Your new distillery won’t be making any money in its infancy. Unless you have a benefactor or receive a sizable business loan, you’ll likely have to juggle the responsibilities of devising a business strategy while working other jobs to pay the rent. Speak to other entrepreneurs who have opened their own distilleries and ask if they have any helpful advice to share with you.
Those living in the United States can visit the website of the Alcohol and Tobacco Tax and Trade Bureau to complete the application process for a distiller’s permit, as well as request additional information and materials. [3] X Research source The legal processes involved with starting a distillery are straightforward, but can be time-consuming. It’s best to get started as soon as you’ve made up your mind to pursue your goal. [4] X Research source
Get in the habit of trying new brands and brews regularly. You should have a wealth of firsthand experience to be able to articulate the differences between your product and others. Attend distillery festivals and special events whenever possible. These types of events usually feature an enormous selection of craft spirits, and can provide a great hands-on learning opportunity.
If you’re unable to come up with a clear answer to this question, you’ll likely have a harder time turning your brand into something truly special. While trying other liquors, make a list of what works, what’s missing and what could be done better. Direct comparison will put you on the right track to crafting a beverage that hits all the right notes. [6] X Research source
For most upstarts, pitching your business to a committee of private investors is the simplest way to go. One major advantage of this method is that you’ll have far more money up front to work with. The downside, however, is that you’ll have to give up partial control over the decisions and direction of your company to the investors, who will then own a share. As an alternative, consider boosting your finances via crowdsourcing. Through resources like Indiegogo, Kickstarter or EquityNet, you may be able to collect enough money in personal donations to pay for the basic necessities. Furthermore, popular funding will allow you to retain full ownership of the business. [8] X Research source
Give close associates the chance to become co-investors and have an equal say in shaping the business.
Map out a radius where you’d prefer to set up your distillery and explore the vicinity to check out what’s available. Enlist the aid of a commercial realtor. These agents will familiarize you with the properties listed in your area, and can often alert you to locations that you otherwise would have never come across. [10] X Research source
Conduct in-person interviews to get a sense of your prospective employee’s relevant qualifications, experience and enthusiasm for your brand. [11] X Research source Make sure you budget properly so that you’ll be able to pay your staff fairly without eating into your profits.
Think back on your plans for how to add something new to the market and use them as inspiration to generate specific product and marketing ideas. For example, a niche market may exist for people who ordinarily prefer cocktails. By infusing your liquors with sweet, fruity or zesty flavors, you stand to reach a larger consumer base. [12] X Research source
Good stills are not cheap. Top-of-the-line varieties often go for between $50,000—250,000, which will constitute a big portion of your startup money. [14] X Research source Look into whether it’s possible to get some of your equipment secondhand. Be sure to verify that everything is in good working order before you commit to buying, though. [15] X Research source
It may also be necessary to meet with your city’s alcoholic beverage commission to get a rundown on the most up-to-date liquor laws. [17] X Research source Don’t be discouraged if it all seems a little overwhelming at first. In many ways, learning the ins and outs of owning a business is a work in progress. Each time you face a difficult task or unexpected obstacle, you’ll be better equipped to deal with it in the future.
Take advantage of local co-ops and markets that grow organic grains and produce. Liquors sourced with local ingredients are a big hit with alcohol enthusiasts and may prove to be a beneficial selling point. [19] X Research source Give your proprietary recipes a test run with friends, family and other connoisseurs before putting them into production. [20] X Research source
Darker liquors like scotch, rum and brandy are aged in wooden barrels, which is where they get their deep color and flavor. [22] X Research source Offering a range of liquors is typically no more costly, and can potentially increase your profit margin by appealing to many different tastes.
Expect to put in the most work during the first few months while you’re still getting off the ground.
