Are you interested in starting a wine production company? Do you need a sample wine production business plan template? If YES, then I advice you read on.
The demand for wine has been on the high side for ages. The drink is consumed in virtually all parts of the world, thereby making the wine production industry a globally lucrative one. If you are a lover of wine and pride yourself on having a deep knowledge of how the drink is made and marketed, then you should consider starting a wine production business.
Given the profit potential of the business, the idea of starting a wine production company could be alluring. But the truth is, opening a wine production company and running it effectively afterwards usually involves hard work.
Do you think you have what it takes to start and run a wine production business? Then follow these guidelines to begin the development of a successful company.
Starting a Wine Production Company – Sample Business Plan Template
1. Learn more about the business
You can visit the owner or manager of a reputable wine production company to find out more about the business. Find out the required startup and running costs, projected earnings for the first few months to years, required equipment, market challenges, and so on. You will need all these pieces of information in order to develop a good business plan for your business.
This is a very important step required before the start of any business. And your wine production company is no exception. Your business plan will include vital details about your business, such as the business’s goals and objectives, and other pieces of information gathered in the course of your market research.
Not only will your business plan guide you through the processes of starting and growing your wine production business, it will come in handy whenever you need funding (be it startup or expansion funding) from third parties such as loan-issuing institutions and investors.
Usually, starting the business requires up to a few thousand dollars depending on the type and size of wine production company you want to set up. Your startup costs will cover the facility, equipment, machinery, marketing, consultants, and labor.
If you cannot provide all of the required capital from your end, then you should consider starting your wine production company with investment partners or approach available sources of debt or equity funding.
4. Obtain the required state and federal licenses and permit
These include standard business licenses, tax identification numbers, and liability insurance. In most parts of the world, the production and sale of wine are highly regulated. So, you will need to apply for special permits regarding alcohol.
If you are feeling completely at sea, you can check with the appropriate regulatory agency in your state or country to find out about licensing requirements for starting a wine production company.
You will need to install wine production equipment in your main production area. If you are planning to start your own wine vineyard—so you won’t have to buy grapes from suppliers—then look for land ideally suited for grapes growing in terms of soil content and lot size. Another important factor to consider when choosing a location for your business is the availability of water, electricity, or other utilities you will need to run your company effectively.
6. Find reliable suppliers
If you will be sourcing your grapes from suppliers, then you will need to find reliable ones and establish a contract with them. Remember, if a supplier fails to supply the grapes, which is the raw material for wine production, your business will be badly affected. And you sure don’t want that to happen.
To be on the safe side, you need to find one main supplier and one or two other “standby” suppliers that you can turn to, should the main supplier run out of the commodity.
7. Purchase the required equipment and machinery, and have them installed at your chosen location. In addition, you should hire competent staff to work with you. Remember that the success of your wine production company is a function of how skillful, competent, and experienced your staffs are.
8. Start operations
You need to focus on high quality from day one, and strive to maintain that quality. Market your business to wholesalers, distributors, and retailers of wine. Other potential customers include wine bars, event and wedding planning services, restaurants, catering services, supermarkets, and so on.
To increase your chances of success in the wine production business, you should choose a potential target market. This could be either experienced wine drinkers or individuals who have just started taking wine. The type of wine that appeals to both categories of individuals varies.