How to Write a Craft Brewery Business Plan

The craft brewery industry has been growing at a substantial pace across the US in the last few years based on research from our business plan writer.  Further, the increased number of craft brewery organizations opening throughout the US has also sparked the need for craft brewery business plans. 

There are numerous reasons why the craft brewery industry is growing at an exponential rate.  First, appreciating craft-brewed beer has been growing in popularity in our society.  This demand has fostered a continuous influx of new craft brewery businesses across the US.  A second reason for the increased demand for craft brewery companies is that states and local governments have been loosening regulations and starting in owning craft breweries.  A final reason for the influx of craft brewery companies is that they are excellent supplements to traditional bars.

As the demand for craft breweries continues to grow, more and more craft brewery businesses will be entering the industry.  To help craft brewery businesses start and grow, here are some tips and tricks for best practices in writing a craft brewery business plan.

Executive Summary for a Craft Brewery Business Plan.

The executive summary section for a craft brewery business plan should focus on the important aspects of the company’s internal and external environments.  For craft brewery, an important topic that should be briefly discussed would-be competitors in the marketplace.  For example, because the craft brewery industry is growing substantially, new competitors are always entering the market with new and improved concepts or brews.  Because of the continuously changing environment, make sure to briefly touch on how your organization will evaluate and respond to new competitors entering the marketplace.

Company Information and Location for a Craft Brewery Business.

The company information section of a craft brewery business plan should highlight and discuss the benefits of the company’s location.  Not only does a craft brewery need enough space to actually brew the beers.  But they also need storage and don’t forget tables and barstools for customers to appreciate their craft brews.  Because the need for a prime location with ample space is a top priority for craft brewery owners, make sure to go in-depth as to the benefits and strategic positioning of the location selected for the brewery.

Product Description  and Competitive Advantages for a Craft Brewery Business

The product description and competitive advantage section for a craft brewery should focus on specific aspects of the organization.  In the product description section, make sure to discuss and highlight specific beers that are, or will be, served, which are made on-premise.  Also, if there are other beers offered and served, make sure to address the selections as well.  When discussing other beers served, make sure to describe how your beer selection will complement or support your craft brews.  As for the competitive advantages section, hopefully, one of them will be your craft brews.  Because of this, also describe how your craft brews are going to set you apart from competitors in the area.  Is it taste? Appearance? Calories?

Target Market for a Craft Brewery Business Plan

The target market for a craft brewery may include beer-drinking enthusiasts, local residents, and or office workers in the area.  Regardless of which target market the organization selects, make sure to do research to justify your selected target market.  For example, if your craft brewery is in a residential neighborhood, then local office workers may not be the best target market.  By selecting and justifying a target market, the organization may then best align its location design and advertising activities with the appropriate demographic selected.

Industry research for a Craft Brewery Business Plan

The industry research for a craft brewery business plan should start at the national level.  Important websites to visit would include the Brewers Association, Master Brewers Association of America, and the Independent Craft Brewers Association.  In visiting these websites, and others, make sure to gather important craft brewery statistics and identify up-and-coming trends in the craft brewery industry.  Once this research is complete, then document the information in your business plan and conduct your competitor analysis.  The competitor analysis should include reviewing local competitors, as well as regional competitors whose business models are in line with national trends.

Owner and Management Section of a Craft Brewery Business Plan

The owner and management section of a craft brewery business plan should focus on answering the question of why the owner and management team are qualified to start and manage a craft brewery.  This task may be accomplished by describing previous job histories, experiences with brewing, or extensive research in the industry.  Once the justification for starting and leading this organization is completed, then the section should outline the various job positions that will need to be filled in the organization.  Possible job positions may include brewers, servers, bartenders, and an executive team.

Funding Request for a Craft Brewery Business Plan

The funding needs for a craft brewery often require substantial capital investments.  Not only does a craft brewery need to lease or purchase a facility, but the facility needs to be large enough to accommodate machinery needed for brewing, storage space, and ample room for customers to appreciate brewed concoctions.  Because of the substantial capital need, when creating a funding request for a craft brewery business plan, make sure to utilize specific categories that need to be addressed in your startup process. 

Categories may include brewing equipment needed, tables, chairs, and bars, decor, and working capital.  In each one of these sections, make sure to align it with a dollar amount but avoid providing too many details in these categories.  For example, there is no need to specifically state how many ounces of hops will be maintained and the aligned dollar amount for each ounce.  Too many details lead to confusion.  Just keep it simple but show the categories required for funding.

Financials for a Craft Brewery Business Plan.

When doing financials for a craft brewery business plan, start with your anticipated daily sales.  In the daily sales, make sure to break down your craft brewery sales, food sales, and other beer sales.  From this foundation, then deduct the variable cost as well as monthly fixed costs like leasing costs, wages, and utilities.  Once this is done, then you finally have a basic one-month projection.  At this point, utilize growth percentages to project your next five-year profit and losses for the business.  In following this process, you will be able to write up a solid assumptions page to help justify your financial projections.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  As always, if you need help with a business plan or financial projections, just send us an email or give us a call. 

Phone: 321-948-9588

Email: Paulb@Qualitybusinessplan.com

 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Tutor With PaulQuality Business Plan, and Quality Business Consultant.

Date: 9/8/2020