In simple terms, a nano brewery is a brewery (plant) that produces a small amount of beer per time; it is a small-scale brewery that can’t be compared to conventional brewery plants or microbrewery plants and it is usually owned independently. Any entrepreneur that has some cash and brewing technique can comfortably start his or her own nano brewery business.
The selling point of nano breweries is their emphasis on unique flavor, the quality of their beer, and their brewing technique. Any brewery that has the capacity to produce less than 15,000 barrels of beer annually is considered a microbrewery or nano brewery in the United States of America and most parts of the world.
Steps on How to Write a Nano Brewery Business Plan
Table of Content
Three Top© Nanobrewery, Inc. is an American-based and licensed niche brewery business that will major in preparing different flavors of beers from a standard nano-brewery plant. Our nano-brewery will be located in a well-furnished and centrally located facility in the heart of West Sacramento, California.
At Three Top© Nanobrewery, Inc., we produce our beer with only the finest and freshest ingredients. We take great care and pride in all of the beer that we make. Steven Clarkson is the founder and CEO of Three Top© Nanobrewery, Inc.
a. Our Products and Services
Three Top© Nanobrewery, Inc. will be involved in the production and sale of;
- Pale Beers
- Amber Beers
- Dark Beers
- Hebrew Beers
- Organic Brews
Our products are designed to give our customers the satisfaction they need from a niche beer.
b. Nature of the Business
Our nano-brewery and pub will operate with the business-to-consumer model.
c. The Industry
Three Top© Nanobrewery, Inc. will operate under the brewery (beer production) industry.
d. Mission Statement
Our mission is to establish a standard and world-class nano-brewery and pub business that will sell franchises all across the United States of America and other countries of the world. We want to become a household name when it comes to nano-brewery and pubs.
e. Vision Statement
Our vision is to establish a niche beer brand serving charcuterie that will become the number one choice for both residents and tourists in and around our locations.
f. Our Tagline (Slogan)
Three Top© Nanobrewery, Inc. – Mouth Watering Beer, Our Craft!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Three Top© Nanobrewery, Inc. will be formed as a Limited Liability Company (LLC).
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Nano Brewery Manager
- Human Resources and Admin Manager
- Accountants (Cashiers)
- Bartenders (Baristas)
- Waiters and Waitress
i. Ownership/Shareholder Structure and Board Members
- Steven Clarkson (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Kingsley Greeno (Board Member) 18 Percent Shares
- Henry Rico (Board Member) 10 Percent Shares
- Bee (Board Member) 10 Percent Shares
- Mary Johnson (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a niche nano-brewery and pub business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
- A reliable and efficient method of preparing craft beer.
- Financial Constraints
- A new business that will be competing with well-established breweries.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in people who want to experiment with craft beer
- Online market, new services, new technology, and of course the opening of new markets
- Increase in the numbers of families migrating to West Sacramento.
i. How Big is the Industry?
The brewery industry that nano-brewery is a subset of is indeed big. Available statistics show that the global beer market size was valued at $605,246.1 million in 2020, and is projected to reach $816,847.7 million by 2030, registering a CAGR of 2.7% from 2022 to 2030.
ii. Is the Industry Growing or Declining?
The nano-brewery business is growing because currently, a 3,000-barrel brewery can make almost $3 million in revenue while profiting $300,000.
iii. What are the Future Trends in the Industry
The future trends when it comes to nano-brewery and pub business will revolve around technology.
iv. Are There Existing Niches in the Industry? If YES, List them
No, there are no existing niche ideas when it comes to nano-brewery and pub business because the business is a niche in the brewery (beer production) industry.
v. Can You Sell a Franchise of your Business in the Future?
Three Top© Nanobrewery, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving craft beer markets in the United States of America.
- The arrival of a new nano-brewery and pub that also serve craft beer within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability.
- Economic uncertainty
- Liability problems
- The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
i. Who are the Major Competitors?
- Wit’s End (Denver, Colorado)
- Lawson’s Finest Liquids (Warren, Vermont)
- Toppling Goliath (Decorah, Iowa)
- Dogfish Head (Milton, Delaware)
- Bissell Brothers (Portland, Maine)
- Nano 108 Brewing Company
- Private Press Brewing
- Mindful Ales
- Troon Brewing
- Wood Brothers Brewing Co.
- Bloody Chainsaw Brewing
- Obercreek Brewing Company
- Three Chiefs Brewing Co.
- Orchestrated Minds Brewing
- Afterthought Brewing Company
- The Eighth State Brewing Company
- Transcend Beer Crafters
- Cypress Creek Southern Ales
- Project Craft Brewing.
ii. Is There a Franchise for Nano Brewery and Pub?
No, there are no franchise opportunities for nano brewery and pub businesses.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Nano Brewery Business?
Yes, there are county or state regulations or zoning laws for nano breweries and pubs. The regulation of the industry is shared by the FDA and the Treasury Department’s Tax and Trade Bureau. Essentially, every brewery must register with the FDA, and therefore is subject to random FDA inspections without warning.
Opening a craft beer brewery in Rhode Island requires interactions with three separate regulatory bodies; local towns and cities issue building, zoning, and other local permits and retail liquor licenses, the Federal Alcohol and Tobacco Tax Trade Bureau (“TTB”) issues the federal brewery “basic permit”, and the Rhode Island Department of Business Regulation (“DBR”) issues manufacturer’s licenses.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to purchase craft beer from us.
ii. Level of Educational
We don’t have any restriction on the level of education of those we will welcome in our nano-brewery and pub.
iii. Income Level
There is no cap on the income level of those that will buy our craft beer.
There is no restriction when it comes to the ethnicity of the people that will purchase craft beer from us.
There is no restriction when it comes to the language spoken by the people that will purchase craft beer from us.
vi. Geographical Location
Anybody from any geographical location is free to buy and drink our craft beer.
Three Top© Nanobrewery, Inc. will not restrict any customer from purchasing craft beer from us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Vans and Trucks.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the manufacturing and culinary cum food services industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Three Top© Nanobrewery, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the tourism industry, the food and drinks services industry, and freelancers to help refer customers to us.
Three Top© Nanobrewery, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all of these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced for our customers.
b. Inventory Strategy
The fact that we will need supplies such as grains (malt), hops, and yeast means that Three Top© Nanobrewery, Inc. will operate an inventory strategy for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Three Top© Nanobrewery, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Three Top© Nanobrewery, Inc., our customers are our top priority hence if you receive craft beer that is different from what you paid for, we sincerely apologize. Please call us as soon as you notice that there was an error in your order so you can come and pick up the correct order.
For credit card payments, you will be refunded the sales price associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new craft beer has a greater value than the craft beer received in error.
In the same way, you will receive the difference of the balance back as credit for the new item if less than the craft beer received in error. In some cases, we may offer you store credit. If you have any questions regarding the Return & Refund Policy, please call our customer care service.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us to understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this goal. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable us to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Nano Brewery and Pub Business?
- The business is open for the day’s work
- The nano-brewery pub serving area is cleaned and ready for the day’s business
- Craft beer ingredients are purchased, washed, and ready for use
- Customer’s orders are taken and they are served or their orders are delivered to them
- Cashier collect’s cash and reconcile account for the day
- Administrative duties are carried out
- The store or warehouse is restocked when required.
- The business is closed for the day.
b. Production Process (If Any)
The production process of nano-brewery involve;
- Preparing the ingredients
- Brewing the ingredient
- Bottling and serving the craft beer.
c. Service Procedure (If Any)
The service procedure of a nano brewery and pub starts with a customer requesting craft beer. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.
d. The Supply Chain
Three Top© Nanobrewery, Inc. will rely on key layers in the tourism industry and the food and drinks services industry to refer business deals to us. We have also been able to establish business relationships with wholesale suppliers of grains (malt), hops, yeast et al.
e. Sources of Income
Three Top© Nanobrewery, Inc. makes money from the sale of;
- Pale Beers
- Amber Beers
- Dark Beers
- Hebrew Beers
- Organic Brews
a. Amount Needed to Start your Nano brewery and pub?
Three Top© Nanobrewery, Inc. would need an estimate of $550,000 successfully set up our nano-brewery and pub in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $1,400.
- Rent/Lease – $15,000.
- Other start-up expenses including commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $100,000
- Start-up Inventory – $150,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Furnishing and Equipping the Nano Brewery and Pub – $200,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Three Top© Nanobrewery, Inc. will not build a new facility for our nano-brewery and pub; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Nano Brewery and Pub?
- Supplies such as grains (malt), hops, and yeast
- Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Equipment, delivery trucks, and vans maintenance
- Marketing costs
e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital
- Chief Operating Officer (Owner) – $45,000 Per Year
- Nano Brewery Manager – $39,000 Per Year
- Human Resources and Amin Manager $38,600 Per Year
- Accountants (Cashiers) $37,000 Per Year
- Bartenders (Baristas) – $36,600 Per Year
- Waiters and Waitress – $26,000 Per Year
- Cleaners -$24,000 Per Year
f. How Do You Get Funding to Start a Nano Brewery and Pub.
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your Product/Service?
The price of our beers will be between $50 and $150.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $550,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $100,000
- Second Fiscal Year (FY2) (Profit After Tax): $200,000
- Third Fiscal Year (FY3) (Profit After Tax): $350,000
d. Profit Margin of a Nano brewery and pub
The ideal profit margin we hope to make at Three Top© Nanobrewery, Inc. will be between 20 and 40 percent all things being equal. This refers to our profit as a percentage of our total cost.
a. How do you intend to grow and expand?
Three Top© Nanobrewery, Inc. will grow by first opening other pub outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Three Top© Nanobrewery, Inc. plans to expand first to Boise – Idaho, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Las Vegas – Nevada. The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest and most thriving market for craft beer in the United States.
The founder of Three Top© Nanobrewery, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.