Do you want to start a microbrewery and need to write a business plan? If YES, here is a sample microbrewery business plan template & feasibility report.
Okay, so we have considered all the requirements for starting a microbrewery. We also took it further by analyzing and drafting a sample microbrewery marketing plan template backed up by actionable guerrilla marketing ideas for microbreweries. So let’s proceed to the business planning section.
Table of Content
- 1 Why Start a Microbrewery?
- 2 Microbrewery Business Plan Executive Summary
- 3 Our Product
- 4 Our Mission and Vision Statement
- 5 Microbrewery Job Roles and Responsibilities
- 6 Microbrewery SWOT Analysis
- 7 MARKET ANALYSIS
- 8 Our Target Market
- 9 SALES AND MARKETING STRATEGY
- 10 Publicity and Advertising Strategy
- 11 Our Startup Budget and Expenditure
- 12 Microbrewery Financial Projection
- 13 Our Startup Equipment Need (Budget)
- 14 Generating Funding / Startup Capital for Green Life Microbrewery®
- 15 Sustainability and Expansion Strategy
Why Start a Microbrewery?
If you are a lover of beer, or know those who may be in love with beer, then you may want to agree that it can be a very wonderful moment when enjoying the rich blend of one’s favorite drink. Brewers no doubt know how some people fancy the relish of drinks, which is why they are daily looking for ways to get better at brewing, so that they can continue to serve their loyal consumers.
Once these consumers are addicted to a brand, they would have no time at all for other brands. It is for that reason that one who has an eye for great tasty beer might want to start or venture into the trade. There is therefore no contesting the fact that the sale of already manufactured beer is pretty much a different ball game from having to own your own brewery.
Whilst with the former you do not have bother yourself with how the drink is brewed, the ingredients involved to whip up a great drink, and what have you. Yet with the latter, you have to be involved and active with all the systems and processes of churning out a beer.
Starting a microbrewery company is the shortest cut to owning your own brewery business that affords you the opportunity to experiment with different flavors of beer. However, you might not be heading to the right path if you do not draw up a business plan. Here is a sample Microbrewery business plan template.
A Sample Microbrewery Business Plan Template
- Industry Overview
Starting a brewery plant is sure expensive and most entrepreneurs that have the plans to launch theirs might not have the start – up capital to achieve it. However, good enough they have the options of starting their own microbrewery business.
A microbrewery or craft brewery as it is called in some quarters is a brewery (plant) that produces a small amount of beer per time. It is indeed a small scale brewery that can’t be compared to the conventional brewery plants and it is usually owned independently. In order words, any entrepreneur who has cash and the brewing technique can comfortably start his or her own microbrewery business.
Generally, the selling point for microbreweries is characterized by their emphasis on their unique flavor, the quality of their beer and their brewing technique. Any brewery that has the capacity to produce less than 15,000 barrels of beer annually is considered microbrewery in the United States of America and in most parts of the world.
This is why most people who venture into the beer production business start microbreweries because it requires very minimal startup costs than when compared to a standard brewery.
Beer is one of the drinks that is generally consumed in most parts of the world, except for a few countries. Therefore there is a large market for beer no matter the quantity you produce per time, which is why starting a microbrewery business is considered to be a profitable venture.
No doubt, if you have the skills to brew beers of various flavors, then you need not waste time because you can turn your knowledge and experience into a money spinning venture by starting your own microbrewery in any city in the United States of America.
Records have it that loads of entrepreneurs started making money from microbrewery business as far back as 1970s. It started in the United Kingdom before spreading to other parts of the world. Owners of microbreweries became more creative and they were able to brew their own unique beer, as well as sell them in their own pub or restaurant. With that they were able to increase their productions and maximize profits.
Ever since the introduction of microbrewery in the United States in 1982, there has been a tremendous growth in the industry, so much so that the Brewers Association of America reported that in 2012 there were 2,075 regional craft breweries, microbreweries and brewpubs in the U.S. And they are indeed contributing their own quarter in the growth of the U.S. economy.
Microbrewery Business Plan Executive Summary
Green Life Brewery Company is a microbrewery that will be located at 500 S. Grand Central Parkway in Las Vegas, Nevada. The facility is close to the popular Market Center Las Vegas. We were able to secure a one-year lease of a vacant pub in the location and we are fortunate to secure a facility with an option of a long term renewal on an agreed terms and conditions that is favorable to us.
We can confidently say that our beers are going to be handmade from an all-malt mash in our uniquely built copper brew house and our brewery process is sure going to be a combination of the time-honored art of classical craft brewing and carefully applied state-of-the-art modern methods.
The facility we intend starting our microbrewery company from has the capacity to accommodate about 25 tables and a minimum of 100 seats. It also has enough space to accommodate our back office operations, storage room and microbrewery.
We will work towards ensuring that our microbrewery is designed and constructed in such a way that it will meet the expected standard required by the authority and in such a way that it will be relaxing and conducive for networking and socializing not ignoring the fact that at all – times good music (live band, karaoke and jazz et al) will be played at the background to create the ambience that our customers will cherish.
Green Life Brewery Company is all out to give beer lovers in Las Vegas value for their money. One thing that is certain is that Green Life Brewery Company will operate in the neatest of environment and excellent customer service will be what we are known for.
Much more than selling locally brewed beer in Las Vegas, we will create an environment where customers can network with each other in a relaxed environment whilst enjoying their brewed beer in our pub. Our aim of starting a microbrewery company is to help our highly esteemed consumers’ relief their daily stress while enjoying our well refined brewed beer.
From time to time, we will give beer lovers the opportunity to come to our pub to have a feel of some of the finest locally brewed beers in Las Vegas that is carefully crafted by us to meet their need.
There is no suspicion that we are not going to struggle to attract customers because of the positioning of our microbrewery and pub, but will continue to strive to build a loyal customer base by offering unique flavored beer in a relaxed and conducive environment. We will not restrict the sale of our locally brewed beer to our pub alone; hence we have mapped out distribution channels in and around Las Vegas.
Green Life Microbrewery Company is owned by Mr. Kingsley Johnson and his immediate family members. Mr. Johnson has well over 15 years of managerial experience in the microbrewery industry and he will be bringing the experience to the table to help build Green Life Microbrewery Company to become the number one microbrewery brand in Las Vegas.
Green Life Micro Brewery Company is established with the sole aim of selling locally brewed beer in different flavor to our highly esteemed customers in Las Vegas and environs. In essence, beer is what we sell, but we sell them in different flavor (taste) and in different sizes. Any beer lover who visits our pub is sure going to find the following types of beer;
- Pale Beers
- Amber Beers
- Dark Beers
- Hebrew Beers
- Gluten Free
- Organic Brews
Our Mission and Vision Statement
- Our vision is to establish a microbrewery in Las Vegas business that will be the melting pot of all lovers of locally brewed beer.
- Our mission is to establish a microbrewery business that will make available assorted locally brewed beer for lovers of locally brewed beer in Las Vegas and in all the areas where our beers will be distributed.
Our Business Structure
Despite the fact that we want to start a microbrewery business, we will not relent in building a business structure that will help us sustain our business and perhaps start selling our franchise faster than we anticipated. We have the plans of selling the franchise of Green Life Microbrewery Company once we are able to get it right in Las Vegas and we have set a 5 year target to achieve this.
In order to achieve our aim of becoming the number one microbrewery company in Las Vegas, we have perfected plans to hire the best hands in the industry; we want to build a business that can run on auto pilot. Excellent customer service will be one of the selling points for Green Life Microbrewery Company, which is why we have invested in continuous training of all our employees.
Our business structure is simple (moderate numbers of employees), but very effective and focused. As a matter of fact, a full-time bar manager will be hired to oversee the daily operations at Green Life Microbrewery Company.
The candidate has well over 10 years of managerial experience in the microbrewery industry and pub management. His responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and performing other daily managerial duties.
We believe that our candidate has the right experience for this role. We have put in place a profit-sharing arrangement for the manager which will be activated based on his performance for the first 2 years. With that we will be able to get a committed manager. Below is the structure we will build Green Life Microbrewery Company on;
- Chief Executive Officer (Owner)
- Bar Manager
- Bartender / Baristas
- Accountants / Cashiers
- Greeters / Customer Service Agent / Table Attendant
Microbrewery Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Microbrewery / Pub Manager:
- Responsible for managing the daily activities in the microbrewery and pub
- Ensures that the facility (pub and microbrewery) is in tip top shape and conducive enough to welcome customers
- Interfaces with vendors
- Reports to the Chief Executive Officer
- Attends to Customers complains and enquiries
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Responsible for procuring of raw materials and equipment
- Handles any other duty as assigned by the CEO
Bartender / Baristas:
- Responsible for preparing different flavor and types of beers for customers
- Makes lists of supplies in conjunction with the microbrewery and pub manager
- Ensures that each cup of coffee that leaves the kitchen is tailor made and meet the request of each customer
- Responsible for quality control
- Handles any other duty as assigned by the microbrewery /pub Manager and CEO
Accountant / Cashier:
- Receives payments on behalf of Green Life Microbrewery Company
- Issues receipt to customers
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the CEO / microbrewery manager
Greeters / Customer Service Agent / Table Attendant
- Opens doors and welcomes customers
- Ensures that customers feel relaxed and at home
- Handles customers enquiries
- Takes customers’ orders
- Serves customer
- Handles any other duty as assigned by the pub manager
- Responsible for cleaning the microbrewery and pub facility at all times
- Washes tumblers, and kegs et al
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the pub and microbrewery
- Handles any other duty as assigned by the restaurant manager
Microbrewery SWOT Analysis
Green Life Microbrewery Company is established with the aim of becoming the melting point of local brewed beers in Las Vegas and environ. We know we can’t achieve this if we do not look inward to identify our strengths, threats, weaknesses and the opportunities that abound in the industry.
Despite the fact that we are going to be running a small scale pub cum microbrewery business, unlike the conventional breweries we still went ahead to hire the services of a business and HR consultant to help us conduct a SWOT analysis.
We did this in order to ensure that we have what it takes to run a microbrewery business in Las Vegas and perhaps even build a nationally recognized microbrewery brand. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Green Life Microbrewery Company;
Our strength as a company is, excellent and detailed customer service. Neatly brewed local beer in a variety of flavor. Excellent facility, excellent ambience and perfect location for a microbrewery
The perceived weakness for our business could be that we are starting on a small scale; just one outlet. Also perhaps because we have a limited space to expand the pub if the need arises. Other weakness could be lack of customized CRM software and limited finance.
The fact that we are going to be operating our microbrewer and pub in one of the busiest streets in Las Vegas provides us with unlimited opportunities to sell our locally brewed beers. The positioning of our microbrewery will sure make it possible for us not to struggle to sell our products. Lastly, the introduction of new technologies will allow us improve beer quality
One of the threats that is likely going to confront us is the government policies, downturn in the economy which is likely going to affect sales and perhaps the emergence of new competitors (microbrewery) in Las Vegas.
- Market Trends
If you are conversant with microbrewery business in the United States of America, you will quite agree that locally brewed beer consumption has shown steady growth over the years and from all indication, the growth is not going to plummet.
The microbrewery business has a limitation to the numbers of barrels of beer they can produce, but that doesn’t stop them from meeting the demand for locally brewed beers in all the locations where the businesses are established. In recent time, microbreweries are no longer limited to selling beers to clients who come to them, but they are also leveraging on distribution channels to sell their locally brewed beers.
Our Target Market
When it comes to selling locally brewed beer, there is indeed a wide range of available customers. This re-emphasizes the need for a microbrewery marketing plan template. In essence, our target market can’t be restricted to just a group of people, but all those who love locally brewed beer- not forgetting those who would want to try it out.
In our entire quest, one thing is certain; that is that our locally brewed beer will not be sold to people who are under aged. Here is a picture of the people we intend selling our locally brewed beers to;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- College Students
Our Competitive Advantage
Green Life Microbrewery Company is perhaps one of the few microbrewery companies in Las Vegas with a pub large enough to contain over 100 people per – time. That is definitely one of the competitive advantage we have. People can host parties in our pub, and by all standards our pub will become the melting pot for locally brewed beer lovers in Las Vegas and environ.
The fact that our beers are going to be handmade from an all-malt mash in our uniquely built copper brew house will definitely give us an edge in the market place. Another factor that will serve as a positive for us is that our brewery process is going to be a combination of the time-honored art of classical craft brewing and carefully applied state-of-the-art modern methods.
SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
No doubt the benefits of a planned marketing and sales strategy are numerous. We are not going to rely only on the conventional ways of marketing beer, but we will explore all available means to market and sell our locally brewed beers. We are going to advertise our beers on TV and radio, we are also going to make use of Internet marketing, direct marketing, and also public relations to promote and sell our beers.
Our unique selling proposition is that we have assorted flavors of locally brewed beer in our pub at any given time. We will ensure that we analyze the different needs of different groups of our customers and in turn, but most of our efforts shall go into the 20 percent of our customers who provide 80 percent of our profits. That does not mean that we will ignore other customers; our CRM software will help us take care of every of our customers.
We will not relent when it involves trying out new channels and platforms to promote your locally brewed beer and our brand. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them; Part of the marketing and sales strategies that we will adopt is;
- Open our microbrewery company in a grand style by serving free cups of locally brewed beers to all those who step into the pub
- Ensure that we have different types and flavors or locally brewed beers at all times
- Make use of attractive hand bills to create awareness and also to give direction to pub
- Position our signage / flexi banners at strategic places
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Advertise our locally brewed beers on local TV stations, local radio stations and on internet platforms
Our Pricing Strategy
When it comes to fixing pricing for the different flavors of locally brewed beer that we have for sale, we are going to ensure that we set price in line with what is available in the locally brewed beer (microbrewery) industry.
The bottom line is that our customers will derive real satisfaction when they consume our locally brewed beer and they will sure get value for their money. We also have plans in place to have some discount sales our coffees once in a while and also to reward our loyal customers with free cups of coffees.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
Publicity and Advertising Strategy
Green Life Microbrewery Company will leverage on all the available media platforms; conventional and non – conventional to advertise and promote our beer. We are quite aware that the location of our microbrewer and pub will facilitate easy recognition of our brand, which is why we have designed and erect a large sized billboard within our business premises. Here are the platforms we intend leveraging on to promote and advertise our business;
- Place adverts on both print (travel magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions around the airport
Our Startup Budget and Expenditure
This is the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in Las Vegas, Nevada: $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $52,800.
- Cost for facility remodeling – $10,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory – $16,027
- The cost of microbrewery equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
- Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for serving area equipment ( glasses, flatware) – $3,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Office equipment and furniture – $3,600
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The cost for our opening party: $5,000
- Miscellaneous: $2,500
We would need an estimated amount of $750,000 to successfully set up our microbrewery business in Las Vegas. This estimated fee includes the salary of all employees and the CEO (Owner) for 3 months.
Microbrewery Financial Projection
- Sources of Income
The major source of income for Green Life Microbrewery Company is the sale of different flavors of our locally brewed beers and in the nearest future we hope to generate revenue from the sale of our franchise all over the United States of America.
- Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location of our pub?
Various flavors of locally brewed beer
- 100 Cups of beer Per Day (off peak period)
- 300 Cups of beer Per Day (peak periods– weekends, and holidays)
In view of the above, we have estimated a monthly sale of our locally brewed beer to about $20,000 and about $240,000 for the first year and double the amount for the second year and the possibility to keep doubling our annual sale going forward.
Our Startup Equipment Need (Budget)
We would need the following equipment to successfully launch our microbrewery;
- Steam Generators – electric
- Steam Generators – gas
- Malt mills / grinders
- Screw conveyors for malt grist
- Self-cooled fermentation & maturation tanks
- Maturation (lager) tanks
- Serving (bright beer) tanks
- Cylindrical-conical fermentation tanks
- Open fermentation vats
- Yeast storage tanks
- Machines for washing a filling of kegs
- Plate Filters for filtering of beer and cider
- Candle diatomaceous earth filters for filtering of beer
- Candle diatomaceous earth micro filters for micro filtering of beer
- stainless steel vessels (pressure tanks, jacketed refrigerated containers, vessels with agitators, containers for yeast growing)
Generating Funding / Startup Capital for Green Life Microbrewery®
Green Life Microbrewery is a private business that is solely owned by Mr. Kingsley Johnson and he intends to solely own the business for a period of time before considering welcoming investors especially for expansion purpose via the sale of franchise. These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $150,000 and soft loan from family members $100,000) and we are at the final stage of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited.
Sustainability and Expansion Strategy
Our plans of establishing Green Life Microbrewery Company is to continue to make available assorted flavors of locally brewed beer in Las Vegas and environ. We want to build a tradition of excellence when it comes to selling locally brewed beer.
We also have put plans in place to sell the franchise of our company, which is why we are going to painstakingly put structures and processes in place that will help us achieve this goal within the first five years of launching our Green Life Microbrewery Company.
In the bid to building a successful business, we will ensure that all our employees are comfortable and we will provide them with the best of facilities and welfare package that will help them achieve peak performance in all their duties.
Once our brand is fully accepted in Las Vegas and environ, our next target will be to starting sell our franchise to other aspiring entrepreneur who wants to run a microbrewery business in other states in the United States of America.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Renting of facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, electronic appliances, office appliances and micro brewing equipment: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and around the airport facility: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products and detailed recipe: Completed
- Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress
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