As I get older, I always think about fun businesses that are profitable but yet mentally rewarding to own. I think of breweries/distilleries being something that I would enjoy putting in hours to run.
Anyone familiar with these type of businesses? Profitability? Pros/Cons?
Yeah that would be cool. I think having a vineyard is dope too.
I think that could be fairly profitable/lower stress than some other choices. I've fantasized about opening a butcher shop/BBQ place but that is much higher risk. One guy here posted a thread about the restaurant business once, definitely high stress but interesting business.
Butcher shop maybe, Restaurant maybe-
Butcher Shop and Barbecue think that's a winning combo. You can use your unsold trimmings in weekly specials for barbecue or smoking.
Maybe not a sit-down place but you can make it exclusively to go. Lower risk and if it's better than everyone else's you'll kill it.
You'd think the Barbecue market is pretty saturated, and it is a little but there are a lot of shitty places.
I think to go Barbie w/ butchery and a very limited non-meat menu will be super effective.
yeah you're exactly right. I'm working this out with a friend of mine, refining our business idea a bit more, trying to articulate the niche we're going after.
Have family members that run an international rum company. Been tempted to join but their historical revenue is pretty low. Very well known, can't image competitors are doing much better.
Seems like a very difficult business. I think a ton of breweries are going to be going bust over the next year - some good sized craft names already have (Modern Times). If it's a brewpub, maybe a little different, and then it's all about location and the quality of the beer is probably less important as long as it's not absolute shit.
I would imagine most have poor margins, and that probably doesn't change unless you're acquired by AB, MolsonCoors or one of the other large breweries, or until you're a top ~5 craft brewer in the country. Takes some capital up front, although if you started it soon maybe you'd be able to buy the assets you need to produce beer/liquor for a good price.
Yes I didn't mean there would be a focus on distribution. Mainly just a brewpub, where majority of revenue is from sales of beer onsite. Was thinking something cool, where theres a cool loungepad area to watch sports, some arcade machines, a small little rooftop. Not a big facility, but just a small one with a cooler build out.
that sounds so relaxing
Some capital up front??? No, it takes a ton of capital before you get to open the doors. And then what? You're effectively running a restaurant and we all know the margins in that business aren't great. The whole business idea is a pass unless it's something that's truly your passion and your location becomes you 24/7 life.
Or if you have a lot of money to burn.
as in a microbrewery?
follow the brew dog story, the markup is huge apparently
Margins are pretty huge on alcohol. Microbreweries were a big trend for a while and a lot of them failed, but there's one down the road that's still open. They are also a bar and host live music, so I think that's one way to make it. It serves a function as like a local community thing. It's not exactly cheap to get started and if you turn it into a pub/bar then you also have labor, licenses, high taxes. Still doable in the right context if you plan it carefully and people actually want/need what you are making.
Most small businesses do not stand the test of time, it's a real risk. However, seeing how people in PE/consulting approach restructuring existing businesses, you would guess that a lot of new ventures are just poorly planned, even those that succeed. If you are very careful and practical in how you plan and launch it, you could make it work of course. I would study the market, study similar businesses that are doing well, and talk shop with people who are already running successful operations.
Another way to say this is "you need to actually have good beer/ambiance/whatever."
If you have a shit business, it will probably fail. I don't think this is unique to breweries or bars.
I don't even think for bars/breweries the quality of the product is the main differentiator (assuming of course the beer served isn't plain awful). A lot of it comes down to being able to have a differentiator that builds a sense of community and convinces people to keep coming back to the bar. That could be something like arcades, or live music or special events. There could also be a location differentiator if no bars exist in the area (athough this one is rare for an established city).
I think businesses fail because they expect that just having decent beer, decent service, and some tables is going to bring tons of profit, when the reality is that sounds like a place I'd go one or two times and never go to again (assuming good choice in the area), compared to a place that has say arcades or hosts special events (which I'd be more likely to go to on a routine basis).
Family vineyard is a goal for sure. Could maybe role up a whiskey or vodka label too. Would be more for the sake of having a hobby in retirement than a true income stream. Seems like an antiquated and peaceful past time tending to the vines and presses.
It does sound nice, but it is a ton of work. If you view it as pottering around the vineyard and stomping grapes a couple days a year, you're gonna have a bad time. Making good wine is exceptionally difficult and labor intensive.
Distilling bourbon is my dream.
Speaking my language here. Big fan of bourbon but I believe the lead times to age them are a minimum of 3 years if you want it to be decent. So lots of waiting before you see any revenue.
Yeah, I would do it in retirement / if I didn't need the money.
I enjoy collecting, tasting and learning about it and its historical impact.
I did the bourbon trail a few years ago, and speaking with some of the distillers, it was genuinely exciting hearing them get so excited about what they're doing every day.
It's definitely hard work and not everyday is awesome, but by and large I think it would be very cool.
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