Crafting a solid business plan is critical for starting a successful beverage company. The U.S. beverage market is a $354.2 billion industry with alcoholic beverages making up 60% of the revenue. This provides a lot of opportunities for growth if you are looking to start a profitable business.
By thoroughly researching and creating a detailed business plan, you can reduce errors and increase the chances of a successful start for your beverage company.
Launching a business from the ground up demands significant drive and passion. To ensure your venture prospers, it's vital to pinpoint market trends and strategically position your brand for success. Some entrepreneurs may hastily assume their product appeals to everyone and proceed with insufficient data, but it is imperative to stress the necessity of comprehensive research before launching. As distiller Ralph Erenzo noted in Inc., the liquid inside the bottle is important, yet equally crucial is the brand you develop around it and the narrative you share.
This analysis should include local, regional, national, and international competitors to help you identify gaps in the market that your product could fill. On a local and regional level, you’ll often find other business owners are willing to exchange information and personal experiences to help another local business get a head start. Achieving success at this stage will not only enhance your marketing standing but also pave the way for exploring additional financial opportunities. Starting from the grassroots level will allow you to fine-tune crucial business aspects before aiming for international recognition in your long-term strategy.
How do I differentiate from my competitors?
What value does my adult beverage give?
What are my main sales channels?
Who is my target demographic?
Now that you’ve identified who will buy your product, it’s time to formulate how you will make it.
Certain beverage companies manage their own breweries, distilleries, and vineyards. The alcohol industry is heavily regulated, so if you decide to produce your own product, it's essential to understand the complex legal requirements. Each state governs its own set of requirements, so you’ll want to look into the cost of the required licenses and permits to start production.
Sourcing production equipment and ingredients will require time, but there are plenty of opportunities to find quality options that fit into your budget. Before you can start producing your adult beverage, most states will require an inspection of your facility. Hiring a team of experts can help navigate these detailed steps to ensure you pass all the requirements to get started. The benefit of owning your operation is that it helps you maintain control over the quality of your product and manufacturing time and can reduce overhead.
Collaborating with a certified adult beverage manufacturer is another viable option for production. You'll find many manufacturers across the country that specialize in crafting various adult beverages. It's highly recommended to avoid finalizing any agreements with a manufacturer over the phone. Instead, schedule onsite visits to engage in discussions and observe their efficiency firsthand.
In a recent article from Micro Brewer, one owner says, “I’d say the most important thing would be to know the equipment manufacturer that you buy from – make sure you trust them and that they do good work.” Partnering with a certified manufacturer might not provide as many cost-cutting opportunities as producing your own product, but you will save time and deal less with legal regulations as the manufacturer will already have everything necessary to start producing your product. Additionally, the cost of outsourcing will already be factored in packaging, bottling, employee salaries, and legal licenses.
Properly outlining a financial strategy is crucial to success. This attention to detail affords you the opportunity to have a realistic goal for growth and expansion. Down the road, when you start talking to investors, your financial strategy will play a pivotal role in their decision-making.
When you are putting together your plan, here are things to consider:
Sales forecast
Expense budget
Cash-flow statement
Income projections
Assets and liabilities
Breakeven analysis
Brindiamo Group is a team of veteran beverage industry entrepreneurs with a unique approach to assisting business owners with development on all fronts to help you reach your goals. Contact us today to elevate your success to new heights.