Starting a beer company is a rewarding venture where a passion for brewing meets sharp business acumen. The industry pulls in billions of dollars annually, fueled by a consistent demand for craft brews in local taprooms, restaurants, and retail stores.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining the right licenses, and acquiring equipment to help you launch a successful beer company in the U.S.
Step 1: Plan your business and validate your concept
Understand your local market
Start by visiting every brewery and taproom in your target area. Observe what people drink and what sits on the menu for weeks. Talk to patrons and bartenders to understand local tastes and price sensitivity.
Many new brewers misjudge the local palate. Your research should guide your initial beer lineup, balancing your passion projects with styles that have proven demand in your community. For a broader view, access industry reports from the Brewers Association.
Estimate your startup costs
Brewery startup costs vary widely based on your scale. A small nano-brewery might start around $150,000, while a larger production facility with a taproom can easily exceed $750,000. Here is a typical breakdown to help you budget:
- Brewing Equipment: $100,000 - $500,000+
- Licensing & Legal: $5,000 - $20,000
- Taproom Build-Out: $50,000 - $250,000
- Initial Ingredients: $10,000 - $30,000
Navigating federal (TTB) and state liquor authority licensing can be a lengthy process. It is wise to factor both the cost and a 6-12 month timeline into your plan, as this is an area where delays often occur.
Here are 3 immediate steps to take:
- Draft a list of your top 3-5 direct competitors, noting their most popular beers and prices.
- Create a preliminary budget with low and high estimates for equipment, licensing, and your physical space.
- Outline a 12-month timeline, paying special attention to the licensing application period.
Step 2: Secure your legal structure and licenses
Choose your business structure
Most new breweries form a Limited Liability Company (LLC). This structure protects your personal assets from business debts and offers pass-through taxation, which avoids the double taxation you might see with a C Corporation.
Consult a lawyer to confirm the best fit for your situation. Once decided, register your business name and structure with your state's Secretary of State. This is a foundational step before you can apply for any licenses.
Navigate the licensing maze
Your first major hurdle is the federal Brewer's Notice from the Alcohol and Tobacco Tax and Trade Bureau (TTB). The application is free, but expect a 4-6 month approval timeline. Many brewers get delayed here, so start this process early.
With your TTB approval in hand, you can then apply for your state license, typically through an Alcohol Beverage Control (ABC) board. State fees and timelines vary dramatically. You will also need local health and zoning permits before you can open your doors.
Here are 3 immediate steps to take:
- Consult a lawyer to choose and register your business structure, likely an LLC.
- Download and review the Brewer's Notice application from the TTB website.
- Identify your state's Alcohol Beverage Control board and outline its specific license requirements.
Step 3: Protect your brewery with the right insurance
Your brewery needs several layers of protection. Start with General Liability, which covers customer slips and falls, and Property Insurance for your building and equipment. Expect to pay between $3,000 and $7,000 annually for a combined policy with $1 million in coverage.
Many new owners assume this is enough, but standard policies often exclude alcohol-related incidents. This is where Liquor Liability insurance comes in. It protects you if an over-served patron causes damages or injuries. Without it, your business is exposed to significant risk.
You will also need Workers' Compensation once you hire staff. This covers injuries from operating machinery or lifting heavy kegs. If you plan to deliver beer, Commercial Auto insurance is another requirement for your delivery vehicles.
You might want to seek out brokers who specialize in the craft beverage industry. Consider looking into providers like the Brewery Insurance Program or Pak Programs. They understand the unique risks and can find appropriate coverage that a general agent might miss.
Here are 3 immediate steps to take:
- Request quotes from at least two insurance brokers who specialize in breweries.
- Confirm that any general liability quote explicitly includes liquor liability coverage.
- Budget for your initial insurance premiums, allocating $5,000 to $10,000 for the first year.
Step 4: Find a location and buy equipment
Secure your physical space
For your location, target spaces between 1,500 and 5,000 square feet. You will need an area zoned for light industrial or commercial use that allows manufacturing. Your local planning department can confirm the specific zoning requirements for a brewery or brewpub.
When you negotiate a lease, push for a 5-10 year term with renewal options. A frequent mistake is overlooking utility needs. Your lease must allow for upgrades to 3-phase power, high-capacity water lines, and the installation of floor drains, which are not standard.
Outfit your brewery
Your brewhouse is the heart of your operation. A 5-10 barrel system is a good starting point and can cost between $75,000 and $250,000. Many brewers find they outgrow a smaller system too quickly, which forces a costly replacement instead of a simple expansion.
In addition to the brewhouse, you will need several other components. Budget for these items:
- Fermenters & Brite Tanks: $5,000 - $15,000 each
- Glycol Chiller System: $10,000 - $30,000
- Kegs and a Keg Washer: $5,000 - $20,000
Companies like Ss Brewtech or Specific Mechanical Systems offer complete brewery packages. Getting a package deal can simplify purchasing and ensure all your components work together seamlessly from day one.
Here are 3 immediate steps to take:
- Contact your city’s planning department to identify correctly zoned industrial areas.
- Create a list of required lease modifications, including utility upgrades and floor drains.
- Request quotes for a 5-barrel and a 10-barrel brewhouse package from two different suppliers.
Step 5: Set up your payment processing
Choose your payment solution
Your taproom needs a point-of-sale (POS) system to handle sales. When you compare options, look closely at the transaction fees. Many new owners overlook these costs, but they add up. Most providers charge 2.5% to 3.5% per swipe, which can reduce your profit on every pint.
For breweries that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for merchandise sales at festivals or payments in an outdoor beer garden. This rate is noticeably lower than the average commission from other providers.
Getting started is straightforward:
- Get Started: Download JIM app for iOS
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers
For wholesale, you will likely invoice bars and restaurants on Net 15 or Net 30 terms. Your accounting software can manage this, but some POS systems offer helpful integrations to track both taproom and wholesale revenue in one place.
Here are 3 immediate steps to take:
- Compare transaction fees from two traditional POS providers with JIM's rate.
- Outline your payment needs for both taproom sales and wholesale distribution.
- Download the JIM app to see how it works for mobile sales.
Step 6: Fund your brewery and manage finances
Secure your startup capital
The SBA 7(a) loan is a common path for brewery funding, often covering amounts from $350,000 to $5 million. To qualify, you will need a strong business plan and good personal credit. Expect interest rates around the Prime Rate plus 2.75% to 4.75%.
You might find equipment financing more accessible. Lenders are often more willing to approve these loans because the brewing equipment itself serves as collateral. This can free up your other capital for operational expenses instead of tying it all up in stainless steel.
While direct startup grants are rare, check with your local economic development corporation. Some offer incentives or low-interest loans for new manufacturing businesses that create local jobs. These programs are often less competitive than national grants.
Plan your operating cash flow
Set aside at least $50,000 to $100,000 in working capital. This fund covers your first six months of payroll, rent, utilities, and ingredients before your revenue stream becomes reliable. Many new owners focus so much on the brewhouse cost that they run out of cash for daily operations.
Here are 3 immediate steps to take:
- Contact your local Small Business Development Center (SBDC) for free assistance with your SBA loan application.
- Calculate your estimated working capital needs for the first six months of operation.
- Request a quote for equipment financing from a lender that specializes in brewery assets.
Step 7: Hire your team and set up operations
Key brewery and taproom roles
Your first two hires should be a Head Brewer and a Taproom Manager. A Head Brewer with commercial experience will command a salary between $50,000 and $80,000. They manage production, from recipe development to quality control. Many new owners make the mistake of hiring a great homebrewer without commercial-scale experience.
Your Taproom Manager handles front-of-house operations and staff, with a typical salary of $40,000 to $60,000. This person is the face of your brand, so look for someone with strong hospitality skills. They will also manage inventory for merchandise and non-beer items.
Build your front-of-house staff
Your beertenders are your direct connection to customers. Expect to pay an hourly wage plus tips, which often averages $15 to $25 per hour. Invest in their knowledge. Require staff to get TIPS certified for responsible alcohol service, which is a simple online course.
You might also encourage key staff to pursue the Cicerone program. This certification deepens their beer knowledge, which translates into better customer experiences and higher sales. A well-trained staff prevents the common issue of an uninformed team that cannot explain your beer lineup.
Streamline your operations
To manage schedules and communication, consider software like 7shifts or Homebase. These platforms help you avoid understaffing on peak nights. As you grow, aim for a revenue target of $100,000 to $150,000 per full-time employee. This is a solid benchmark for brewpub efficiency.
Here are 4 immediate steps to take:
- Draft job descriptions for a Head Brewer and Taproom Manager with salary ranges.
- Research the costs and requirements for TIPS and Cicerone certifications.
- Sign up for free trials of two scheduling software platforms like 7shifts or Homebase.
- Set a revenue-per-employee goal for your first year of operation.
Step 8: Market your brewery and attract customers
Build your digital taproom
Your marketing should start on Instagram and Untappd. Use Instagram to post high-quality photos of your beer, taproom, and events. Posts that feature people often see higher engagement. A frequent misstep is to ignore Untappd, where negative reviews can quietly damage your reputation among beer lovers.
Drive foot traffic with events
Consistent events can boost mid-week sales by 20-30%. You might want to host a weekly trivia night or live music. Also, consider a "Mug Club" program. For a $75-$100 annual fee, members get a custom mug, discounts, and early access to new releases, which builds a loyal following.
For a successful launch, look at how other breweries create buzz. For example, some breweries collaborate with local artists for can designs or host charity "pint nights." These events generate authentic local press and goodwill far more effectively than simple advertisements.
Here are 3 immediate steps to take:
- Create an Instagram content calendar for your first month with a mix of beer and event posts.
- Claim your brewery’s profile on Untappd and draft a plan to engage with customer check-ins.
- Outline a "Mug Club" membership program with specific pricing and member benefits.
Step 9: Develop your pricing strategy
Set your taproom and wholesale prices
Your pricing should start with your cost of goods sold (COGS). For a standard ale, your COGS per pint—including ingredients, labor, and overhead—will likely land between $1.50 and $2.00. This number is your foundation.
With that cost in mind, a typical taproom price for that pint would be $7. This delivers a gross profit margin over 70%. A mistake some new owners make is pricing too low to attract crowds. This can devalue your brand and make it difficult to raise prices later.
Wholesale pricing is a different game. You will sell kegs to bars and restaurants at a much lower margin. For instance, a half-barrel keg that costs you $60 to produce might sell for $120. The bar then marks it up significantly for individual pint sales.
Analyze the market and structure your menu
Before you finalize numbers, look at what your competitors charge. You can check their online menus or use the Untappd app to see prices for similar beer styles. This helps you find your place in the local market without leaving your desk.
You might want to adopt a tiered pricing model. Your core beers, like a pilsner or pale ale, could be $7 for a 16oz pour. For a high-ABV imperial stout, you could charge $9 for a smaller 10oz pour. This structure communicates value effectively.
Here are 3 immediate steps to take:
- Calculate the cost of goods sold (COGS) for one pint of your flagship beer.
- Research the pint prices for three competing breweries using their online menus.
- Draft a tiered price list for your standard beers versus your special or high-ABV releases.
Step 10: Maintain quality and scale your operations
Establish your quality control program
Your reputation rests on consistency. For every batch, track key metrics like original gravity (OG), final gravity (FG), pH, and ABV. This ensures your flagship IPA tastes the same in July as it did in January.
You can start a sensory panel with your staff to identify off-flavors like diacetyl (buttery) or DMS (cooked corn). This simple practice is your first line of defense against quality drift and does not require expensive lab equipment.
Some brewers get distracted by new recipes and neglect their core lineup. An inconsistent flagship beer can damage customer trust more than a single bad experimental batch.
Know when to scale
Once your quality is stable, you can think about growth. A clear sign to expand is when you consistently operate at 80% of your fermentation capacity for several months. This indicates sustained demand beyond your current output.
As you grow, spreadsheets become difficult to manage. You might want to look into brewery management software like Ekos or Beer30. They help track inventory, production schedules, and sales data in one place.
The revenue-per-employee benchmark of $100,000 to $150,000 is a good guide for hiring. When your team is stretched thin and it affects service or production, it is time to add staff.
Here are 4 immediate steps to take:
- Create a simple tracking sheet for OG, FG, and pH for every batch.
- Schedule a weekly sensory panel with your staff to taste current batches.
- Calculate your current fermentation capacity utilization percentage.
- Request demos for brewery management software like Ekos or Beer30.
You have the roadmap to turn your passion for beer into a business. Remember, your flagship beer's consistency is your reputation. Get that right, and the rest will follow. The work is demanding, but a well-planned approach makes all the difference.
And when you make that first sale, keep it simple. JIM turns your phone into a card reader, so you can accept payments anywhere for a flat 1.99% fee without extra hardware. Download JIM to get set up before your first keg is tapped.
