Part of the allure in starting your own wine company is the diverse opportunity for business startups.
Please see the end of this post for a little more about her. As a winery compliance expert, I talk to a lot of people who are at the planning stage of starting a new wine business.
Photo by Flickr user David Wall https: Planning ahead of time for these topics will definitely save you from setting up your wine business licenses the wrong way, and will also help to give an idea of what the regulating agencies and wineries take into consideration when approving applications or taking your business on as a client.
What is the business model for your wine business?
Here is where I have them tell me their story behind why they want to start a wine business. Are they planning to grow or purchase grapes to have their wines made?
Are they planning to just purchase wine from the bulk market and blend them to make their wines? Do they want to make wine at their house or do they already know a winery that they will contract with to have their wines made and bottled?
Will more than one winery process wine for them? Who do you plan to sell your wines to? I ask this question for compliance planning purposes but also because I want them to have begun putting some serious thought into who their customers are going to be, and how real they are. Do they already know all these potential customers — or are they just fictional at this point?
Where are those customers you plan to sell to located? Let me clarify here that the majority of people I talk to are located in California so I ask them specifically do you plan to sell your wines to individuals outside of California?
Their yes or no answer immediately tells me which type of license their business will need to have in place. It may take them some time to develop a following that allows them to grow to the point of making steady sales in other states and make a profit from those sales.
When are you planning to make your first wine sales?
That is they may already have some wine made and sitting at a winery but they are still months out from that wine being bottled and ready for actual sales.
I share in these conversations that they will need to anticipate a minimum of 3, and up to 6 months for their license applications to be approved. Those licenses will need to be in place before they can make any sales, and some wineries will also require them to be in place before they will bottle your wines.
While it is key to set up a new wine business with the appropriate licensing to fit their business model, I also realize that most business plans are going to change over the years after they are up and running and making sales.
Those changes may mean additional changes to their original licensing. No matter what if they start off having a basic idea of how their business flow backs into the required licensing they have a much better chance of setting it up correctly from the get go.
Ann Reynolds is a winery compliance expert based in Napa, CA. With over 20 years in the Napa wine industry her business, Wine Compliance Alliance assists new and existing wineries and wine businesses with their required licensing, reporting and compliance training.
She can be reached at:Starting a Winery in Illinois Profile & Business Plan Workbook Ohio Winery Starter Kit, Ohio Wine Producers Association; Writing a Business Plan: An Example of a Small Premium Winery, 49 pp, Cornell Univ.
Starting a winery can be a very exciting and rewarding business if you are focused, dedicated and plan very well. There are various aspects to the business and you can decide to start on a small scale or large but an important fact of starting this business is that you will need to be very patient and have substantial funds as this is a business done with a long term approach and with a lot of money invested in it.
Winery/Vineyard Start-up and Business Resources. The following information will be helpful in understanding the requirements for starting a wine-related business in Michigan.
Cornell Horticultural Business Management and Marketing Program Impact of Current Economy on Timelines and Strategy • The economic growth in the US slowed down in the 1st Qtr. of according to the BEA, to % down from an increase of % in the 4th Qtr. of • Wine consumption will continue to increase, but perhaps at a lower rate.
Have you ever thought about starting your own wine business? Here are some steps you can take to start it. Today Corison, 54, owns a small establishment, Corison Winery, which employs 5 people. start new vineyards and wineries or buy existing desirable properties.
This bulletin is intended as a guide to help current winery owners as well as potential investors and new winery entrants to develop a business plan for a small premium winery. The emphasis is placed on marketing at higher price points then have generally been attained in New York.