How to Run a Microbrewery

Keep brewery operations tight to produce high-quality beer.

A microbrewery produces less than 15,000 barrels of beer per year, according to the Brewers Association. While small by definition, the business still needs to be run, operated and managed like a standard brewery in order to maintain the top-notch quality of the beer that is produced. Proper management of a microbrewery starts by ensuring that all of the necessary and legal steps are taken to make the microbrewery legitimate. Neglecting to one of your state's microbrewery requirements could result in the microbrewery getting shut down.

Instructions

1. Obtain the necessary permits and licenses to operate as a microbrewery. The state in which your microbrewery is established has its own laws pertaining to manufacturing and selling alcoholic beverages. Contact your state's beverage and alcohol commission to find out what it takes to get the permit or license you need. For instance, if you live in the state of Texas, you would contact the Texas Alcoholic Beverage Commission and apply for a brewer's permit or a brewpub license. Maintain the permits and licenses on the microbrewery's premises in case you ever need to display them on site.

2. Secure the appropriate capital you will need to purchase the manufacturing equipment, lease a brewing space, pay workers and purchase the ingredients for the beer. According to a March 2009 article in "The Wall Street Journal" by David Kesmodel, it can cost between $450,000 to $800,000 to start a microbrewery.

3. Establish your secret beer recipe. Running a successful microbrewery requires you to have a product that consumers want. Make your recipe original and unique to your microbrewery. Use different ingredients or come up with a special brewing process that you can advertise to attract more business.

4. Develop your microbrewery team. You will need an entire workforce to manage a microbrewery, from the brewers themselves to administrative personnel who are in charge of keeping track of orders, deliveries, overseeing the cash flow and monitoring the business's budget. Hire an outside accounting firm to help you balance the books.

5. Create connections in the community. Market your microbrewery beer to local vendors, restaurants, pubs, hotels and catering businesses. Find out what your competitors charge per barrel and try to aim at the same price point, or lower, to create a competitive advantage.

6. Manage the microbrewery's workforce. Keep staff up to date on new orders, important changes in the company structure, new recipes you come up with and keep the workers feeling like a united team.

References

• Brewers Association; Market Segments; 2011
• Texas Alcoholic Beverage Commission; License and Permit Descriptions; July 2011
• "The Wall Street Journal"; In Lean Times, a Stout Dream; David Kesmodel; March 2009