business plan for beer garden

Beer Garden Business Plan Template

• Written by Dave Lavinsky

Table of Contents

If you’re looking to create a beer garden business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful beer garden businesses.

Beer Garden Business Plan Example

Below is our beer garden business plan template and sample plan:  

I. Executive Summary

Company overview.

Welcome to Brew Bloom Garden, our innovative beer garden situated in the bustling heart of Atlanta, GA. Established to furnish the local populace with top-grade beverages and dining experiences, we’ve identified and are filling the void for a premier beer garden in the region. Our diverse menu offers beers, wines, cocktails, appetizers, salads, entrees, desserts, and sides, with a focus on quality and variety to ensure a complete and novel dining experience on each visit. As Atlanta is renowned for its vivacious food scene and sociable ambiance, we’re excited to enhance this culture by providing superior service and an unforgettable experience to all our guests at Brew Bloom Garden.

Success Factors

Our confidence in the success of Brew Bloom Garden is founded on our founder’s valuable experience from a thriving previous beer garden venture and our mastery in the craft of beer-making, which surpasses our competitors in quality and variety. Since launching as an LLC on January 4, 2024, we have achieved significant milestones including the creation of a distinctive logo, the development of a resonant company name, and securing a prime location for our beer garden. These accomplishments are just the beginning of our commitment to continuous growth and the pursuit of excellence.

Industry Analysis

The Beer Garden industry in the United States is undergoing significant growth, with a current market size of around $1.5 billion and a predicted compound annual growth rate of 10%, expecting to reach $2.5 billion by 2025. Factors contributing to this growth include a rising consumer preference for unique, locally brewed beers, an increasing trend in outdoor dining, and a surge in young adults spending more on experiences. At Brew Bloom Garden, we are well-positioned to leverage these trends with our commitment to high-quality, local craft beers and our inviting outdoor space, perfectly catering to the demand for vibrant and social venues.

Customer Analysis

Our customer base at Brew Bloom Garden primarily targets local craft beer enthusiasts and those seeking a distinctive beer garden experience. Our welcoming atmosphere and selection of local and artisanal beers appeal to individuals desiring a community feel. We also cater to groups looking for a picturesque venue for occasions and tourists in search of authentic local experiences. Our garden’s ambiance and curated beer menu make it an attractive destination for a diverse range of customers, including event-goers and experiential travelers.

Competitive Analysis

At Brew Bloom Garden, we distinguish ourselves from competitors like Der Biergarten, with its authentic German offerings, Red’s Beer Garden, known for its community vibe and support for local breweries, and Bottle & Box, which doubles as a retail shop. Our competitive advantages include an unwavering commitment to beer quality and an extensive beer selection that appeals to a wide range of tastes. We provide a unique and satisfying experience that encourages our customers to return for the unparalleled taste and variety we consistently deliver.

Marketing Plan

At Brew Bloom Garden, we pride ourselves on a menu that features a broad array of beverages and dishes, with beers at $6, wines at $9, cocktails at $10, and an array of food options priced between $6 and $12. Our emphasis on quality and variety ensures a delightful visit every time. In terms of promotions, we employ a multifaceted approach, including online marketing through SEO, social media, email newsletters, and targeted online advertising. We also engage in loyalty programs, local partnerships, press releases, community events, influencer collaborations, and themed events to build brand awareness and attract customers to the beer garden.

Operations Plan

To guarantee Brew Bloom Garden’s success, our operational processes include diligent inventory management, stellar customer service, precise sales and transaction processing, regular facility maintenance, stringent quality control, dynamic marketing and promotions, effective staff management, and strict compliance with regulations. Our upcoming milestones involve securing a strategic location, obtaining necessary permits, designing and building the facility, hiring and training staff, developing supplier relations, launching the beer garden, and reaching our revenue goal of $15,000 per month.

Management Team

Xavier Price, the President of Brew Bloom Garden, heads our management team with his extensive background in the hospitality industry and specific experience in running a beer garden. His strategic insight and operational prowess are instrumental in guiding Brew Bloom Garden to become a benchmark of excellence and innovation within the hospitality sector.

Financial Plan

To achieve our growth goals, Brew Bloom Garden requires funding of $945,000 which will be allocated to capital investments including building and location buildout, furniture, equipment, machines, computers, and POS systems, as well as non-capital investments such as working capital, initial rent/lease, staff salaries for the first three months, initial marketing and advertising, supplies, and insurance.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

At Brew Bloom Garden, we pride ourselves on being the newest addition to the vibrant Atlanta scene, offering high-quality beer garden experiences to residents and visitors alike. Our commitment is to serve exceptional beverages and food in a welcoming atmosphere that encourages relaxation and social interaction. The lack of high-quality local beer gardens in the area has paved the way for us to create a unique and enjoyable destination for everyone to appreciate.

Products & Services

Our offerings are designed to cater to a variety of tastes and preferences. We provide a carefully selected range of products that includes:

• Beer – $6
• Wine – $9
• Cocktails – $10
• Appetizers & Salads – $10
• Entrees – $12
• Desserts – $10
• Sides – $6

Our Location

Brew Bloom Garden is nestled in the heart of Atlanta, GA, providing a serene garden environment where our guests can unwind with a premium drink in hand. Our prime location is easily accessible and perfectly suited for those seeking high-quality beer garden services in the area.

Why We Will Succeed

Our recipe for success is simple yet effective. With our founder’s valuable experience in running a top-tier beer garden and our commitment to brewing superior beer with a diverse range of options, we are positioned to outshine our competitors. The passion for excellence is evident in every aspect of our business, from the ambiance to the service, and especially in the quality of our products.

Our Heritage and Business Structure

Brew Bloom Garden came to life on January 4, 2024, as a Limited Liability Company, combining the vision of our founders with the desire to fill a gap in the local market. Since then, we’ve made significant strides, including:

• Creating a distinctive logo that captures the essence of our brand
• Developing a resonant company name that reflects our mission and values
• Securing an ideal location that complements our vision for a perfect beer garden

III. Industry Analysis

The future outlook for the Beer Garden industry in the United States is highly promising. Market experts project a compound annual growth rate (CAGR) of 7.2% between 2021 and 2026. This anticipated growth is driven by several factors, including the rising preference for craft beer, the growing trend of outdoor and social experiences, and the increasing number of millennials and Gen Z consumers entering the legal drinking age. With such favorable market conditions, there is ample opportunity for Brew Bloom Garden to thrive and establish a strong presence in the industry.

Several trends in the Beer Garden industry further contribute to its positive growth trajectory. One prominent trend is the emphasis on local and regional breweries. Consumers today are seeking unique and authentic experiences, and they are increasingly drawn to Beer Gardens that showcase a wide selection of craft beers from local and independent breweries. This aligns perfectly with Brew Bloom Garden’s mission to provide high quality craft beers sourced from local breweries, catering to the preferences of residents who desire a taste of the local flavor. By capitalizing on this trend, Brew Bloom Garden can attract a loyal customer base and differentiate itself in the market.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

Brew Bloom Garden will target local residents who are enthusiasts of craft beers and unique beer garden experiences. These customers are typically looking for a place to relax, socialize, and enjoy a variety of high-quality brews. The garden’s ambiance, combined with a selection of local and artisanal beers, will attract individuals who appreciate a community-oriented atmosphere and the nuances of beer tasting.

The establishment will also cater to groups looking for a casual yet picturesque setting for gatherings and celebrations. The garden’s aesthetic appeal and the curated beer menu will make it an ideal choice for events like birthday parties, work outings, or social club meetings. Brew Bloom Garden will tailor the experience to suit these groups, ensuring a memorable and enjoyable visit for every occasion.

Additionally, Brew Bloom Garden will attract tourists and visitors to the area who are seeking authentic local experiences. The beer garden will serve as a cultural touchstone, offering a taste of the region’s brewing heritage and hospitality. With the rise in experiential travel, the garden is set to become a must-visit destination for those wanting to immerse themselves in the local scene.

Customer Needs

At Brew Bloom Garden, customers can expect a diverse selection of high-quality beers, satisfying enthusiasts who crave both classic favorites and unique, artisanal brews. The establishment recognizes the value of a refined beer experience, catering to those who appreciate the subtleties of craftmanship in their beverages. Patrons can indulge their tastes, knowing that Brew Bloom Garden sources the finest ingredients to ensure a premium beer offering.

Beyond the beer itself, customers seek a welcoming atmosphere where they can relax and socialize. Brew Bloom Garden offers a comfortable and aesthetically pleasing environment, complete with lush greenery and amiable service, which sets the stage for memorable gatherings. The beer garden becomes a destination where friends and family can come together, enjoying the outdoors while savoring their drinks.

In today’s health-conscious world, consumers also look for options that cater to various dietary needs and preferences. Brew Bloom Garden rises to this challenge by providing a range of beers that include gluten-free and low-calorie options, ensuring that every guest can find something to suit their lifestyle. In addition, the beer garden stays attuned to the pulse of the community, hosting events and live music that resonate with local interests, further enriching the customer experience.

V. Competitive Analysis

Direct competitors.

Brew Bloom Garden’s competitors include the following companies:

Der Biergarten

Der Biergarten offers a traditional German beer garden experience with a variety of imported German beers and local craft brews. They serve classic German fare such as bratwurst, pretzels, and schnitzel, alongside a selection of American pub foods. Prices at Der Biergarten cater to a mid-range budget, providing a balance between affordability and quality.

While specific revenue figures are not publicly available, Der Biergarten’s popularity suggests a healthy financial performance. They operate in a central urban location, attracting a diverse customer base ranging from young adults to older beer enthusiasts. Their key strengths include an authentic atmosphere and a strong selection of beers, while their weaknesses may lie in a limited appeal to non-beer drinkers and those seeking a more modern twist on the beer garden concept.

Red’s Beer Garden

Red’s Beer Garden emphasizes a community-centric approach, offering a mix of local and national craft beers. Their product lineup extends to include ciders, wines, and non-alcoholic beverage options, catering to a wider audience. In terms of food, they provide a variety of casual dining options including sandwiches, sausages, and vegetarian items, with prices set to attract a casual dining crowd.

Red’s Beer Garden operates primarily in residential neighborhoods, which facilitates a loyal, local clientele. They serve customers across multiple age groups, particularly focusing on family-friendly services. Red’s strengths include its community feel and inclusive beverage selection, while its weaknesses may be a less focused brand identity and potential over-reliance on local patronage.

Bottle & Box

Bottle & Box differentiates itself by coupling a beer garden experience with a retail component, selling bottled craft beers and artisanal food products. The establishment offers a space where customers can enjoy a beer on-site or take premium products home. Pricing is on the higher end, reflecting the curated selection of products.

Located in upscale neighborhoods, Bottle & Box targets customers with higher disposable income and a taste for specialty products. They cater to a niche market of craft beer aficionados and foodies looking for unique offerings. Strengths of Bottle & Box include their premium product range and the convenience of on-site consumption and retail. However, their weaknesses could stem from a higher price point that may alienate budget-conscious consumers and a narrower product focus that might limit their market reach.

Competitive Advantages

At Brew Bloom Garden, we take pride in our ability to craft superior beers that stand out in a crowded marketplace. Our focus on quality ensures that each pint we serve meets the high standards our customers have come to expect. This dedication to excellence is evident in the rich taste, aroma, and perfect balance found in every beer variety we offer. Our commitment to quality is complemented by our extensive selection of beers, catering to a broad range of palates. From hoppy IPAs to smooth stouts, our patrons can explore a vibrant spectrum of flavors, making us a go-to destination for beer enthusiasts and casual drinkers alike.

Moreover, our unique atmosphere enhances the overall customer experience, setting us apart from other beer gardens. We create a relaxing and inviting ambiance that encourages socializing and enjoyment of our premium beers in a beautiful garden setting. Our knowledgeable staff can guide guests through our beer selection, offering insights and recommendations tailored to individual tastes. We also engage with our local community, sourcing ingredients from local producers whenever possible, which not only supports the regional economy but also ensures the freshness and quality of our beers. By combining exceptional beers, a diverse selection, and a memorable setting, Brew Bloom Garden stands as a premier destination for those seeking a standout beer garden experience.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

At Brew Bloom Garden, we pride ourselves on offering a diverse range of high-quality beverages and delectable dishes to satisfy your cravings. Our carefully curated menu caters to a variety of tastes and preferences, ensuring a memorable experience for all our guests.

Our Products and Services

Discover the essence of relaxation and enjoyment with our selection of beverages and food:

• Beer: Our beer selection is a testament to our commitment to quality. Patrons can enjoy a refreshing pint for an average price of $6 , choosing from a variety of local and international brews.
• Wine: For those who appreciate the finer things, our wine list features exquisite options for an average price of $9 per glass, perfect for pairing with any dish or enjoying on its own.
• Cocktails: Our expert mixologists craft unique and classic cocktails that are sure to delight. Each cocktail is priced at an average of $10 , offering a blend of premium spirits and fresh ingredients.
• Appetizers & Salads: Begin your culinary journey with our appetizers and salads, each priced at an average of $10 . These dishes are designed to excite your palate and prepare you for the main course.
• Entrees: Our entrees are the stars of the show, with each dish thoughtfully prepared to ensure satisfaction. Expect to pay an average price of $12 for a hearty and flavorful meal.
• Desserts: Indulge in our decadent desserts, each for an average price of $10 . These sweet treats are the perfect way to conclude your dining experience.
• Sides: Complement your meal with our selection of sides, each available for $6 . These accompaniments are perfect for sharing or adding an extra touch to your dish.

At Brew Bloom Garden, we continuously strive to ensure that every visit is a delightful experience. Our team is dedicated to providing exceptional service and a welcoming atmosphere. We invite you to join us and discover your new favorite spot for relaxation, conversation, and enjoyment.

Promotions Plan

Brew Bloom Garden offers residents a high-quality beer garden experience, complete with an extensive selection of craft beers and a vibrant atmosphere. To attract customers, Brew Bloom Garden employs a variety of promotional methods, effectively leveraging modern marketing channels and traditional tactics.

Online Marketing

Online marketing stands at the forefront of Brew Bloom Garden’s promotional efforts. The garden will utilize search engine optimization (SEO) to increase visibility on search engines, ensuring when potential customers are looking for a beer garden experience, Brew Bloom Garden appears prominently in their search results.

Additionally, Brew Bloom Garden will engage customers through social media platforms such as Instagram, Facebook, and Twitter. These platforms will showcase the garden’s unique ambiance, special events, and new beer arrivals, creating a community of engaged followers who are updated regularly about what’s brewing at the garden.

Email Marketing

Email marketing campaigns will serve as a direct line of communication with Brew Bloom Garden’s patrons. Regular newsletters will provide updates, exclusive offers, and personalized recommendations, fostering customer loyalty and repeat visits.

Local Partnerships

Brew Bloom Garden will establish partnerships with local businesses and breweries to create cross-promotional opportunities. These partnerships will enhance community engagement and introduce Brew Bloom Garden to a wider audience through collaborative events and shared promotions.

Events and Tastings

Curated events and beer tastings will be central to the promotional strategy. These events will not only showcase the garden’s beer selection but also create memorable experiences that customers will want to share with friends and family, driving word-of-mouth referrals.

Loyalty Programs

A loyalty program will reward regular customers for their patronage. Points earned with each visit can be redeemed for discounts or freebies, encouraging repeat business and creating a sense of belonging among Brew Bloom Garden’s clientele.

Community Involvement

Active involvement in community events and charitable causes will reinforce Brew Bloom Garden’s commitment to the local area. Participation in such activities will not only contribute to the community but also raise awareness of the garden’s presence and values.

Public Relations

Brew Bloom Garden will also utilize public relations to gain media coverage in local newspapers, food and beverage magazines, and on lifestyle blogs. By sharing compelling stories and developments, the beer garden will capture the interest of potential customers through trusted media sources.

Influencer Collaborations

Collaborations with influencers and local personalities will tap into their follower base and generate buzz around Brew Bloom Garden. These influencers will provide authentic endorsements, reaching a broader and more diverse audience.

Through these integrated promotional methods, Brew Bloom Garden will attract a steady stream of customers, eager to enjoy the high-quality beer garden experience it provides. Each tactic complements the other, creating a robust marketing ecosystem that will sustain and grow the Brew Bloom Garden’s customer base.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of Brew Bloom Garden, there are several key day-to-day operational processes that we will perform:

• Maintain a clean and welcoming environment: This includes regular cleaning of the seating areas, restrooms, and common spaces to ensure customer comfort and adherence to health codes.
• Inventory management: Daily monitoring of beer, food supplies, and related products to ensure that all items are well-stocked and fresh.
• Quality control: Conduct routine checks on the beers on tap and the food served to ensure they meet our high-quality standards.
• Staff scheduling: Allocate sufficient staff for each shift to handle anticipated customer volume efficiently and maintain quality service.
• Customer service: Train staff to provide friendly, knowledgeable, and prompt service to create a memorable experience for patrons.
• Menu updates: Regularly review and update the beer and food menu based on customer preferences, seasonality, and availability of ingredients.
• Financial management: Perform daily bookkeeping tasks, including sales tracking, expense monitoring, and managing cash flow.
• Marketing activities: Engage in ongoing promotional efforts to attract new customers and retain existing ones through social media, local advertising, and events.
• Compliance checks: Ensure that all operations are in compliance with local alcohol serving laws, health regulations, and safety standards.
• Feedback collection: Actively seek and review customer feedback to identify areas for improvement and implement changes accordingly.
• Emergency preparedness: Have procedures in place for handling unexpected situations or emergencies to minimize disruptions.
• Vendor relations: Maintain strong relationships with suppliers and vendors for timely deliveries and potential volume discounts.
• Facility maintenance: Schedule regular maintenance for equipment and facilities to prevent breakdowns and prolong their lifespan.
• Waste management: Implement effective waste disposal and recycling practices to minimize environmental impact and reduce costs.
• Staff training and development: Provide ongoing training to staff members to enhance their skills and keep them informed about the latest industry trends and standards.

Brew Bloom Garden expects to complete the following milestones in the coming months in order to ensure its success:

• Secure an ideal location for Brew Bloom Garden that is accessible and appealing to the target demographic.
• Obtain all necessary permits and licenses to operate a beer garden, including liquor licenses, health and safety inspections, and any local business operation permits.
• Complete the build-out of the venue, ensuring a pleasant and safe environment that complies with all regulations, and is conducive to a beer garden atmosphere.
• Recruit and train a reliable team of staff members who are knowledgeable about the beer garden’s offerings and committed to providing high-quality customer service.
• Develop and implement a marketing and promotional strategy to generate buzz and attract customers to the grand opening of Brew Bloom Garden.
• Launch Brew Bloom Garden with a well-attended grand opening event that introduces the beer garden to the community and establishes the brand.
• Establish partnerships with local breweries and suppliers to ensure a diverse and high-quality selection of beverages and any other offerings.
• Implement a customer feedback system to continuously improve the product and service offerings based on direct customer input.
• Expand the customer base through ongoing marketing efforts and community engagement, such as hosting events and participating in local festivals.
• Achieve the initial revenue goal of $15,000/month, ensuring that the business is on a sustainable financial path.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

Brew Bloom Garden management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Xavier Price, President

Xavier Price, President of Brew Bloom Garden, brings a wealth of experience to the table with his proven track record in the hospitality industry. Xavier has previously demonstrated his ability to lead and grow a successful beer garden, showcasing his expertise in creating inviting atmospheres that attract and retain customers. His strategic vision and operational prowess, combined with his passion for the craft beer movement, make him an invaluable asset to Brew Bloom Garden. Xavier’s leadership skills and his intimate knowledge of the beer garden business model position the team for lasting success by ensuring that Brew Bloom Garden not only meets the current market demand but also adapts to future trends in the industry.

Jane Doe, Chief Financial Officer

Jane Doe, Chief Financial Officer , brings a strategic financial acumen to Brew Bloom Garden, honed over a decade of experience in the financial sector. With a background in both corporate finance and small business accounting, Jane’s expertise lies in budgeting, financial planning, and economic analysis, all critical components of maintaining a profitable enterprise. Her ability to navigate complex financial landscapes and drive cost-efficiency initiatives ensures that Brew Bloom Garden operates on a solid financial foundation, capable of scaling sustainably and capitalizing on growth opportunities.

John Smith, Director of Operations

John Smith, Director of Operations , possesses a deep understanding of the operational challenges unique to the food and beverage industry. With over fifteen years of experience managing high-volume operations, John has honed his skills in workflow optimization, staff management, and supply chain logistics. His commitment to operational excellence and customer service excellence is instrumental in executing the Brew Bloom Garden’s day-to-day operations smoothly and maintaining the high standards that patrons expect.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, Brew Bloom Garden needs $945,000 in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, what is a beer garden business plan.

A beer garden business plan is a document that outlines the strategies you have developed to start and/or grow your beer garden business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your beer garden business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.  

Why You Need a Business Plan for your Beer Garden Business

A business plan is required if you are seeking funding for your beer garden business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a beer garden business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.  

Beer Garden Business Plan Template PDF

Download our Beer Garden Business Plan PDF to help guide you as you create your business plan for your own beer garden.  

Start a beer garden by following these 10 steps:

• Plan your Beer Garden
• Form your Beer Garden into a Legal Entity
• Register your Beer Garden for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Beer Garden
• Get the Necessary Permits & Licenses for your Beer Garden
• Get Beer Garden Insurance
• Define your Beer Garden Brand
• Create your Beer Garden Website
• Set up your Business Phone System

We have put together this simple guide to starting your beer garden. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is very important. Read our detailed guide on how to name your business . We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your beer garden?

Business name generator, what are the costs involved in opening a beer garden.

Starting a beer garden business can cost anywhere between $25,000 and $100,000, depending on where you are, what you are planning on offering and the size of your beer garden. Beer gardens typically require more space than a small indoor bar, so costs may be higher than you first expect depending on the rental costs in your area. If you are going to brew your own beer, the costs of starting your business could be $100,000 plus when you add in brewery equipment.

What are the ongoing expenses for a beer garden?

There are numerous ongoing expenses for a beer garden business, including liquor costs, food costs, labor, rent/mortgage, utilities, liquor licenses, and so on. The total monthly costs can add up to $20,000 or more depending on the makeup of the business and its location.

Who is the target market?

The target market for a beer garden business is beer lovers and locals looking for a place to unwind. Some are looking for special, unique beers to sample, while others are seeking a space to hang out with their friends – whether they are college students, seniors, or someone in between.

How does a beer garden make money?

A beer garden makes money by charging patrons for beer and other beverages, and often food as well. Beer gardens may also make money by hosting live entertainment and offering private event planning and hosting services.

It is important to price your products correctly, which can be challenging at first when you don’t realize just how much markup is necessary. Beer at bars is typically marked up 200 to 300 percent, with some beers even being marked up to 500 percent. Your profit margin should be somewhere around 75-80 percent for the beer you sell. Aim to strike the right balance between turning a profit and keep your customers happy, because if your beer is too expensive customers are unlikely to stick around.

How much profit can a beer garden make?

A bar can make around $20,000-$30,000 a week on average, although many variables can alter this amount. With average startup costs, that means that a bar can pay off investors and loans in about two years – after which the business will start making a profit.

How can you make your business more profitable?

You can make your beer garden more profitable by attracting more customers and more regulars in particular. If you can make your beer garden a preferred spot for your target market, they may show up every week or even several times a week to purchase your beer and food. You don’t have too much control over your costs and how much you charge because your competitors have many of the same products. However, you do have control over the atmosphere and experience of your customers.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your beer garden is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a beer garden

You can dig deeper into your target market by identifying demographic data and psychographic data. Demographic data is the physical aspects of your market – age, gender, etc. Psychographic data is the mental aspects of your market – political inclinations, hobbies, humor, etc. For example, if you know that a college is within walking distance, you can target college students that love their football team.

Promotions are another common marketing method for these types of businesses. Happy hours, drink specials, food specials – you can get people in the door by offering good deals on products that they love.

How to keep customers coming back

Beer gardens are more likely to succeed if they have the right atmosphere. People are coming to enjoy beer and have fun, so you need to cater to those desires in multiple ways. Are the lighting and temperature comfortable? Are the beers interesting? Does the food add to the experience? It may take some trial and error, but it’s important to keep trying to create the perfect atmosphere for your customers. If coming to your beer garden feels like coming home, they are more likely to keep coming back.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Entrepreneurs who have a strong obsession with beer, relaxed hospitality, or both, are a good fit for a beer garden business. Some owners brew beer as part of their business, while others are more interested in providing a fun space for patrons to enjoy themselves. If you dream of spending your days talking about beer and making sure your guests can leave their worries behind, you could be the ideal person to start a beer garden business.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a beer garden?

A typical day at a beer garden business starts with managing logistical concerns, such as taking inventory, ordering supplies, and preparing for events like reservations, parties, and so on. Staff tends to work in shifts, while management and/or owners may be there all day. Beer gardens are similar to bars and restaurants, with opening and closing shifts, daily cleaning tasks, end-of-day cashouts, and all the other tasks that must be done to prepare for guests, serve guests, and then close the establishment. Each day the process is repeated.

What are some skills and experiences that will help you build a successful beer garden?

Restaurant and bar experience, particularly management experience, will help you be a better beer garden owner. Starting any restaurant or bar is a big undertaking that requires far more than just a love for the products you are serving. You will need to manage staffing, financing, food and beverage sales, inventory, health codes, legal requirements, marketing, and more to get a beer garden business off of the ground.

What is the growth potential for a beer garden?

The bars and nightclubs industry has seen a small yearly decline from 2016 through 2021, although experts expect 15.7% growth in 2021 – significant, but it’s important to keep in mind the substantial decline in the industry throughout the 2020 pandemic.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

Have a Question? Leave a Comment!

How to Open a Beer Garden in 10 Steps

• Published on February 28, 2023

Mark Simons

Aside from pubs, bars , discos, or house parties, you can share great food and liquor with your best friends in a beer garden. But what makes it different from beer-serving places out there? 

Here’s how you can tell them apart.

They all typically serve alcoholic and non-alcoholic drinks with food, like a pub. A bar does the same, except it also offers cocktail drinks and live music and rarely charges an entrance fee, unlike going into a club.

Clubs require their customer to register and pay before letting them inside the venue. It is usually associated with a place that serves alcoholic drinks as customers enjoy music from live bands or dance while a DJ spins music. Disco is quite similar to clubs. But unlike clubs, discos offer VIP admissions and have dance floors dedicated to letting customers drink, dance, and party all night til dawn.

Meanwhile, a beer garden is usually in an outdoor setting with trees surrounding closely set up tables that encourage strangers to connect, make new friends, and chill while enjoying great-tasting food and quality beer.

Do you want to know more about the beer garden? Let’s dig in and learn more about what it is and how to open one as a business.

Table of Contents

Beer Garden Defined

An outdoor location where individuals may socialize while sipping on different beer types and other drinks are known as a beer garden.  The idea first appeared in Germany and has since expanded throughout numerous cities and towns, where it is now a well-liked form of entertainment and leisure.

The first brewery cellar became publicly accessible during the summer months, and soon people began to gather there to enjoy beer and conversation in the open air. Other German breweries eventually followed, and the beer garden shifted to a beloved aspect of Bavarian culture.

The most well-liked beer gardens may be found, in many other cities, Berlin, New York, and Melbourne, to name a few. These beer gardens usually include food, live entertainment, and a wide selection of beers from local and international breweries.

People of various ages and backgrounds frequently visit beer gardens because of their laid-back, collaborative environment. They also provide a venue for people to gather and interact, and they could be a great spot to meet people.

Beer gardens have lately gained appeal among tourists wishing to experience local cuisine and culture. Many beer gardens provide familiar foods and drinks and feature local music and entertainment to give customers a taste of the local culture.

Ultimately, beer gardens are a distinctive and pleasurable aspect of several cultures throughout the globe. A beer garden may offer all these things and more, whether you’re searching for a place to hang out with friends, drink some cold beer on a hot day, or learn about a new culture.

Beer Garden’s Pioneer and Spread

German Bavaria in the 19th century is where beer gardens first appeared as a place for folks to congregate and enjoy a beer in the open air. The beer garden idea immediately spread throughout Germany and later expanded to other nations.

When Georg Schneider, a Bavarian brewer, established one in Munich in 1812 and pioneered the beer garden. People started gathering in Schneider’s brewery cellar when he opened it to the public to drink beer and socialize. The beer garden quickly spread throughout the country, and beer and non-drinkers established their versions of the popular gathering place.

Germany’s strict alcohol sales ban in public spaces was one of the factors that contributed to the popularity of beer gardens there. Breweries had an opportunity to get around these regulations and give residents a location to drink and socialize by offering beer on their premises.

Beers and shaded areas under trees are the best combinations that make the beer garden experience remarkable. Set up a tiny kitchen with them, stock it with local delicacies like sausages and pretzels, and encourage everyone to join the fun. Some beer gardens often have live music or other forms of entertainment, which adds to the joyful atmosphere.

Midway through the 19th century, beer gardens started outside Bavaria in other regions of Germany and nearby nations like Austria and the Czech Republic. By the start of the 20th century, beer gardens had established themselves as part of German culture and were widespread across many German cities and towns.

An immigrant from Germany named John F. Schwacke opened the first beer garden in the United States in New York City in 1868. Locals quickly peaked at Schwacke’s beer garden, which stood in the Harlem district.

Over the years, beer gardens continuously evolved and kept up with the changing times and tastes. During the 20th century, many beer gardens were closed forcefully due to the rise of prohibition and the decline of traditional Bavarian culture. Yet, as people look for authentic and distinctive experiences, beer gardens have seen a recent rise in popularity.

Today, you can spot a beer garden everywhere, from New York to Melbourne to Munich. While they may differ in size, atmosphere, and menu offerings, all beer gardens share one goal. It’s to provide a place for people to gather and enjoy the company of each other over a cold beer.

The history of beer gardens is fascinating and spans centuries and continents. From humble beginnings in Bavaria to global popularity in the 21st century, beer gardens have always been a place for people to come together and enjoy hanging out over a cold beer.

Becoming a Beer Garden Owner

This beer history seems a lot of fun. Right? Yet, if you find yourself in a place where a beer garden in your neighborhood is non-existent, you could be the pioneer and build one. Let’s go over the steps to start a beer garden yourself.

If you’ve always wanted to mix a passion for beer and socializing with entrepreneurship, creating a beer garden is the realization of your goal. It needs rigorous, thorough preparation and execution to be successful, just like any business.

Step 1: Market Research

Researching the market is the first step in opening a beer garden. It involves obtaining data on the regional beer market, the competition, and the target market.

The local beer type that sells must be one of the first things to know. It will help you decide on and consider the brand you may partner with and the ideal method for preserving the beer’s freshness.

Next is identifying your competition. It means knowing what other establishments serve beer near your location. Also, knowing this information will allow you to prepare ideas for making your beer garden unique and more attractive to customers.

Speaking of customers, you also need to consider identifying your target customers for your beer garden. Ideally, it should be for all ages. It will encourage everyone in the neighborhood to come to your beer garden and get together. After determining your target market, it’s also beneficial to thoroughly understand their demographics and purchasing patterns.

By gathering this data, you will have a deeper understanding of the regional market and spot possibilities and difficulties.

Step 2: Develop a Business Plan

Once you have completed market research, your next step is to develop a business plan. 

This plan should include details such as the concept and mission of the beer garden, the target customer and marketing strategy, the menu and beverage offerings, the location and layout of the beer garden, the staffing plan and operations, and the financial projections and funding sources.

All these may sound technical, but a well-developed business plan will serve as a roadmap for your beer garden business and help you secure funding from investors or lenders.

Step 3: Choose a Location

The location of your beer garden is critical to its success. Look for an area with high foot traffic, good visibility, and easy access. Consider factors such as parking, public transportation, and nearby attractions. You should also ensure the location has the necessary permits and licenses for a beer garden business.

Step 4: Get Licenses and Permits

And further on licenses and permits. To operate a beer garden business, ensure that the required licenses and permits from local and state authorities. These may include a liquor license, a food service permit, and a business license. You may also need to obtain zoning permits and inspections from the health department.

It’s best to connect with the local authority that regulates business establishments and alcoholic drink sales to get the requirements that you need.

Step 5: Design and Furnish the Beer Garden

The design and layout of your beer garden should be inviting and comfortable for customers. Consider factors such as seating arrangements, lighting, and landscaping. You may invest in outdoor heating and cooling systems to make the space comfortable in all seasons.

Also, consider having a versatile theme for your beer garden interior and exterior design. It will encourage your customers to book your place for various events. 

Step 6: Develop a Menu

The menu at your beer garden should be simple and focused on the beer offerings. You can offer a small selection of food items such as snacks, sandwiches, or appetizers. Consider partnering with local food vendors to provide unique and diverse food offerings.

Step 7: Source and Stock Beer and Other Drinks

The variety of drinks you serve at your beer garden is critical to its success. Work with local and regional breweries to source a variety of beer styles and flavors. You may also want to offer wine, cider, and non-alcoholic beverages so your business will not be exclusive to alcohol drinkers alone but will be a non-drinker-friendly place. 

Also, do not hesitate to include imported beer brands. It may cost you a few more, but it will also encourage customers from other alcohol serving places to go to your beer garden because you have that one (or more) unique beer variants.

Step 8: Hire and Train Staff

Another step to making your beer garden a success is hiring a team of skilled and dedicated staff. Hire employees with experience in the food and beverage industry, and provide them with comprehensive training on the menu, service, and safety protocols.

Step 9: Market and Promote Your Beer Garden

Effective marketing and promotion are essential to building a customer base for your beer garden. You can use social media, email marketing, and local advertising to promote your business. Host events and special promotions to attract new customers and build loyalty among existing customers.

Today, customers are into unlimited servings. You may collaborate with local suppliers to offer a limitless supply of beer, buffalo wings, nachos, or any other item on your menu at a lesser cost.

Step 10: Monitor and Adjust Operations

Finally, it is vital to monitor and adjust your operations regularly. As the owner, you always have to oversee the ins and outs of your business. You to maintain and keep your books of inventory , sales, and expenses updated. 

Also, ensure to analyze sales data, customer feedback, and other metrics to identify areas for improvement. Plus, continuously innovate and improve the services and products that you offer. It will positively impact the value you give to your customers and the growth of your business.

Managing logistical issues, such as inventory taking, purchasing supplies, and getting ready for events like reservations, parties, and such, are the first things an ordinary day at a beer garden will have. You need to get used to managing them.

Also, compared to managers and owners, who may be present all day, staff often works in shifts. And so, as an owner, being present and on top of things is a task to perform every day. It helps to be a better beer garden owner if you have a strong background in managing restaurants or bars.

Lastly, starting a business is like raising a newborn baby by yourself. It will take so much of your time, energy, effort, money, and patience. It’s a great challenge yet fulfilling. The higher the stakes, the higher the return. So it’s best to do your research and calculate risks. Undoubtedly, your hard work will pay off.

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I am a passionate beer connoisseur with a deep appreciation for the art and science of brewing. With years of experience tasting and evaluating various beers, I love to share my opinions and insights with others and I am always eager to engage in lively discussions about my favorite beverage.

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How To Write a Business Plan for Craft Beer Garden in 9 Steps: Checklist

By henry sheykin, resources on craft beer garden.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

The craft beer industry in the US has been experiencing tremendous growth in recent years, with more and more beer enthusiasts seeking unique and locally brewed options. According to the Brewers Association, craft beer production in 2020 reached over 23 million barrels, accounting for more than 25% of the total beer market. This booming industry presents an exciting opportunity for aspiring entrepreneurs looking to venture into the world of craft beer gardens.

So, if you're ready to tap into this thriving market and start your own craft beer garden, it's essential to have a well-crafted business plan that covers all aspects of your venture. In this article, we'll walk you through the nine key steps to writing a comprehensive business plan for a craft beer garden, ensuring you have a solid foundation for success.

Step 1: Research the market and target audience

Step 2: Identify competitors and analyze their strengths and weaknesses

Step 3: Conduct a feasibility study to assess the viability of the business idea

Step 4: Determine the optimal location for the craft beer garden

Step 5: Develop a comprehensive marketing plan

Step 6: Create a detailed financial forecast and estimate startup costs

Step 7: Establish relationships with suppliers and craft beer breweries

Step 8: Develop a unique concept and theme for the beer garden

Step 9: Build a team with the necessary skills and expertise

By following these steps, you'll be well on your way to transforming your craft beer garden idea into a successful and profitable reality. So, grab a cold one and let's get started!

Research The Market And Target Audience

Before diving into the process of writing a business plan for a craft beer garden, it is crucial to thoroughly research the market and understand the target audience. This step will provide valuable insights and help in making informed decisions throughout the planning process.

Start by examining the craft beer industry as a whole. This includes studying the current trends, growth rate, and the overall market size. Identify any niche segments or emerging markets that present opportunities for your beer garden.

Next, narrow down your research to the local market. Determine the demand for craft beer in your area and assess the existing competition. Look for gaps in the market that your business can fill, whether it's offering unique beer selections, a different ambiance, or specialized events.

Important factors to consider during market research:

• The demographics of your target audience, such as age, income level, and preferences.
• The level of competition in your area and their strengths and weaknesses.
• The potential market size and growth potential.
• Identify any regulatory requirements or permits needed to operate a craft beer garden in your locality.

Market Research Tips:

• Utilize both primary and secondary research methods. Primary research could involve conducting surveys or interviews with potential customers, while secondary research involves analyzing industry reports and online resources.
• Engage with local breweries, beer enthusiasts, and industry professionals to gather insights and gain a deeper understanding of the craft beer market.
• Utilize social media platforms and online forums to gauge the interest and preferences of your target audience.

By thoroughly researching the market and target audience, you will be equipped with the knowledge needed to understand your customers' needs and preferences, identify your unique selling points, and make informed marketing and business strategy decisions.

Identify Competitors And Analyze Their Strengths And Weaknesses

When starting a craft beer garden business, it is crucial to identify and analyze your competitors in order to understand the market landscape and position your business effectively. By studying their strengths and weaknesses, you can gain valuable insights on how to differentiate yourself and attract customers.

Here are some important steps to consider when identifying and analyzing your competitors:

• Research the local market: Start by conducting thorough research to identify existing craft beer gardens in your target area. Look for establishments that offer a similar concept or target audience.
• Visit competitors' establishments: Take the time to visit your competitors' beer gardens to experience their ambiance, beer selection, and overall customer experience. Pay attention to the layout, decor, and the range of beers they offer.
• Observe strengths: Identify the strengths of your competitors. Are they known for their extensive beer selection? Do they provide exceptional customer service? Take note of what they do well and consider how you can incorporate those strengths into your business.
• Analyze weaknesses: Take note of any weaknesses or areas where your competitors may be lacking. This could include limited food options, a lack of variety in their beer selection, or a lack of special events to attract customers. Use these weaknesses as opportunities to differentiate your craft beer garden.
• Study customer reviews: Read online reviews and gather feedback from customers to understand what they appreciate about your competitors and where they feel there is room for improvement. This can help you tailor your offerings to meet customers' needs and preferences.
• Consider creating a spreadsheet or document where you can track and compare the strengths and weaknesses of your competitors. This will make it easier to refer back to during the planning process.
• Look for opportunities to fill gaps in the market. If you notice that none of your competitors offer a wide variety of seasonal brews, for example, consider making that a focal point of your craft beer garden.
• Network with industry professionals, attend beer festivals, and join local craft beer associations to gain insights into the competitive landscape and stay up to date with new trends and developments.

By thoroughly identifying your competitors and understanding their strengths and weaknesses, you will be better equipped to develop a unique selling proposition and differentiate your craft beer garden in the market. This information will help guide your strategic decisions and ensure the success of your business.

Conduct A Feasibility Study To Assess The Viability Of The Business Idea

Conducting a feasibility study is a crucial step in assessing the viability of your craft beer garden business idea. This study involves gathering pertinent information and analyzing various factors that could affect the success of your venture.

First and foremost, you need to thoroughly research the craft beer market in your target area. Identify the demand for craft beers, the preferences of your target audience, and the market trends. This will help you understand if there is a sufficient customer base to support your business.

• Tip 1: Take the time to visit other craft beer gardens and speak with customers to gain insights into their preferences and experiences.
• Tip 2: Look for market research reports or studies that provide data on the craft beer industry and consumer behavior, which will support your analysis.

Next, analyze the potential competition in the area. Identify existing craft beer gardens, breweries, and even bars that offer a similar experience. Assess their strengths, weaknesses, and customer reviews. This will give you an idea of what sets them apart and how you can differentiate your business.

• Tip 1: Visit competitor establishments and observe their operations, menu offerings, and ambiance to understand their strengths and weaknesses firsthand.
• Tip 2: Monitor online review platforms and social media to gauge customer satisfaction and identify areas where your craft beer garden can excel.

Another important aspect of the feasibility study is identifying potential challenges and risks. Consider factors such as regulatory requirements, licensing, zoning regulations, and health and safety standards that may impact your operations. By understanding and addressing these challenges upfront, you can mitigate potential obstacles.

• Tip 1: Consult with experts or professionals in the industry, such as lawyers or consultants, to ensure you are aware of all legal requirements and can comply with them.
• Tip 2: Consider conducting a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to systematically evaluate the internal and external factors that could affect your business.

Lastly, assess the financial feasibility of your craft beer garden. Create a detailed financial forecast that includes projected revenue, expenses, and profitability. Estimate the startup costs, including equipment, licensing fees, renovation, and marketing expenses. This will give you a realistic picture of the financial requirements and help you evaluate the profitability of your business idea.

• Tip 1: Research industry benchmarks and financial ratios to ensure your forecast aligns with industry standards.
• Tip 2: Consider seeking expert advice or working with an accountant to ensure your financial projections are accurate and realistic.

By conducting a comprehensive feasibility study, you will gain valuable insights into the viability of your craft beer garden business idea. This study will not only help you make informed decisions but also provide a solid foundation for your business plan.

Determine The Optimal Location For The Craft Beer Garden

Choosing the right location for your craft beer garden is crucial to the success of your business. The location should be easily accessible, visible, and have enough space to accommodate both indoor and outdoor seating areas. Here are some important factors to consider when determining the optimal location for your craft beer garden:

• Demographics: Research the demographics of the area you are considering. Look for neighborhoods or areas with a high concentration of craft beer enthusiasts or a growing population of young professionals who are likely to be interested in your offerings.
• Foot Traffic: Consider areas with high foot traffic, such as downtown areas or popular shopping districts. This will increase the visibility of your beer garden and attract potential customers passing by.
• Complementary Businesses: Look for locations near other businesses that can synergize with your craft beer garden. For example, being close to a popular restaurant or event venue can attract customers who are looking for pre- or post-dinner drinks.
• Zoning Regulations: Check the local zoning regulations to ensure that opening a craft beer garden is permitted in your desired location. Some areas may have specific restrictions or requirements for operating this type of establishment.
• Outdoor Space: A craft beer garden typically thrives with an outdoor seating area. Look for locations that have ample space for an outdoor patio or beer garden, as this can enhance the overall experience for your customers.

Tips for choosing the optimal location:

• Consider conducting a survey or talking to potential customers in the area to gather feedback on their preferences and expectations for a craft beer garden.
• Visit different potential locations during different times of the day to gauge the foot traffic and activity level.
• Research the parking availability and accessibility of each location, as this can significantly impact customer convenience.
• Consult with a real estate agent or commercial property specialist who is familiar with the local market to get insights and guidance on potential locations.

By carefully considering these factors and conducting thorough research, you can determine the optimal location for your craft beer garden. Choosing the right location will not only attract your target audience but also set the stage for a successful and thriving business.

Develop A Comprehensive Marketing Plan

Once you have conducted thorough research and identified your target market, it's time to develop a comprehensive marketing plan for your craft beer garden. This plan will serve as a roadmap for promoting your establishment and attracting customers. Here are some important steps to consider:

• Define Your Brand: Clearly define your brand identity, including your unique selling propositions and key messages. This will help differentiate your craft beer garden from competitors and create a strong brand image.
• Identify Marketing Channels: Determine the most effective marketing channels to reach your target audience. This can include social media platforms, email marketing, local advertising, and partnerships with local businesses or organizations.
• Create Engaging Content: Develop engaging and relevant content to share on your website, social media profiles, and other marketing channels. This can include blog posts, videos, photos, and customer testimonials that showcase the experience and offerings of your craft beer garden.
• Utilize Social Media: Leverage the power of social media to engage with your target audience and build brand awareness. Regularly post updates about upcoming events, featured beers, and special promotions. Engage with followers by responding to comments and messages promptly.
• Host Events and Collaborations: Organize special events, collaborations, and themed nights to attract new customers and create buzz around your craft beer garden. Partnering with local breweries, food vendors, or musicians can add value and increase attendance.
• Implement Email Marketing: Collect customer emails and use them to send regular newsletters or updates about new beer releases, upcoming events, and exclusive offers. Offer incentives for customers to sign up, such as a free beer or a discount on their next visit.
• Monitor and Analyze Performance: Regularly monitor and analyze the performance of your marketing efforts. Use tools like Google Analytics to track website traffic, social media analytics to measure engagement, and customer surveys to gather feedback. Adjust your marketing strategies based on the insights gained.

Tips for Developing Your Marketing Plan:

• Identify your target audience's preferences and interests to tailor your marketing messages accordingly.
• Research local events and community partnerships to identify opportunities for collaboration and promotion.
• Allocate a budget for marketing activities and prioritize strategies that offer the highest return on investment.
• Regularly evaluate and update your marketing plan as your craft beer garden grows and evolves.

Create A Detailed Financial Forecast And Estimate Startup Costs

One of the most crucial aspects of starting a craft beer garden is creating a detailed financial forecast and estimating startup costs . This step is vital in ensuring that you have a clear understanding of the financial resources required to launch and sustain your business.

Here are some key considerations to keep in mind when creating your financial forecast and estimating startup costs:

• Research and gather data: Begin by conducting thorough research on the costs associated with opening and operating a craft beer garden. Consider expenses such as lease or purchase of the property, renovation and furnishings, licenses and permits, equipment, inventory, marketing, and employee salaries.
• Consult with experts: If you are unfamiliar with financial forecasting, consider seeking guidance from a financial advisor or consultant who specializes in the hospitality industry. They can help you navigate through the intricacies of estimating startup costs and develop an accurate financial forecast.
• Estimate revenue potential: Projecting your potential revenue is crucial in determining if the craft beer garden is financially viable. Consider factors such as the size of your target market, the average spending per customer, and the expected number of customers per day/week/month.
• Account for contingencies: It is crucial to include a buffer in your financial forecast to account for unexpected expenses or unforeseen circumstances. This ensures that you have contingency funds to handle any challenges that may arise during the initial stages of your business.
• Monitor and revise: As your craft beer garden evolves, regularly monitor your financial forecast and adapt it as necessary. This will help you stay on top of your expenses and revenue projections, enabling you to make informed decisions for the success and sustainability of your business.

Tips for Creating a Detailed Financial Forecast and Estimating Startup Costs:

• Take time to research and gather accurate data to avoid underestimating or overestimating your startup costs.
• Consider reaching out to other craft beer garden owners or industry experts for insights on hidden costs or potential financial challenges.
• Be realistic and conservative in your revenue projections to avoid setting unrealistic expectations.
• Factor in a contingency fund to handle unexpected expenses that may arise during the early stages of your business.
• Regularly revisit and revise your financial forecast as your business grows and evolves.

By creating a detailed financial forecast and estimating startup costs, you will gain a clear understanding of the financial requirements for your craft beer garden. This will empower you to make informed decisions and ensure the long-term success of your business.

Establish Relationships With Suppliers And Craft Beer Breweries

When starting a craft beer garden, establishing strong relationships with suppliers and craft beer breweries is crucial to ensure a reliable and varied selection of beers for your customers. Here are some important steps to consider:

1. Research local suppliers and breweries: Begin by researching and identifying local suppliers and craft beer breweries in your area. Look for breweries that align with your concept and offer a diverse range of high-quality beers. Make a list of potential suppliers to reach out to.

2. Attend industry events: Attend local beer festivals, industry conferences, and tasting events to network with suppliers and brewery representatives. These events provide an opportunity to meet potential partners face-to-face, sample their products, and learn more about their brewing processes.

3. Schedule brewery visits: Reach out to breweries on your list and schedule visits to their facilities. This will give you an opportunity to see their operations firsthand, learn about their brewing techniques, and discuss potential partnerships. Building personal relationships with brewery owners and brewers can often lead to preferential treatment and exclusive offerings.

4. Negotiate favorable terms and prices: When establishing relationships with suppliers and breweries, it is important to negotiate favorable terms and prices. Discuss volume discounts, payment terms, and delivery schedules. Show that you are a serious and committed partner who can help promote their brand to a wider audience.

5. Consider exclusivity agreements: If you have identified a brewery that perfectly aligns with your beer garden concept, consider discussing exclusivity agreements. These agreements can provide a competitive advantage by ensuring that you are the sole provider of their beers in your area, creating a unique selling point for your business.

6. Build long-term relationships: Once you have established partnerships with suppliers and craft beer breweries, focus on building long-term relationships. Regularly communicate with them, participate in promotional events they organize, and show support for their brand. This will help foster loyalty and potentially lead to exclusive releases or limited edition beers for your beer garden.

• Stay updated on the craft beer industry trends and new breweries in your area.
• Consider hosting tasting events or collaboration brews with local breweries to further strengthen the relationship.
• Create a dedicated section on your beer garden's website or menu to showcase the breweries you partner with, providing exposure for both parties.

Develop a Unique Concept and Theme for the Beer Garden

When it comes to standing out in the craft beer industry, having a unique concept and theme for your beer garden can be a game-changer. A well-defined concept not only differentiates you from your competitors but also helps you create a memorable and immersive experience for your guests. Here are some important considerations when developing your concept and theme:

• Research current trends: Stay up to date with the latest trends in the craft beer industry and incorporate them into your concept. This could include focusing on specific beer styles, embracing eco-friendly practices, or highlighting local ingredients.
• Understand your target audience: Determine who your ideal customers are and tailor your concept to their preferences and interests. Are they beer enthusiasts looking for rare brews or casual drinkers seeking a laid-back atmosphere? Understanding their needs will guide your concept development.
• Showcase local culture: Consider incorporating elements of your local community's culture and history into your beer garden's theme. This could include architectural design inspired by local landmarks, featuring regional ingredients in your food menu, or partnering with local artists for unique decor.
• Create a cohesive experience: Every aspect of your beer garden should align with your chosen concept. From the interior design to the music playlist, ensure that everything contributes to a cohesive and immersive experience for your guests.
• Emphasize brand identity: Your beer garden's concept should reflect your brand's values and personality. Whether it's a focus on sustainability, innovation, or community engagement, make sure your theme aligns with your overall brand identity.
• Get inspiration from successful beer gardens and breweries around the country, but ensure your concept remains unique to your own establishment.
• Consider surveying your potential customers or conducting focus groups to gather feedback and insights on your concept ideas.
• Collaborate with local artists or designers to bring your chosen concept to life and create a visually appealing and captivating space.
• Regularly reassess and refine your concept to adapt to changing market trends and customer preferences.

Developing a unique concept and theme for your craft beer garden sets the foundation for creating a memorable and distinctive establishment. Take the time to carefully consider your target audience, local culture, and brand identity to develop a concept that resonates with your customers and sets you apart from the competition.

Build A Team With The Necessary Skills And Expertise

In order to successfully operate a craft beer garden, it is crucial to build a team with the necessary skills and expertise. Each member of the team should be dedicated to providing exceptional customer service and have a passion for craft beer. Here are some important considerations when building your team:

Tip 1: Hire Experienced Staff

• Recruit individuals who have previous experience working in the food and beverage industry, preferably in establishments that offer craft beer.
• Look for candidates who are knowledgeable about different beer styles, brewing processes, and can provide recommendations to customers.
• Consider hiring staff members who have obtained certifications or completed training programs related to craft beer.

Tip 2: Seek Out Passionate Individuals

• Look for team members who are passionate about craft beer and genuinely enjoy sharing their knowledge and enthusiasm with customers.
• Recruit individuals who are eager to learn and stay up-to-date with the latest trends and developments in the craft beer industry.
• Consider hosting beer-related educational sessions for your team to further enhance their knowledge and passion.

Tip 3: Emphasize Teamwork and Collaboration

• Build a team that values teamwork and can effectively collaborate with one another to ensure smooth operations.
• Encourage open communication among team members to foster a positive work environment.
• Consider implementing cross-training opportunities so that employees can gain experience and knowledge in different aspects of the business.

By carefully selecting and building a team with the necessary skills and expertise, you can ensure that your craft beer garden delivers an exceptional experience to customers. Remember, the success of your business relies heavily on the knowledge and passion of your team members.

In conclusion, writing a business plan for a craft beer garden requires careful research, analysis, and planning. By following the 9 steps checklist outlined in this blog post, you can lay a strong foundation for a successful and profitable venture.

First, conducting thorough market research and understanding your target audience is essential to identify opportunities and tailor your offerings. Additionally, analyzing competitors' strengths and weaknesses can help you position your craft beer garden uniquely.

A feasibility study will help assess whether your business idea is viable, while choosing the optimal location and developing a comprehensive marketing plan will maximize visibility and attract customers.

Creating a detailed financial forecast and estimating startup costs will ensure financial sustainability, while establishing relationships with suppliers and craft beer breweries will ensure a reliable and diverse beer selection. Developing a unique concept and theme that resonates with your target audience will set your craft beer garden apart.

Lastly, building a team with the necessary skills and expertise will aid in efficient operations and growth. Overall, by carefully considering each step in the checklist, you can increase the chances of running a successful craft beer garden that offers an exceptional experience to its customers.

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Start a Beer Garden

Brewing Up A Community: The Fulfilling Journey of Starting a Beer Garden

BEER GARDEN

Related business ideas, discover your perfect domain, beer garden mini business plan, business idea analysis: beer garden, expected percent margin:, earnings expectations:, actions to hit those numbers:, inventory management:, marketing and customer acquisition:, sales and customer experience:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if the business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, register the business name, trademark the business name, step 3: obtain necessary licenses and permits, obtaining licenses and permits, cost of licenses and permits, other considerations, step 4: choose a location, researching potential locations, step 5: design the beer garden, tips for designing the beer garden, step 6: purchase equipment, where to buy equipment, cost of equipment, financing options, step 7: hire employees, job descriptions, employee benefits, step 8: market the beer garden, tips on how to make the most of marketing strategies, step 9: open the beer garden, final preparations, explore more categories, take the next steps.

How to Write a Brewery Business Plan + Free Sample Plan

Makenna Crocker

8 min. read

Updated February 7, 2024

Free Download:  Sample Brewery Business Plan Template

Are you captivated by the craft of brewing beer? Enticed by the idea of making a living pouring your own beers for a crowd of enthusiasts? 

Sales of craft beer in the United States have continued to rise despite a slight downtown in overall beer sales, according to industry statistics. But to transition from craft beer aficionado to profitable brewery owner, you need more than just a robust ale — you need a solid business plan.

Need more guidance? Download our free sample brewery business plan .

Creating a detailed business plan is an indispensable step in your entrepreneurial journey.

In this article, we’ll tap into the process of writing a brewery business plan, helping you navigate from market research to financial forecasts and beyond.

• Why write a brewery business plan?

Starting a brewery without a business plan is like brewing without a recipe — risky and unpredictable. The plan is where you take stock of your market opportunity, assess the competition, document your day-to-day operating needs, and more.

But it’s more than a document to lay out your vision and objectives. You’ll need a clear, comprehensive business plan if your vision hangs on securing a bank loan or getting an outside investor to fund you .

They need evidence that you understand the market, have a sound financial strategy , and a plan to grow sustainably .

Without a business plan, you’re more likely to misjudge your inventory needs.

You might miss an opportunity to pivot based on changing tastes among customers or lose sight of tactics to set yourself apart from competitors in a crowded industry. 

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• 1. Research the market

The competition you’re likely to face from other brewers reinforces the importance of understanding your position in the market. Especially if you’re starting a new brewery business in a larger, urban area, you’ll need to devise a strategy for entering and growing within that market.

You can start simple. Visit some of those breweries in your geographic area. What sets the popular ones apart?

Be sure to talk to customers as well.

You can also gather insights from your competitors’ social media presence and gauge how customers are interacting with them online. You should also show that you understand broader trends in the craft beer industry, such as the seasonal popularity of different beer styles.

When writing your business plan , document the following information to show that you understand your market:

• The size of the 21-and-over population in the area you want to serve
• The number of licensed breweries in the area
• The number and types of other competitors (bars and restaurants, grocery stores that serve alcohol, etc.)
• Food offerings (some states legally require breweries to provide food)

Surround yourself with the community you plan to serve to really get an idea of what excites and draws in local beer enthusiasts. Notice the kind of beer they offer, how they market their products, and the type of people that tend to enjoy what they have to offer.

Looking at your competition isn’t about trying to copy them. It’s about understanding what is already offered and determining how you can ultimately stand out.

Define your target market

Now that you’ve compiled your market research, it’s time to zoom in on the demographics of your clientele.

Are the people frequenting breweries in your area mostly younger, like college students? Or maybe they tend to be workers looking for a fun afternoon out, or tourists stopping by after taking in the main attractions in your area?

Identifying your target market is not just about knowing who will be walking through your doors, but understanding their preferences and what causes them to choose you over your competitors. Doing this effectively requires considering the demographics of your potential customers:

• Occupations

And their psychographic characteristics:

Are your potential customers seasoned beer experts or casual drinkers? Do they value a broad selection, or would they prefer locally sourced and sustainable ingredients?

Defining these characteristics allows you to tailor your brand’s voice, marketing strategies, and even your beer selection to resonate with your desired audience.

• 2. Create an operational plan

The heart of your brewery business lies in its day-to-day operations. Begin with detailing the brewing schedules, capturing the intricacies of beer production, and then customer service operations.

Your operations plan should extend beyond brewing. Include managing supply chains , maintaining brewing equipment, and ensuring a smooth workflow in areas like marketing, sales, and distribution. Address the staffing plan too, outlining roles, responsibilities, and the team structure necessary to keep the brewery running smoothly.

As you navigate through these operational aspects, it’s important to keep in mind the broader picture: stay updated with regulations and compliance standards , but more importantly, ensure these guidelines are seamlessly integrated into your daily operations.

Your operational plan should paint a comprehensive picture of how your brewery functions on a daily basis, highlighting the systems and processes that drive its success.

• 3. Market your brewery

Even if you have the most flavorful beer, without the right marketing, nobody will know it exists.

You need to craft a marketing strategy as carefully as you do your beer. Utilize both traditional methods, like:

• Hosting beer release parties
• Local partnerships
• Advertising
• Loyalty programs

And digital tactics, such as email marketing and engaging with your community on social media , to spread the word about your brewery.

Don’t forget to look at competitors’ presence online as well. How they engage with their followers on social media and what online reviews say will tell you a lot.

Consider these marketing tips:

Develop a strong brand.

Your brewery’s brand should encapsulate what you stand for and what you offer that no one else does. Having a consistent theme across all aspects of your business, from the design of your logo and labels , to the interior of your brewery and the tone of your communication , will help solidify your brand. 

Example: If your brewery focuses on organic ingredients, this should be clear in your branding, and your marketing materials should educate customers on the benefits of organic beer.

Engage through events 

Events are a practical way to bring people to your brewery and get them talking about your beer. Consider planning events like these that are aligned with your brand:

• Beer release parties
• Homebrew competitions
• Local music nights

If you have a brewery that prides itself on being family-friendly, consider hosting family-oriented events like game nights. Events like these can not only attract regular customers but also create opportunities for social media sharing and word-of-mouth marketing.

Build a digital presence

A well-designed website is crucial for a positive online presence , providing information on your beers, the story of your brewery, and details about visiting or touring. Make your website easy to navigate and update it with the latest news about your products and events.

Use social media platforms to connect with your audience by sharing news, responding to customer feedback, and promoting upcoming events.

Regular updates and active engagement on platforms like Instagram and Facebook can help maintain your customers’ interest and encourage them to visit your brewery or try your beers.

• 4. Financials and pricing

To run a sustainable brewery operation, you have to do much more than just craft the perfect beers — your business has to be financially viable. A strong financial plan lays out a roadmap for turning your dream into a financially successful reality.

Begin by estimating your startup costs , considering everything from brewing equipment to licensing fees.

Appropriate pricing of your beers is crucial for business profitability – it’s a balancing act that involves setting a price that covers production costs and generates profit while also being attractive enough to keep customers from choosing competitors.

When penciling out your financial plan, remember:

• Cost Analysis: Know the cost of your ingredients and production to price your beers profitably.
• Sales Projections : Use your market research to forecast your sales. Be realistic, but don’t forget to plan for growth.
• Regular Reviews: Keep an eye on your financial health by reviewing your costs and prices regularly , ensuring your brewery remains profitable.
• 5. Set milestones and goals

Establishing clear milestones and specific goals is important for your brewery’s success. Your short term, three-month goals might include:

• Finalizing your beer menu
• Selling your first batch
• Hosting a successful grand opening

These early goals focus on launching your operations and establishing your brand in the local market.

Looking further out, your three-year objectives could involve more ambitious goals like:

• Reaching a certain production milestone
• Expanding your distribution to multiple states
• Opening a second taproom

Long-term goals should also include financial benchmarks, like achieving a break-even point and possibly hitting specific revenue targets .

For example: By the end of the first quarter, you might hope to have a solid customer base and consistent foot traffic with regular events driving sales.

After three years, your goals could shift toward sustainability and growth, like implementing a barrel-aging program or securing a spot in regional beer festivals. Milestones like these not only chart a path for growth but also help in measuring the health of your business.

Download your free brewery business plan template

If you’re ready to start your own brewery business, you can download our free brewery business plan template from our library of over 550 sample business plans . Get started today, and discover why businesses that plan grow 30% faster than those that don’t.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

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How To Run a Beer Garden

In this article, we’ll start by discussing the key day-to-day operational tasks you must perform to run a successful beer garden business. Then we will go through ways to make your business run more efficiently.

Day-to-Day Operational Tasks for a Beer Garden Firm

No matter the type of beer garden business you have, there are some basic operational tasks that you will need to complete on a regular basis. These tasks include:

• Checking and restocking supplies – This task is important to ensure that you always have enough beer, glasses, and other supplies on hand to serve your customers.
• Cleaning – Keeping your beer garden clean is essential to providing a good customer experience. Make sure to sweep and mop the floors, wipe down tables, and empty trash cans regularly.
• Opening and closing the beer garden – Depending on your hours of operation, you will need to open and close the beer garden each day. This involves tasks such as turning on lights, setting up chairs and tables, and locking the doors when you are closed.
• Serving customers – As the owner of a beer garden, you will likely be responsible for serving customers. This involves taking orders, pouring drinks, and providing customer service.
• Handling payments – You will also need to handle payments from customers, which can be done via cash, check, or credit card.

Receiving and Processing Payments 

Another important aspect of running your business is getting paid on time and in full. There are a few different ways to receive and process payments, but the most common are invoicing and credit cards. 

For a beer garden business, credit or debit cards are often the best option, as they allow customers to pay quickly and easily. To accept credit or debit cards, you will need to set up a merchant account with a bank or other financial institution. This account will allow you to process credit card payments from customers.

Managing Customer Relationships 

The key to any successful business is good customer relationships. Managing customer relationships is especially important as you want to make sure that they are happy and satisfied with your offerings. This will make them more likely to refer your company to others and to come back to you in the future. There are a few different ways to manage customer relationships, but the most common is to keep in touch with them regularly and send them updates via their preferred communication method.

Improve Your Beer Garden Company Inefficiencies

Use the following tips and strategies to make your beer garden business more efficient:

• Use checklists – Checklists can help you to remember all of the tasks that need to be completed each day, week, or month. This will ensure that nothing is forgotten and that everything is done in a timely manner.
• Delegate tasks – In order to make your beer garden more efficient, delegate tasks to employees or contractors. This will free up time so that you can focus on other aspects of the business.
• Automate tasks – If possible, automate repetitive tasks such as billing and payments. This will save time and ensure that these tasks are always done correctly.
• Streamline processes – Take a look at your current processes and see if there are any areas that can be streamlined. This will help to eliminate waste and make your beer garden more efficient.
• Use technology – There are a number of different technologies that can help run your beer garden more efficiently. For example, use online ordering systems, point of sale systems, and scheduling software.

Systems & Processes

One of the best ways to make your beer garden business more efficient is to develop and/or automate as many systems and processes as possible. By doing this, you can save time and money.

The following beer garden business processes can be systematized: 

• Ordering supplies – Develop a system for ordering supplies so that you always have the items you need on hand. This can be done online or via telephone.
• Tracking inventory – Use a system to track inventory so that you know what needs to be ordered and when. This will help to avoid running out of supplies.
• Making sales – Use a system to track sales so that you can see which products are selling well and which ones need to be discontinued.
• Processing payments – Develop a system for processing payments so that you can get paid on time and in full. This can be done via invoicing or credit card.
• Managing customer relationships – Use a system to keep in touch with your customers so that you can build and maintain good relationships. This can be done via email, social media, or direct mail.

Delegate & Outsource

Another way to make your beer garden business more efficient is to delegate and/or outsource tasks.

There are a number of different tasks you can delegate or outsource, including:

• Administrative tasks
• Marketing and advertising
• Customer service
• Bookkeeping and accounting
• Web development

By delegating and outsourcing these tasks, you will free up time to focus on driving sales, which is key to growing your beer garden company.

You can find professionals to perform these tasks and more on websites like Upwork and Fiverr. Test workers on those sites with small projects before hiring them for bigger ones.

Time Management

When it comes to running a successful beer garden business, one of the most important things is time management.

There are a number of different ways to manage your time effectively, including:

• Create task lists/to-do list
• Time blocking (blocking out time of your schedule to focus on critical tasks)
• Prioritization (prioritizing business building projects over day-to-day operational tasks)

In order to be successful, you need to learn how to balance the important tasks with the less important ones. You also need to learn how to say no to certain tasks in order to focus on the ones that are most important.

The key to time management in the beer garden business is to be organized and focused. By using the techniques mentioned above, you can effectively manage your time and grow your business.

Tools, Technology & Resources

There are a number of different tools, technologies, and resources that can help beer garden businesses improve their efficiencies, including:

• Marketing automation tools (email marketing, etc.)
• Accounting software/automated billing and invoicing
• Customer Relationship Management (CRM) software

Consider using these tools if they can help your business. Also, creating custom software could possibly allow you to perform even better and give you competitive advantage. If a customized piece of software could benefit your beer garden business, consult with an IT professional or software developer.

Set & Track Goals

One of the best ways to make your beer garden business more successful is to set and track goals. Without business goals, it’s difficult to measure your progress or know what you need to do to improve your business.

There are a number of different ways to set and track goals, including:

• SMART goals (SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound)
• Progress tracking charts (creating graphs that show your progress made towards specific goals)
• Creating a business plan

By using one or more of these methods, you can set and track realistic goals for your business. This will help you stay on track and achieve your desired results.

In order to maximize your success, consider networking with other professionals both inside and outside the beer garden business . By doing this, you can learn from their experiences, get advice, and make connections that can help your business.

There are a number of different ways to network with other professionals, including:

• Attending industry events
• Networking events
• Online networking
• Professional associations
• Trade shows

Pricing Your Offerings

One of the most important things to consider when pricing your beer garden offerings is how much you need to charge in order to make a profit. You also need to consider how much your competitors are charging for similar offerings .

Another thing to consider when pricing your services is how much value your offerings provide. By understanding the value of your offerings , you can justify charging more for them.

Finally, you need to find the right balance between price and demand. If you charge too much, you may lose potential customers . However, if you charge too little, you may not be able to cover the costs of running your business.

Targeting the Right Customers

In order to be successful in the beer garden business , you need to target the right customers . By targeting the right customers , you can increase your chances of making a sale and ideally serve customers who value your offerings more and/or are easier to serve.

There are a number of different ways to target the right customers , including:

• Segmenting your market
• Understanding your ideal customer
• Developing a positioning statement
• Creating a buyer persona

Running a beer garden can be a lucrative business. With the right tools, processes, resources, and incoming clients, you can successfully run a beer garden business. By following the tips in this article, you can set your business up for success.

Brewery Business Plan Guide + Example

July 6, 2023

Adam Hoeksema

In this guide, we will navigate the process of creating a brewery business plan that reflects your  vision and entices potential stakeholders. Rather than viewing it as a chore that your lender may have tasked you with, embrace the opportunity to lay a solid foundation for your brewery's future growth.

Together, we will cover the essential components that make up a comprehensive brewery business plan, empowering you to showcase your brewery, analyze the market landscape, strategize marketing and sales efforts, and develop realistic financial projections. Your potential lenders will want to make sure your brewery plans are realistic and within industry averages as well!

This guide includes the following:

What Should be Included in a Brewery Business Plan?

• Conducting Market Research for Your Brewery Business Plan
• Creating Financial Projections for Your Brewery Business Plan

Example Brewery Business Plan

Brewery business plan faqs.

With that in mind as the path forward, let’s dive in. 

A brewery business plan should compellingly convey to investors and lenders why beer enthusiasts and other customers would prefer your brewery over competitors, why you or your team are the optimum choice to manage the brewery, and how the financial projections are tailored to secure a favorable monetary return on their investment. Below is a detailed blueprint of our complimentary brewery business plan template .

Brewery Business Plan Outline

I. Executive Summary

II. Company Description

III. Market Analysis

IV. Marketing and Sales Strategy

V. Operations and Management

VI. Financial Plan

• Startup Costs and Use of Funds
• Annual Sales, Gross Profit and Net Profit
• Key Financial Ratios
• Financial Summary
• Income Statement Annual Summary
• Cash Flow Statement Annual Summary
• Balance Sheet Annual Summary

VII. Appendix

VII. Conclusion

How to do Market Research for a Brewery Business Plan

Market research forms the backbone of any brewery business plan. Understanding your position within the market and establishing that there is adequate demand for your brewery's unique concept, location, and price range is key. Learn more about our approach to brewery market research here. Essentially, your goal is to grasp your competition, gauge potential customer footfall, identify an optimal location, and anticipate any seasonal fluctuations that could affect your business. You can learn more about our Brewery market research approach here, and below are some useful tools and methods for conducting market research for your prospective brewery.

What Will be the Cost to Advertise my Brewery?

We recommend Google Keyword Planner to aid you in identifying the ideal keywords to promote and attract customers to your brewery's website. This tool also offers an estimate of the cost per click when advertising using different keywords, as shown below:

What Keywords are Customers Using in Their Searches?

We rely on both Google Keyword Planner and Ahrefs to discern which keywords are directing traffic to your competitors' websites. You can run a report on a competitor's website to uncover the keywords they are ranking for and the volume of organic traffic each keyword generates. This information can be pivotal in streamlining your SEO strategy.

How Seasonal are Brewery?

We utilize Google Trends to examine the seasonality of your brewery concept. For instance, it can highlight that "Craft Beer Breweries" might not have stark seasonal patterns, whereas a brewery with a specialty in summer ales might exhibit pronounced seasonal trends.

How Many Customers Do my Competitors Receive Each Month?

Lastly, it's advantageous to generate foot traffic reports for your competitors to gauge the typical number of patrons they serve at their breweries. An example is shown below that presents the number of visits per month for a specific location:

In the end, the projected customer base for your brewery is a key assumption that will be foundational to your financial projections. Therefore, understanding your competitors' patron volumes can assist in estimating the potential traffic to your brewery.

How to Create Financial Projections for a Brewery Business Plan

Now, it's time to translate your market research into meaningful financial projections. Unlike other industries, the art of brewing introduces unique variables that shape revenue projections. While some breweries face capacity constraints, dictated by factors such as available seating, others may be limited by their brewing capacity and the ability to efficiently fulfill orders. Creating accurate financial projections is crucial not only to showcase your brewery's potential to repay loans but also to demonstrate an attractive return on investment to potential stakeholders.

• Estimate startup costs for your restaurant
• Forecast revenue including distribution, tap rooms, brewpub
• Project food, beer, and labor costs
• Estimate your operating expenses like rent and utilities
• Calculate how much investor or loan capital you will need to open

If you use our brewery projection template , you'll be guided through this process, ensuring your projections adhere to the format required by investors or lenders. Typically, startup brewery projections should include an integrated income statement, balance sheet, and cash flow forecast to provide a comprehensive financial overview.

Through thoughtful financial planning and accurate projections, you'll not only showcase the potential profitability of your brewery but also gain the confidence of potential investors and lenders. Let our brewery projection templates assist you in presenting a robust financial plan that sets the stage for a successful brewing enterprise.

Discover our brewery business plan template , available in a customizable Google Doc format, allowing you to tailor it to your specific needs. Accompanied by our video walkthrough, you'll receive guidance on adapting the plan to your unique brewery concept. 

Table of Contents

1. executive summary,  1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: Barrel & Brew Co. is a boutique craft brewery located in Asheville, North Carolina. We are dedicated to producing exceptional handcrafted beers that showcase the artistry of brewing and embody the spirit of the local community. 

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example:  Establish Barrel & Brew Co. as a premier destination for craft beer enthusiasts in Asheville, achieving a 70% taproom occupancy rate within the first year.

        - Example: Long-term: Plan to expand our operations, opening additional taprooms in neighboring cities and maintaining strong customer satisfaction..

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At Barrel & Brew Co., our mission is to create exceptional craft beers that captivate the senses and foster a sense of community. We are dedicated to promoting the art of brewing, supporting local farmers and artisans, and providing an inviting and educational space where beer enthusiasts can gather, share experiences, and appreciate the craftsmanship behind our beers.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: Barrel & Brew Co. thrives on the following key factors for success. We prioritize exceptional craftsmanship, ensuring our craft beers deliver unmatched quality and flavor. Our engaging taproom experience immerses beer enthusiasts through guided tours, tastings, and educational activities. Active community engagement through festivals, collaborations, and charitable support builds a loyal customer base. 

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: Barrel & Brew Co. was founded by Martin Holts, a passionate brewer with extensive experience in the craft beer industry. Inspired by his love for brewing and the vibrant beer culture in Asheville, North Carolina, Martin set out to create a brewery that would celebrate the artistry and flavors of handcrafted beers. 

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: Barrel & Brew Co. operates as a limited liability company (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: Barrel & Brew Co. distinguishes itself through its commitment to brewing excellence and innovation. We pride ourselves on crafting high-quality beers that showcase a harmonious blend of traditional brewing techniques and inventive flavors.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: Barrel & Brew Co. targets beer enthusiasts and craft beer connoisseurs in Asheville, North Carolina, and beyond. Our offerings appeal to individuals who appreciate the artistry, quality, and diverse range of flavors found in handcrafted beers. 

3. Market Analysis

3.1. industry overview.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The craft beer industry in Asheville, North Carolina, is thriving, driven by the city's vibrant beer culture, tourism, and a strong community of beer enthusiasts. With a growing demand for high-quality and diverse craft beers, the industry presents significant growth potential for Barrel & Brew Co.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Mountain Brew –  a local brewery located in Asheville, North Carolina, specializing in craft beers that celebrate the mountainous region.

        - Example: Indirect competitors: The Hop House – a popular brewpub and restaurant in Asheville, North Carolina. While they brew their own beers on-site, they also offer a wide selection of craft beers from other local and regional breweries. 

3.3. Target Market Analysis

Explores the company's target customers, demographics, preferences, and pain points.

        - Example: Barrel & Brew Co.'s target market includes beer enthusiasts, craft beer connoisseurs, and locals and tourists who appreciate the unique beer scene in Asheville. The target demographic comprises individuals aged 21 and above who seek flavorful, high-quality beers and enjoy exploring different beer styles and flavors.

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: There are several opportunities for Barrel & Brew Co. to thrive in the market. Firstly, by actively participating in local beer festivals, events, and collaborations with other breweries, Barrel & Brew Co. can increase brand visibility and attract new customers. Additionally, partnering with local restaurants and bars to showcase their beers can expand their reach and tap into new customer segments. 

Key Point  1

• Example 1: Conduct a competitor analysis to understand the strengths and weaknesses of existing breweries in the area. (e.g., Identify key competitors' offerings, pricing, and customer reviews to determine potential gaps in the market)
• Example 2:Analyze local beer consumption trends and preferences through surveys and market research. (e.g., Discover that there is a high demand for craft beers with unique flavors and local ingredients in Asheville)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: Barrel & Brew Co. offers a diverse range of handcrafted beers. Our lineup includes a variety of beer styles, from refreshing lagers to hop-forward IPAs and rich stouts. Each beer is meticulously brewed using high-quality ingredients and crafted to deliver exceptional flavor and aroma.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: Barrel & Brew Co. employs a competitive pricing strategy that reflects the quality and craftsmanship of our beers while remaining accessible to our target market. 

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example:  To generate sales and build strong customer relationships, Barrel & Brew Co. focuses on creating memorable experiences for beer enthusiasts. Our taproom in Asheville, North Carolina, serves as a hub for beer tasting, socializing, and educational events. We prioritize customer engagement by offering guided brewery tours, hosting beer tasting sessions, and providing a welcoming and knowledgeable staff to enhance the overall brewery experience.

4.4. Distribution Channels

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: Barrel & Brew Co. primarily distributes its beers through its taproom in Asheville. Customers can visit the taproom to enjoy our beers on-site, purchase cans or growlers to-go, and engage directly with our team. 

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: To increase brand awareness and attract customers, Barrel & Brew Co. employs a multifaceted approach to promotions and advertising. We leverage social media platforms to showcase our beers, engage with our audience, and promote upcoming events. We also collaborate with local food vendors, musicians, and artists to host unique experiences and create cross-promotional opportunities. 

Key Point  2

• Example 1:  Organize a beer tasting event showcasing the brewery's signature brews to attract beer enthusiasts and build brand awareness. (e.g., Attract 300 attendees to the event, generating positive feedback and inquiries about future offerings). Attend local festivals, events, etc to offer beer tastings and sale discounted beers
• Example 2: Collaborate with local restaurants and bars to feature Barrel & Brew Co.'s beers on their menus, expanding the brewery's reach and attracting new customers. (e.g., Secure partnerships with three popular restaurants, resulting in increased sales and customer referrals)
• Example 3: pre-sale “beer of the month” or mugs for a “mug club” to provide a discount for the first year (or lifetime) based on a pre-launch subscription fee
• Example 4: Social Media & Email signups. Build a local (and broader) following by documenting/sharing the process of brewing, building, launching the brewery. Collect emails to provide updates to local supporters

5. Operations and Management

5.1. brewery production.

Involves the brewing process, quality control, and packaging of the beers.

        - Example: Barrel & Brew Co. focuses on producing high-quality beers by adhering to strict brewing standards, conducting regular quality checks, and implementing efficient packaging and labeling processes.

5.2. Inventory Management

Refers to the management of raw materials, brewing supplies, and finished beer inventory.

        - Example: Barrel & Brew Co. maintains a comprehensive inventory management system to monitor stock levels, track ingredient usage, and ensure sufficient supply of brewing materials. This enables us to meet customer demand and optimize production efficiency.

5.3. Taproom Operations

Encompasses the management of the taproom, including customer service, beer pouring, and creating a welcoming atmosphere.

        - Example: Barrel & Brew Co. places a strong emphasis on exceptional customer service and creating a warm and inviting environment in our taproom. Our well-trained staff provides knowledgeable guidance on beer selection, offers a memorable tasting experience, and fosters a sense of community among our patrons.

5.4. Compliance and Regulatory Requirements

Involves adhering to local, state, and federal regulations related to brewing, licensing, health and safety, and responsible alcohol service.

        - Example: Barrel & Brew Co. ensures compliance with all applicable laws and regulations governing the brewing industry. We maintain proper licensing, prioritize health and safety protocols, and promote responsible alcohol service to uphold the highest standards of legal and ethical practices.

Key Point  3

• Example: Martin Holts, the owner of Barrel & Brew Co., has a decade of experience in craft beer brewing, including managing a successful brewery in a different location. His expertise ensures a deep understanding of brewing techniques, quality control, and industry trends.
• Example: The brewery's head brewer, Sarah Thompson, is a renowned expert in the craft beer industry, having won multiple awards for her innovative beer creations. Her expertise brings credibility and a competitive edge to Barrel & Brew Co.

5.5 Staffing and Human Resources

Covers the recruitment, training, and management of a skilled and dedicated team.

        -Example: Barrel & Brew Co. places great importance on hiring passionate and knowledgeable individuals who share our commitment to brewing excellence. We provide comprehensive training programs, offer competitive compensation, and foster a positive work environment to attract and retain top talent in the industry.

5.6. Financial Management

Involves budgeting, accounting, and financial analysis to ensure the brewery's financial stability and profitability.

        - Example: Barrel & Brew Co. maintains a robust financial management system, which includes accurate bookkeeping, regular financial analysis, and strategic budgeting. This allows us to make informed business decisions, manage expenses effectively, and pursue growth opportunities while maintaining financial sustainability.

All of the unique Brewery financial projections you see here were generated using ProjectionHub’s Brewery Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

6. Financial Plan

   6.1. startup costs.

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of Barrel & Brew Co. We have raised $150,000 through personal investment from Matin, and we are working with financial institutions to secure a business loan of around $500,000. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for Barrel & Brew Co. 

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  Barrel & Brew Co. projects $1,367,824 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

6.3. Expense Projections

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: Barrel & Brew Co.'s expenses include property lease, accounting, advertising, professional services, utilities, and more.

6.4. Profit and Loss Statement

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: Barrel & Brew Co. expects to achieve profitability within the first two years of operation.

6.5. Cash Flow Projections

 Outlines the company's projected cash inflows and outflows.

        - Example: Barrel & Brew Co. cash flow projections account for seasonal fluctuations in sales and expenses.

6.6. Break-even Analysis

  Determines the point at which the company's revenue equals its expenses.

        - Example: Barrel & Brew Co. anticipates reaching its break-even point in year 2 of operation.

Watch how to create financial projections for your Brewery

Key Point  4 

• Example 1: Compare financial projections with industry benchmarks for breweries of a similar size and production capacity. (e.g., Aim for a gross margin of 50%, which is within the typical range for craft breweries)
• Example 2:  Consider potential market growth and expansion opportunities in Asheville, factoring in expected revenue increases from increased distribution and taproom sales.

7. Appendix

   7.1. supporting documents.

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

Key Point  5

• Example: Martin Holts and his family invest a substantial amount of personal funds into the brewery's startup costs, demonstrating their commitment to the business's success.
• Example: The brewery secures a small business loan backed by the collateral of brewing equipment, showing the willingness to assume financial risk and ensuring the lender's confidence in the venture.

How can I choose the ideal location for my brewery?

When selecting a location for your brewery, consider factors such as the availability of water supply, access to quality ingredients, proximity to your target market, zoning regulations for breweries, space for brewing equipment and storage, and the potential for a taproom or retail area.

What are the steps to start a craft brewery?

Starting a craft brewery typically involves conducting market research, writing a business plan, securing funding, obtaining necessary permits and licenses, sourcing equipment and ingredients, hiring staff, and marketing your brewery.

How can I finance my brewery startup?

There are various options to finance a brewery startup, including self-funding, bank loans, crowdfunding, seeking investment from private investors or venture capitalists, or applying for government grants or incentives.

What permits and regulations do I need to comply with to operate a brewery?

The permits and regulations for operating a brewery can vary depending on your location. Typically, you will need permits related to alcohol production and distribution, licensing for on-site consumption or retail sales, compliance with health and safety regulations, and adherence to labeling and packaging requirements.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Business Plan Resources for Breweries

I started with the Brewers Association in 2014. My goal is to engage with as many members as possible, help them maximize their membership benefits, and act as the resident resource-Sherpa to assist in navigating through the mountain of information.

In my free time I like to sip on IPAs and pilsners while playing bass loudly or petting my dogs. I openly welcome pup-pictures and all heavy/loud/noisy music suggestions.

Many of the discussions we have at the Brewers Association (BA) revolve around resources and ideas that are specific to the beer industry. We focus on technical brewing, acquiring the right ingredients, building a brand, marketing beers, passing OSHA inspections, and complying with the TTB, among other things. Yet, there is a foundation to breweries, brewpubs, and taprooms alike, that is the common thread of all businesses. That foundation is a well-constructed business plan.

Learn How to Create and Maintain Your Business Plan

I’m often asked what business planning resources the BA provides, and I point members to our production statistics , benchmarking surveys , insight & analysis articles , and a myriad of Craft Brewers Conference (CBC)  presentations covering specific business-related topics. Additionally, Brewers Publications offers The Brewers Association’s Guide to Starting Your Own Brewery , which includes guidelines for business planning and a sample business plan. Despite all this information, though, I still hear questions about the root of the business plan – where to start and how to create one. So, I’ve compiled a handful of resources to help breweries create and maintain a business plan.

We all have preferences on how we digest educational materials. So, the information below comes in multiple formats from a variety of sources. These resources are helpful whether you are looking to create your first business plan or simply want to update your current one. A business plan is a living document that should be updated regularly, rather than a ‘one and done’ springboard for prospective businesses. This is by no means a comprehensive list of resources on this topic, as there are hundreds of them available. Rather, it’s a jumping off point for members who want to establish and expand their knowledge. These resources can help us establish and refresh business plans, in addition to highlighting components we wish to explore further.

Business Plan Resources:

• Writing Your Brewery Business Plan  is a step-by-step review of the necessary elements within a business plan and why those things are important.
• Successfully Planning, Starting and Operating a Nano Brewery  offers a broad overview of the planning process with highlights on fundamental considerations for both launching and growing a brewery.
• The Nuts & Bolts of Great Business Plans – An often cited (and very comprehensive) guide to the broader and finer points of creating your business plan. This 30-page PDF document is updated yearly and provides excellent details on the what and why of each section in the outline.
• The U.S. Small Business Administration (SBA) is a great general resource for businesses. They offer a step-by-step tool that explains each section of the business plan template, along with a place to input your specific business information along the way.
• SCORE , a nonprofit resource partner with the SBA, has a variety of resources geared toward creating business plans and starting small businesses. This includes a 60-minute webinar on One Page Business Plans , an on-demand Developing a Business Plan course , articles about business plans , and even mentorship opportunities .
• For those who prefer educational videos, BizPlanTemplate.com offers a free business plan template paired with a 10-minute tutorial explaining each section.
• If learning on the go is of interest, scribendi.com offers a very succinct podcast outlining How to Write a Business Plan . For those starting from scratch, this is a good primer for the deeper dive into more detailed templates.

Don’t Forget to Use Your Community

As a final note, I’d be remiss not to mention the Brewers Association Forum . This is an excellent place to ask questions and engage with fellow brewery owners as you create and revise your business plans. While each brewery (and therefore business plan) will be unique, there is much to be learned from those around us. I am constantly reminded of the community mindset amongst many breweries, and this a fantastic way to connect and share resources with one another.

Resource Hub:

More like this.

The Human Resources Guide for Small Breweries

Zywave: Hiring and Onboarding

Resource hub, search brewersassociation.org.

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Explore the Brewers Association's most high-value resources and tools in one click. Need some additional guidance? Click here to setup a resource meeting with Graham, the BA's Engagement Coordinator.

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Craft Brewing Business

Professional Insight, Unfiltered

Your guide to opening a beer bar: From creating a business plan to financing

December 14, 2016 CBB Editorial Staff

Bond Street just published a great step-by-step guide on how to go about opening your very own bar, and we thought it was worth sharing with you CBB ers that still have that dream of moving your craft beer love from your garage to, oh, a slightly larger abandoned garage in a rundown part of town. Just be sure to let us know when you do because we want to hang out there. Thanks to the Bond Street peeps for letting us republish a piece of their guide — focused on the business plan and financing. If you like what you see, definitely hit their site for the full thing , which includes more on cost expectations, the liquor license process, hiring, equipment, etc.

Creating a business plan

Summarize your concept in a few tight sentences that you can eventually use as the starting point of your pitch to investors.

What are you going to name your bar? This is the beginning of your dream becoming a household name. It’s more important than you may think. Be creative, steering clear of the generic, let it espouse your vibe and make it catchy and memorable.

Determine how much initial capital do you need: However much initial capital you think you will need — you need about 20 to 40 percent more than that … SERIOUSLY, 20 to 40 percent more — when in doubt, round up.

Be sure to include the amount of initial capital that you have in personal funds and how much money you will need to raise from outside sources.

RELATED: Craft a brewing business plan: Tips from a brewery in planning

Solidify your first hires: Everything from whether or not you’ll have a manager or you’ll be managing the bar yourself, to your bouncer and security needs, to how many bartenders you plan to hire should be laid out in your initial business plan so that when you begin your search for your opening staff, you know who you’re looking to hire. Here are a few staff members that current bar owners say are absolutely essentially (and they may surprise you):

• A really good bookkeeper: Your finances are going to overwhelm you. When I asked the owner of Summers, Chris Taha, for something he’d do differently he quickly responded, “Have a good bookkeeper from day one.”
• “An accountant with a backbone who will make you do what you need to do — like pay your taxes.”– Scott Perez, Walkers
• A liquor lawyer to negotiate the liquor license.
• A lawyer who will first help you negotiate the terms of your lease and who will then serve to handle your legal needs (you are opening a bar).
• A plumber you can count on, consistently, all the time (again, you are opening a bar).
• If you’re choosing to hire a manager, they will be your eyes and ears, choose wisely.

Outline where will you look for your opening staff: Other than word of mouth and pulling from the neighborhood (especially for bartenders, look for locals who have worked at other bars in the area; this is a hard place for us to make recommendations. Craigslist and other jobs board have everything to offer from perfect fits to the absolutely unhireable, and it will take some sifting through the mess to find what you’re looking for. Regardless, this is a crucial but tricky step so start to think about it early.

Nail down what type of space you’ll need to bring your vision to life: How big of a space do you require in terms of square footage? (i.e. How many people do you want to have in your bar when it’s at capacity?) Do you need a full kitchen? Equipment requirements?

Consider your food and beverage program: What will you serve, and how much will it cost? What’s your pricing strategy: industry-focused or customer-focused? Who will be your suppliers and distributors?

When calculating the total cost of a drink, think beyond the liquor and mixers to the cost of garnishes and napkins; your total cost should be no more than 20 percent of the price you charge.

Outline your financial strategy:

• When do you expect to be in the black? [Goal: 6 months-1 year]
• When do you expect to break even? [Goal: 3-5 years]
• What is your exit strategy if things go wrong?
• How will you keep track of your financial goals and checkpoints?
• How much should you be saving? [Put away about 2 to 4 percent of your weekly operating costs for emergencies and invest the rest back into improving your profitability]

Miscellaneous:

• Choose a POS System, Inventory System, Payroll System and create on overall training and operating manual (more on this later).
• How much can you spend on rent? How much, roughly, will initial renovations cost?

RELATED: How to avoid the most common MRP mistakes breweries make

Financing options

Equity financing: For many investors, equity is the most attractive form of investment, giving them the prestige of ownership; investors give you money in exchange for a future stake in your bar when you become profitable. You estimate how much you think your future worth will be and, based on this estimate, they decide how much they will give you, which congruently determines percentage of ownership they’ll have. If bootstrapping isn’t an option and your initial collateral is minimal, the long runway that equity financing will give you to become profitable makes it a strong option to pursue.

If possible, seek out a business partner or investor with high net worth to provide the financial backing because they are passionate about your concept. Investors that will likely invest in you are probably not looking to make a huge profit and are more interested in the prestige of owning a bar (you should be offering about 2 percent of ownership, so you’ll need multiple investors unless you enter into a partnership).

Debt financing gives you a lump sum and you agree on a repayment schedule and an interest rate. While this is the most common form of financing for new businesses, if you don’t have any substantial collateral you may have difficulty securing this type of loan because, in the event that your business goes under and you default on the loan, your investors will expect there to be some kind of tangible guarantee.

Note: If your bar is also a restaurant, the Small Business Administration may have loans available that you could qualify for.

Convertible debt functions as a synthesis of debt and equity financing; you receive a loan and your investors agree that the loan will either be repaid in the future or converted into equity, perhaps after the business has reached a certain valuation. You can offer a discount to your investors (typically about 20 to 25 percent) so that if and when they do convert their loan into equity, they get however much you offer in addition to the original loan.

For both types of investors, those that choose to convert and those that do not, you will need to set an interest rate so that you can repay them until they convert or the loan is repaid. If you’re having trouble setting a valuation for your bar but don’t want the rigidity of debt finance, this is a good route to take with your possible investors.

Thanks to the Bond Street peeps for letting us republish a piece of their guide — focused on the business plan and financing. If you like what you see, definitely hit their site for the full thing , which includes more on cost expectations, the liquor license process, hiring, equipment, etc.

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