Leaving a brewer job to start your own brewery: when it makes sense
Many brewers dream of their own brewery. Some make it work and some find the business side swallows the brewing. This guide helps you judge honestly whether and when to make the move.
What changes when you own the brewery
As a head brewer you worry about beer quality, the brew schedule and your team. As an owner you worry about all of that plus rent, salaries, cash flow, licences, sales, marketing, investors and the bank. Most owners spend far less time brewing than they expected.
This is the main reason brewer-founded breweries struggle. The beer is good, but nobody is minding the money. Our guide to why breweries fail lists the common causes. Most of them are business problems.
Signs you are ready
- You have run a brewery's production as head brewer rather than only brewing in one.
- You understand how cost per litre, yield and loss affect profit.
- You have a clear idea of who will buy your beer and why.
- You have money saved to live on for at least a year without a salary.
- You have a partner or adviser who is strong on the business side (or you are ready to learn it yourself).
- Your family understands the risk and the hours.
If you can tick most of these, the idea is worth serious planning. If you cannot, use your current job to fill the gaps first.
The money question
Starting a brewery in India costs a lot. Equipment, building, licences, working capital and the months before sales cover costs all need funding. The figures vary widely with size, city and model. Our guide to microbrewery costs in India breaks down the main items.
Most brewers do not have this money themselves. You will need investors, partners or loans. Each comes with obligations. Investors want a business plan with realistic numbers as well as good beer. Be ready to explain how you will reach break even and how long it will take.
Choosing the model
Not every brewer needs to build a full brewpub. Options include:
- Brewpub: brewery and restaurant together. Higher cost, but you sell directly at good margins.
- Production microbrewery: selling kegs or packaged beer to other outlets, where state rules allow it.
- Contract or gypsy brewing: brewing your recipes at another brewery's plant, where permitted. Lower investment, less control.
- Joining as a partner: putting skills and some capital into someone else's project.
Which models are legal depends on your state, because licences and route to market rules vary and change. Get advice from a licensing consultant before you commit to a model.
Test the idea while you are still employed
You can learn a lot before you risk anything. Visit breweries in the city you are considering on different days of the week and count the guests. Talk to bar owners about which local beers sell and which ones sit. Sketch a cost per litre for your planned beers using real malt, hop and packaging prices from suppliers.
Then do the uncomfortable sum: how many litres a month must you sell at your price to cover rent, salaries, loan repayments and excise? If that number looks far above what similar breweries sell, the plan needs changing before you resign, not after.
Partners and agreements
Many brewers start with a business partner who brings money or hospitality skills. That can work well, but disagreements are common once money is tight. Put everything in writing before you start: who owns what, who decides what, what happens if someone leaves and how profits are shared. Use a lawyer for the agreement.
Be careful with your current employer too. Check your contract for notice periods, non-compete clauses and confidentiality terms. Do not take recipes, customer lists or supplier terms that belong to your employer.
A sensible order of steps
- Write a business plan with realistic sales and cost figures.
- Talk to owners of existing breweries about what surprised them.
- Get licensing advice for your chosen state and model.
- Line up funding and partners with written agreements.
- Choose a location and check that the licence can be granted there.
- Only then resign, giving proper notice.
Our guide to writing a brewery business plan walks through the first step.
When it makes sense to wait
If you are still learning production management, if you have little savings or if your market already has several similar breweries, waiting can be the smart choice. Use the time to save, learn the business side and build a following for your beer through collaborations and festivals.
The brewers who succeed as owners usually prepared for years. They knew their numbers, had the right partners and understood that their job was now running a business that happens to make beer.
Common questions
Should I quit my brewer job before raising money?
Usually not. Most founders plan, raise funding and secure licences while still employed, then give notice once the project is real.
Do I need a business partner to start a brewery?
Not always, but many brewer-founders benefit from a partner strong in finance, sales or hospitality. Put any partnership in a written agreement drafted with a lawyer.
Can I take my recipes from my current brewery?
Recipes developed for your employer may belong to them. Check your contract and get legal advice before using anything from your current job.
