Do you want to start microbrewery business?

Are you planning how to start a microbrewery business? There is no doubt, this is a great business venture with a lot of potential. Nowadays, a lot of people appreciate great tasting beer and for this reason, there is an increase in the number of people who need to enjoy a wide variety of quality beers. As a result, many entrepreneurs have decided to venture into the brewing industry. The eye for tasty beer has opened up new opportunities for private brewers to develop their own brands. Starting a microbrewery is the foundation to launch your own brewery business. With a great business plan for microbrewery and strategy, it’s definitely a rewarding venture that promises good profits.

Start your Business Plan Now
Start My Business Plan

Executive Summary

2.1 The Business

The microbrewery will be registered under the name Starvic Brewery and will be located in Oakland, California. The microbrewery will be owned by Thomas Anderson who is a Brewing Specialist with vast experience on microbrewery start up cost and what will be involved.

2.2 Management Team

Thomas Anderson is who is the owner of Starvic Brewery is a professional brewing specialist with sufficient experience spanning over two decades in the brewing industry. Before own a brewery, Anderson worked for various high profile brewery brands across the United States. After completing business-setup, Thomas has plans to employ professionals to assist in managing the microbrewery.

2.3 Customer Focus

Starvic Brewery has plans to set up the brewery in a strategic location to ensure the business plan for microbrewery effectively reaches out to the target market. The brewery intends to serve different kinds of customers.

2.4 Business Target

Microbrewery Business Plan - 3 Years Profit Forecast

Starvic Brewery will offer various types of products in line with maintaining high brewing standards. The brewery intends to target various customer segments in Oakland.

Franchise Business Planning 
Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Thomas Anderson is an experienced brewing specialist who has had a successful career journey. He has achieved numerous career accomplishments and played a key role in helping to startup various brewery plants in various cities across the United States.

3.2 Aim of Starting the Microbrewery Business

Everyone loves tasty beer and nowadays, there are numerous brands of beer which have been introduced in the market. In the recent days, customers prefer having a wide variety of beers to choose from. Aside from the traditional brands, there was a need to be creative and introduce other exciting brands and flavors in the market.

3.3 How the Microbrewery Business will be Started

Microbrewery Business Plan - Startup Cost

With over twenty years of experience, Mr. Thomas enjoys extensive experience in the brewing industry. Therefore, he understands how to start microbrewery business using the latest technologies and business practices. Additionally, he has sought the services of financial experts to help him come up with a detailed financial analysis.


Start-up Expenses 
Research and Development$10,000
Expensed Equipment$13,000
Start-up Assets$0
Cash Required$110,000
Start-up Inventory$35,000
Other Current Assets$25,000
Long-term Assets$7,000
Total Requirements$24,000
Start-up Expenses to Fund$37,000
Start-up Assets to Fund$20,000
Non-cash Assets from Start-up$12,000
Cash Requirements from Start-up$0
Additional Cash Raised$45,000
Cash Balance on Starting Date$20,000
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$15,000
Investor 2$18,000
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$50,000
Total Funding$110,000
Any questions? Get in Touch!

    Services for Customers

    Starvic Brewery intends to provide its customers with diversified products in order to attract more customers and boost revenue for the microbrewery. When planning how to start your own microbrewery, there should be a defined approach that emphasizes upholding the highest standards of beer quality. In this regard, Starvic Brewery intends to offer the following products.

    • Starvic Super is a special beer brand made using traditional ingredients with a fine taste
    • Starvic Pilsner is a combination of the finest imported and domestic malts
    • Starvic Lager is an incredible traditional brewed malt which contains European yeast and roasted specialty malts
    • Starvic Light is a crisp and crystal clear beer known for its white foamy head.

    Marketing Analysis of Microbrewery Business

    In the recent times, many people are beginning to appreciate the value of locally brewed beers. In this craft brewery business plan, Starvic Brewery intends to capitalize on the increasing consumption of local brewed beers to attain higher revenue streams.


    There is no doubt, business plan for microbrewery is flourishing thanks to steady growth in locally brewed beers. In this regard, a comprehensive market analysis was done to better understand the market and how to advertise to potential customers.

    5.1 Market Segmentation

    Microbrewery Business Plan - Market Segmentation

    In order to ensure Starvic Brewery meets its market obligations, the business will sell four unique beer varieties that have never been sold on the market before. Even though microbreweries cannot exceed a specified amount of barrels produced, they are well placed to meet the demands of the market. With great opportunities to expand revenue such as forming partnerships with beer distribution, the future of microbreweries looks great. This microbrewery start up business plan has identified the following customer segments. Locally brewed beers are consumed by a wide range of customers.

    5.1.1 Corporate Executives

    Landlord Business Plan Writing

    Oakland is a large city with a huge working class population. Statistics have shown that a majority of beer consumers are career professionals who earn a regular income. A good number of patrons who go to entertainment spots where locally brewed brands are sold happen to be employees drawn from different careers. For this reason, Starvic Brewery has come up with a beer product line that will meet the needs of corporate executives. In this case, strategic pricing and quality assurance is critical to tap revenue from working class customers.

    5.1.2 Entrepreneurs

    Entrepreneurs are a key customer target for Starvic Brewery because some of them are expected to purchase locally brewed beers in large quantities. In this case entrepreneurs such as those who own bars and business plans restaurants well as beer retailers are expected to get their supplies from Starvic Brewery. This microbrewery business plan sample has outlined the techniques to be used to market the microbrewery to entrepreneurs around Oakland.

    5.1.3 Sports Professionals

    Starvic Brewery has a wide range of beers crafted with special ingredients to provide energy. Together with other beer varieties, the business intends to target sportsmen and women who according to statistics, are an excellent market segment for any microbrewery. Oakland is a hub for various sports activities thus providing ready market for locally brewed beers from Starvic Brewery.


    5.1.4 Visitors and Tourists

    As any other large city, Oakland receives numerous visitors who travel to the city both for business plan for microbrewery and leisure activities. Because of the numerous entertainment facilities built around the city, having special locally brewed beer with a unique taste will help to market Starvic Brewery across the city and its environs. In addition, many tourists come to Oakland to see the numerous points of interest.

    5.1.5 College Students

    Starvic Brewery products are not sold to underage consumers but college students who are above 18 years love unique blends of locally manufactured beers. Given the high number of colleges in Oakland the surrounding areas, there is a great market for local beer brands. This business plan microbrewery outlines how the microbrewery will reach out to various customers.

    Market Analysis      
    Potential CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5
    Corporate Executive25%23,00026,00029,00032,00035,000
    Sports Professionals20%17,00020,00023,00026,00029,000
    Visitors and Tourists17%13,00016,00019,00022,000 25,000 
    College Students15%10,00013,00016,00019,00022,000
    Total100%83,00098000              113000128,000142,000
    Any questions? Get in Touch

    5.2 Business Target

    Starvic Brewery has acquired the required machinery and facilities that will support the infrastructure of running the microbrewery. Oakland is a large city and this microbrewery business model intends to target the residents, entrepreneurs and special groups. The microbrewery plans to adopt modern brewing infrastructure and technologies to help to seamlessly coordinate business activities. With a good microbrewery business plan template in place, the microbrewery hopes to increase its annual sales margins by 15% – 20%.

    5.3 Product Pricing

    Starvic Brewery plans to come up with well-researched product pricing guidelines after carefully surveying the market. In order to survive industry competition, good microbrewery business plans place a lot of emphasis on accurately determining product prices.



    Excellent service

    Excellent service. Business plan prepared by OGScapital is excellent as well. Will highly recommend them.

    ∙ Ketan

    In order Stanvic Brewery to meet its objectives, Thomas Anderson has worked closely with experts devise a marketing strategy that will help the microbrewery to effectively serve its customers. When planning to start a microbrewery business, a good sales strategy should be put in place for the enterprise meet its objectives.

    6.1 Competitive Analysis

    Starvic Brewery intends to come up with a well-structured business plan for microbrewery model that will ensure provision of quality products. Even though there are other microbreweries in the region, the microbrewery has identified its strengths and the available opportunities to leverage on.

    6.2 Sales Strategy

    For the microbrewery to realize its sales targets, the following business strategy services have been identified to help market the business plan for microbrewery. While you plan how much to start a microbrewery, the following marketing action points will be of great help. Starvic Brewery intends to adopt the following plan.

    • Introduce the microbrewery in a grand style by organizing a party and giving attendants free gifts such as offering them free cups of locally brewed brands for customers to have a feel of the tastes and flavors.
    • Ensure the microbrewery always has various types of products at all times to offer customers the variety they need
    • Place signage at strategic places within the neighboring areas to market the microbrewery
    • Come up with a loyalty plan that allows rewarding of potential customers with goodies from the microbrewery
    • Advertise the business on local media channels such as television, radio and newspapers
    • Advertise the business on local directories such as yellow pages
    • Use word of mouth marketing and referrals to reach out to potential customers
    • Hire a professional marketing company to help the microbrewery effectively penetrate the market
    • Organize roadshows and events in the target customer areas with a view to market the microbrewery.

    6.3 Sales Forecast

    Microbrewery Business Plan - Unit Sales

    In order to meet business plan for microbrewery goals, Starvic Brewery has come up with a sales forecast that will show how the microbrewery is expected to perform when it begins operations.

    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Starvic Super400,000430,000460,000
    Starvic Pilsner300,000330,000360,000
    Starvic Lager200,000230,000260,000
    Starvic Light100,000130,000160,000
    TOTAL UNIT SALES1,000,0001,120,0001,240,000
    Unit PricesYear 1Year 2Year 3
    Starvic Super$300.00$320.00$340.00
    Starvic Pilsner$250.00$270.00$290.00
    Starvic Lager$200.00$220.00$240.00
    Starvic Light$150.00$170.00$190.00
    Starvic Super$250,000$270,000$290,000
    Starvic Pilsner$200,000$220,000$240,000
    Starvic Lager$150,000$170,000$190,000
    starvic Light$100,000$120,000$140,000
    Direct Unit CostsYear 1Year 2Year 3
    Starvic Super$4.00$3.00$2.00
    Starvic Pilsner$3.00$2.00$1.50
    Starvic Lager$2.00$1.50$1.00
    Starvic Light$1.00$0.75$0.40
    Direct Cost of Sales   
    Starvic Super$150,000$170,000$190,000
    Starvic Pilsner$130,000$150,000$170,000
    Starvic Lager$100,000$120,000$140,000
    Starvic Light$80,000$100,000$120,000
    Subtotal Direct Cost of Sales$460,000$540,000$620,000
    Any questions? Get in Touch!

      Personnel Plan

      Starvic Brewery hopes to recruit well trained and experienced staff to run its operations on a day-to-day basis. This microbrewery start up business plan explains the kind of staff the business will need to hire in order to meet its objectives.

      7.1 Personnel Plan

      Starvic Brewery is owned by Thomas Anderson who is also the owner and manager of the microbrewery. As plans are put in place to start the business, the following staff will be employed in the business plan for microbrewery.

      • Owner/Manager
      • Bottling and Shipping Manager
      • Brewing Managers
      • 2 Marketing Executives
      • 1 Accountant
      • 4 Bottling Staff
      • 3 Shipping staff
      • 2 Security Guards

      Successful applicants will be thoroughly trained in various areas of microbrewery operations in order to ensure a seamless flow of operations.

      7.2 Average Salaries

      Stanvic Brewery intends to pay its members of staff the following salaries within the first three years of operation.

       Personnel Plan   
       Year 1Year 2Year 3
      Bottling and Shipping Manager$36,000$39,000$41,000
      Brewing Manager$30,000$33,000$36,000
      2 Sales and Marketing Executive$60,000$62,000$64,000
      1 Accountant$25,000$30,000$35,000
      4 Bottling Staff$100,000$105,000$110,000
      3 Shiping Staff$60,000$63,000$65,000
      2 Security Guards$50,000$52,000$54,000
      Total Salaries$426,000$452,000$476,000

      Financial Plan

      Starvic Brewery has come up with a comprehensive financial plan that will guide the operations of the microbrewery. In order to streamline business operations and forecast microbrewery profit margin, initial capital must be determined alongside other business plan for microbrewery expenses. In this case, Thomas Anderson will finance the microbrewery using his personal savings and will be helped by two investors. In addition, a bank loan shall be secured to provide additional capital.

      Below is the key financial data for Starvic Brewery.

      8.1 Important Assumptions

      Financial forecast for Starvic Brewery shall be based on the assumptions below.

       General Assumptions   
       Year 1Year 2Year 3
      Plan Month123
      Current Interest Rate15.00%18.00%21.00%
      Long-term Interest Rate6.00%6.00%6.00%
      Tax Rate14.00%16.00%18.00%

      8.2 Brake-even Analysis

      Microbrewery Business Plan - Brake-even Analysis

      The Brake-even Analysis for Starvic Brewery is illustrated in the graph below.

       Brake-Even Analysis 
      Monthly Units Break-even8000
      Monthly Revenue Break-even$320,000
      Average Per-Unit Revenue$200.00
      Average Per-Unit Variable Cost$1.60
      Estimated Monthly Fixed Cost$420,000

      8.3 Projected Profit and Loss

      Profit and Loss information for the microbrewery is calculated on an annual and monthly basis as shown below.

       Pro Forma Profit And Loss   
       Year 1Year 2Year 3
      Direct Cost of Sales$50,000$70,000$90,000
      TOTAL COST OF SALES$50,000 $70,000 $90,000
      Gross Margin$420,000$460,000$500,000
      Gross Margin %72.00%80.00%88.00%
      Sales and Marketing and Other Expenses$5,000$7,000$9,000
      Leased Equipment$0$0$0
      Payroll Taxes$25,000$30,000$35,000
      Total Operating Expenses$320,000$350,000$380,000
      Profit Before Interest and Taxes$30,000$50,000$70,000
      Interest Expense$0$0$0
      Taxes Incurred$25,000$30,000$35,000
      Net Profit$120,000$130,000$140,000
      Net Profit/Sales35.00%40.00%45.00%

      8.3.1 Monthly Profit

      Microbrewery Business Plan - Profit Monthly

      8.3.2 Yearly Profit

      Microbrewery Business Plan - Profit Yearly

      8.3.3 Monthly Gross Margin

      Microbrewery Business Plan - Gross Margin Monthly

      8.3.4 Yearly Gross Margin

      Microbrewery Business Plan - Gross Margin Yearly

      8.4 Projected Cash Flow

      Microbrewery Business Plan - Projected Cash Flow

      Below is a summary of pro forma cash flow, subtotal cash spent, subtotal cash spent on operations, subtotal cash received and subtotal cash from operations.

       Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 3
      Cash from Operations   
      Cash Sales$100,000$120,000$140,000
      Cash from Receivables$10,000$12,000$14,000
      SUBTOTAL CASH FROM OPERATIONS$110,000 $132,000 $154,000
      Additional Cash Received   
      Sales Tax, VAT, HST/GST Received$0$0$0
      New Current Borrowing$0$0$0
      New Other Liabilities (interest-free)$0$0$0
      New Long-term Liabilities$0$0$0
      Sales of Other Current Assets$0$0$0
      Sales of Long-term Assets$0$0$0
      New Investment Received$0$0$0
      SUBTOTAL CASH RECEIVED$158,000 $165,000 $172,000
      ExpendituresYear 1Year 2Year 3
      Expenditures from Operations   
      Cash Spending$23,000$26,000$29,000
      Bill Payments$24,000$28,000$32,000
      SUBTOTAL SPENT ON OPERATIONS$47,000 $54,000 $61,000
      Additional Cash Spent   
      Sales Tax, VAT, HST/GST Paid Out$0$0$0
      Principal Repayment of Current Borrowing$0$0$0
      Other Liabilities Principal Repayment$0$0$0
      Long-term Liabilities Principal Repayment$0$0$0
      Purchase Other Current Assets$0$0$0
      Purchase Long-term Assets$0$0$0
      SUBTOTAL CASH SPENT$40,000 $45,000 $50,000
      Net Cash Flow$15,000$25,000$35,000
      Cash Balance$25,000$30,000$35,000

      8.5 Projected Balance Sheet

      Below is a Projected Balance Sheet for Starvic Brewery that shows capital, assets, liabilities, current liabilities and long term assets.

       Pro Forma Balance Sheet   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$15,000$18,000$21,000
      Other Current Assets$4,000$4,000$4,000
      TOTAL CURRENT ASSETS$303,000 $347,000 $391,000
      Long-term Assets   
      Long-term Assets$12,000$14,000$16,000
      Accumulated Depreciation$14,000$17,000$21,000
      TOTAL LONG-TERM ASSETS$4,000 $3,000 $2,000
      TOTAL ASSETS$330,000 $368,000 $420,000
      Liabilities and CapitalYear 1Year 2Year 3
      Current Liabilities   
      Accounts Payable$12,000$15,000$18,000
      Current Borrowing$0$0$0
      Other Current Liabilities$0$0$0
      SUBTOTAL CURRENT LIABILITIES$12,000 $15,000 $18,000
      Long-term Liabilities$0$0$0
      TOTAL LIABILITIES$12,000 $15,000 $18,000
      Paid-in Capital$26,000$26,000$26,000
      Retained Earnings$35,000$45,000$55,000
      TOTAL CAPITAL$300,000 $330,000 $360,000
      TOTAL LIABILITIES AND CAPITAL$280,000 $310,000 $340,000
      Net Worth$320,000$350,000$380,000

      8.6 Business Ratios

      The following is the Ratio Analysis, Business Net Worth and Business Ratios for the microbrewery.

       Ratio Analysis    
       Year 1Year 2Year 3INDUSTRY PROFILE
      Sales Growth10.00%35.00%45.00%6.00%
      Percent of Total Assets    
      Accounts Receivable7.00%6.00%5.00%12.00%
      Other Current Assets4.00%2.20%3.00%35.00%
      Total Current Assets120.00%150.00%155.00%60.00%
      Long-term Assets-10.00%-20.00%-30.00%50.50%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities6.00%4.20%3.00%25.50%
      Long-term Liabilities0.00%0.00%0.00%25.00%
      Total Liabilities8.00%2.00%1.50%52.10%
      NET WORTH100.20%90.00%95.00%30.00%
      Percent of Sales    
      Gross Margin80.00%82.00%84.00%0.00%
      Selling, General & Administrative Expenses70.00%77.00%65.00%67.00%
      Advertising Expenses4.00%3.00%1.50%4.20%
      Profit Before Interest and Taxes25.00%30.00%35.40%2.50%
      Main Ratios    
      Total Debt to Total Assets4.00%3.00%2.00%60.00%
      Pre-tax Return on Net Worth85.00%95.00%100.00%4.00%
      Pre-tax Return on Assets66.00%60.00%70.00%9.00%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin20.00%23.00%26.00%N.A.
      Return on Equity52.00%56.00%60.00%N.A.
      Activity Ratios    
      Accounts Receivable Turnover7911N.A.
      Collection Days9599113N.A.
      Inventory Turnover161922N.A.
      Accounts Payable Turnover121620N.A.
      Payment Days252525N.A.
      Total Asset Turnover2.82.62.4N.A.
      Debt Ratios    
      Debt to Net Worth0-0.06-0.03N.A.
      Current Liab. to Liab.000N.A.
      Liquidity Ratios    
      Net Working Capital$250,000$270,000$290,000N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.550.50.4N.A.
      Current Debt/Total Assets8%4%3%N.A.
      Acid Test303438N.A.
      Sales/Net Worth2.82.22N.A.
      Dividend Payout000N.A.

      Download Microbrewery Business Plan Sample in pdf

      OGScapital writer specializes in business plan themes such as best sport bar business plan, wine bar business plan, juice corner business plan, business plan for a bar, brewery business plan, start a distillery business and etc.