Before starting a wine business, the most important thing that needs to be kept in mind is that wine is just not a beverage. There are many necessary elements like geography, weather, and the fermentation process behind a wine business. When you are indulging in the wine business or planning to do so, you will have to travel and meet many new and interesting people.
However, we are going to discuss some important factors that you need to know if you want to start a wine business.
1. A Business model establishment for the wine business;
There are many ways of running a wine business, including various business and business involvements. In the first place, you have to know your role in the particular industry. You can be an investor, a part of a team, a manager, or an entrepreneur who makes wine at home and sells online by self-marketing. You can deal with multiple suppliers, invest in a vineyard or start a vineyard yourself. You may open a wine shop or an e-shop and sell wine by stacking them from different suppliers. But in any way, choosing the role is essential.
Another very important element is, that you have to know your customers or to who you’re selling your wine. It could be the retailers, wholesalers, or direct consumers. Once you have decided on your role you may move on to the following steps of the business.
2. First few steps of starting a wine business;
Like all the other businesses, the wine business also has some basic initial things to be taken care of.
2.1. Establishment of the brand and a business entity for the wine business;
First, you have to decide the kinds of wine you want to work with. Then you have to know why you choose that particular type or multiple types. If there are some brands that you’re fond of, you have to make a list of them. Now comes the identity of your brand and you have to name your brand. Once you’re done with the name of the brand and company, you need to register your business with the local government. The registration procedure involves a lot of paperwork which you have to do very carefully by abiding by the rules and regulations of the government.
2.2. Business plan to start a wine business;
Whale making a business plan you have to sort out everything starting from salaries, and margins to rent, marketing costs, and so on. These details are the same as a restaurant business plan. The margins include the cost of the wine bottle you will sell to the customers or the retailers. When you decide upon the salary, you have to decide your salary as well.
2.3. License, permit, and taxes for the wine business;
If you are a lucky person who lives in a place that is suitable to be a wine region then this process is going to be easy. Other than that you have to depend on international suppliers. Some regions have strict regulations on wine production, so make sure you are well aware of all the regulations of your region.
3. Starting a winery for a wine business;
There are two classifications of wine business which are; starting a vineyard and buying a winery. These two are not the same so we will discuss them separately.
3.1. Starting a vineyard for a wine business;
This process is pretty similar to farming anything else. You need to buy or lease land, then plant and harvest grapes. This does not stop here but has a long list of work awaiting. You need to make wine out of the harvested grapes, bottle them and finally sell them to your targeted customer base. There is an immense workload and financial investment involved in the process.
The most important part, which is also a disadvantage is that you have to wait for a long time to get back to the harvesting season as you cannot grow grapes throughout the year.
The advantageous part of starting a vineyard is that you can make a recognizable brand with unique flavors of wine which will be only your brand. There will be no other vineyard like yours and it will be just the way you want it to be. If you find your passion in making wine just as you want to and nurture it then starting a vineyard is a brilliant business idea.
3.2. Buying a winery to start a wine business;
This process involves more financial investment than that of starting a vineyard. But this is a faster business plan because you don’t have to wait for the harvesting season. You can buy a small business or invest in an already thriving wine company.
The advantage of this procedure is that the workload is comparatively less because much work is already done for you like buying and installing necessary equipment, land, manpower, marketing, the establishment of the brand identity, and many other things.