Thinking of starting a Homebrew and wine making shop

[caver95]

Am I crazy? There is an area my wife and I are moving to, well in with her mother for a time, I would rather not say the city at the moment. There is not a brewing store within 30 minutes. I am not sure of the pop density that can support home brewing store, it would also be a specialty cooking supply. I think we have enough cash to live for a year, I am waiting to hear back from a wholesaler, I need to see some wholesale prices before I can make any sales projections. I know I would be competing with a lot of REALLY good online stores, but I was thinking of, if it is possible, have brewing classes and brew your beer at the store and leave it with us and you pick up your two cases of beer, kind of like the pottery places. Does anyone have any words of wisdom?

I do know that I need

A business plan
enough capital to run for 6-12 months
a lot of heart

 

[Weizenwerks]

In this economy, you should look towards 18 months minimum living expenses in solid cash. You probably won't be able to pay yourself for the first year or two. Also I woud enlist the SCORE program to help out with business plan and its implementation.

 

[Yooper]

You're back in the US now? Welcome home!

I think if you can manage it, you should definitely try. If you make it, it was worth the risk. If you fail, you'll always know that you gave it a try.

Can you do a homebrew/dive shop?

 

[beergolf]

I support my LHBS as much as I can. He really does a great job and I want to keep him in business. Even though he is slightly higher than some of the online suppliers I just buy my stuff there. It sure is handy having him close. If you forget something or need something last minute it is great.

If you offer good service, reasonable prices and have a good inventory and fresh product you should do fine, but it will take a while to get a regular customer base.

 

[caver95]

I am not back in the states yet, but will be in the end of June. I dont want to use the term fail, but my exit strategy will include a contingency for a date and/or amount of money I will close up shop. I would also want to have an online shop. I would be very competitive with the pricing online and in the store, but I would not let money walk out the door.

 

[JohnTheBrewist]

In formulating your business plan, I would suggest talking to a few other LHBS owners as well as Brewed on Premise (BOP) owners to find out what the pitfalls and legal hurdles were. I suspect that a BOP may require some other type of licensing. If the city you're planning to operate in has a redevelopment agency, take some time to talk to them. They can be very helpful.

I also agree with an earlier poster about contacting SCORE, as well as the local Small Business Administration office.

Your going to need more capital. Once you have a basic business plan, you may want to look for potential lenders or investors (Although it may be uncomfortable, the best option here may be family and friends).

Good Luck!

 

[Danbert]

I have thought about this myself. I am looking at moving to a city where the nearest lhbs is a 2.5 hour drive away.
Good luck with your pursuit. Keep us all informed as to how it is going and once you start to establish where, let those in the area know so they can support you.

 

[edecambra]

I think it is important to get an idea of how strong the need may be, i.e. if there is a brewing community to support your store. The "if you build it they will come" business plan seems painful, especially in smaller metro areas.

Also, If your prices are higher than online stores, it still might be a good deal for impatient consumers when shipping makes one batch a wash. I don't mind paying an extra 2-3 dollars for a pitch of yeast or a few dollars more for hops if I can get it in my hands. Shipping is usually at least 7 dollars.

 

[Dome555]

What beergolf said. I think most homebrewers would rather support a local shop than buy online if everything was equal. Offering the stuff you can't really get online would be key. I've recently found myself wishing there was a brew on premises place near me that would let me try my hand at all grain since I'm currently limited to extract.

 

[RM-MN]

I've recently found myself wishing there was a brew on premises place near me that would let me try my hand at all grain since I'm currently limited to extract.

I really doubt you are limited to extract except that you limit yourself. Read a bit about "brew in a bag". I use a 20 qt. kettle that I use for extract brewing, a nylon paint strainer bag and nothing else and brew half size batches all grain right on my kitchen stove. It's cheap, simple, efficient, and convenient to start and you can use the same technique for larger batches if you have a larger kettle and a way to heat it to boil.

 

[RM-MN]

Am I crazy?

Of course you are. Everyone who opens a store has to be. The best business plan in the world does not replace experience. Nobody can tell you if you will succeed or fail, you just have to try it to find out.

If you go this route, best wishes to you. Try to keep a sense of humor and try hard to give customers good advice. Let them know you don't have all the answers but you will try to find out and you'll have them coming back.

 

[ReverseApacheMaster]

I am unfamiliar of any state that does not require a license for BOP. That may be some additional expense and delays you will need to plan.

What kind of homebrewing culture is in that area? I would say if there are homebrewing groups go talk to them and see what the demand is for local products. They may be willing to source bulk buys through you, get special orders, etc. and/or let you know what people want locally. They might be willing to help teach classes as well. I would also see where they like to shop currently. Then you can see what prices they are paying now and you'll have an idea where you would need to be to compete with the online vendors.

 

[caver95]

Thanks guys!
I have found a couple of suppliers on here, and have emailed them. I need to get an idea of the costs, I have a rough ball park of over head. I will be seeking out the homebrewers in the area. I know that beer is big but not sure about brewing. Yooper I will offer scuba classes. I would also start a home brewing club, I did this at a dive shop. I am really just spit balling ideas right now. I have about 3 business plans that are sitting around. I will be doing the market research when I get stateside.

 

[RM-MN]

You might get more interest in the area if you were to give a home brewing class in the evening occasionally, beer one time, wine the next alternating. Most people don't know how to get started and a class or 2 may help pique their interest.

 

[billf2112]

We have a store that opened in June 2010 and is doing pretty good as far as I can tell. They do beer and wine supplies. I see more and more higher end stuff coming into the store (and my wish list growing).

I would first check and see how many home brewers are in your area (find the local brew clubs and check them out). Go to the closest store in each direction (if they are close enough) see if they appear to be doing well, go in on a Saturday, lok for dust on kits and stuff.

Our store holds classes of some sort almost every Tuesday evening. These classes range from basic beer or wine making (101 courses) to all grain courses. They charge a simply $25.00 fee that includes food for the class and a kit to brew/make. I was afraid of starting out, after the class I brewed the very next day and have not looked back. I go there sometimes just to chat.

Set up a gift regastry. I gave my LHBS this idea. It worked out real well for them and the brewers. Brewers fill out a wish list on a simply 3 x 5 card and people go in and buy of the list. Your friends and family have no idea what to buy your, but they will if they can.

A good store can really do well and grow the hobby. It will even get people interested in good beer. This will support the craft beer pubs.

I say if you can and it looks like the business plan will work go for it. Our store is 2 couple, one still has regular jobs and run the classes, brew the beers in the tasting room and work weekends (they also come up with many of the store branded kits). The other couple run the business and are retired from regular jobs. They recently hired a part time employee (a great sign). I would be so lost without this store.

Ok enough rambling, good luck.

 

[caver95]

I am having my mother in law check with the city on brew on premises laws. I would like to do that. There is a club in the area that meets, I think it just might be more of a drinking club, but I am reaching out to them. I have taught many people to brew and I enjoy it.

Coming from the dive industry, I think I could start a homebrewers certification, being that I am a PADI instructor I can write a specialty for home brewing diver.

I like the gift registry idea that would be really cool. I am pretty much in limbo at the moment just thinking out loud about the perfect LHBS. I would really want to keep the prices as low as possible but i also would not want to be the walmart of brewing, or would I they do make more then the GDP of the country I am living in. :rockin:

So far

a brew club- I guess I could start one or join one.
Competitive prices
Knowledgeable staff- Me
The best customer service possible
Store labeled beer kits
Teaching classes- brewing 101 to All-grain.
Custom built Keezers...
Have DIY classes- wort chillers, keezers builds
Beer and Food pairing classes and partner with a restaurant.
guest speakers
brewery tour vacations, that would be cool!

I wonder what the law is about giving away beer on tap at the shop?
Homebrewers seem like a good bunch, I know I would always say to my LHBS I would like to buy this but I can buy it online for this with shipping can you come close?

 

[Yooper]

I wonder what the law is about giving away beer on tap at the shop?

Depends on the state. It's legal in Wisconsin to give out "samples" but I'm not sure about the state you're considering.

A dive shop/homebrew shop/snorkel shop/scuba lessons/homebrew classes shop sounds awesome!

Maybe an all around "hobby" shop? For guys (and the occasional woman)? I don't want to lose focus here, but my hobbies are sort of varied and I'd love it if I could walk into a hobby shop without model trains and get homebrew supplies, fishing gear, a new snorkel mask, etc. I'm probably way out to lunch, but I would definitely browse such a store!

I went into a store in the town we wintered in this year, and it was called Tackletown. I didn't need any fishing stuff, but I wanted a new cord for my sunglasses. Well, they have crocs, fishing shirts, sunglasses, clothes, swimsuits, etc, and I spent a ton of money! I could just see me going into a hobby shop that involved kayak/snorkel/scuba/homebrew/winemaking/soap making. Probably way too scattered, but I'd still love it!

 

[caver95]

Depends on the state. It's legal in Wisconsin to give out "samples" but I'm not sure about the state you're considering.

A dive shop/homebrew shop/snorkel shop/scuba lessons/homebrew classes shop sounds awesome!

Maybe an all around "hobby" shop? For guys (and the occasional woman)? I don't want to lose focus here, but my hobbies are sort of varied and I'd love it if I could walk into a hobby shop without model trains and get homebrew supplies, fishing gear, a new snorkel mask, etc. I'm probably way out to lunch, but I would definitely browse such a store!

I went into a store in the town we wintered in this year, and it was called Tackletown. I didn't need any fishing stuff, but I wanted a new cord for my sunglasses. Well, they have crocs, fishing shirts, sunglasses, clothes, swimsuits, etc, and I spent a ton of money! I could just see me going into a hobby shop that involved kayak/snorkel/scuba/homebrew/winemaking/soap making. Probably way too scattered, but I'd still love it!

Dont for get the hollow wooden surf and SUP boards!
The city planner says it is a one to two month process to get approval.