Wanting to start a Microbrewery

Homebrew Talk - Beer, Wine, Mead, & Cider Brewing Discussion Forum

Help Support Homebrew Talk - Beer, Wine, Mead, & Cider Brewing Discussion Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Thanks again to everyone who posted. I have read all the advice so far and it helps a lot. Brewing beer really isn't a "passion" as I am just interested in it. Therefore, going commercial will not crush any passion of mine. Brewing beer is work to me and will remain that way. Before I ever started brewing I wanted to get into business. So when brewing came along I kind of put each together. I chose a Microbrewery simply because I want to be able to rapidly expand into a large commercial brewery. Hence, expanding locations where my beer would be dominate. But that is a long journey ahead no doubt about it.

So here it is:

Business Administration - BS degree ~ 3 years to go, spend that time planning
Masters Degree ~ not sure if I need it
Brewing experience ~ several pubs where I live, I will try to get work even if I have to volunteer.
Brewing Recipe ~ Try to find beer competitions and win ;)

I live in Palm Beach County, FL. I need to find some beer comps. scheduled 6 months from now.

That is roughly my plan. Add in if you please.
 
Brewing beer really isn't a "passion" as I am just interested in it. Therefore, going commercial will not crush any passion of mine. Brewing beer is work to me and will remain that way.

Honestly?

If it's not a *passion*, forget about it. The one constant you hear from EVERYONE in the industry is how difficult it is. This isn't a business where you're likely going to make a lot of money. This is a business people get into because they absolutely love it. I've gotten to know a few people around here who have or are giving the commericial side a go; they all have a tremendous passion for what they're doing. The competition is absolutely brutal.

Go to school, talk to people, get some experience in the business if you're interested, but do some internships in other areas as well. If brewing isn't something you absolutely love, something you dream about, something you think about constantly... there are lots of other businesses with better odds of success.
 
If you love it...do it! There is no substitute for doing what you love and getting paid for it! If you love the work, then it's just a bonus that you get a check at the end of the month.

I'd recommend a business degree, or at least a business minor. Even just a business minor will involve classes like Financial Accounting, Managerial Accounting, Intro to Marketing, Business Law, Intro to Management, etc. These are all classes that would have something useful for you in starting up a business - any business, not just a microbrewery. You can use this idea for a microbrewery in class projects, and refine your ideas over time. Network with classmates, get people in graphic design to make you some marketing tools (logo, letterhead, menus, labels, etc.).

Many cities have classes put on by the government to inform and help people wanting to start up their own business. These programs will have information on what you need to start up a business, how to formulate a good business plan, and may even have an avenue for you to get some financing through the city itself. On top of all that, you'll probably meet some other people starting their own businesses and you can help each other out.

One more very important thing. Don't do it all yourself! Find quality people you can trust, and who are professionals that know MORE than you do. Ask them questions, and if you can afford it...HIRE THEM. Older people with years of experience in business, brewing, construction have more experience than you will have for many,many years. Don't be afraid to ask for help...and of course having some homebrew to dole out doesn't hurt either. Good luck and keep us posted!
 
Draft magazine has an interview with Jim Koch and Sam Caligione in their most recent issue. One of the questions was about people starting breweries.

Jim Koch said something along the lines of (I'm paraphrasing) "Over the last 24 years I've seen a lot of people start businesses in brewing with the sole purpose of making millions of dollars and they've all failed. There have been people that made millions of dollars doing this, but that's not what they set out to do. They do it because they love it and they happened to be successfull"

Sam Caligione said something along the lines of (paraphrasing again) "If you're going to do this for a living you had better love it, because it's where you will spend all of your time. In this business you don't get to leave the office at 5 and go be with your family."
 
I agree that having a passion for something gives you motivation and allows you to spend all day doing it. Thing is, I don't have a passion for anything. The main reason I like brewing is seeing the reactions of people who try it. Pleasing so called customers would be the closest thing to a passion of mine. Starting a microbrewery and knowing that people are buying my product and like it(without bias towards me) would push me on. The huge difficulty of succeeding would be my "passion."

I give away my homebrew. I don't brew for me, I brew for others. I suppose one might call that business. If so, then that's what I will have.

We'll see
 
I don't want this to sound condescending, because that's not how I mean it....

You're young. Don't stress about it. Try different things, take different classes, get some internships. Sounds to me like you're not ready to try and start a company (gotta be honest), and I can't imagine you're in a position to be able to get someone to bankroll you. Stick to school, learn how to write a business plan, learn how to market, learn enough accounting to be able to tell if your book-keeper isn't being forthright with you. You might decide after you graduate that you DO want to start a brewery; in that case, you'll have a much stronger foundation. You might do what I did, take a class on investments and get hooked on that. You might decide that business is a bunch of bollocks and you want to go to grad school for something entirely different.

But really, it sounds like you've still got a lot of crap to figure out for yourself. Don't stress about it, but don't do anything that you might well regret ten years down the line (like dropping out of school to take a $10/hour job cleaning out fermenters, when you're not desperately in love with brewing).
 
Passion and common sense. That's all it takes.

Passion: Do what you love and the means to do it will come.

Common Sense: There will be many things along the way that will present themselves to you as challenges, problems, hurdles, walls. An education will help to naviagte these things but it's not totally necessary. You must always be asking yourself; What, Why, How. Well thought out answers will be the foundation of your plan and the plans within the plan. I work with MBAs that can't manage their way out of a crumpled up spreadsheet. I am a high school graduate and I manage a division of our company with a $20M P&L. It was $5M when it was dumped in my lap. My grandfather built a hugely successful plumbing company starting with a toilet plunger and a bicycle. He dropped out of school in the 7th grade. He always focused on a common sense approach. I believe in his example.

That said; much of the advise already given is good advise. You're in school now, you should stay there and accomplish that goal. Continue to brew and get good at it, learn by reading, doing and listening. Develop your signature style and what you want your product to be, how you want it to be received. You need to be consistent. Maybe find a local micro and get a job there doing whatever they would have you do. Be a sponge. You want to know as much as you can. Find out the local distribution laws and licenses to sell beer commercially. Get it done. Find a local pub or bar that sells micros, develop a relationship with the owner and discuss what it would take for them to carry your beer, even if only a couple cases at a time. This is your testing ground and word of mouth will originate here.

Start with the idea of getting one bar to sell your beer and build your plan backwards from there. What does that journey look like? What would be the second to last thing that would have to happen before the day your delivered your first case or keg? What would be the third to last and so on. Think this way and soon you will arrive at what you need to do first, or as it works out... next.

A goal is just a dream with a deadline.

And as the Japanese proverb says:
"A plan without action is a dream. Action without a plan is a nightmare."
 
I agree that having a passion for something gives you motivation and allows you to spend all day doing it. Thing is, I don't have a passion for anything. The main reason I like brewing is seeing the reactions of people who try it. Pleasing so called customers would be the closest thing to a passion of mine. Starting a microbrewery and knowing that people are buying my product and like it(without bias towards me) would push me on. The huge difficulty of succeeding would be my "passion."

I give away my homebrew. I don't brew for me, I brew for others. I suppose one might call that business. If so, then that's what I will have.

We'll see

If you "don't have a passion for anything" then I strongly, STRONGLY suggest that you don't set yourself on rails for this.

At 21, you're going to change your mind about this the way I change socks. I'll bet money in 5 years you'll be interested in something else.

As is, I've owned and run and worked in a small business (3 people, is that small enough?) and the business alone took up 40 hours a week. If you're cool with the idea of 80 hours a week minimum of hard work, and no promise of profit or even stability, then go for it. I'm going to say you're not though, since you're 21 and don't even have a 2 year degree under your belt yet. It takes a HUGE amount of dedication and motivation. If you can't pursue your education with that much zeal, you're setting yourself up for pain and stress like you wouldn't believe with a business.
 
Passion and common sense. That's all it takes.

Passion: Do what you love and the means to do it will come.

Common Sense: There will be many things along the way that will present themselves to you as challenges, problems, hurdles, walls. An education will help to naviagte these things but it's not totally necessary. You must always be asking yourself; What, Why, How. Well thought out answers will be the foundation of your plan and the plans within the plan. I work with MBAs that can't manage their way out of a crumpled up spreadsheet. I am a high school graduate and I manage a division of our company with a $20M P&L. It was $5M when it was dumped in my lap. My grandfather built a hugely successful plumbing company starting with a toilet plunger and a bicycle. He dropped out of school in the 7th grade. He always focused on a common sense approach. I believe in his example.

That said; much of the advise already given is good advise. You're in school now, you should stay there and accomplish that goal. Continue to brew and get good at it, learn by reading, doing and listening. Develop your signature style and what you want your product to be, how you want it to be received. You need to be consistent. Maybe find a local micro and get a job there doing whatever they would have you do. Be a sponge. You want to know as much as you can. Find out the local distribution laws and licenses to sell beer commercially. Get it done. Find a local pub or bar that sells micros, develop a relationship with the owner and discuss what it would take for them to carry your beer, even if only a couple cases at a time. This is your testing ground and word of mouth will originate here.

Start with the idea of getting one bar to sell your beer and build your plan backwards from there. What does that journey look like? What would be the second to last thing that would have to happen before the day your delivered your first case or keg? What would be the third to last and so on. Think this way and soon you will arrive at what you need to do first, or as it works out... next.

A goal is just a dream with a deadline.

And as the Japanese proverb says:
"A plan without action is a dream. Action without a plan is a nightmare."

all great advice. however one thing that wasnt mentioned that i think must be stressed is that all of this takes TIME! the amount of time required to establish a quality product (especially with minimal brewing experience) and more importantly, a quality customer base is quite substantial. In this business, the reason most people fail is because they think that they have an amazing beer that will change the way people drink. you may have a great tasting beer, but guess what? so do the other million homebrewers in america. you cant just take some recipe you came up with and take on the cut-throat environment of commercial brewing without the proper planning.

My father has been in the beer business since he graduated from high school starting by slinging beer in warehouses and then moving up to distribution and now he owns a successful carryout which i will take over after his retirement. however, i am going to school to get my degree and be able to comfortably support a family. when the time comes for me to take over, i will, but im not banking on it for my primary income.

although that may not necessarily apply directly to brewing, this is the same market you are hoping to one day be a part of. Ive been around the beer business my whole life and in my opinion, it is foolish to give up on everything else and depend on this to immediately support your lifestyle. my advise is, as many others have said, be a sponge. learn as much as you can, brew as much as you can, sell the beer you brew in your spare time to local bars and carryouts. but most of all STAY IN SCHOOL, start a career and if your brewing ventures take off hey you've accomplished something all of us only dream of. if not, you still have a career to fall back on and a very fun hobby to do on the weekends.

just my two cents
 
I might be repeating some advice posted earlier but here is my take:

~ If you have an interest in business, get a 4 year Business Degree and study hard. This is paramount to anything else!!!! Also mix in electives in Operations, Marketing, Accounting, etc. Getting a 4 year degree will put you in the best position for anything in the future.
~While taking classes, continue to homebrew. 2nd biggest piece of advice because you like it and it is fun.
~Also while taking classes see if you can work for a local brewpub or microbrewery. This will give you an idea if you like it and will give you experience.
~After graduating with your 4 year Business degree, look into continuing your education in Brewing. Like the Masters program at UC Davis/Siebel Institute. I wish I was into brewing at your age and I knew about these programs, I would have explored these options. This plan would put you in the working world at 26/27, which is still very young.

Last piece of advice from me is to disregard the notion that life is about telling the world f u. This only helps if you are in a Punk band and will not help you in the real world.

Good Luck and have fun exploring all ideas.
 
What if one only wanted to market/sell his or her homebrewed beer to local liquior stores and pubs etc.?? What are the laws with the FDA etc. for selling beer made from home? I was thinking of doing this as only a part time thing from home more or less for fun but if it did well then maybe going micro brew etc. Thanks guys.
 
Think you want to open a brewery? Get a job in one. It is great fun and you can see if you want your career to be beer.:D
 
What if one only wanted to market/sell his or her homebrewed beer to local liquior stores and pubs etc.?? What are the laws with the FDA etc. for selling beer made from home? I was thinking of doing this as only a part time thing from home more or less for fun but if it did well then maybe going micro brew etc. Thanks guys.

You still need a license to brew, which means meeting health code. It's not something you can do out of your garage if you ever want to sell it unless you overhauled your garage. The gummint is pretty restrictive on selling alcohol in general, let alone making alcohol that will be sold.
 
What if one only wanted to market/sell his or her homebrewed beer to local liquior stores and pubs etc.?? What are the laws with the FDA etc. for selling beer made from home? I was thinking of doing this as only a part time thing from home more or less for fun but if it did well then maybe going micro brew etc. Thanks guys.

Selling much of anything to be consumed out of ones home is virtually impossible. First is the fact that you need to pass food/health inspection. If all your equipment isnt FDA approved for food, forget it. Especially if its as ugly as BierMunchers :D.

Second, you can't produce food for consumption in the same kitchen that you LIVE in.

Third, zoning laws. Even if you built a completely separate building on your property you may not be able to commercially sell anything you make if you aren't in a residential/commercial property tax zone.

Oh yeah..and then there is the whole "I'm producing alcohol thing". Thats another bunch of red tape.
 
Back
Top