when you take the plunge, you arent leaving anything to chance. Furthermore, ignoring the advice of people with experience and success is the ultimate form of hubris. Be like a sponge and take in all the info you can.
9. Be friendly and courteous. Many people will be coming in your doors not just to have a beer, but to talk to you. You are the face of your business--embrace it. Also, answer emails and voicemails promptly. Strike up conversations with strangers. You can make some great connections this way, too. Sometimes I am not so great with this due to fatigue and stress; it helps if you can hire someone to pour who has a good personality. Also, make friends with the other breweries and restaurant owners in your area. I send people to "competitors" all the time because they have great beer. They do the same for me. We help each other out, too (well mostly they help me.)
10. If you have read through all these and still want to make a go of it, write a detailed business plan. No smart person wouldnt.
I'll try to check in on this thread periodically and answer questions. If you're in the process or have done it already, best of luck, and may the beer gods smile upon you!
Background: I graduated college during the recession. I couldn't find a job that used my degree. I was following a bill in the state legislature that would make it easier to open a nano in Virginia, and had just won a gold at my first comp. I decided to just give up applying for office jobs and go for it. I took a job at a local farm and began writing a business plan. I raised money on Kickstarter and began building my system, a 1.5 BBL kal clone. I also got a small business loan. I got a great location and after I got my brewery license, I opened my doors on July 19th. It's been pretty crazy and a lot of work, but sales are great and the feedback on the beer has been terrific.
Here's a blog post I did recently with some good ground rules for starting a nano. They might seem a bit harsh, but it's based on experience.
1. Nanos are just like any other business. To be successful, you need to make money. Enough money to cover costs, pay yourself and pay off any loans you have to take in a reasonable amount of time. If you are fine with not making any money and just want to have a go at it as a hobby business, you can ignore the rest of what I have written here if you want.
2. Nanos wont work as well in every area. In many places on the west coast, there are nanos everywhere. In other places, the laws arent friendly enough. Having a high median income helps, too. I can charge $4-7 per pint at my place, and still be cheaper than the two bars next door.
3. You need to sell the majority of your beer for on-premise consumption. Remember when I mentioned unfriendly laws? If you arent allowed to sell your beer in pints at your bar, you will have a very hard time being successful. There is no way around this. If you are bottling or kegging and selling to a distributor or retailer, you will most likely not make very much money unless you go with a larger system.
4. Nanos are just like any other business. I say this twice so hopefully it sticks. If you dont want to research zoning laws, obtain the proper permits and licenses, and practice diligent bookkeeping, I would advise you to stick to brewing as a hobby rather than a business. If you are sinking thousands of dollars into a business venture, you should be willing to spend as long as it takes filling out the paperwork.
5. You need to be able to brew good beer. Notice this is four spaces down from number one. The other rules are more important because all the good beer in the world wont save you from bad business practices. However, if you cant brew good beer you shouldnt be in the business. This means that you should consistently be able to score well at BJCP-sanctioned events. It doesnt mean that your friends or family like it, or youve had people tell you repeatedly that theyd buy your beer. That isnt good enough. Your process should be close to flawless if you are considering doing it professionally. I homebrewed for five years, but it was really the knowledge that I gained in the last year that meant the difference between success and utter failure. Also, I probably brewed around 200 batches during that period. Many people say they want to start a brewery after their first couple batches. All I can say is, good luck.
6. Prepare to encounter problems, and brew some bad beer. This goes hand-in-hand with number five. Because even if youre experienced, you are going to encounter problems. I have gained tremendous respect for the brewing industry; brewing good beer consistently is way harder than people realize. I have made friends in the industry and I have learned that even larger breweries with plenty of experience and the latest equipment still encounter problems pretty frequently. You will brew some not-so-good batches from time to time. You will need to identify off-flavors and correct your process. This is very important, and where that experience really pays off. A problem is one thing, but a problem you don't know how to fix is something else entirely. When you have a problem, dump your bad beer if you can. You are doing yourself no favors by serving bad beer. Occasionally you will have to serve some beer that isnt great, because you have nothing else. I have found honesty is the best policy; if someone comments on it, tell them whats going on, and what you are doing to fix it. Refusing to acknowledge flaws and getting defensive will make you look arrogant and ignorant. Patiently explain and work to correct the problems.
7. You need a minimum of a one barrel system. Time is money and brewing more often means less money. You will find yourself in a living nightmare with a ten gallon system. But Sam Calagione started that way! Doesnt matter. My starting system was less money than a Sabco and brews over three times as much beer. There is no reason to start smaller.
8. Research every single detail you can. Listen to people with experience. Entrepreneurs arent risk takers, theyre risk eliminators. You want to leave no stone unturned so that when you take the plunge, you arent leaving anything to chance. Furthermore, ignoring the advice of people with experience and success is the ultimate form of hubris. Be like a sponge and take in all the info you can.
9. Be friendly and courteous. Many people will be coming in your doors not just to have a beer, but to talk to you. You are the face of your business--embrace it. Also, answer emails and voicemails promptly. Strike up conversations with strangers. You can make some great connections this way, too. Sometimes I am not so great with this due to fatigue and stress; it helps if you can hire someone to pour who has a good personality. Also, make friends with the other breweries and restaurant owners in your area. I send people to "competitors" all the time because they have great beer. They do the same for me. We help each other out, too (well mostly they help me.)
10. If you have read through all these and still want to make a go of it, write a detailed business plan. No smart person wouldnt.
I'll try to check in on this thread periodically and answer questions. If you're in the process or have done it already, best of luck, and may the beer gods smile upon you!
