Starting a brewery has been a recent trend for entrepreneurs and passionate beer lovers over the past few years. However, while it may seem as though it’s all fun and drinking games, there are serious considerations to take that ensure the success of your brewery. First and foremost, protect your hard-earned investment with Michigan Brewery Insurance and follow these critical steps to success.
Invest Time
Not only does starting a brewery require an abundance of time and money, but owners should expect plenty of delays. CNN Money states this is partially due to a tremendous amount of paperwork that goes along with opening a business in one of the most highly taxed and regulated industries in the country. Be prepared to stretch out your timeline to accommodate all the regulations, paperwork, permits, equipment install, and more.
Keep a Cushion
Michael Kane of Kane Brewing Company recommends new entrants to open up their brewery with ample working capital beyond the initial start-up costs as it is difficult to get your hands on expensive equipment because demand is so high. This will also provide a cushion for any unprofitable months during the start-up of your brewery.
Don’t be Stingy
As this is a capital sensitive industry, profits earned should be reinvested in the business. From new equipment to more employees, there is always something that needs investing- it’s a never ending process.
Quality is Key
Especially as there is so much competition these days, it’s imperative that you focus on crafting exceptional quality beer. For example, the Brewers Association stated that between 2007 and 2013, the amount of craft beer produced in the U.S. nearly doubled to 15.6 million barrels. As Kane bluntly stated, “If you’re not in this to make quality beer, then don’t waste your time.” With that said, make a product you are proud of. Remember, quality is key!
At Capital Insurance Group, we understand the risks involved with starting your own business. We are here to protect your investments with quality insurance solutions that are custom tailored to meet your needs. To learn more about how we can work for you, contact us today at (888) 296-0418.