Are you about starting a nano brewery? If YES, here is a complete sample nano brewery business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a nano brewery. We also took it further by analyzing and drafting a sample nano brewery marketing plan template backed up by actionable guerrilla marketing ideas for nano brewery companies. So let’s proceed to the business planning section.
If you are interested in the brewery industry but you don’t have the financial capacity to launch a full-fledged brewery or even a microbrewery, then your best option is to start a Nano brewery. Starting a nano brewery company is the shortest cut to owning your own brewery business and it affords you the opportunity to experiment with different flavors of beer.
Experts define a Nano-brewery as a scaled-down microbrewery, often run by a solo entrepreneur, which produces beer in small batches.
The US Department of Treasury also defines nanobreweries as very small brewery operations that produce beer for sale. It is important to state that starting a nanobrewery business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.
The truth is that it is one thing to have a fantastic idea and entirely another thing for the business plan to translate to profits.
That is why it is important to assemble a team of dedicated workers if you want to be successful with your business; you can hardly run this type of business without the right network. Below is a sample nanobrewery business plan template that will help you successfully write yours without much stress.
A Sample Nano Brewery Business Plan Template
1. Industry Overview
Starting a brewery plant is expensive and most entrepreneurs that plan to launch theirs might not have the startup capital to achieve it, but good enough, they have the option of starting their own nanobrewery business.
A nanobrewery 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 plant and it is usually owned independently.
In order words, any entrepreneur that has some cash and brewing experience can comfortably start his or her own nanobrewery business. The selling point of nano breweries is their unique flavor, the quality of their beer and their brewing technique.
Any brewery that produces less than 15,000 barrels of beer annually is said to be a nanobrewery in the united states of America. Most people who venture into the beer production business start with nana breweries because they require very minimal startup costs when compared to a standard brewery.
Beer is generally consumed in most parts of the world except for few countries, hence there is a large market for beer no matter the quantity you produce per time, which is why starting a nanobrewery business is considered to be a profitable venture.
If you can 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 nano brewery in any city in the United States of America.
Records have it that loads of entrepreneurs started making money from the nano brewery business as far back as the 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 and sell them in their own pubs or restaurants.
Ever since the introduction of nano brewery and 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 nano breweries, craft breweries, microbreweries and brewpubs in the U.S. and they are indeed contributing their own quota in the growth of the U.S. economy.
Lastly, it is important to state that in as much as starting a nano brewery business can be profitable and rewarding, the success of any new nano brewery business in the United States is not automatic. The chances of nanobrewery businesses to struggle within the first 6 months of launching cannot be ruled out.
As a matter of fact, it can take between two to five years before most nano breweries can recover their initial investment. In order words, just like loads of new businesses, the statistics for nano brewery do not favor startups, you just have to have a long term investment plan if you intend starting your nano brewery business.
2. Executive Summary
Kings® Nanobrewery Company is a business that will be located close to one of the largest residential estates in Des Moines – Iowa. 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 long term renewal on terms and conditions that are favorable to us.
We can confidently say that our well – crafted beers are going to be handmade from an all-malt mash in our uniquely built copper brew house and 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 nanobrewery methods.
The facility we intend starting our nanobrewery company 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 brewery.
We will work towards ensuring that our nano brewery is designed and constructed in such a way that it will meet the expected standard required by the authorities and in such a way that it will be relaxing and conducive for networking and socializing not ignoring the fact that good music (live band, karaoke and jazz et al) will be played at the background to create the ambiance that our customers will cherish.
Kings® Nano brewery Company is all out to give beer lovers in Des Moines – Iowa value for their money. One thing that is certain is that Kings® Nano brewery Company will operate in the neatest of environments and with excellent customer services.
Our aim of starting a nanobrewery is to help our customers relieve their daily stress while enjoying our well refined beer.
We are not going to struggle to attract customers because of the positioning of our brewery and pub, but we will continue to strive to build a loyal customer base by offering our uniquely 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 Des Moines – Iowa.
Kings® Nanobrewery Company is owned by Mr. Kingsley Albertus and his immediate family members. Mr. Albertus has over 15 year’s managerial experience in the brewery industry and he will be bringing the experience to the table to help build Kings® Nanobrewery Company to become the number one nanobrewery brand in Des Moines – Iowa.
3. Our Products and Services
Kings® Nanobrewery Company is established with the sole aim of selling locally brewed beer in different flavors to our highly esteemed customers in Des Moines and environs. Any beer lover who visits our pub is going to find the following types of beer;
- Pale Beers
- Amber Beers
- Dark Beers
- Hebrew Beers
- Gluten Free
- Organic Brews
4. Our Mission and Vision Statement
- Our vision is to establish a nanobrewery that will be the melting pot of all lovers of locally brewed beer
- Our mission is to establish a nanobrewery business that will make available assorted locally brewed beer for lovers of locally brewed beer in Des Moines – Iowa and in all the areas where our hand-crafted beers will be distributed.
Our Business Structure
Despite the fact that we want to start a Nano brewery 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 plans of selling the franchise of Kings® Nanobrewery Company once we are able to get it right in Des Moines and we have set a 5-year target to achieve this.
In order to achieve our aim of becoming the number one nano brewery company in Des Moines – Iowa, we have perfected plans to hire the best hands in the industry. Excellent customer service will be one of the selling point for Kings® Nanobrewery Company which is why we have invested in continuous training of all our employees. Our business structure is simple but very effective.
A full-time manager will be hired to oversee the daily operations at Kings® Nanobrewery Company. The candidate would have over 10 years of managerial experience in brewery 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 Kings® Nanobrewery Company on;
- Chief Executive Officer (Owner)
- Nanobrewery Manager
- Greeters/Customer Service Agent/Table Attendants
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for providing direction for the business
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Designs job descriptions with KPI to drive performance management for clients
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Nanobrewery and Pub Manager:
- Responsible for managing the daily activities in the nanobrewery and pub
- Ensures that the facility (pub and nanobrewery) 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
- 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
- Interact with customers, take orders for drinks and snacks
- Check identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
- Serve beer to guests
- Arrange bottles and glasses to make attractive displays
- Assess customers’ needs and preferences and makes recommendations
- Makes lists of supplies in conjunction with the bar manager/management
- Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beers and serving guests
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Greeters/Customer Service Agent/Table Attendants
- Opens door and welcome customers
- Ensures that customers feel relaxed and at home
- Handles customers enquiries
- Assesses customers’ needs and preferences and make recommendations
- Ability to sell or influence others for up selling and suggestive selling
- Provides recommendations and suggestions to guest for choosing beers
- Serves customers in a friendly and helpful manner
- Determines when a customer has had too much alcohol and if required refusing any further serving on a polite way
- Demonstrates a thorough knowledge of our varieties of assorted beers, menus and promotions
- Handles any other duty as assigned by the bar manager
- Cleans up after customers and clean work area
- Washes glassware and utensils after each use
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the bar manager
6. SWOT Analysis
Kings® Nanobrewery Company is established with the aim of becoming the melting point of locally brewed beer in Des Moines and environ and we know we can’t achieve this if we do not look inward to identify our strength, threat, weakness and the opportunities that abound in the industry.
Despite the fact that we are going to be running a small-scale pub cum nanobrewery business, 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 standard nanobrewery business in Des Moines – Iowa and perhaps even build a nationally recognized nanobrewery brand.
Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Kings® Nanobrewery Company;
Our strength as a company are, excellent and detailed customer service, neatly brewed local beer in a variety of flavors, excellent facility, excellent ambience and perfect location for a nanobrewery.
The perceived weakness for our business could be that we are starting on a small scale with just one outlet and 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 nanobrewery and pub in one of the busiest streets in Des Moines – Iowa provides us with unlimited opportunities to sell our locally brewed beers. The positioning of our nanobrewery will enable us not to struggle to sell our products. Lastly, the introduction of new technologies will allow us improve beer quality
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new nanobrewery or even a microbrewery in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with nanobrewery and microbrewery business in the United States of America, you will agree that locally brewed beer consumption has shown steady growth over the years and from all indications, the growth is not going to plummet anytime soon.
The nanobrewery business has a limitation to the number of barrels of beer they can produce, but that doesn’t stop them from meeting the demand in all the locations where their businesses are established. In recent time, nanobreweries and 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.
No doubt, nano breweries and pubs put a new spin on wine tasting. They seek to remove the association of handcrafted beers with high-end clientele and overwhelming beer lists and replace it with a more casual and relaxing atmosphere.
Many of these nanobreweries cum pubs are furnished with cozy booths encased in rich colors and plush surroundings in hopes that their guests will linger. Pubs look to embrace the intellectual stimulation linked to beer and offer an alternative to the pub scene.
8. Our Target Market
When it comes to selling locally brewed beer, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love locally brewed beer and those who would want to try it out.
One thing is certain, our locally brewed beer will not be sold to people who are under aged. Before starting our nanobrewery business in Des Moines – Iowa, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our locally brewed beers on a regular basis.
In view of that, we have created strategies that will enable us reach out to various group of people who are likely going to become our loyal customer. Here are the people we intend selling our locally brewed beers to;
- Corporate Executives
- Taxi Drivers
- Business People
- Sports Men and Women
- College Students
Our Competitive Advantage
Kings® Nanobrewery Company is perhaps one of the few nanobrewery companies in Des Moines – Iowa with a pub large enough to contain over 100 people per – time. That is definitely one of the competitive advantages we have. People can host parties in our pub, and by all standard, our pub will become the melting pot for locally brewed beer lovers in Des Moines.
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 marketplace. 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.
Part of what is going to be our selling point in Des Moines is the fact that we operate a standard pub, in a perfect location for the kind of business that we run and also the fact that pub facility is highly secured. Another factor that will give Kings® Nanobrewery Company competitive edge is that we have enough packing space to accommodate the number of customers our pub can contain per time.
We are not ruling out the fact that we have a dedicated and customer centric workforce that are willing to go the extra mile to give our customers full value for their money whenever the patronize our handcrafted beer.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
The major source of income for Kings® Nanobrewery Company is the sale of different flavors of 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.
10. Sales Forecast
One thing is certain when it comes to locally brewed beers, if your nanobrewery/pub is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Des Moines – Iowa and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the nanobrewery market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Des Moines – Iowa.
- First Fiscal Year: $150,000
- Second Fiscal Year: $250,000
- Third Fiscal Year: $600,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- 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 handcrafted beers, 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 going to make use of Internet marketing, direct marketing, and also public relations to promote and sell our beers. 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 we will adopt are;
- Open our nanobrewery company in a grand style by serving free cups of locally brewed beers to all those who step into the pub
- Introduce our nanobrewery by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Des Moines – Iowa
- Ensure that we have different types and flavors of locally brewed beer at all times
- Make use of attractive hand bills to create awareness and also to give direction to our 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 and radio stations and on internet platforms
11. Publicity and Advertising Strategy
Kings® Nanobrewery Company will leverage on all the available media platforms; both conventional and non-conventional to advertise and promote our handcrafted beer. Again, the location of our nanobrewery and pub will facilitate easy recognition of our brand which is why we have designed and erected 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 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 billboards in strategic locations
- Engage in roadshows from time to time
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions
12. Our Pricing Strategy
When it comes to fixing prices for the different flavors of locally brewed beer that we have for sale, we are going to ensure that we set our prices in line with what is available in the 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.
- Payment Options
The payment policy adopted by Kings® Nanobrewery Company is all inclusive because we are aware that different customers prefer different payment options but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Kings® Nanobrewery Company will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our handcrafted beers without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to starting a nanobrewery business, the major areas you will spend the bulk of your cash is in purchasing nanobrewery equipment and in leasing a standard pub facility. We would need the following equipment to successfully launch our nanobrewery;
- Steam Generators – electric
- Steam Generators – gas
- Malt mills/grinders
- Screw conveyors for malt grist
- Self-cooled fermentation and 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)
These are the key areas where we will spend our startup capital;
- The total fee for registering the business in Des Moines – Iowa – $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
- The cost for hiring business consultant – $2,500
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $52,800.
- The 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 nanobrewery equipment – $18,000
- Storage hardware – $3,720
- The cost for counter area equipment – $9,500
- The cost for serving area equipment (glasses, flatware) – $3,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- 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 estimate of $350,000 to successfully set up our nanobrewery business in Des Moines – Iowa.
Generating Startup Capital for Kings® Nanobrewery Company
Kings® Nanobrewery Company is a private business that is solely owned by Mr. Kingsley Albertus and his immediate family members and he intends to solely own the business for a period of time before considering welcoming investors especially for expansion purposes via the sale of franchise.
These are the areas we intend generating our startup capital;
- Generate part of the startup 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 $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stage of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Our plans of establishing Kings® Nanobrewery Company is to continue to make available assorted flavors of locally brewed beer in Des Moines and environs. 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 Kings® Nanobrewery Company.
In the bid to building a successfully 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 Des Moines, our next target will be to start selling our franchise to other aspiring entrepreneurs who want to run a nanobrewery business in other states in the United States of America. We know that if we put the right things in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.
- 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 Design and Printing of 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 pub: 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 suppliers of raw materials: In Progress