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JUL.28, 2021

Winery Business Plan Template

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Winery Business Plan Template

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Table of Content

    Winery business plan for starting your own business

    If you want to start a business that brings joy to the lives of people, a winery can be a good venture to start. In this business plan for winery we will tell you in detail how to open a winery business and how to run it in a profitable manner. All you need to make this business a profitable one is to invest your money the right way and make wine that tastes good. If you have the passion and lack direction, this is a complete strategy for business that will help you move in the right direction to get the business started and make it worth your while.

    Let’s now see the details of this business plan which is closely related to the business plan for a liquor store.

    Executive Summary

    2.1 The Business

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    Caylee’s Winery will be a registered wine manufacturer and seller in Cape Town South Africa. The focus of this business will be to make grade A wine and sell it to local and international customers. This example winery will tell you all there is to know about how to start winery.

    2.2 Management of Winery

    Even if you are starting a micro winery, you need to have strong management to run the business with ease and efficiency. For that reason, the first thing to finalize is to make a management structure that can make wine business plans work.

    Caylee knows that quite well and will hire three managers to run the business. These persons will be responsible for procurement, operations and sales respectively. Caylee will be the CEO and all matters would be brought to her notice on a daily basis.

    2.3 Customers of Winery

    The second most important thing in any franchising business plan is determining who will be the customer of the business you want to start. After careful analysis of the market, Caylee has decided that the following customers will be entertained by her winery:

    • Privat customers who want the wine for themselves.
    • Business customers who want to sell the wine.
    • Bars that serve the wine.
    • Restaurants and hotels that serve the wine.

    2.4 Business Target

    Caylee is starting this business with just one goal in mind and that is making money. That target can be achieved by focusing the energies of the business on the following objectives:

    • Producing Grade-A wine that tastes good.
    • Having loyal repeat customers for the business.
    • Making partnerships with the local businesses that sell wine like liquor stores and retailers.
    • Becoming the leading supplier of wine in the area and then making an international brand.

    Winery Business Plan - 3 Years Profit Forecast

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    Company Summary

    3.1 Company Owner

    Caylee Marie Anthony will be the owner of the business. She has worked as a wine taster for some notable companies around the world for more than a decade. That means she is the perfect candidate for this winery business plan example and knows all there is to know about how to open a winery.

    3.2 Why the Winery is being started?

    Before you can learn in detail how to start a wine company, you need to know why the business is being started in the first place. Caylee, the owner of the business recently got her inheritance, and she wants to start a business of her own. She went through a lot of options and studied a microbrewery business plan and a gourmet food store business plan but all she knows is how to start wine business and she is going for it.

    3.3 How the Winery Business will be started?

    Step1: Detailed Planning

    The first thing that needs to be done to start a winery or any other business is to plan everything in detail. This planning is the stage where we will make sure we start the business in such a way as is profitable for the owner. After careful planning, Caylee has finalized the location of the business and what services she will be providing.

    Step2: Developing a Brand

    Wine is a luxury enjoyed by the rich and the rich believe in brands. To make sure that the customers can trust her business and that she can get the high-paying customers, Caylee is putting all the effort to make a brand for her business. Once the brand has a name, there will be lots and lots of sales.

    Step3: Establishing the Winery   

    Once the work on branding has started, a date for the opening of the winery will be given and the work on making the winery will start. The winery’s construction will be started and it will be built as soon as possible.

    Step4: Online Presence

    Internet is the name of the game these days and that means, for the winery to be successful it needs to have a strong online presence. A website for the winery will be made and social media pages will also be created. This will be done not only to make the name known to the customers but also as a way for the customers to connect to and shop from the winery online.

    Step5: Marketing

    With all that done, an extensive marketing campaign will be launched to market the business and make it well-known in the people who are expected to be the customers.

    Winery Business Plan - Startup Cost

    Any questions? Get in Touch!
    Start-up Expenses
    Legal $254,000
    Consultants $0
    Insurance $30,000
    Rent $34,000
    Research and Development $20,000
    Expensed Equipment $45,000
    Signs $4,000
    TOTAL START-UP EXPENSES $387,000
    Start-up Assets $341,000
    Cash Required $366,000
    Start-up Inventory $38,000
    Other Current Assets $267,000
    Long-term Assets $273,000
    TOTAL ASSETS $1,285,000
    Total Requirements $1,672,000
    START-UP FUNDING
    Start-up Expenses to Fund $387,000
    Start-up Assets to Fund $1,285,000
    TOTAL FUNDING REQUIRED $1,672,000
    Assets
    Non-cash Assets from Start-up $1,664,000
    Cash Requirements from Start-up $390,000
    Additional Cash Raised $52,000
    Cash Balance on Starting Date $41,000
    TOTAL ASSETS $2,147,000
    Liabilities and Capital
    Liabilities $29,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $48,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $77,000
    Capital
    Planned Investment $1,672,000
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,672,000
    Loss at Start-up (Start-up Expenses) $398,000
    TOTAL CAPITAL $2,070,000
    TOTAL CAPITAL AND LIABILITIES $2,147,000
    Total Funding $1,672,000

    Services

    One of the most important things to discuss is to determine the services that will be provided by the company.

    Note

    Just like the business plan for farmers market, it is important that we finalize the services before the launch and that makes tis section an important part of any wine store business plan.

    Before you go for starting a winery business, it is important that you carefully read this business plan for a winery.

    Wine Production

    This should come as no surprise since it is a winery. This will be the major service to be provided by the winery.

    Beer Production  

    Why not make some beer while we are making wine already? That’s exactly why we will be making beer as well.

    Mobile Bars

    Private parties and pool parties that need a mobile bar with all the delicious wines will also be entertained by Caylee’s Winery.

    Wine Home Delivery

    Our website will act as the sale point for home delivery of our finest wines to the people who need.

    Marketing Analysis of Winery

    If you want to know how to make your own winery and make serious profit from it, running an extensive marketing analysis is necessary. The next part of this business plan for winery is all about that. You need to consider these things in detail if you want to know how to open your own winery and in the end you will have a detailed wine marketing plan template as well.

    5.1 Market Trends

    As we did in the electrical contractors business plan, it is important to observe the market trends before we enter this business. Looking at the wine consumption statistics in South Africa and worldwide, it can be seen that the consumption of this thing has only increased over the last several years. That makes this business worth investing money in.

    5.2 Marketing Segmentation

    The expected customers of Caylee’s Winery will be from the following market segments:
    Winery Business Plan - Marketing Segmentation

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    5.2.1 Private Customers

    The people who want to have a good glass of wine before bed or after dinner will be among the main customers of the business.

    5.2.2 Wine Retailers

    Local wine stores and other retail stores that sell wine will also be one of the main market segments we will be serving from the platform of Caylee’s Winery.

    5.2.3 Bars

    Bars and restaurants where wine is served will also be among the chief stakeholders of the business.

    5.2.4 Wine Exporters

    Companies that export wine out of South Africa will be the last market segment we’ll be working with.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Private Customers 30% 38,000 40,000 42,000 45,000 47,000 10.00%
    Wine Retailers 25% 23,000 26,000 27,000 29,000 30,000 10.00%
    Bars 26% 22,000 23,000 25,000 27,000 28,000 10.00%
    Wine Exporters 19% 17,000 19,000 22,000 24,000 25,000 11.00%
    Total 100% 100,000 108,000 116,000 125,000 130,000 10%

    5.3 Business Target

    • To establish a credible name in the liquor industry.
    • To increase sales enough to make massive profits from the business.
    • To expand the production capacity to double every year.
    • To become a well-known wine brand in the world

    5.4 Product Pricing

    The prices of the products offered by Caylee’s Winery will depend on who is purchasing them. We will offer the lowest prices to the B2B customers and exporters and will charge the maximum price form the private customers.

    Marketing Strategy

    No wine boutique business plan can be successful without a marketing strategy and the marketing strategy of Caylee’s Winery will be discussed in this section. It is cardinally important to have a strong marketing strategy if you want to know how to get into the wine industry. This is because this industry is a very saturated one and people tend to trust only the established brands. Caylee ran a competitive analysis and came up with a sales strategy that is discussed below.

    6.1 Competitive Analysis

    1. We have come to know that there is not even a single established winery in Cape Town area.
    2. Most of the wine sold in South Africa is imported which makes it expensive. We can deliver the same or better quality by locally producing the product.
    3. The rates of the competitors high and we can enter the market by starting with a lower rate and then increasing it.
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    6.2 Sales Strategy

    • Caylee’s Winery will be advertised and marketed using all available marketing channels in the area.
    • Prices will be kept lower in the start to get customers.
    • Attractive deals and discounts will be offered to first-time customers to hook them on our product.

    6.3 Sales Monthly

    Winery Business Plan - Sales Monthly

    6.4 Sales Yearly

    Winery Business Plan - Sales Yearly

    6.5 Sales Forecast

    Winery Business Plan - Unit Sales

    Sales Forecast
    Unit Sales Year 1 Year 2 Year 3
    Wine Production 41,000 43,460 46,068
    Beer Production 40,000 42,400 44,944
    Mobile Bars 56,000 59,360 62,922
    Wine Home Delivery 38,000 40,280 42,697
    TOTAL UNIT SALES 175,000 185,500 196,630
    Unit Prices Year 1 Year 2 Year 3
    Wine Production $60.00 $69.60 $80.74
    Beer Production $64.00 $74.24 $86.12
    Mobile Bars $55.00 $63.80 $74.01
    Wine Home Delivery $49.00 $56.84 $65.93
    Sales
    Wine Production $2,460,000.00 $3,024,816.00 $3,719,313.75
    Beer Production  $2,560,000.00 $3,147,776.00 $3,870,505.37
    Mobile Bars $3,080,000.00 $3,787,168.00 $4,656,701.77
    Wine Home Delivery $1,862,000.00 $2,289,515.20 $2,815,187.89
    TOTAL SALES $9,962,000.00 $12,249,275.20 $15,061,708.79
    Direct Unit Costs Year 1 Year 2 Year 3
    Wine Production $58.00 $66.00 $76.00
    Beer Production $62.00 $71.00 $82.00
    Mobile Bars $53.00 $60.00 $70.00
    Wine Home Delivery $47.00 $53.00 $61.00
    Direct Cost of Sales
    Wine Production $2,378,000.00 $2,868,360.00 $3,501,137.60
    Beer Production  $2,480,000.00 $3,010,400.00 $3,685,408.00
    Mobile Bars $2,968,000.00 $3,561,600.00 $4,404,512.00
    Wine Home Delivery $1,786,000.00 $2,134,840.00 $2,604,504.80
    Subtotal Direct Cost of Sales $9,612,000.00 $11,575,200.00 $14,195,562.40

    Personnel plan

    The next thing that has earned a place on this winery business plan sample is the detail of the staff needed to run the business. This is a logical thing that people are needed to make wine before it can be sold. For that reason, we need to decide just how many people do we need. Because, have too many people and you’ll end up distributing all the earnings as salaries and have too less people and there will be no one to run the wine making operations.

    Any questions? Get in Touch

    7.1 Company Staff

    The following people will be needed to run the wine tasting business plan:

    • Caylee Marie Anthony will be the owner and CEO of the business.
    • 3 managers for procurement, operations and marketing.
    • 6 winery workers
    • 2 wine tasters.
    • 2 Delivery drivers.
    • 2 Office workers.
    • 2 guards.
    • 1 reception clerk.
    • 1 Accountant.

    7.2 Average Salary of Employees

    Personnel Plan
    Year 1 Year 2 Year 3
    Procurement Manager $13,000 $14,300 $15,730
    Operations Manager $14,000 $15,400 $16,940
    Marketing Manager $13,000 $14,300 $15,730
    Winery Workers $58,000 $63,800 $70,180
    Wine Tasters $19,000 $20,900 $22,990
    Delivery Drivers $27,000 $29,700 $32,670
    Office Workers $16,000 $17,600 $19,360
    Guards $18,000 $19,800 $21,780
    Reception Clerk $7,000 $7,700 $8,470
    Accountant $7,000 $7,700 $8,470
    Total Salaries $192,000 $211,200 $232,320

    Financial Plan

    The only thing that is needed to complete this business plan winery is the discussion of the money involved in starting and running this business. As a winery is a large establishment, a lot of money will be needed to start the business. A rough sketch of the money needed to start the business is given below. It closely resembles that of a soap manufacturing business plan.

    • Money needed to buy land to make the winery.
    • The cost of civil works for the winery.
    • The cost of equipment and machinery needed for making wine.
    • The salary of employees.
    • The cost of buying raw materials.
    • Bonds, securities, insurance, and registration costs.

    8.1 Important Assumptions

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.18% 8.19% 8.23%
    Long-term Interest Rate 8.40% 8.46% 8.49%
    Tax Rate 24.03% 24.12% 24.48%
    Other 0 0 0

    8.2 Break-even Analysis

    Winery Business Plan - Break-even Analysis

    Break-Even Analysis
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $235.00
    Average Per-Unit Variable Cost $0.63
    Estimated Monthly Fixed Cost $163,900

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss
    Year 1 Year 2 Year 3
    Sales $9,962,000 $12,249,275 $15,061,709
    Direct Cost of Sales $9,612,000 $11,575,200 $14,195,562
    Other $0 $0 $0
    TOTAL COST OF SALES $9,612,000 $11,575,200 $14,195,562
    Gross Margin $350,000 $674,075 $866,146
    Gross Margin % 3.51% 5.50% 5.75%
    Expenses
    Payroll $192,000 $211,200 $232,320
    Sales and Marketing and Other Expenses $139,000 $145,000 $148,000
    Depreciation $2,200 $2,350 $2,480
    Leased Equipment $0 $0 $0
    Utilities $3,000 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $3,300 $3,500 $3,600
    Payroll Taxes $29,000 $30,000 $31,000
    Other $0 $0 $0
    Total Operating Expenses $370,600 $397,150 $422,600
    Profit Before Interest and Taxes ($20,600) $276,925 $443,546
    EBITDA ($20,600) $276,925 $443,546
    Interest Expense $0 $0 $0
    Taxes Incurred ($4,120) $55,385 $88,709
    Net Profit ($16,480) $221,540 $354,837
    Net Profit/Sales -0.17% 1.81% 2.36%

    8.3.1 Profit Monthly

    Winery Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Winery Business Plan - Profit Yearly

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    8.3.3 Gross Margin Monthly

    Winery Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Winery Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Winery Business Plan - Projected Cash Flow

    Pro Forma Cash Flow
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $58,000 $62,640 $67,651
    Cash from Receivables $18,000 $19,440 $20,995
    SUBTOTAL CASH FROM OPERATIONS $76,000 $82,840 $89,467
    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 $76,000 $83,000 $90,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $39,000 $42,000 $44,000
    Bill Payments $24,000 $27,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $63,000 $69,000 $75,000
    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
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $63,000 $68,040 $73,483
    Net Cash Flow $20,000 $21,000 $22,000
    Cash Balance $26,000 $27,000 $29,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $274,000 $306,880 $337,568
    Accounts Receivable $22,000 $24,640 $27,695
    Inventory $4,100 $4,592 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $283,000 $316,960 $356,263
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $20,000 $22,400 $25,200
    TOTAL LONG-TERM ASSETS $23,600 $26,432 $29,736
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,300 $21,616 $24,296
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $18,700 $20,944 $23,541
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $17,000 $19,040 $21,401
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $199,000 $216,910 $238,601
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $302,000 $329,280 $370,440
    Net Worth $298,000 $324,820 $357,302

    8.6 Business Ratios

    Ratio Analysis
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.24% 8.02% 8.89% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.25% 10.25% 11.36% 9.80%
    Inventory 5.44% 6.03% 6.68% 9.90%
    Other Current Assets 2.19% 2.43% 2.69% 2.40%
    Total Current Assets 150.02% 151.10% 152.00% 158.00%
    Long-term Assets 11.48% 11.58% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.93% 4.97% 5.02% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.54% 7.60% 7.67% 7.38%
    NET WORTH 100.78% 101.59% 102.52% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.32% 96.87% 99.58% 99.00%
    Selling, General & Administrative Expenses 93.50% 96.02% 98.71% 97.80%
    Advertising Expenses 1.49% 1.53% 1.57% 1.40%
    Profit Before Interest and Taxes 41.28% 42.39% 43.58% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 32 32.8 33.62 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.70% 75.00% 75.00%
    Pre-tax Return on Assets 95.23% 99.99% 104.99% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.19% 34.22% 35.28% N.A.
    Return on Equity 55.98% 57.72% 59.50% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32 33.6 33 N.A.
    Accounts Payable Turnover 15 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $243,000 $256,608 $270,978 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.86 0.87 0.87 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29.23 29.4 29.6 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

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