The business of beer making and spirits is surely a colorful one. You get to make people happy with what you make. You also get to witness how hops turn into something potent and flavorful. But just like any other type of business, a brewery needs to thrive. You can make that happen by focusing properly on your objectives, goals, and following your plans.
However, mistakes cannot be sometimes avoided. This is especially true when your brewery is just young and budding. Despite that, you need to learn from them and make sure that you will do your best not to commit them again. This is because some rookie mistakes may have terrible and even expensive consequences.
Running a brewery goes beyond managing and storing your German Hallertau Blanc hops. It also requires you to be conscious of your operations and structure. Regardless, here are some of the mistakes that you may want to avoid in the future:
Mistake #1: Not Using the Right Structure
There are many types of business entities out there, and you’ve got to pick the one that will suit your business goals and plans. Your business can start with a sole proprietorship set-up, but you may want to switch to another structure as it grows and gets more partners. For instance, you can go for a corporation or limited liability company. Going for this set-up will help you separate your assets from liabilities that are sustained by the business. Regardless, it would be best if you made sure that your brewery structure allows you to separate your assets and see to it that the business stands as a separate entity.
Mistake #2: Not Investing in the Right Business Areas
When decision-makers have done something great, they tend to focus their funds on that endeavor. That is a good business practice, but sometimes, you need to shift your focus as your business becomes bigger. Experienced brewery owners recommend that you invest at least 60-70% of your funds to the operations and aspects that are already working and proven to generate income and at least 20% in marketing and sales. The remaining 10% or 5% can be used to develop new ideas, which may become a breakthrough in the future. It would be best if you worked closely with the research, development, and strategic planning team in this aspect.
Mistake #3: Not Complying With Regulating Bodies
Selling beer and hops-related products should be carried out under the laws and existing legal regulations. However, many new breweries and businesses tend to give away and sell Some breweries that are not yet validated may decide to sell beers to make money and prove to investors that their products are sellable. It would be best if you were very careful in this area, as there are many safeguards and regulations in place. If your products are not yet validated by regulating bodies and councils, your public advertisements will be taken – and that means money wasted. Besides having your products validated for safety, it would be best if you saw to it that your business is registered with the federal state and local government agencies.
Mistake #4: Not Protecting Your Intellectual Properties
Besides your beer and hops, your business has intellectual assets included in the overall valuation. It would be best if you protect these properties, as doing so will also help you curb the competition. For instance, protecting a certain recipe or variant of a beer may keep others from creating copycats. Protecting logos, taglines, and branding elements will help maintain the identity of your brewery.
Learn from your blunders.
As a new brewery owner, you are bound to make mistakes. But the good thing is that you can learn from them. Use your learnings in the future to improve and strengthen your business.
