Starting a nano brewery

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Patch62383

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Hello everyone I have been brewing for 3.5 years. I have entered by beers into 5 different competitions within the last 11 months. I have won 4 Gold medals 4 best of shows one Pro am which will compete at this years great american beer festival. 2 bronze and a silver these are all different beers including an IPA,Belgian IPA, Oatmeal stout, cream ale, Kettle sours and last but not least pumpkin beer. I love this craft and I would love to start up a nano brewery. I have around 140,000 in equity within my house and perfect credit without debt. I was just curious if anyone has actually been brave enough to do this and if so I would love to pick your brain.. Thanks again everyone
 
First, you have to understand your system. The one you will be using to make beer professionally. You have to be able to make good beer on it.

You have to have a BUSINESS PLAN in order to secure financing. You cannot brew in your home. You have to find a commercial location. Include those costs with the plan.

You have to be patient. The process takes lots longer than you think.

You have to have a good location. Beyond just being commercial, you need a place that attracts the right amount of the right kind of people.

Food helps (or hurts!) So if you have food, make sure it's reasonably good. If not, then no worries, but I find more people enjoy going to breweries where there is food and they can have lunch or dinner too.

Probrewer.com might have more better answers.
 
Congrats Patch on you successes. I recently read an article about a homebrewer going pro, and to summarize, the brewer basically said now that it's my job, I don't homebrew anymore. Now this makes some sense, this is the type of person who would like candy, but have a job in a candy store and become turned off.

I know of a homebrewer that opened a nano and still loves brewing, with a professional brewery in one's hands there is no need to brew at home. They do those experimental batches at their brewery.

Aside from having an industrial location, paying rent and such. There is a huge investment in equiptment. There certainly is a lot to think about.

If you decide to take the plunge, I trust you'll have fun and work hard toward success.
 
Hello everyone I have been brewing for 3.5 years. I have entered by beers into 5 different competitions within the last 11 months. I have won 4 Gold medals 4 best of shows one Pro am which will compete at this years great american beer festival. 2 bronze and a silver these are all different beers including an IPA,Belgian IPA, Oatmeal stout, cream ale, Kettle sours and last but not least pumpkin beer. I love this craft and I would love to start up a nano brewery. I have around 140,000 in equity within my house and perfect credit without debt. I was just curious if anyone has actually been brave enough to do this and if so I would love to pick your brain.. Thanks again everyone
Im taking the plunge now... still shopping for equipment ourselves and remodeling the space. From what im seeing it has just as much to do with "atmosphere" and marketing as the beer depending on where your located and your customer base.. Hipsters appear to be the largest customer base in many areas but not all of course. Not that theres anything wrong with this but if you are highly opinionated and find yourself biased against them you might think twice about such a venture... You need to be open minded and flexible. There are those that just want to try everything new so you have to constantly provide more exotic beers to retain them as customers..
Its all where you choose to draw your line in the sand so to speak and who /what you value most...

We just hope to stick to our core values of mostly traditional beer styles and pay homage to the long closed local brewery that had an interesting history in our areas hayday. No crazy Gimmicks just good beer.
 
The things I have read is to plan on it costing 50% to 100% more than you thought and for it to take 6 months to a year to get all your permits etc. Some localities have really restrictive regulations.

In one of the threads the person who enjoyed homebrewing, now had a JOB and didn't enjoy brewing half as much.

So read a lot about people who have done it. Be prepared and good luck. I would like to do it, but at my age, if I had the money to start a brewery, I would just retire instead.
 
I have similar experiences and desires as you. I would highly recommend getting a job at a brewery first, you can't truly understand the experience until you've lived it. If that's too much, or not feasible, see about hanging out at a brewery during brew days and pick the owners brain.

I'm going about this in a totally different way than most, got out of they army and am going to school at Appalachian state for fermentation sciences which includes the business side of it all. That's the hard part. I am working as head brewer at a small local brewery, and that truly opened my eyes to all that I thought I knew. If I had just started a brewery because my beer is totally tits, I would be floundering for sure.
 
Nanobrewery-commonly referred to as a "non-profit brewery"
Your basic plan better include provisions for expansion
 
Beautiful thanks for the responses. I just don't know where to start I currently have a great job/career but I would love to follow my dream. My wife stays at home with our kiddos so my idea is maybe we could start a brewery and she can run it since my kids are almost in middle school while I continue working my job possibly cutting back to 4 days a week and brewing two plus going in after work everyday obviously. I have a journeyman license in hvac so I know I can build a brewery so I can save a lot of costs doing the build myself. I would start with a 3bbl system but like a lot of you have said I have no experience within running a brewery so I think that is a scary situation especially when I think it'll be around 100,000 investment. My issue is I don't know where to start or how to get my foot in the door. I appreciate your feedback
 
We started planning in April of 2016 and last night was our very first night with the doors open. I have two other partners with me and I don't see how anyone could do this on their own or as a part time gimmick. Our budget came in around 130K and that was cheap because our GC allowed us to do a lot of the build out ourselves to save money. Be prepared for a lot of paperwork at the city/county, state, and federal levels. Our federal permit only took about 90 days, which is about 1/2 the time other breweries told me to expect.

The first thing we did was to go down and talk with the city planning department once we felt we had the right space picked. Local planning will be able to give you an idea on what is needed to get the place up to local code if a brewery and taproom is allowed. The build out will take longer than what you planned. We estimated ours being 6 months, and it really took 8.

We brew 4 BBL a week on a small 1 BBL system, and stack beers back to back days in our 3 BBL fermenters to get the most bang for our buck on the yeast. 16 BBL per month allows for a decent to good profit margin based on our set costs.

* You need a good business plan and someone who understands Operations from a company level to get all the moving pieces going in the right direction at the right times. This is critical.

* You need at least one or two partners. I do a lot of the brewing and my partners do everything else from fixing toilets, mopping floors and opening and running the tap room.

* I would plan on a budget of at least 150K probably more depending on equipment and what your location will require - we got ours done really really cheap

*Make friends with at least 2 or 3 breweries. These people will be invaluable for the million questions that you will have while going through this process. We really couldn't have gotten where we are without the quality advice we received from these local breweries.

*As a homebrewer you should be use to things not going as planned. Multiply this by a 1000 on a larger scale. As an example, our grid was having power surges on Monday and ending up knocking out an outside breaker that killed one of our 110 volt lines coming into the building. This stopped us from brewing Monday and Tuesday and caused a bit of stress being we were a few days from opening and the AC wouldn't work without both lines.

With all that said, I would gladly do this again, and love the path we have chosen. There is nothing more satisfying than pouring your creation and have people rave over it.

Good luck!
 
First of all, congrats on your competition success. I know a lot of REALLY accomplished brewers who make amazing beer, but you're on an amazing run there.

Second, as everyone else points out, you need to make a realistic business plan. One advantage of the realistic business plan is that you *might* want to see about getting investors to shoulder some of the burden. You say you have 140,000 equity in your house. That's not 140,000 in cash, that's you going 140,000 deeper into debt. I know you say you have zero debt--not sure if you're counting a mortgage--but clearly you'd be going into debt to access that 140,000. And that means that your first bit of profit goes to paying down that debt, and needs to be accounted for. Don't do this if the business can't pay that debt and you'll be relying on your day job to pay it down.

Third, you have to ask yourself if it's realistic to continue working your full-time job and 'have your wife run it'. I obviously don't know you or her, but you have to question which tasks you're trying to offload onto her and whether that's right. Clearly you are a talented brewer, and I'm sure she's got some skills that will help the brewery. Are you expecting to offload brewing tasks to her, or would you do that at night? Is she going to be running a tap room during the day? Is she going to be handling more accounting/paperwork, ordering, etc? You both need to make sure that you understand the division of labor *up front* so that she's getting as much satisfaction out of it as you are, as well as what it'll mean for your family and marriage. If she's at the brewery all day and then taking care of kids while you're at the brewery all night, it could take a SERIOUS toll.

Fourth, you're in Denver. This has the advantage of being a great location for a brewery, but also the disadvantage of being more saturated than most other cities. What are you planning to do to stand out from all the other breweries around?

All in all, I wish you the best of luck, but caution you to make sure you're going into this with both eyes open. As others have said, it's not the quality of the beer that makes or breaks a brewery, it's the quality of the business plan.
 
First of all, congrats on your competition success. I know a lot of REALLY accomplished brewers who make amazing beer, but you're on an amazing run there.

Second, as everyone else points out, you need to make a realistic business plan. One advantage of the realistic business plan is that you *might* want to see about getting investors to shoulder some of the burden. You say you have 140,000 equity in your house. That's not 140,000 in cash, that's you going 140,000 deeper into debt. I know you say you have zero debt--not sure if you're counting a mortgage--but clearly you'd be going into debt to access that 140,000. And that means that your first bit of profit goes to paying down that debt, and needs to be accounted for. Don't do this if the business can't pay that debt and you'll be relying on your day job to pay it down.

Third, you have to ask yourself if it's realistic to continue working your full-time job and 'have your wife run it'. I obviously don't know you or her, but you have to question which tasks you're trying to offload onto her and whether that's right. Clearly you are a talented brewer, and I'm sure she's got some skills that will help the brewery. Are you expecting to offload brewing tasks to her, or would you do that at night? Is she going to be running a tap room during the day? Is she going to be handling more accounting/paperwork, ordering, etc? You both need to make sure that you understand the division of labor *up front* so that she's getting as much satisfaction out of it as you are, as well as what it'll mean for your family and marriage. If she's at the brewery all day and then taking care of kids while you're at the brewery all night, it could take a SERIOUS toll.

Fourth, you're in Denver. This has the advantage of being a great location for a brewery, but also the disadvantage of being more saturated than most other cities. What are you planning to do to stand out from all the other breweries around?

All in all, I wish you the best of luck, but caution you to make sure you're going into this with both eyes open. As others have said, it's not the quality of the beer that makes or breaks a brewery, it's the quality of the business plan.

Thanks for the advice. I honestly have no idea where to start. My wife says she'd help but of course I would be brewing. I love the brewing side of this but my problem is I don't know if she's into like me and I'm not willing to lose a marriage over it. I do have a wealthy brother and family members who have offered to invest into the idea but I need to know where to start that's my issue. I don't have debt outside of my house but I'm also in a good spot financially right now so if I make a decision I need to be sure it'll pay off. Like you said I don't want to do something to put myself in debt that's a burden on my family and myself. I think I need to sit down put a realistic business plan together, talk to a lot of small breweries although I've tried and some of them are tight lipped and be realistic within myself. I honestly would like to find a job brewing at a small brewery 2 nights a week. I'd even donate my time to learn about how it works
 
Thanks for the advice. I honestly have no idea where to start. My wife says she'd help but of course I would be brewing. I love the brewing side of this but my problem is I don't know if she's into like me and I'm not willing to lose a marriage over it. I do have a wealthy brother and family members who have offered to invest into the idea but I need to know where to start that's my issue. I don't have debt outside of my house but I'm also in a good spot financially right now so if I make a decision I need to be sure it'll pay off. Like you said I don't want to do something to put myself in debt that's a burden on my family and myself. I think I need to sit down put a realistic business plan together, talk to a lot of small breweries although I've tried and some of them are tight lipped and be realistic within myself. I honestly would like to find a job brewing at a small brewery 2 nights a week. I'd even donate my time to learn about how it works

What is your background, career-wise? I know you mentioned HVAC, are you an independent contractor/small business owner, or do you work for a larger company? Making great beer is one thing (congrats on that by the way, that's an impressive resume you have going), but ultimately, running a brewery is a BUSINESS, not just making beer on a larger scale. As it sounds like you're beginning to realize, there are a ton of aspects to consider besides making good beer. I'd venture to say that good beer isn't even the MOST important aspect of having a successfully brewery, judging by the number of breweries around me that seem to be successfull and expanding despite the fact that, IMO, they're only producing mediocre beer, at best.

When you talk about keeping a full time job and brewing twice a week, some things to consider:

Who's doing the bookkeeping, both on the accounting side as well as regulatory? That's a big part of running a business.

Capacity planing and material ordering - you need to know how much beer to brew and when, based on what's selling

Speaking of - who is going to sell your beer? Are you going to have a tap room you have to staff, are you going to self-distribute (if allowed in your state), are you going to negotiate with distributors and get out and talk to bars and liquor stores to make sure they are going to give you tap/shelf space? Make appearances at local brewfests to pour beer?

There's a lot to manage and understand and track. As you're seeing, a business plan is a big first step. Go to a bookstore and get a book on small business planning if you need to. Think through things one at a time and make notes, familiarize yourself with all aspects of business and be realistic about how you will manage everything (and how much you can manage yourself vs. hiring help). Review your local and state laws for liquor licensing, zoning (even places that allow small businesses just about anywhere can get pretty restrictive if you start involving alcohol). Put together a high level startup cost list and cash flow plan to see how/when you can actually start paying yourself, and see if you can make it work.

Some breweries will accept volunteer help, but be forewarned it's not going to be brewing. Cleaning out and hauling spent grain, washing floors, washing bottles, maybe washing kegs, basically all the crap work no one wants to do. It will be on you to keep an eagle eye on what's going on around you, ask lots of questions, and use that time spent doing crap work to absorb as much data as you can to make it worthwhile.
 
What is your background, career-wise? I know you mentioned HVAC, are you an independent contractor/small business owner, or do you work for a larger company? Making great beer is one thing (congrats on that by the way, that's an impressive resume you have going), but ultimately, running a brewery is a BUSINESS, not just making beer on a larger scale. As it sounds like you're beginning to realize, there are a ton of aspects to consider besides making good beer. I'd venture to say that good beer isn't even the MOST important aspect of having a successfully brewery, judging by the number of breweries around me that seem to be successfull and expanding despite the fact that, IMO, they're only producing mediocre beer, at best.

When you talk about keeping a full time job and brewing twice a week, some things to consider:

Who's doing the bookkeeping, both on the accounting side as well as regulatory? That's a big part of running a business.

Capacity planing and material ordering - you need to know how much beer to brew and when, based on what's selling

Speaking of - who is going to sell your beer? Are you going to have a tap room you have to staff, are you going to self-distribute (if allowed in your state), are you going to negotiate with distributors and get out and talk to bars and liquor stores to make sure they are going to give you tap/shelf space? Make appearances at local brewfests to pour beer?

There's a lot to manage and understand and track. As you're seeing, a business plan is a big first step. Go to a bookstore and get a book on small business planning if you need to. Think through things one at a time and make notes, familiarize yourself with all aspects of business and be realistic about how you will manage everything (and how much you can manage yourself vs. hiring help). Review your local and state laws for liquor licensing, zoning (even places that allow small businesses just about anywhere can get pretty restrictive if you start involving alcohol). Put together a high level startup cost list and cash flow plan to see how/when you can actually start paying yourself, and see if you can make it work.

Some breweries will accept volunteer help, but be forewarned it's not going to be brewing. Cleaning out and hauling spent grain, washing floors, washing bottles, maybe washing kegs, basically all the crap work no one wants to do. It will be on you to keep an eagle eye on what's going on around you, ask lots of questions, and use that time spent doing crap work to absorb as much data as you can to make it worthwhile.

My career is commercial light industrial HVAC I make a good living. I've been doing this since I was 19-34 now. I do love my job but I always think about starting up a small brewery. As far as book keeping, finances, inventory that would be my wife. Management of the tap room probably my wife and myself and possibly my retired father in law although this is all a guess at the moment. I will definitely get a book on starting up a small business. My way of looking at this is if I can start a small brewery without risking bankruptcy I'd like to give it a shot. I can always fall back on my trade to make a living so I'm not worried about that. My problem is I just don't know where to start with a realistic plan but this forum has helped me figure out a direction to go in.
 
I realize this is now 4-mos old. But if you are still interested in learning what to do, I suggest you get in touch with Tom Hennessy at Colorado Boy Brewing. He has a course called the Brewery Immersion Course offered at his brewery and at least one other brewery in CO. I took his course at Echo Brewing in Frederick, CO back in 2014.

The cost of the course is $2,500 and it focuses on the business aspect as well as the brewing side. You'll also get some valuable QC/lab experience which I think most people just don't think about. The final day, I brewed an entire batch of red ale on the 7BBL system at Echo and that included crushing the grains the day before. I had their head brewer coaching me but I did everything. Once you are finished, you'll have access to their private forum where other alums can answer questions and you can visit their breweries for some valuable education.
http://coloradoboy.com/

In addition to the course, Tom has two books:
1. Brewery Operations Manual
2. Colorado Boy Brewery SOP - Every small start-up should buy this book. It is packed with very easy to follow SOPs for your brewery.
Tom sells the Brewery OP Manual at his site and I think Amazon still has it too.

Another book that is worth considering is:
Beer Law written by an attorney in Raleigh NC who runs the Beer Law Center. Believe me, there is a LOT of stuff you have not thought about.
https://www.amazon.com/gp/product/1542730880/?tag=skimlinks_replacement-20
http://beerlawcenter.com/

I'm now working on opening a small brewery that can brew 7bbls at a winery. I'm also 56yrs old and plan to retire from many years in the corporate world within the next 3yrs. I'm able to completely pay for my brewery out of pocket and my business plan does not include a section for financing or investors. My plan is to brew about 250BBL the first year and sell all of it if possible on-site in my tap room and upstairs at the winery tasting room. That is the tricky part because we have to operate as two separate businesses. That means I have to sell them the beer. I'll be in NC, so I can self distribute and just carry a keg upstairs when they need one.
 
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