Want to start a distillery?
Well, starting a distillery is a dream many people share in South Africa, but it’s not something to be taken casually or go unprepared. You must be ready to invest some capital and have insightful information about this specific industry.
Starting a distillery is like buying a house. You need to research thoroughly and think carefully before dropping a bag of cash and buying a cluster of equipment.
In this article, we will discuss 6 steps that can ensure your new business is well planned, registered properly, and legally compliant.
Plan Your Business
No entrepreneur can reach the zenith without having a definitive plan mapped out. Clarify your goals and identify the roadblocks.
Ask yourself a few important questions, like:
- Who’s your target audience?
- How much does it cost to start a distillery? Do you have all the money needed? If not, how are you going to finance it?
- How much time will it take for you to break even?
- How does a distillery make money? How are you going to charge the customers?
- What will you name the distillery?
Before you buy the distillery equipment from Distillique, answer these questions and create a plan. You don’t want your business idea to fail just because you had inadequate knowledge about the industry.
Register Your Company Legally
Form a legal entity that can prevent your business from being liable in case someone sues the brand. Furthermore, hire a legal representative who can oversee that every task is being performed in accordance with the law, and that your company is legally compliant in everything they do.
Additionally, each step has different legal and tax implications to be considered. So, before you start the business, register for state and federal taxes.
Have A Separate Business Account
Do you have a separate account for your distillery business? Or are you planning to convert your personal account into business?
Well, we will give you a piece of advice. Don’t mix your accounts. If you do so, you are risking your assets, everything including your properties, cars, other valuables, in case the business is sued.
That said, open a dedicated bank account and business credit card. This will not only help you protect your personal assets but also make filing for tax as easy as pie.
Obtain Licenses And Permits
Acquire licenses and permits to protect your investment. Failure to comply with the standards might lead to legal consequences.
Some states require certain licenses and permits to open a distillery. So, check with your local clerk’s office about the same and do the needful.
Also, obtain a certification of occupancy. Businesses like distillery require a certificate that claims all the building codes, standards, legal and government regulations have been fulfilled.
Lastly, if you are planning to sell liquor directly to the customers, you will need a liquor license from the state.
Define Your Brand And Build A Website
Create a strong brand message and define your brands so that you can stand ahead of the competition. Additionally, build a robust online presence to attract more customers and increase your return on investment.
Invest in website development and be present on all social media channels. Be creative with your marketing efforts. If you want your followers to grow in number, offer high-quality products and do effective marketing.
Buy The Right Distillery Equipment
Look for brands that sell high-quality distillery equipment for a reasonable price in bulk. We understand that resources can be tight when starting a business, so if you can’t afford to buy new equipment, don’t fret.
Look for contractors who sell refurbished, reconditioned or used distilling equipment for sale. Not only will these equipment be cost-effective, but they will also have a much faster turnaround.
But, when buying used equipment, make sure you inspect them carefully. You don’t want to end up with equipment that have lower efficiency than expected.
Starting a business can be scary. But if you plan and execute carefully, you will be rightly rewarded for creating a company from scratch. Your dire skill set and dedication will be the agents making your business work.
