5 essentials of a winery business plan
The UK’s alcohol industry is booming, meaning that setting up your own winery could prove to be a lucrative business venture.
If you’ve done your research, identified a niche and ran the figures, your next step is to create a business plan for opening a new winery.
A winery business plan for your company is essential for many reasons:
- Prove you’re serious about the business and use it to support loan applications and raise equity funding.
- Establish business milestones that will be key to success in the initial years of the business.
- Define objectives and goals and better analyse the market and competition.
- Attract partners, investors, employees and a management team to the business.
- Use it as an action plan but also a reality check to ensure the business will be a worthwhile endeavour.
Whether you need to create a regular or micro winery business plan, these essentials must be included:
1. Executive summary
This is essentially an overview of your winery business. It forms the first part of the plan but should be written last and include:
- Mission statement (a simple statement explaining why the company should exist, i.e. its main purpose).
- When the company was founded and by whom.
- A description of your (intended) products and/or services.
- Business aims (three to five goals).
- Financial summary (including funding requirements and a sales forecast for the first year up to three years).
2. Business summary
Here’s where you can really delve into the finer details of the new winery. Describe the products and services you hope to provide and where and how you will provide them to customers. This is your chance to explain why your winery will plug a gap in the marketplace and how it will be different (and better!) than others.
3. Market and competitor analysis
This analysis might be split up into two sections in your winery business plan – the more thorough, the better. For the market analysis part, dig deep into the winery industry and discuss the characteristics of your target audience – including demographics, needs, size, buying habits, predicted growth rates, etc.
Next, the competition. Find out who your competitors are, including local, national and maybe even international companies, uncover what works well for them and explain how your products and/or services will differ while offering something fresh and exciting.
Get the calculator out – this section is all about proving your winery has the potential to be a profitable business. You’ll need to detail things like:
- Required funds (broken down into how your start-up funds will be used).
- Cost and pricing strategy for your products/services.
- Details of where the equity or capital is coming from (i.e you as manager and/or an investor).
- Sales forecast for the initial year.
If you find this section challenging, research competitor costs and use these as a benchmark.
5. Marketing strategy and plan
How will you drum up interest in your winery when it launches? The answer forms an important part of the plan and should include a list of tools and techniques you’ll use to market your business, increase conversion and retain customers.
For instance, you might mention that you plan to promote your business at local events and festivals, or work with local distributors. It might also reference the name of a marketing agency you want to work with to get your brand off the ground.
Any successful business plan includes these five elements. It might also help to research a winery business plan template and use that as a starting point.
If you’re setting up a winery business and want to make sure your products stand out from the crowd, Premier Labels can help. We’re a leading supplier of labels for wine and spirit brands.
If you've got any questions, or would like to chat with a specialist member of our team, get in touch today. We're on hand to discuss how high quality labels can make a difference to your unique brand.