It's never been a better time to run your own distillery.The popularity of craft liquors is on the rise, and getting a foothold in the industry is no longer a fantasy.It is important to know how to start your distillery in the right way so that you can follow your passion and earn a living while avoiding common pitfalls.Once you have secured funding, you can apply for a distiller's license, purchase equipment, and begin carving out a place for your personal brand.
Step 1: It's time to devote yourself to your craft.
The commitment to owning a business is extraordinary.You need to be willing to work seven days out of the week to become an entrepreneur.This will often involve sleepless nights of coming up with new ideas and working out solutions to problems that arise along the way.You need to have the determination to stick with the challenge before you take it.In its infancy, your new distillery won't be making any money.If you don't have a benefactor or a large business loan, you'll have to work other jobs to pay the rent.Ask other entrepreneurs who have opened their own distilleries if they have any helpful advice.
Step 2: If you want to make alcohol, you have to file for a permit.
There is a lot of regulation surrounding businesses that manufacture and sell alcohol.You will have to get a permit from a government agency.You need to be approved for a liquor license at the state or local level after that.Without the proper paperwork, you won't be able to open your distillery.The website of the Alcohol and Tobacco Tax and Trade Bureau can be used to complete the application process for a distiller's permit, as well as request additional information and materials.The legal process for starting a distillery can take a long time.It is best to get started as soon as you can.
Step 3: Make sure you research your product thoroughly.
You need to become a walking encyclopedia of liquor-related knowledge if you want to be the best at what you do.Keep your eyes and ears open for new developments in the industry by sampling as many liquors as you can.It's always a good idea to expand your knowledge on both the practical and business end of things.Try new brands and brew frequently.You should have experience explaining the differences between your product and others.Special events and distillery festivals can be attended whenever possible.A great hands-on learning opportunity can be provided by these types of events, which usually feature an enormous selection of craft spirits.
Step 4: Think about what you will do to the market.
How can you make your distillery stand out?Incorporating never-before-seen ingredients into the mix could be an inventive hybrid distilling method.Maybe you want to introduce people who don't drink gin to the beverage in an enjoyable way.You should aim to proceed with a clear purpose in mind.You will have a harder time turning your brand into something truly special if you can't come up with a clear answer to this question.Try other liquors and make a list of what works, what isn't and what could be done better.Direct comparison will help you craft a beverage that hits all the right notes.
Step 5: Find a way to get money.
Applying for a business license, renting a property, buying equipment, and hiring help are some of the things that need to be done to open a distillery.To be able to meet these demands, you need to get capital from outside investors.You need to be able to come up with at least $500,000 to make a brand new distillery work.pitching your business to a committee of private investors is the simplest way to go for most upstarts.You will have more money up front to work with, one of the major advantages of this method.You will have to give up some of your control over the company to the investors in order for them to own a share.Crowdsourced boosting your finances is an alternative.You may be able to collect enough money in personal donations to pay for basic necessities if you use resources like EquityNet.You can retain full ownership of the business with popular funding.
Step 6: Seek assistance from other parties.
It is possible that you have friends, relatives or other associates who are eager to get involved in this business undertaking with you.If you want to see your vision become a reality, surround yourself with like-minded people who share your passion.Building a business from the ground up is dependent on having a team that you can trust.Close associates can become co-investors and have an equal say in shaping the business.
Step 7: Make sure a location is secure.
You can find a physical headquarters for your distillery.Small, freestanding workshops, warehouse buildings or spacious storefronts are possible options.Make sure that your projected startup budget will allow you to pay the lease on your property and have enough leftover to carry out your distilling operations.You can explore the vicinity to check out what's available if you map out a circle where you want to set up your distillery.Enlist the help of a real estate agent.These agents will show you the properties in your area and alert you to places that you wouldn't have found otherwise.
Step 8: Hire employees.
You're going to need a few more hands sooner or later.Working with a dedicated team will help you stick to a busy production schedule and give you a break from handling every aspect of the business yourself.Your staff will be small in the beginning.You can think about adding brewmasters, bottlers, delivery drivers, marketing specialists and other employees as your distillery grows.To get a sense of your prospective employee's qualifications, experience and enthusiasm for your brand, conduct in-person interviews.If you budget correctly, you will be able to pay your staff fairly without eating into your profits.
Step 9: An original concept is what you can offer.
If you put out the same product that everyone else is, no one will notice your brand.Try using unconventional ingredients in your brew or draw from distilling traditions.Your distillery might be popular because of its unique packaging and labeling, which will attract the attention of first-time drinkers.Use your plans for how to add something new to the market as inspiration to create specific product and marketing ideas.A niche market may exist for people who prefer cocktails.You can reach a larger consumer base by adding sweet, fruity or zesty flavors to your liquors.
Step 10: Purchase stills and other equipment.
What is a distillery without stills?These are the things you will need to get your distillery up and running.Is it better to run with one or two small stills or invest in a large one that can handle a high rate of output?You will need additional equipment like a boiler, mash tun, and storage tanks if you want a trustworthy still.Good stills are expensive.A big portion of your startup money can be found in top-of-the-line varieties.It is possible to get some of your equipment secondhand.Before you commit to buying, be sure to verify that everything is in good working order.
Step 11: The practical details of your operations should be plotted out.
It isn't easy to run a distillery.It will be important to think about the little things, such as where your water will come from, how often supply orders should be placed to maintain productivity, and what if any services need to be subcontracted.The way you handle these can make or break a young business.To get a rundown on the most up-to-date liquor laws, it is necessary to meet with your city's alcoholic beverage commission.If it all seems a little overwhelming, don't be discouraged.It is a work in progress to learn the ins and outs of owning a business.If you face a difficult task or unexpected obstacle, you will be better equipped to deal with it in the future.
Step 12: You can find a source of your distilling ingredients.
If you want to brew your own signature liquors, you need to contract with a supplier who can provide you with the various things you will need.Things like yeast, grains, fruits, spices, and raw alcohol spirits will be included.Pick high-quality ingredients that are consistent with your philosophy.Local co-ops and markets grow organic grains and produce.Local liquors are popular with alcohol enthusiasts and may prove to be a good selling point.Before you put your proprietary recipes into production, give them a test run with friends, family and other connoisseurs.
Step 13: Start with non-aged alcohol.
Specialty aged liquors take a long time to take on their potent, complex flavors.If you want to make fine aged liquors, focus on cranking out white spirits in the early stages, such as vodka, gin or white whiskey, as these don't require as much ferment.While your more refined batches have a chance to properly season, this is a good way to get your product into people's hands and make enough profit to keep the business afloat.Darker liquors like Scotch, rum and brandy are aged in wooden barrels, which gives them their deep color and flavor.You can potentially increase your profit margin by appealing to many different tastes by offering a range of liquors.
Step 14: Be patient and be hard working.
It is not likely that your distillery will become a commercial success.It can take a long time to establish a reputation that will put you on the map.Don't give up if you're passionate about what you do.As your practical skills and understanding of the many aspects of distilling liquors grow, so will your business.Expect to get the most work done in the first few months.