Open A Brewery
In 26 Easy Steps
One of the baffling things about starting a brewery is; where do you start? I thought it might be informative to outline the basics I believe you go through to get your doors open. That’s not to say this list is complete. It is simply an outline, and what you are doing will depend on the type of brewery, how many partners you have, your location and so on. Also I could write pages on each one of these steps, but if it’s too long I will lose you. Let me be brief and at least get you thinking about these steps.
Organize Your Funds. You already know you want to do a brewery, but at this point how much money can you come up with? First off, look at what you personally can get. Then there are your relatives and friends. This can be loans you pay back (don’t sell interest in your brewery for money if you can avoid it). Finally look to a bank in the form of an SBA, or perhaps even an equity investor if you need to. After writing just this paragraph I should do a news letter on funding: it’s a huge topic.
Find A Location. By now most people know I favor finding a restaurant for rent. It will save you buckets of money, and also time. Really, you can’t move forward in a serious way if you don’t have a possible location. A good location will push the whole process. Also and most important, check that the building is zoned for what you want to do.
Set Up Your Company. You found a great location and it’s time to get serious. You next need a business entity. Most choose a Limited Liability Company (LLC). It’s fast and cheap to do. Personally I like Corporations, with a Sub Chapter S election. My advice - which isn’t legal advise - is to speak with a lawyer and an accountant to see what they recommend.
Open A Bank Account. You are at the point going forward where you may have to start writing checks. When you set up your company, your lawyer will have told you that you need to invest some money into your company to make it legitimate. I would invest about $5,000. After that I would list all other money that you personally put into the brewery as a loan (This can be paid back to you at some point with interest). By the way, you can’t set up a business account at a bank until you have company organization papers and a tax I.D. that you can show the bank. They want to know you are a real business.
Building Inspector Walk Through. You have indicated to the landlord you want to lease your space. You have penciled out a layout for the brewery as well. You will save yourself a lot of headache if you can get someone from the building department to walk through with you. Show them what you’re thinking. If there are any problem areas, ( maybe you need to sprinkler the whole place), the inspector will let you know before you sign the lease. It will also let the building department know that you will work with them, and they will appreciate that.
Sign a Letter of Intent. This will lock the space in with your landlord and you can do more due diligence about the location without worrying that the landlord will lease it out from under you.
Engage an Architect and Engineer. If you found an existing restaurant you may not need either as your remodel may not be structural. You buddies over at the building department will let you know.
Sign Your Lease. With any luck the landlord will allow you to sign only as your business entity, but most likely you will have to sign a personal guarantee as well. Here we go!
Set Up Your Web Site. Hopefully you have already done google searches to see if anyone else is using the name you want to use. This is another topic that deserves more depth. In addition, make your logo. Do it professionally and don’t cheap out! This will be selling your brand for the next twenty years.
Get Your Utilities Set Up.
Submit Plans and get a Building Permit. Typically you are allowed to demo without a permit, which could save you a week.
License Applications. Really submit these the same day you sign your lease. The federal license (TTB) and your state license take time. You can start filling all this out as soon as you have a location decided so that you can submit as soon as possible after you can show you have possession of the space.
Set Up Your Books. Depending on the type of accounting software you have, get a bookkeeper to set this up. You are writing checks now and they need to be coded into the right categories. A bookkeeper can do this quickly. You are too busy to do this yourself and they are worth every dollar.
Start Gathering Your Equipment. This is the most fun stuff. If you have a garage or a place to store things, you can save a bunch of money buying used from places like Probrewer or possibly Craigslist or eBay. If you are ordering new, expect it to take three months or more.
Buildout. This is the ongoing process of building your brewery. Expect it to take at least three to four months, even with an existing restaurant.
Order Your Point of Sale System -(POS). There are so many to choose from.
Order Your Sign. Surprisingly, this takes a while to not only make the sign, but to also get approval from the local government to put it up.
Order Growlers, Merch, Cans, Labels.
Set up Purveyor Accounts. This will not only be for your hops, yeast and grain, but also any food, wine, and beverages you are going to sell.
Final Building Inspection and Health Inspections.
Product Deliveries. You will start taking delivery of grain, hops, yeast, food, wine, that sort of thing.
Make Employee Checklists. These will guide you as train your employees. And you will use these checklists for the day to day work that needs to be done.
Staffing Interviews.
Training Week. This is some of the best money you will spend. Take a week and have your staff serve invited people as the best way to practice. This is where your employees can not only make mistakes, but you can also shake down all those great ideas you had, to see if they were really practical. Additionally, your invited guests will become your goodwill ambassadors in your community, feeling that they had a hand it helping you open.
Inventory Before Opening. At this point you want to know what you are starting with. You will need this beginning inventory information when it comes time to determine what you have sold. I cover this in another newsletter here.
Grand Opening. The before this day, clean everything and get ready. I suggest you have a few hours alone - just you - in your brewery. Pour yourself a beer, sit down and appreciate what you have done. There is no feeling like it. OK, now during your opening party stay sober so you can keep an eye on everything. Also, set a time limit for the party to end. If 9:00, then tell the bartender to leave the bar at that time, so it is impossible for your guests to get anything more. If not they will drag it out into the wee hours. Once everyone is gone, clean and get ready for your real hours of business. That is going to feel great. Finally, there will be money coming in, instead of out!
One Step after Another!!