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How to Start a Brewery in 2025: From Business Plan to First Pour

May 30, 2025

5 min read

The craft beer boom has inspired thousands of beer lovers to take the leap from hobbyist to business owner. If you’ve been wondering about how to start a brewery—whether it’s a full-scale operation or learning how to start a microbrewery—you’re in the right place.

This guide covers everything you need to know about how to start a brewery—from writing your brewery business plan to understanding how much it costs to start a brewery, getting licensed, and brewing your first batch.

TL;DR: How to Start a Brewery in 2025

Thinking about starting a brewery this year? Here’s a quick breakdown of what you’ll need to know:

  • Write a solid business plan. Your brewery business plan should include:
    • Executive summary
    • Target market and positioning (craft beer niche, taproom, distribution)
    • Competitive analysis
    • Financial forecasts
    • Product lineup and brewing capacity
    • Marketing plan (community events, tastings, merch)
    • Licensing and compliance plan
  • Budget for startup costs. Wondering how much it costs to start a brewery? Expect anywhere from $250K to $1M+, depending on your setup.
  • Start small with a microbrewery. Want lower costs and more flexibility? Starting a microbrewery lets you learn and grow at your own pace.
  • Handle the legal stuff. You’ll need licenses, permits, and registrations to help you stay compliant—yes, even before you brew your first batch.
  • Find the right location. Foot traffic, zoning laws, and square footage matter. Invest in the right equipment. From fermenters to taps, we’ll show you what’s essential (and what can wait).
  • Hire a strong team. Even a small operation needs the right brewers, servers, and support staff to run smoothly. Psst...hiring your dream team has never been easier with Homebase's hiring & onboarding tools.
  • Market before you pour. Build hype with smart branding, social media, and local events to draw in your first customers.
  • Still got questions? We’ve got an FAQ section covering everything from how to start a craft brewery to funding options.

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Is Starting a Brewery a Good Business Idea in 2025?

Short answer: yes—but only if you’re ready to play it smart—and equip yourself with everything you need to know on how to start a brewery in 2025.

The demand for craft beer and local breweries is still strong in 2025. People want fresh, small-batch brews with personality, and they love supporting local businesses that bring something new to the table. 

That means if you’re serious about starting a brewery, there’s definitely room to grow—especially if you’ve got a fresh take, a solid plan, and a community-first mindset.

But let’s not sugarcoat it: This industry is competitive. There are a lot of great breweries out there already, and opening a brewery takes more than just a great IPA recipe. 

You’ll need to navigate licensing requirements, figure out how much it costs to start a brewery (spoiler: it’s not cheap), and carve out a unique brand that stands out in a saturated market.

So what separates the brewers who make it from the ones who don’t? A few key things:

  • A clear brand identity that people actually connect with.
  • Unique brews that give people a reason to choose you over the taproom down the road.
  • A strong local following that grows through word of mouth, events, and community love.

If you’re serious about building a business (not just brewing beer for fun), and you’re ready to invest in smart branding, great product, and long-game planning, then starting a brewery in 2025 could be your best move yet.

How to Create a Brewery Business Plan That Actually Works

Wondering about how to start a brewery in 2025? Then don’t skip this step! A thorough business plan may seem tedious, but it’ll pay off in the long run. Think of a business plan as your roadmap to success.

Executive summary

This is your quick pitch—who you are, what you’re brewing, and why it matters. Keep it short and punchy. Highlight your mission, what makes your brewery different, and your goals for the first year.

Target market and positioning

Who are you brewing for? Are you going after IPA lovers in your neighborhood, tourists looking for a destination taproom, or bars and restaurants that want to carry something unique? 

Define your craft beer niche, outline your business model (taproom-focused, distribution-heavy, or a mix), and show how you’ll stand out.

Competitive analysis

Scope out the local scene. Who else is brewing nearby? What styles do they specialize in? Where are the gaps you can fill? Be honest about what makes your brewery different—and how you’ll carve out your own loyal following.

Financial forecasts

This part matters. Investors, lenders, and even you need to understand how much it costs to start a brewery, what your monthly expenses will be, and when you expect to turn a profit. 

Include:

  • Startup costs (equipment, build-out, licenses)
  • Operating costs (supplies, wages, rent)
  • Revenue projections based on taproom sales, events, and distribution

Product lineup and brewing capacity

List your initial lineup—flagship beers, rotating seasonals, or special releases—and what kind of brewing system you’ll need to produce them. How many barrels per week? What’s your packaging plan (kegs, cans, bottles)? Don’t forget to factor in room to grow.

Marketing plan

You can brew the best beer in the city, but if no one hears about it, it won’t matter. 

Build a simple but smart marketing plan that covers:

  • Community events (think: soft openings, beer release parties, collabs).
  • Tastings and tap takeovers to build hype.
  • Merch and branding to turn customers into promoters.
  • Local partnerships to get your name on menus and into stores.

Licensing and compliance plan

This part is critical. Outline your plan for navigating the licenses, permits, and regulations required to open a brewery. That includes your federal brewer’s notice, state and local licenses, and health/safety inspections. Show you’ve done your homework—because the people reviewing your plan will expect it.

How Much Does It Cost to Start a Brewery?

Let’s cut to it—starting a brewery isn’t cheap. Between equipment, build-out, permits, and your first round of hops, you’ll likely be looking at $250K on the low end and $1M+ on the high end, depending on your location, size, and business model.

Whether you’re opening a brewery with a full taproom or just learning how to start a microbrewery in a smaller space, knowing your upfront costs (and the sneaky hidden ones) can save you from nasty surprises down the road.

Here’s a breakdown of the big-ticket items:

  • Equipment (brew kettles, fermenters, etc.): $100,000–$500,000
  • Renovations/Build-out: $50,000–$250,000
  • Licensing and permits: $10,000–$50,000
  • Startup inventory (ingredients, bottles, kegs etc.): $5,000–$20,000
  • Marketing and branding: $5,000–$25,000
  • Staff salaries:Varies (depends on team size)

Don’t forget the hidden costs

A lot of new owners budget for gear and ingredients—but forget about the day-to-day stuff that adds up fast. 

Here’s what else you’ll need to account for:

  • Insurance: Brewery insurance is a must. You’ll need coverage for liability, equipment, employees, and the building.
  • Utilities: Water, electricity, and gas bills go up fast when you’re brewing daily.
  • Taxes: Federal, state, and local taxes apply (and they vary). Factor in excise taxes on alcohol, too.
  • Initial losses: Most breweries don’t turn a profit right away. Budget for at least 6–12 months of operating expenses to keep the lights on while you build your customer base.

How to Start a Microbrewery: Small-Scale Brewing, Big Potential

Not every brewery needs to start big. If you're looking for a lower-cost, more flexible way into the craft beer world, starting a microbrewery might be the right move.

What is a microbrewery, exactly?

A microbrewery is defined as a brewery that produces less than 15,000 barrels of beer per year, with at least 75% of that beer sold off-site (think kegs, cans, or bottles sold to bars, restaurants, and shops). 

But plenty of small brewers focus on taproom-only service, which gives you more control over quality, experience, and margins.

Why start a microbrewery?

  • Lower startup costs: Smaller systems mean less equipment, less space, and fewer overhead costs compared to launching a full-scale operation.
  • Simpler operations: Microbreweries are ideal for taproom-focused businesses or local keg distribution. You can keep things lean, brew in small batches, and experiment with unique recipes.
  • Community appeal: Locals love supporting small-batch breweries that feel personal and handcrafted. Microbreweries make it easier to build a loyal fan base from the ground up.

Real-world formats we’re talking about:

  • Nano-breweries: Tiny operations often brewing just 1–3 barrels at a time.
  • Garage breweries: Literally what it sounds like—it’s great for testing the waters.
  • Pilot systems: Small test systems used to develop new beers before scaling up.

Licensing, permits, and legal steps to open a brewery

You can’t start pouring without getting legal first. Opening a brewery means navigating a mix of federal, state, and local regulations—and the process can take longer than you think. 

Here’s what to expect and how to stay ahead of the paperwork.

Federal: Brewer’s Notice (TTB)

At the national level, you’ll need to apply for a Brewer’s Notice from the Alcohol and Tobacco Tax and Trade Bureau (TTB). This is required for any commercial brewing operation, even if you’re just starting a microbrewery.

Expect detailed questions about your brewing setup, ownership, and business structure. The TTB review alone can take several months, so get this going early.

State: Alcohol beverage permits

Each state has its own alcohol control board, and every one has a different process. You’ll likely need a state brewery license, and in some states, separate permits to sell on-site, distribute, or serve samples in a taproom.

Some states are stricter than others, so this is where things can get complicated fast.

Local: Zoning, health, fire, and more

Before starting a brewery, check that your location is zoned for alcohol production. 

Then, you’ll likely need:

  • A zoning permit.
  • A health department inspection (especially if you serve food).
  • A fire safety inspection.
  • Possibly a building permit if you’re doing renovations.

Your city or county may also require business licenses and signage approvals—so leave time to work through the checklist.

How long does it take?

End-to-end, expect 6 to 12 months to secure all your permits and licenses. Some brewers get it done faster, but it depends on your state and how fast your paperwork moves through the system.

Pro tip: Work with a legal professional in your area.

Work with a lawyer or licensing consultant who knows your state’s alcohol laws inside and out. They’ll help you avoid mistakes, speed up the process, and make sure you don’t miss any critical steps.

Choosing a Location and Designing Your Brewery

Your brewery’s location isn’t just about real estate—it’s about how your space will shape your operations, customer experience, and long-term growth. Whether you’re going all-in on distribution or creating a community hangout, the space you choose matters. A lot.

Industrial space vs. taproom vs. brewpub

When you’re starting a brewery, the first big question is: How will people experience your product?

  • Industrial space: Great for production-focused models with minimal on-site traffic. Ideal if you’re planning to distribute beer to bars, restaurants, or retailers.
  • Taproom: Think tasting room—simple, casual, and centered on the beer. You’ll need space for seating, a service counter, and maybe snacks (or food trucks).
  • Brewpub: Full bar + full kitchen. This option brings in more revenue streams but adds more complexity (permits, staff, buildout, etc.).

Utilities: Don’t overlook power, water, and drainage

Brewing beer takes serious electrical capacity, reliable water access, and smart drainage. Before you sign a lease, make sure the space can handle your equipment—or be prepared to upgrade (which isn’t cheap).

Also, consider ceiling height and ventilation if you’re installing large tanks or boilers.

Taproom layout and customer flow

If you’re opening a taproom, your layout can make or break the customer experience. You want a space that feels welcoming but works just as hard behind the scenes.

Design with flow in mind:

  • Where will guests order and pick up drinks?
  • Can they move easily between tables, bathrooms, and the bar?
  • Where will you store kegs, cans, and cleaning supplies—out of sight but within reach?

Accessibility, parking, and city ordinances

Make sure your space is ADA-compliant (which means it’s built according to ADA Standards for Accessible Design), has enough parking, and meets local zoning rules for alcohol service and live occupancy. 

Some cities limit where you can open a brewery—or how many you can open per district. Check with your local planning department before you commit.

Essential Equipment for Starting a Brewery

When you’re starting a brewery, your equipment setup is one of the biggest investments you’ll make—and one of the most important. The gear you choose will affect everything from your brew schedule to your quality control to how quickly you can scale.

Here’s a breakdown of the must-haves (and a few smart add-ons) to get you brewing.

Brewhouse system

At the heart of your operation is the brewhouse itself. This includes:

  • Mash tun: Where you mix grain and water to extract sugars.
  • Kettle: Where wort is boiled and hops are added.
  • Fermenters: Where the magic happens and beer becomes beer.

Size depends on your production goals, but even small microbrewery setups will need this core trio.

Kegging or canning line

If you’re planning on distributing beer or selling outside your taproom, you’ll need a system to package it:

  • Kegging lines are great for restaurants, bars, and events.
  • Canning lines give you retail-ready products, but require more investment upfront.

Start small if you need to—some brewers begin with manual systems and upgrade over time.

Glycol cooling system

Yeast is picky. You’ll need a glycol system to keep your fermenters and bright tanks at consistent, precise temps. Without this, you risk inconsistency (or worse, spoiled beer).

Walk-in cooler

You’ll need space to store your finished beer (and sometimes kegs or cans waiting for delivery). A walk-in cooler keeps inventory fresh and makes it easier to manage flow from production to sale.

Lab/testing equipment (optional but smart)

If you’re just opening a brewery, this may not be top of the list—but investing in basic lab gear (think pH meters, hydrometers, dissolved oxygen testers) can help you spot problems before they hit the tap. It’s a small investment for consistent quality and peace of mind.

POS system and inventory software

Running a taproom or brewpub? You’ll need a point-of-sale (POS) system that handles:

  • On-site sales
  • Inventory tracking
  • Customer loyalty or memberships

Bonus points if it integrates with your accounting or brewery management software.

Did you know it's super easy to integrate Homebase with POS? Track labor and sales together and run a smarter brewer!

Building Your Brewing Team: Staff You’ll Need

Starting a brewery is never a solo mission. Even if you’re planning to stay lean, you’ll need a solid crew behind you to get things brewing, pouring, and selling smoothly from day one. The team you build will shape your beer, your customer experience, and your long-term success.

Here’s who you’ll want on board:

Head Brewer

This is your beer MVP—the person responsible for recipe development, brewing schedules, quality control, and managing the brewhouse. If you’re not the one brewing (or you plan to grow fast), hire someone with experience, creativity, and the technical chops to keep every batch consistent.

Assistant Brewer

Your head brewer’s right hand. Assistant brewers help with cleaning tanks, prepping ingredients, transferring beer, and keeping operations running on time. They’re key to scaling your output without sacrificing quality—especially when starting a microbrewery with limited capacity.

Taproom Manager

If you’re opening a brewery with a taproom, you’ll need someone to run the front of house. A great taproom manager handles scheduling, customer service, team leadership, and keeps the space dialed in so guests have a seamless, enjoyable experience.

Bartenders and Servers

Your staff behind the bar are your frontline brand ambassadors. Look for people who are friendly, fast, and know how to talk about beer. Bonus points if they’re passionate about craft brewing—they’ll help educate guests and upsell your best pours.

Sales & Distribution support

Planning to sell your beer outside the taproom? You’ll want someone (even part-time) to manage relationships with local bars, retailers, and distributors. They’ll help grow your reach and get your product into the hands of more customers—an essential part of starting a craft brewery with distribution goals.

Accountant or Bookkeeper

This isn’t a glamorous role, but it’s one you can’t skip. Between taxes, payroll, licensing fees, and tracking inventory, having someone handle your books accurately from day one will save you massive headaches (and money) down the line.

Marketing Your Brewery: How to Build Buzz Before You Open

Don’t wait until opening day to start building your fanbase. When you’re starting a brewery, one of the smartest moves you can make is to market it before the doors open. That way, by the time you pour your first pint, there’s already a line at the door.

Here’s how to start building hype for your craft brewery from day one:

Build in public

People love a behind-the-scenes story—especially one with beer at the end. Use social media to document your journey:

  • Share photos of your space coming together.
  • Post videos of test batches.
  • Introduce your team.
  • Let followers vote on beer names or merch designs.

The more you involve people early, the more invested they’ll feel when you finally open your brewery.

Host pre-opening tastings or soft launches

Pop-up tastings at farmers markets, local events, or other small businesses are a great way to start pouring, get feedback, and build buzz—even before your taproom is ready. 

Soft openings are perfect for getting your systems in place while creating word-of-mouth excitement.

Collaborate with local food vendors or musicians

Team up with local food trucks, bakeries, or artists to host collaborative events. Not only does it build community—it gets you in front of their audience too. Great beer + great food + live music = instant vibe.

Run a crowdfunding campaign

Crowdfunding isn’t just about raising money—it’s about creating superfans. Offer creative rewards (like naming rights, exclusive tastings, or merch bundles) and bring future customers into the process of opening your brewery.

Sell early merch

Stickers, shirts, hats, glasses—pre-opening merch is a simple way to raise cash and turn your early followers into brand ambassadors. Make your branding bold, unique, and something people actually want to wear.

How to Start a Brewery: Is Starting a Brewery Right for You?

If you’re passionate about craft beer and ready to handle the grit behind the glamour, starting a brewery can be an incredibly rewarding journey. It’s creative, community-driven, and full of growth potential—but it’s also a serious business that demands your time, attention, and hustle.

As your brewery grows, so does the chaos—scheduling staff, tracking hours, managing payroll, and keeping your team in sync. That’s where tools like Homebase come in. It helps simplify the day-to-day so you can focus more on brewing great beer—and less on juggling admin.

Here's what a brewer has to say about us:
“Homebase is an awesome scheduling and employee management tool! Honestly the scheduling, revenue, and messaging systems are amazing. The timesheet editing and exporting is the perfect way to prep payroll.” — Nicole Smith, Cofounder, South Lake Brewing Company 

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Frequently Asked Questions About How to Start a Brewery

How much does it cost to start a brewery?

Expect anywhere from $250,000 to $1 million+, depending on the size of your space, the equipment you choose, and whether you’re launching with a full taproom or just focusing on production. Microbreweries and smaller setups can come in on the lower end of that range.

What licenses do I need to open a brewery?

At minimum, you’ll need a Brewer’s Notice from the TTB (Alcohol and Tobacco Tax and Trade Bureau), plus any state and local licenses required to brew, serve, or sell alcohol in your area. That may include zoning permits, health inspections, and more.

Can I turn my home brewing hobby into a business?

Absolutely—many successful breweries started in a garage or basement. With the right brewery business plan, some smart budgeting, and a micro-scale setup, you can turn your hobby into a legit operation.

What’s the difference between a craft brewery and a microbrewery?

“Craft brewery” is a broad term that usually refers to independently owned breweries making small-batch, high-quality beer. A microbrewery, on the other hand, is defined by production—fewer than 15,000 barrels per year—and often focuses on taproom or local distribution.

Is it better to start with a taproom or a distribution model?

It depends on your goals.

  • A taproom model gives you higher margins and more control over the customer experience.
  • A distribution model requires more volume and logistics but can scale faster if you’ve got the demand.

Many breweries start with a taproom to build their brand, then expand into distribution once they’re more established.

Is owning a brewery profitable?

It can be—but it depends on how you run it. Profitability in the brewing world comes down to smart planning, tight cost control, strong branding, and knowing your market. Taproom-focused models often have higher margins than distribution-heavy setups, but they also come with higher upfront costs. 

Like any business, starting a brewery isn’t a guaranteed cash machine—but with the right mix of product, community, and operations, it can definitely pay off.

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Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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