The Beer Chronicles

All about beer

Setting up a microbrewery – step-4 – Project justification/Business plan

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As of now we are done with initial 3 functions/steps required to set up a microbrewery. We are done with conceptual examination, market intelligence and feasibility study.

At this point, we will know if it is worth proceeding. The assumptions in the Feasibility Study can be tested and formalized to enable final investment decision to be made. Based on the outcomes of feasibility study we create a business plan.

The business plan builds on the information that was obtained through the feasibility study, but provides a more detailed and specific blueprint that map out the microbrewery strategy.  A business plan is similar to operating a company on paper.  It sets out the goals of the microbrewery and how we intend to reach those goals.

There are two basic purposes of a business plan:

External purpose – The business plan helps to obtain financing from potential investors/banks. A business plan generally an answer to the common question of the investors, “Why should I invest in this business?”. They analyze how well we have analyzed the business opportunity and planned accordingly. So the business plan becomes the primary fund raising tool also. That is why it should provide an honest and straightforward examination of the business opportunities.

Internal purpose – A business plan provides a blueprint for us to follow. It helps in listing down all the business activities which is useful to evaluate the all aspect of business. It also serves as parameter against which our performance can be measured as we go on gradually to setting up a successful microbrewery.

The other areas which need to address in business plan are industry knowledge gathering, market intelligence, operation management, financial plan, risk analysis, review and right implementation. Some of the points we have discussed already and rest of them will be discussed in my coming posts.
In my next post I’ll discuss in detail about the financing part.

Keep your views/questions coming along this journey of setting up a microbrewery!!


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