No matter how established a brewery becomes, each one begins the same way as a startup, navigating uncertainty, capital constraints, and regulatory complexity. The craft beer industry continues to attract entrepreneurs, but the path from idea to open taproom is rarely straightforward. ColdFire Brewing offers a recent example of how modern breweries take shape. The 10-barrel operation officially came online in December 2015 after years of planning by founders Dan Hughes and his brother Stephen. Their journey reflects the broader realities facing new breweries across the country.

Building a Brewery From the Ground Up

Before opening its doors, ColdFire Brewing spent several years refining its concept, developing recipes, and building the operational foundation required to succeed. The founders balanced day-to-day planning with long-term decision-making, while also working through construction delays, equipment lead times, and regulatory approvals. The brothers created a detailed business plan and assembled a core leadership team early. With private local investors backing the project, the brewery also secured additional financing through a Small Business Administration loan. This mix of equity and structured debt allowed the company to move forward without sacrificing operational stability.

Financial Oversight as a Growth Requirement

One of the most important early decisions ColdFire made was placing financial management at the center of operations. With a dedicated finance lead in place, the brewery was able to track cash flow, anticipate upcoming expenses, and assess funding needs with greater accuracy. For many breweries, growth decisions such as hiring staff, purchasing fermentation tanks, or expanding taproom space require access to significant capital. In these moments, founders often evaluate whether to borrow money in one lump sum to cover high upfront costs rather than piecing together multiple smaller funding sources. This approach can simplify repayment planning and ensure that major investments are not delayed due to short-term cash shortages.

Reviewing the Business Plan as Conditions Change

Regularly revisiting financial projections has proven essential for breweries operating in a competitive and regulated environment. Forecasting revenue and comparing it against actual performance allows leadership teams to identify problems early and adjust spending before issues escalate. Industry advisors consistently emphasize that a business plan should be treated as a living document. Updating assumptions and reviewing outcomes helps breweries remain responsive to changing costs, supply chain disruptions, and shifts in consumer demand.

Planning Remains a Non-Negotiable Step

Despite the creative nature of brewing, skipping formal planning remains one of the most common mistakes among new entrants. Research shows that businesses with documented plans grow faster and secure financing more easily. For breweries seeking external funding, lenders and investors typically require a clear plan outlining production goals, distribution strategy, and financial projections. Sample brewery business plans are widely available and often used as starting points for new operators preparing to enter the market.

Industry Examples Show Different Paths to Scale

Successful brewery models vary widely depending on location and ambition. Some focus on regional distribution, while others prioritize local taproom sales. Examples range from medium-scale production breweries in emerging industrial hubs to established microbreweries expanding into nearby metro areas with new product lines. Each approach requires different capital structures, staffing plans, and equipment investments, reinforcing the importance of aligning financial decisions with long term vision.

Defining Vision and Relationships Early

Industry leaders consistently stress the importance of clarity and commitment. Defining the type of brewery being built helps guide decisions around equipment, branding, and growth pace. Equally important is the ability to build strong relationships with lenders, landlords, suppliers, and regulators. Breweries that establish credibility early often find that doors open more easily as their reputation spreads through local business networks.

Navigating Licensing and Regulation

Regulatory approval remains one of the most time-consuming aspects of launching a brewery. Federal permits, particularly those issued by the Alcohol and Tobacco Tax and Trade Bureau, require extensive documentation and patience. The complexity of ownership structures and operational models can further extend approval timelines. Experienced founders advise building regulatory delays into the project schedule from the start.

Choosing the Right Brewery Location

Location decisions can define a brewery’s future. Zoning laws, access to utilities, logistics for raw materials, and proximity to customers all play a role. Many brewers aim to operate close to their core audience, but market research remains essential. Industry consultants warn that choosing a space that is too small often becomes a costly mistake within the first few years. At the same time, demand for craft beer varies significantly by region, making data-driven site selection a critical step.

Selecting Equipment With Growth in Mind

Most new breweries begin with systems ranging from seven to fifteen barrels, though profitability depends on production volume and sales strategy. New equipment offers customization and manufacturer support but may involve long delivery times. Used systems can arrive faster but often provide limited savings and less technical support. Brewers are encouraged to carefully evaluate total costs, timelines, and long-term scalability before committing to equipment purchases.

A Familiar Story Across the Industry

ColdFire Brewing’s early experience reflects a broader truth within craft brewing. Success depends as much on financial discipline, planning, and relationships as it does on beer quality. For new breweries, the startup phase is less about speed and more about building a foundation capable of withstanding growth pressures and market shifts.