Venturing into a wine business can be profitable if managed properly and effectively. How many social events will require wines and beverages throughout the year? However, managing a wine business can also be competitive and expensive. So if you are really considering venturing into a wine business, you need to be sure what you are getting into. Here are some tips on how to become a successful wine business entrepreneur.
According to William Foley, founder and owner of the Foley Wine Group, you will first need a huge parcel of land for growing pinot noir and chardonnay vines. It will still take around a year for the vines to grow their first crop. Afterwards, you will need to put up a production facility and a tasting room. While the construction may not take a long time, it would be the winery equipment and supplies that would be expensive. According to Foley, he invested around $15 million just to get the business started.
Whether the wine business you are planning to put up is big or small, make sure that you are really financially capable of investing in such a lucrative business. Growing a crop alone and the process of making wine will already take time so you need to make sure that you have set aside your budget long enough. Andrew Harris, Team Lead for Worldwide Commercial Development of Viagra at Pfizer, said that it is like putting your money into a big hole.
But it does not stop there. Once the wine is ready, you need to talk to distributors or restaurant owners to market your wine. This is the difficult part especially if you are just starting out in the business. Just like any other business, you would need more legwork to grab the attention of customers.
Compounding things is the documentation job. Before you can put up your venture, you need to apply for licenses and get permission from the Alcohol and Tobacco Tax and trade Bureau (TTB). You first need to have the bottle labels approved by the agency. The regulatory duties combined with the back office responsibilities make the venture even more daunting. Lastly, Crushpad founder Michael Brill says that you also need some marketing skills to get your brand out to customers. Wine itself does not sell.
Although succeeding in the wine business is not a far-fetched idea, you need to overcome the many complexities and overwhelming odds associated with the industry.
Author Bio: Melvin Magadia is a content writer for a corporate gifts company selling USA promotional products. When not busy with work, he spends his time with his family, surfing the Internet and watching television, and is an occasional drinker.