So you’re thinking about cracking into the alcoholic beverage industry — cheers to you! It’s likely that you have more questions than answers at this point, but rest assured, you’re in the right place. At Brindiamo, we’re committed to helping you achieve success not only by offering sound advisory services, strategically introducing you to key players within the alcoholic beverage industry, and helping young companies raise the capital they need to achieve success but by providing you with the tools you need to make informed decisions.
The pressing question is: how much capital will you need to enter the alcoholic beverage industry? The straightforward answer is that it hinges on your specific business objectives. With numerous variables at play, there's no universal formula. In this post, we aim to provide a comprehensive overview of the factors to consider as you embark on your financial planning journey.
Recently, we explored the essential considerations for starting your beverage company and developing a robust business plan. This week, we turn our attention to the actual expenses associated with launching a distillery or brewery. Although there's no universal cost due to the distinctive nature of each venture, you can rely on a thorough and transparent breakdown to assist your budgeting efforts.
Success in the alcoholic beverage industry varies depending on your goals. For craft beverage makers looking to tap into the local market, success may mean something different than for entrepreneurs aiming to launch a full-scale distillery with a restaurant and tasting area. From our experience, establishing a thriving and scalable adult beverage business can come with a significant price tag, potentially costing millions. While you may not need all the funds upfront, a well-thought-out plan is essential to pave the way for a successful venture.
How much do you have available to invest? If you're considering funding the venture on your own, take the time to carefully assess your financial resources, taking into account expenses and potential salary needs. Keep in mind that this endeavor may require your full-time commitment. If your business plan involves seeking external funding, you'll need to determine whether you'll seek investments from friends and family, a bank, or professional investors seeking a solid return on their investment.
No matter how you choose to finance your business, it's essential to ensure that each transaction is conducted in a professional and compliant manner. Consider hiring a lawyer and an accountant to guide you through the process.
Don’t skimp on your preliminary planning costs. These start-up costs lay the foundation for your long-term success. Pinching pennies here isn’t a wise move! These initial costs can cover consulting fees for business and financial plan development, consultations with adult beverage experts, logo development, branding, package design, prototype development, market research, testing, and more.
Let's consider your vision when determining costs. Do you currently own the property? What infrastructure is in place? Are you renting? If your business plan includes a tasting room and retail space, be sure to plan accordingly.
Creating a top-quality adult beverage can be a challenging task, especially in a competitive market! Before finalizing your production methods, it's advisable to consult with various manufacturers to determine what aspects you can handle in-house and what may need to be outsourced.
Are you planning on purchasing or leasing equipment? What are the benefits of buying new versus used? Where will the equipment be housed during manufacturing? While you’re at it, consider sourcing and the cost of ingredients. Your product depends on your ingredients, so you’ll want to make sure your ingredients and bulk liquid sourcing options are top-notch.
As your business expands, it's natural for your aging and dry goods costs to increase. This growth is a positive sign that your bottom line is improving, making it an essential consideration for those entering the adult beverage industry.
Consumers often judge a bottle by its label, so working with an agency familiar with the distillery and brewing industry is key. Your branding plays a crucial role in the success of your adult beverage business. Make sure to allocate sufficient resources, both in terms of finances and time, to find the right marketing partner and experiment with various designs for your product. Discover a brand identity that resonates with you and stay true to it!
In order to excel, it's important to attract top talent. While it may be tempting to cut costs by reducing salaries, offering competitive pay and attractive benefits is crucial for securing the best sales, marketing, and brewmasters.
Ready to take the plunge? Contact Brindiamo Group for an honest assessment of how much you’ll need to launch your business. Our team is made up of veteran beverage industry entrepreneurs. We approach each project with passion, honesty, and transparency.