• Plan For Expansion From The Beginning: 

You are going to be successful, so plan for it! Positive thinking? Of course, but also a necessary component to a successful business. Plan to rent or buy a space that can expand with your business. Maybe it has room for a patio, garden space for hops and beer games, or an area to add more infrastructure when the time comes to increase beer production. If you can't grow out, could you grow up? Perhaps a rooftop patio option? Carefully check the requirements of renting brewery equipment. Are you in a long-term lease? Is there an option to void the rental equipment or add to it if you need a larger or more-complicated brewing system than small-batch kegs? Are you protected if your rental equipment is faulty? Does that cover lost profits if it leads to decreased beer production? How about your commercial lease agreement- are there options to rent space next door if you expand? Do you have an air-tight agreement when your landlord sees how successful you have become and raises your rent? A qualified business attorney can assist with these agreements to make sure you are protected. 

 

This is a small sample of things to be considered for expansion. Which leads us to...

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• Have A Business Plan:

Again, you should use an attorney for this process, or at least for part of it.  While coming up with the ideas for your business is a process all your own, you will want to use an experienced business attorney for much of your business plan. For example, is your business structure formed correctly: do you form a corporation? An LLC? What business formation protects you from being sued? Is this the same business formation so you don't have to pay the IRS the majority of your profits at the end of the year? Don't worry- we have the answers for you. 

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Make sure your business plan includes expansion. (See above. You are going to be successful, remember?!) Not only for you (time to consider a trust- you want to protect your hard-earned profits!), and your business, but also for your employees. Does your expansion plan include stock options? Shareholders? Public trading? An updated business formation that protects your growing business and decreases your also growing tax liability? New employee agreements as you add staff? Yes, get an attorney for this, too. You'll actually save thousands, if not more, by making sure everything is running smoothly from the beginning. 

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• Plan For A Complicated And Lengthy Permitting Process:

Yep, you should use an attorney for this process, too. The average timeline for obtaining all your permits for your brewery in Colorado is   days- IF everything is done correctly the first time around. This is already a rather long process, and a mistake during this process could cause lengthy, and costly, delays. 

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Colorado is a dual-licensing state: that is, you must first obtain licensing from both the city in which your brewery is located and then from the State of Colorado. For instance, if you are planning on starting a brewery in Denver, you must obtain licensing from the city of Denver and then the State of Colorado. Colorado law requires approval from the city first, in order to meet the needs of that city. That city must also conduct a background check of the person(s) starting the brewery. According to the Colorado Liquor Enforcement Division, "for new license applicants, this typically requires showing the neighborhood needs and desires for each new liquor license. Local government will typically conduct an initial background investigation of the individuals involved with a retail liquor license application."

 

Many cities also require zoning permits and zoning compliance statements, as well.

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Most cities also require a public hearing before granting approval of your liquor license. 

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If you are planning a special event or a tasting event- a great way to showcase your new brewery and garner publicity for a grand opening- you must also obtain special permits for these events through the city in which your brewery is located.

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Liquor licenses must be renewed annually. Failure to do so could result in revocation of your license. 

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• Research, Research, Research:

Thankfully, Colorado is a great place for researching all things beer.​ Colorado has always been at the forefront of the craft beer movement, even before craft beer exploded onto the mainstream scene. That gives you ton of options for research! Research what types of beer people love drinking. Maybe that changes during the seasons or changes depending on your location in Colorado; a dark porter may be more popular at higher altitude than downtown in the heat of summer. Research who your client base will be at your brewery location. Reasearch if there are development plans nearby and if that will change your client base. Research what beers are the most profitable to make and sell. Research what beers will be the most popular and keep them on your menu throughout the year- perhaps a drinkable session beer or solid stout?

 

Research every possible option that could affect your brewery operations- and then take that knowledge, and do just a little bit better than everyone else. Learn from our beer ancestors and evolve!

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• Time to Get Brewing Yet? No, Not Really...:

Paperwork, administrative work, and cleaning. Repeat. ​

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Yes, this is boring- but a necessary evil. Paperwork (see Plan for Lengthy and Complicated Permitting Process, above) will consume most of your time in the beginning. Once you have completed this process (and don't forget to annually renew!), it is time for ... more administrative work. This include lease agreements, employee handbooks, contracts, equipment leases, purchase agreements, construction contracts, employment agreements, non-compete agreements, trademarks, copyrighting, trade name registration, stock options, operating agreements, shareholder agreements, waiver and release agreements, payroll, profit and loss statements...and more. Is your head spinning yet? Much of your adminstrative work is ongoing. Consult with your local business lawyers to both expediate this process and to make sure everything is done expertly. 

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Perhaps most importantly is the cleaning process involved with your brewery. Cleaning the brewery, cleaning the brewing equipement, cleaning the brewery tap lines...it is a neverending process! You want to always pass inspections with local health code, but also to always have superior and great-tasting beer your customers will rave about!

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