Starting a beer distribution company can be a lucrative business venture. However, there are a few things you need to keep in mind before starting such a business.
Here are the 10 steps you can take to get started on building your very own beer distribution business.
10 Steps to Launching a New Beer Distribution Business
1. Choose Your Type of Beer Distribution Business
The first step in launching a beer distribution business is to identify the type of beer distribution business you want to launch. You might choose from the following types among others:
- A local beer distribution business that delivers beer to restaurants and bars
- A regional beer distribution business that services a state or group of states
- A national beer distribution business that supplies beer to retailers across the country
2. Name Your Beer Distribution Business
Give your beer distribution business an identity so people will think of it as a well-known and respected brand. You can take the name of your beer distribution business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your beer distribution business is to make it sound appealing and trustworthy so customers will want to work with you.
3. Determine Your Beer Distribution Business Model
There are several possible types of business models for a beer distribution business including:
- An appointment-based model where customers schedule times for beer deliveries
- A subscription-based model where customers sign up to receive regular beer shipments
- A pay-per-delivery model where customers are charged for each delivery
You will also need to decide whether you want to offer your beer distribution services to retail businesses or if you will focus on selling to individuals.
No matter which model you choose, make sure that it aligns with your business goals and the products you offer.
Read more about choosing the right business model for your beer distribution business.
4. Choose a Legal Form for Your Business
By incorporating your beer distribution business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your beer distribution business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common beer distribution business structures.
5. Write a Beer Distribution Business Plan
All beer distribution business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your beer distribution business plan and strategy, you should think about the following questions your customers might have:
- What type of beer distribution business do you offer?
- What are the delivery hours?
- How much does delivery cost?
- Are you licensed to distribute beer?
- Which states do you service?
- Do you have a retail storefront?
- Is there a minimum order amount?
- Do you offer discounts for bulk orders?
- How do I pay for my beer delivery?
- What is your return policy?
Answering these questions in your business plan will give potential customers a better understanding of your beer distribution business and what to expect when they use your services.
Read our article about how to write a beer distribution business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your beer distribution business.
For example, you will need to obtain a business license from your state or local government. And, if you’re going to be transporting alcohol, you will need to get a liquor license. Check with your state’s Alcohol Beverage Control Board to see what other licenses and permits may be required.
You must also register your beer distribution business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper beer distribution business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your beer distribution business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your beer distribution business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your beer distribution business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a beer distribution business to help you determine if funding is needed.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your beer distribution business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in a customer relationship management (CRM) system to help manage your customers, sales and deliveries. A CRM system can automate many of the tasks associated with running a beer distribution business, including customer data management, sales pipeline tracking, order processing and delivery scheduling.
Other software you may need for your beer distribution business includes email marketing software, an ecommerce platform if you plan to sell online, and GPS tracking software to help manage your delivery fleet.
9. Market Your Beer Distribution Business to Potential Customers
Before you start selling your products, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the beer distribution industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Beer distribution businesses should consider the following promotional strategies for which you should start getting prepared:
- B2B marketing
- Trade shows
- Events and sponsorships
- Referral programs
- Word-of-mouth marketing
- Free beer tastings
- Free merchandise
Read our article about how to market your beer distribution business for more tips.
10. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your beer distribution business.
Read our article about how to effectively grow your beer distribution business to learn more.
Starting a Beer Distribution Business FAQs
Why Start a Beer Distribution Business?
The beer distribution business is a great way to enter the alcohol industry without a large investment. It’s also a way to be your own boss and have control over your own destiny. And, if you love beer, it’s a great way to turn your passion into a business.
What is Needed to Start a Successful Beer Distribution Business?
To start a successful beer distribution business, you need to acquire inventory, secure funding, get the right technology and software in place, market your business to potential customers and get new customers.
How Can I Start a Beer Distribution Business From Home?
You can start a beer distribution business from home by establishing a workspace and home office. From home, you can obtain the necessary permits and purchase insurance. Then, you can start acquiring inventory and marketing your business to potential customers. Software will help you manage distribution and other business processes from home.
How Can I Market a Beer Distribution Business Online?
To market your beer distribution business online, you should start by creating a website. Then, promote your website through social media channels and blogs. Also, consider networking with other people in the beer distribution industry. And, finally, gather the materials needed to execute your promotions strategy.
What are Some Tips for Starting a Beer Distribution Business?
Some tips for starting a beer distribution business include:
- Research the industry and your local market
- Develop a business plan
- Acquire the necessary licenses and permits
- Secure funding for your business
- Find a good location for your business
- Acquire the right technology and software
- Market your business to potential customers
- Get new customers and grow your business
Where Can I Find a Simple Checklist for Starting a Beer Distribution Business?
A simple checklist to use when starting a beer distribution business is as follows:
- Choose Your Type of Beer Distribution Firm: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Beer Distribution Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Beer Distribution Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Beer Distribution Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Beer Distribution Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products.
Summary
Starting a beer distribution company is an adventure. By following these tips, you’ll be well on your way to starting a successful beer distribution business. Just remember to research the market, develop a solid business plan, and market your business to potential customers.