Business Idea

Start A Craft Beer Business

About

Starting a craft beer business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell craft beer, or selling craft beer online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a craft beer business ➜

Key stats

market size
$116B
starting costs
$60K
gross margin
77%
avg product price
$8
time to build
10 months

About

Starting a craft beer business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell craft beer, or selling craft beer online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a craft beer business ➜

Key stats

market size
$116B
starting costs
$60K
gross margin
77%

 

avg product price
$8
time to build
10 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $6,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Food Business Expenses $2,425 $37,400
Inventory Expenses $50 $9,750
Software Expenses $150 $2,495
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800

Successful Businesses

Business URL Rank
Homebrew Academy homebrewacademy.com #398,369
Black Tap Craft Burgers & Beer blacktap.com #504,028
The Crafty Pint craftypint.com #732,996
Craft Cartel Liquor craftcartel.com.au #741,447
craftcentral.ie craftcentral.ie #747,551
Flavourly.com flavourly.com #781,750
GABS Craft Beer & Cider Festival gabsfestival.com #889,415
Brass Tap Beer Bar brasstapbeerbar.com #1,051,180
American Craft Beer americancraftbeer.com #1,145,862
Craft Beer Market craftbeermarket.ca #1,245,180
Bravus Brewing Company bravus.com #1,392,762

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a craft beer business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your craft beer business are typically around 77%, which is considerably high and allows you to grow your business and manage costs easily.
Unlimited income potential With starting a craft beer business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
High employee turnover In the craft beer business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a craft beer business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a craft beer business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 2

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.