Craft brewing is one of the fastest-growing beer markets in the world. More than 9,000 breweries are operating in the United States alone, with new locations opening each year. For brewing enthusiasts and entrepreneurs wondering how to start a brewery, numbers that high can seem overwhelming. Yes, a lot of breweries are opening and operating in the U.S., but every single one got their start somewhere. So can you.
In this guide, we teach you how to start a brewery from the ground up. From your first brainstorming session and determining your business goals to securing financing and launching the business, we take you through the process step by step. Along the way, we review market reporting, share expert advice, and provide you with the actionable tips you need to open a successful brewery.
How to start a brewery in 13 easy-to-follow steps
1. Evaluate your position
Take stock of where you are personally, professionally, and financially. Ensure that you’re in an appropriate position to start, manage, and operate a brewery. With a 51.5% success rate, new breweries have about a 50/50 chance of failing in the first few years.
Before you seriously consider endeavoring into the brewing business, ask yourself a few obvious questions. Do you like brewing beer? Do you know how? Are you a people person? Does the thought of managing a brewery get you excited? Next, ask yourself tough questions, such as:
• Do you have the time? Will you have the time needed to dedicate to long hours, days, and weekends often required in brewery life? Most customers visit breweries in their free time, after work, and on the weekends. Are you willing and able to adjust your schedule to accommodate the required lifestyle?
• Are you financially prepared to take the risks associated with starting a new business? If the business went under and you lost your entire investment, would you be comfortable, or are you putting it all on the line?
• Will you work two jobs? Are you planning to continue working a day job and operating the brewery separately? If running the business won’t be your sole focus, you’ll likely need additional partners, managers, and staff to operate the business effectively.
• Is this the right time? If you have a lot going on right now, if life feels crazy, it may not be the best time to start a business. Launching a brewery requires a go-getter attitude and dedicating your focus to the business.
Before jumping in, try to quiet some of the noise in your life. Give yourself the ability to dedicate as much time and energy as possible to start your brewing business.
“The number one thing I recommend to anyone who is starting a business is to make sure that they have experience in the industry first. Getting behind a bar at a taproom, spending time shadowing a pro-brewer…the more hands-on experience you have as an owner, the quicker you can diagnose problems.”
–Scott Roth, President & Founder of Three Notch’d Brewing Company
2. Locate the need in your market
Before opening a brewery, research the existing market in your area. Note how many breweries exist in your county, nearby counties, and the region as a whole. Note the venue size, brewing style, and how the business operates, and answer a variety of questions about each location, such as:
• Where are they located?
• Do they benefit from steady foot traffic or street traffic?
• Which breweries are distribution-only? Which operate as open venues?
• Do they have a tasting room or event space?
• Do they sell food?
• Which breweries host large events?
• What kind of beer do they make?
• How popular are they? What do the reviews say?
Get to know your local beer market and find out what’s missing. Is there a populated part of town that doesn’t have a brewery within 20-30 minutes? Did a prime real estate opportunity just open?
If a beautiful commercial property opened in the middle of downtown. If there are a lot of other breweries nearby, it may not be a terrific opportunity, despite the optimal location. Your brand new business may perform better in areas with less competition. If the existing downtown breweries are consistently at capacity, however, the open property has a lot more potential.
Before deciding on a location, look at online reviews and the competition’s social media presence and talk to beer lovers in your area. Ask potential customers what they’re looking for in a brewery!
3. Craft a brewery strategy
With market research completed, it’s time to create a brewery strategy that fills in any gaps you found. Outline what your brewery is going to be like. A fun and creative part of the planning process, the strategy stage is where prospective brewery owners get to daydream about their future business. If you’re not sure where to start, begin with a creative brainstorming session. Dream up your future business by answering specific questions, such as:
• What is the concept of your brewery?
• What is the ideal location for your brewery?
• What is your design concept?
• What will your décor look like?
• What combination of services will you offer?
• What are your customer demographics?
• What marketing strategy will you use to appeal to target customers?
• What will your brewery offer that makes it stand out?
Think about how you intend to tackle product pricing, customer service, revenue, e-commerce sales, and so on. If you intend to host meetings or events, for example, determine whether you’ll allow planners to book event space instantly online or if they will need to communicate with an onsite event team. Outline community service strategies, sustainability objectives, and other initiatives that will help your brewery build a strong reputation.
In addition to business goals, define the objectives that you’d like to achieve as a new business owner. If you’re in the initial stages of learning how to start a brewery, your goals may include building a strong online presence, growing your local reputation, or attending at least one brewing conference before launch.
“Spend time at local breweries and pick the brains of anyone working there, from the guy scrubbing the toilets to the owner of the business.”
–Brad Cooper, Head Brewer at Steam Bell Beer Works
4. Get a clear picture of your finances
Before obtaining a loan or financing from an outside source, figure out your finances. Starting any business requires a financial investment and a brewery is no different. When considering how much you are able and willing to invest in starting a brewery, there are a variety of factors to consider, including:
• Are you purchasing or leasing property?
• Will you purchase an existing venue or are you building your own?
• Will you be maintaining a venue only or a venue with grounds?
• What are the business tax rates nearby?
• Are you opening a brewery in a rural area with cheaper real estate, or investing in commercial property in a high-traffic retail district?
After getting an estimate of the investment required, determine how much of your own money you are willing to part with. If you are starting the brewery with a partner, or multiple partners, determine how much each partner will be investing. Next, identify how much additional capital you will need to secure from lending sources and financial institutions. When you start a brewery, you want to assume as little personal risk as possible to avoid losing personal assets or draining your savings.
5. Write a business plan for the brewery
Before lending money for a new business, most financiers require a comprehensive, researched business plan from the potential proprietor. There are numerous free templates available online to help you write a business plan, but there are a few key areas every brewer should focus on, such as:
• About Me: Write a summary of what your business is all about. If you had an operating brewery right now, what would the “About Me” section of your website say? Identify the niche that your brewery will fill, as well as what will make your business stand out. Detail why you’re enthusiastic about brewing, as well as your business. Explain what you will bring to the table that nobody else can.
• Business Structure: Use this section of your business plan to detail how the business will run and who will run it. Are you the sole owner? Are you partnering with someone else or multiple investors? Will you file as an LLC? Will you manage day-to-day operations, or do you plan to hire management staff? Will the brewery strictly serve beverages, or will you need food service and catering staff as well? Will you host on-site events? If so, will you staff the events yourself or make your venue available to outside vendors?
• Market Outline: Detail the market value that your competitor research uncovered and discuss how your brewery will fit into the market. Identify your biggest competition, current market rates, demographics, and other details.
• Timeline: Outline your basic brewery building timeline. When will you purchase or build a venue? If the building needs renovations, when will you renovate it? Will you host a soft open, followed by a grand opening, or immediately open all the way?
• Marketing plan: Create a specific plan for getting the word out about your business. Outline your brewery marketing budget and venue marketing ideas (i.e., via social media marketing, video advertising, and email campaigns).
• Objectives and projections: Determine what your primary business goals and objectives will be. Define how you anticipate the brewery will perform financially, outline expansion ambitions, and how you anticipate the business will change in five years, ten years, and so on.
Before acquiring loans or approaching potential investors with a sales pitch, create a solid, supported business plan for your brewery. If you need assistance, a variety of free resources are available to help you draft a brewery business plan including:
• Craft Brewers Conference (CBC) presentations
• The Brewers Association’s Guide to Starting Your Own Brewery
• SCORE, a nonprofit SBA partner
• The Brewers Association Forum
“Things never go exactly how you plan them to but having a really solid plan and sticking to it helps when problems do arise.”
–Steve Seto, Founder of HolyCraft Brewery
6. Secure additional financing
Once your business plan is prepared, you’re ready to meet with financial representatives and lenders to secure additional financing for your brewery. There are a variety of financing options available for brewery owners, including:
• US Small Business Administration Loans
• Traditional bank loan
• Line of business credit
• Short-term business loan
• Merchant Cash Advance (MCA)
• Line of Credit (LOC)
The two most commonly utilized commercial financing options for brewers are traditional and specialty lines of credit. Financers offer traditional credit lines that are based on your business’s assets, or long-term financial assets, like real estate, stocks, or life insurance policies. Long-term assets also include projected business performance data, like cash flow and revenue projections. Banks and lending institutions review and analyze your assets before determining how large a line of credit they will offer.
Specialty credit lines are often based on short-term assets, assets that you hold for less than one year. Regarding a brewery, short-term (or near-term) assets may include prepaid expenses, equipment, cash, accounts receivable invoices, and more. Short-term assets tend to be more liquid than long-term assets, so they are used as backings for specialty credit.
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7. Select the perfect venue
Explore properties or land opportunities based on the business capital that is available to you, and determine what your brewery will offer to onsite customers. Will you have a fully operating kitchen that caterers can use during private events, or will your kitchen space include the minimal appliances required to serve bar snacks? Are you looking for a location with outdoor event space to host games, community events, concerts, or food trucks? Are you looking for a venue with special event space?
If you’re low on funds, consider leasing a business before purchasing a property. Help ensure that your brewery is successful without putting too many of your personal assets on the line; invest profits from a leased brewery into a permanent location instead. Once you’ve found the perfect location, complete the lease application or commercial purchasing process, and prepare to name the business.
“We’re basically just an old-school pub and I’m an old-school publican where things like clean beer taps and glasses and properly refrigerated beer is of the utmost importance.”
--Mick Bain, Royal Albert Publican (Winner of Beer & Brewer’s Best Beer Venue-2021)
8. Choose a memorable, marketable brewery name
Choose and register a catchy name. Your brewery’s name should be unique and distinctive, but also easy to remember, pronounce, and spell. It should differentiate you from your competitors, helping you stand out in your market. Select a name that you can own or trademark. Look for a name that is available for social media handles and available for registration with the U.S. Securities and Exchange Commission (SEC).
After selecting a business name and confirming its availability, form a legal entity with the SEC, separating your personal assets from the business’ assets. Most breweries file as an LLC, limited liability company, or an S-Corp. An S-Corp is a smaller corporation that is taxed only on its distributions, as opposed to both its income and distributions.
With your brewery name confirmed, create a recognizable brand identity to help customers connect with and recognize your business. Choose a color scheme, font, and logo that will be associated with your brewery and related marketing materials. Include branding on event marketing, online listings, and your social media accounts. Attach your logo to merchandise, such as branded clothing or customer brewery glasses, to create a cohesive image across all parts of your brand.
Ensure that online business listings are accurate and active so that your brewery appears in local search results. List your brewery on Cvent’s Supplier Network to reach thousands of active travel and event planners who source through the platform each year.
“You want to make sure that whatever the name is worthy of the time you’ve put into brewing.”
–Joe Connelly, Manager of Springdale Beer Company
9. Prepare the paperwork
Breweries, like restaurants, hotels, or other businesses, must have all of their paperwork to begin operating. Starting a brewery typically requires obtaining special permits and licenses. Consult with a variety of partners and professionals to ensure that your brewery meets the requirements in a variety of different fields, including:
• Legal
• Accounting
• Insurance
• Operations
• Renovations
• Industry Licensing
• Food & Beverage Licensing
In addition to meeting local standards for operating your business, breweries must also register with the TTB and submit a brewer’s notice before obtaining a state liquor license.
10. Register with the TTB
All breweries must register with the Alcohol and Tobacco Tax and Trade Bureau, or TTB. The TTB regulates and taxes the import and trade of alcohol, tobacco, and other U.S. goods. Brewery owners are required to submit a Brewer’s Notice application to the TTB to obtain operational approval.
A TTB Brewer’s Notice authorizes a brewer to produce beer for “produce beer for sale and, optionally, to operate a tavern on the brewery premises.” To receive the qualified authorization, brewers must submit a Brewer’s Notice application. A lengthy application, brewers must prove that they have met all of the requirements to open a brewery, as well as all of the beer regulations in the Code of Federal Regulations.
The TTB may require you to show a variety of documents to confirm that the business meets all brewery regulations, such as:
• A commercial property lease,
• A letter from the building owner approving business operations, or
• A thorough property description.
The Brewer’s Notice application is extensive and can take up to 150 days to process, so new business owners must submit their applications to the TTB well in advance of their anticipated opening date. After obtaining a TTB Brewer’s Notice, determine whether you will need to obtain a state liquor license or acquire a brewer’s bond to guarantee your brewery’s tax payments occur on time.
“Make sure you have a solid business plan and good corporate documents. They are important to properly set in place and complete so everyone involved knows what the road map is and how you handle any disagreements should they arise.”
–Dan Schwarz, Co-founder & CEO of Lift Bridge Brewery
11. Hire and train your team
As with any business, running a successful brewery requires having competent, friendly, and well-trained staff throughout the ranks. Many new business owners choose to start by hiring management and executive departmental positions first. As managers, team leaders, and department heads are often responsible for the tone and pace of a team, consider beginning the hiring process at the top of the ladder and working your way down.
Create a strong plan to reach reliable new business hires. Start by advertising a strong starting wage and included employee benefits. Design a smooth and easy interview process that appeals to the type of candidates you are most interested in. Post job listings that attract candidates who share your vision and will fit in well with management staff. In position listings, clearly outline your brewery’s core values, mission, and approach to collaborating with employees.
After hiring ample staff, onboard and train the staff in preparation for launching the business. Invest in strong employee training for three primary reasons:
• Preparation. A well-trained staff will help ensure that your business is set up for success upon opening. Each department and team can manage their tasks and are comfortable working with one another.
• Satisfaction. A well-trained staff is better able to handle stressful situations that they encounter, as well as feel confident in their role and decision-making abilities. Investing in employee training can raise both employee and customer satisfaction levels.
• Retention. On average, 40% of employees who do not receive ample training leave their position within the first year of employment, according to Sh!ft, an e-learning institution. Help keep employee retention rates high by providing all brewery employees with appropriate training.
Having a dedicated team, from management to hourly staff, will help your brewery become a leader in the market. Provide additional training to front-of-house team members to foster strong customer service skills. If your brewery also operates as an event venue, train each staff member on venue rental basics so that each member of the team can function as a salesperson for the business.
Build a business that is known locally for being a wonderful place to work. Market your brewery as a small business that cares about and rewards employees to attract a winning team. Reward and celebrate your employees. Make recognition a core value of your business, but, most importantly, provide employees with a wage and benefits package that makes your brewery a valuable business to work for.
“We want to know that the people we’re hiring are in this for the long haul and are determined to do their job the best they can. We try to make it easy for them by creating an amazing place to work.”
–Kelly Schultz, HR Assistant at Ska Brewing in Durango, Colorado
12. Prepare a marketing plan
It’s time to get the word out about your business and drum up some excitement before opening day. Create a targeted campaign aimed at promoting the grand opening of your brewery, and put the marketing plan outlined in your business summary to use.
If your brewery’s business model relies on event revenue, for example, target event planners with opening day marketing materials. Drive wedding business to your brewery by listing your venue on Cvent’s Wedding Spot, the wedding venue-sourcing platform thousands of planners and engaged couples turn to each year. Invite local wedding planners, professionals, and vendors to attend opening day festivities.
Do Millennial or Gen Z consumers make up the majority of your target audience? Try launching an interactive campaign on TikTok, Instagram, or other visual social media platforms. Send promotional mailers, email blasts, and newsletters to local community leaders, and partner with local businesses for cross-promotional opportunities.
Boost your brewery's business with weddings
13. Launch your business
The planning process is over. You’ve trained the staff. You’ve crossed all of the legal t’s and dotted the financial i’s. You’ve put in the hard work, and it’s time to officially open your brewery!
Turn opening day into a major event. Host games, book live entertainment, invite food vendors, and display the best your brewery has to offer. Highlight event space, show off special services, and promote upcoming brewery events. At the grand opening, focus on building strong relationships with local supporters and customers by putting your best foot forward and making your brewery’s unique vision the centerpiece of launch day.
“Opening your own brewery is an indescribable experience. It’s a choose-your-own-adventure game that’s equal parts terrifying and exciting.”
–Grace Weitz, Managing Editor of Untappd for Business
Now you know how to start a brewery!
With the tips, tools, and resources you need to open a brewery, you’re ready to get brewing. Keep in mind, however, that operating a profitable business goes far beyond opening day. After learning how to start a brewery, new owners should invest their time and energy into running a successful operation, continuously attracting the attention of new customers.
Up next, we take a deeper dive into brewery marketing and explore various tips that your team can utilize to boost your brewery marketing plan. Follow along to uncover the importance of clear messaging, location-based advertising, SEO content, and more.
