How to start a wine business

You need to figure out the costs, research the proper licenses, and market your wine in order to start a wine business. For details on each of these steps you can take to start a wine business, use this guide:

• Figure out the costs. Wine businesses can be extremely expensive ventures; you should be sure you have enough startup capital in place before making any big moves.

If you are looking to start a wine business in California, where many in the US currently operate, you are in for some big costs. Here are some things to consider:

• It can cost up to $15 million or more to start a wine business in California

• Vineyards in Northern California can cost anywhere from $11,000 to $30,000 per acre

• Within the next several decades, it is predicted that vineyard land in Northern California will cost up to $1 million per acre

If you already own a dedicated piece of land, you can expect to spend between $35,000 to $45,000 per acre to set up all of the equipment and grapevines needed for a vineyard. This is the case for all 50 states, not just California.

To keep vines alive, you should add about $15,000 to $20,000 per year for your initial three years of operating your wine business.

Here are some costs to research before starting your wine business:

• Land

• Equipment; this includes refrigeration, winery buildings, wine cellar equipment, trucks, and receiving gear

• Vines

• Cooperage

• Fermentation and storage

• Bottling line

• Wine office

• Tasting room

• Payroll for staff

• Shipping

• Marketing

Most vine businesses require at least an initial capital investment of $1.5 million to get started, and in some cases, a lot more.

• Research the proper licenses. The wine industry is heavily regulated, which means that gaining the proper permits and licenses can be complex and often expensive.

Look into wine compliance companies. These are entities whose sole purpose is to help wine businesses navigate federal and local wine regulations.

You need to apply for a permit to legally operate your wine business. You also need to register your business with the FDA, comply with local and state laws, and have your wine labels approved by the Alcohol and Tobacco Tax and Trade Bureau.

Selling across state lines adds more complications. Certain states have laws regarding direct shipments. You should also take your state's excise tax and sales taxes into consideration.

If you feel you might be overwhelmed by this step, it is recommended you make contact with a lawyer that has experience in the wine industry to smooth out the process.

• Market your wine. Make use of all of the internet tools at your disposal to market your wine business. Social media is an extremely effective marketing tool for your business.

Having a large social media footprint will help you grow your consumer base and generate more revenue for your business. Unless you also pay for additional online advertisements, this is a free and great way to market your wine.

Another online resource you need to take advantage of is a website. This is relatively inexpensive, and if you have some extra cash, you can hire a professional to do a solid website design for your wine business.