How much would it cost to start a brewery?

[r8rphan]

I'd need some one to keep the books. That's one thing I can do, but I'm not the best at.

Every successful small businessman I've ever known, has had a good wife working with him in his business.. Business is way better if it can be done as a team with people who are all on the same page and all committed to it's success...

That's always been my achilles heel.. the lack of a good wife/book keeper, that my friends and competitors have enjoyed... I absolutely 'suck' at the paperwork side, and would rather get a root canal than do that stuff...

The wives like being able to work at home with the kids, and the husbands are free to concentrate on the production part of the operation.... One managing the office/business side of things, and the other managing the field/sales side... Teamwork!

 

[cokronk]

Every successful small businessman I've ever known, has had a good wife working with him in his business.. Business is way better if it can be done as a team with people who are all on the same page and all committed to it's success...

That's always been my achilles heel.. the lack of a good wife/book keeper, that my friends and competitors have enjoyed... I absolutely 'suck' at the paperwork side, and would rather get a root canal than do that stuff...

The wives like being able to work at home with the kids, and the husbands are free to concentrate on the production part of the operation.... One managing the office/business side of things, and the other managing the field/sales side... Teamwork!

So are you saying you have a bad wife?

 

[r8rphan]

So are you saying you have a bad wife?

No, just having trouble teaching the dogs to answer the phone and use the computer...

I have had some pretty screwed up girlfriends/fiances though.. That's why they never became wifes... Still holding out for a 'good one'

 

[ipatch]

ahh, this thread was a pretty good read. I wish there were more information about the topic, but I guess that is what google is for.

 

[mattd2]

Every successful small businessman I've ever known, has had a good wife working with him in his business.. Business is way better if it can be done as a team with people who are all on the same page and all committed to it's success...

That's always been my achilles heel.. the lack of a good wife/book keeper, that my friends and competitors have enjoyed... I absolutely 'suck' at the paperwork side, and would rather get a root canal than do that stuff...

The wives like being able to work at home with the kids, and the husbands are free to concentrate on the production part of the operation.... One managing the office/business side of things, and the other managing the field/sales side... Teamwork!

I know this is an old thread but since it has been brought back up... I thought the main reason to hire your wife was the income split so that your total houshold income is taxed at a lower rate, i.e. you pay less tax because instead of one person earning lots you have 2 seperate people earning less.

 

[ReverseApacheMaster]

I know this is an old thread but since it has been brought back up... I thought the main reason to hire your wife was the income split so that your total houshold income is taxed at a lower rate, i.e. you pay less tax because instead of one person earning lots you have 2 seperate people earning less.

Not necessarily. When the income comes back together at tax time it generally doesn't matter whether it was earned by one or two people. However, there are some exceptions.

 

[mattd2]

Not necessarily. When the income comes back together at tax time it generally doesn't matter whether it was earned by one or two people. However, there are some exceptions.

What is your tax system based on household income? Ours in NZ is personal tax so this is what a lot of small companies do.

 

[tomhen]

Just to chime in on the original topic. On the less expensive side a brewpub starting with an existing restaurant should be less than 100k with a nice 7 bbl system. If you are doing a small packaging brewery with a tasting room that could also be less than 100k, again with a 7BBL system. I've done both so I know it is possible. Friends just opened Two Rascals Brewing in Montrose, Colorado and they spent 80k on their entire brewery. So for a brewpub find a restaurant for lease. If you are opening a packaging brewery, get the landlord to build out your restrooms and plumbing. After that you won't spend that much money.

 

[bad67z]

I believe that I heard Jamil state on one of the Brew Strong episodes that it was a bout a $250k start up cost for Heretic Brewing.

Now bear in mind his situation is a bit different than most of us schmucks with the dream. He was already the most established and decorated homebrewer in the nation and I'm sure getting investors and his distribution set up was far easier that it would be fro the majority of us.

 

[ReverseApacheMaster]

Six dollars.

 

[mattd2]

Six dollars.

plus contingency

 

[Golddiggie]

I've thought about this several times (haven't we all??)... IMO, a good amount depends on where you'll be brewing. Both as far as the state and facility. If you can find someplace at a low enough rate, that doesn't need a ton of work to get up to code (for brewing), then you won't need as much. Depending on your batch size, number of batches you'll be producing per week, or have in process at any one time, will also impact costs. Then there's the things not everyone thinks of. Insurances for one thing could put the entire thing out of your reach.

So, really, you need to research where you could do this, costs associated with facility setup, and then decide. IF you can get, or have, the funds to do it, then you need to decide if you REALLY want to turn what's currently a hobby into what you'll be doing to earn a living. BTW, don't forget about the people you'll need helping you out. You will need at least one (or two) people to help in the process. Also don't forget about what you'll do with all the spent grain after the mash. IF there are farms in your area, you might be able to either sell the spent grain to them, or just give it to them. If you can get enough to cover the transportation cost of the grain, then [IMO] you'll be doing well. Even if you get nothing for it, at least you won't be filling dumpsters with it.

 

[mattd2]

... BTW, don't forget about the people you'll need helping you out. You will need at least one (or two) people to help in the process...

Again that depends on the size, reading over the probrewer forums it is a common theme that a lot of new breweries start out with just one employee, the owner, and he/she bust here ass off for a year or two brewing upto 1000 bbl a year. Mainly because in the first year or two your sales can't justify an extra employee. Once they have a steady income stream from a good acount base, they generally know/realise that to grow any bigger it can't be done with only one person anymore

 

[todd_k]

Also consider the failure rate which I believe is about 90%. You can find used equipment at a discounted price, especially on some pro brewer forums. Of course, this is equipment from failed breweries so that brings me back to my original point.
I'm more interested in opening a beer/wine shop rather than a brewery but my location isn't good for something like that.

 

[Golddiggie]

IF I'm going to be brewing at production levels, I'll need someone to help me out. My back simply isn't good enough to do all that by myself.

todd_k, the failure rate is also reason to pause before jumping into this. I had a plan, a multiple year plan, that has yet to be even started. IF enough conditions are met, then I could consider brewing full time. Otherwise, it remain just a pleasure/hobby.

 

[mattd2]

IF I'm going to be brewing at production levels, I'll need someone to help me out. My back simply isn't good enough to do all that by myself.

todd_k, the failure rate is also reason to pause before jumping into this. I had a plan, a multiple year plan, that has yet to be even started. IF enough conditions are met, then I could consider brewing full time. Otherwise, it remain just a pleasure/hobby.

Yeah it is definately horses for coarses, but an extra employee might be that factor the turns a doable business plan into impossible.
I agree with you on planning - as they say "If you fail to plan, plan to fail"

I wonder how many more clichés I can get in here

 

[Golddiggie]

Yeah it is definately horses for coarses, but an extra employee might be that factor the turns a doable business plan into impossible.
I agree with you on planning - as they say "If you fail to plan, plan to fail"

I wonder how many more clichés I can get in here

Who said anything about paying the person??? What do you think [of age] family members, and maybe friends, are for?

It's also about supply and demand.