stillcreek

I'd say triple the initial numbers for starters - then set aside at least 100K for you rents maybe more - On the safe side, I'd say $400,000.00 - $500,000.000 total capital maybe more - your going to need capital to pay taxes on your production once it leaves the warehouse. If your in the city you may have to blast and explosion proof certain areas plus a commercial sprinkler system that could set you back 100K getting things to code. You may also have to go through zoning, you want to do this on the front end, set aside 5K to 10K if required, (I do zoning for a living). Also, once your up running those numbers are for not taking salaries, your also going to need about 10K to 20K in marketing dollars. I don't know much, it's a lot of trial and error - we're about 2 3/4 years into it. A year of actual production, 100 cases sold the first year and 200 so far this year. We started with about 200K which includes owning the land, buildings and equipment so we're debt free with minimal overhead. The biggest challenge is getting placement through your distributor. Once you have placement get ready to spend a few grand a month on a tasting army. A lot of cash and time will go to sales and marketing. Get ready to add another 20 a week plus on top of your day job just for making sales calls, building relationships and keeping records. Anyone feel free to comment or am I way off on my experience so far, am I way off? Thoughts? Additionally, you won't be able to sell booze from day one. You can't start making a product until after you have your State and Federal licenses. Once you received those you will need to apply for a password to Cola, took me 45 days to wait for the password, once you have your Cola access then you apply and wait. Once approved tool & die and printing times for labels. I'd add six month to a year after your licensed before your starting to sell. Once your up and running you'll have to find a distributor willing to take you and then be prepared to start making sales calls. I didn't factor tasting room as we're not up and running in the area at the present, still a work in progress.

Congrats!! Get ready for a rough ride.

You really can't have customers until you produce a product. You can put feelers out and see what the interest is and do they support craft producers. Put together some mock ups and branding, go around and ask for feedback. Once your producing a product your going have to find a distributor willing to take your product. Set aside a marketing budget, your generally at the mercy of the distributor to place he product. Once they place the product get ready to spend your profits in helping the retailer sell the product. Unless you can sell from your distillery your going to have to raise brand awareness which takes hard work and capital.