People tend to know more about wine consumption than about the business of winemaking itself. They know more about the types of wine, their origins, how to drink it, and what food to pair it with. However, the rudiments of what it takes to set up and run a winery are information mostly people who own wineries know.
Running a winery is no small feat. There is so much that goes into setting one u and running it successfully. Here are a few basic must-dos for anyone who wants to start a wine business.
Choose a Good Name and Business Entity.
The first thing to consider when starting a wine business is a good name and business entity. A name is what the business will be identified with. It will become the brand and is what will make the wine stand out from the others on the market. A good brand name will also be a huge determinant in selling the wine. However, there should always be a proper check to ensure that the chosen name has not been taken by another business. A good place to find feelers and advice for a good company name is wine-centered establishments like the Underground Cellar. Also, choosing the right business helps set the tone for the winery. For instance, registering it as an LLC is highly beneficial as it offers individual protection while allowing the owner exercise sole proprietorship.
Write Out and Activate a Business Plan.
This requires extensive research into everything about a winery, the competition from other brands, how it is set up, and how it is run. From here, a business plan should be drafted. Everything from the budgets, market analysis, company overview, and even financial projections should be included. It can be a very tedious affair but a business plan is a foundation upon which every business is built, including a winery. A business plan can be created from scratch or built with a template. However, there must be room for modifications because changes to projections are to be expected along the way.
Settle Licenses and Permits.
The wine business is heavily regulated and requires several specific licenses and permits to be acquired before going into business and even during operation. It is important to have these take care of quickly and on time as the business will not be allowed to begin operation and can be closed down without them.
Invest In Equipment, Infrastructure, And Staffing.
This is a very capital-intensive part of setting up a winery. Wine-making equipment is needed to begin production but they also need to be situated somewhere so land and infrastructure will come into play here. Refrigerators, cellar, fermentation and storage equipment, trucks, and bottling line are all things that must be acquired. Staffing will also need to be taken care of as people are needed to handle very specific job descriptions.
Selling, Marketing, And Advertising.
Sales marketing and advertising should be activated very early on, even before the wine has been produced and ready for consumption because it creates anticipation and improves chances of sales for the business.
As has been clearly stated, there is much more to wine than its consumption. Starting a wine business is very challenging. However, with hard work and perseverance, the result is success and that makes it all worthwhile.