How to Use a Business Loan to Grow Your Brewery
Using a small business loan, you can grow your brewery into a larger operation. There are numerous ways to do this, so you’ll need to determine your brewery’s existing challenges and goals. For instance, are you earning more and more sales, but don’t have the manpower to serve all your customers? Or, are you interested in expanding your product options, but can’t afford it due to low cash flow?
In honor of International Beer Day, we’ll provide five suggestions for how you can utilize a loan to improve your brewery. Every business is different, but we’re confident that at least one of these investments could prove to be extremely beneficial to your brewery.
4 Ways to Use a Loan to Grow Your Brewery
1. Develop More Options
Most breweries start out by offering a few types of beers that they can perfect and make their signature options. This is typically a safer bet than producing numerous average quality beers.
Once your brewery masters a few different types of beers, you should start considering how you can add new options to your menu. Using your loan, you can pay for ingredients, and make sure that your newest additions are the right fit for your brewery. Do this by hosting an event in which loyal customers can try new beers before they’re released. This will help you ensure that you’re utilizing your loan properly, and that the latest beers will be purchased by your customers.
Another way to utilize your loan is to start serving food at your brewery. More and more breweries are offering food at their establishments as a way to attract more customers, and if you start doing this, you could attract an even larger demographic to your establishment.
2. Improve Your Marketing Strategy
There are over 6,000 of breweries in the U.S., and competition is constantly increasing. Due to this, creating an effective marketing strategy is important for developing a loyal customer base. With your loan, you can hire marketing associates to manage your business’s marketing efforts, pay for sponsored social media posts to attract your ideal customer base, and invest in updated signage that you can display near your brewery. Once you’ve tried a few different marketing strategies, you can track the results and determine which campaigns are generating the most sales. Although you’ll have a business loan to utilize, you should still try to make the most of your spending!
3. Hire More Employees
If you’d like to improve your brewery’s operations, you should consider hiring additional employees. With your loan, you can pay for onboarding and hiring costs, which will allow you to hire experienced professionals. These individuals can give brewery tours, help customers choose the beers they’d like to purchase, make inventory orders, and handle other tasks. If you’re currently understaffed, hiring more employees will enable you to improve your overall operations and ensure that your customers are being appropriately assisted.
4. Expand Your Business
If your brewery is generating significant sales, it’s a good indication that you could expand your existing location or open another one. With your additional financing, you can purchase more land to build another location, invest in a storage space, or pay for a new lease on a larger space, just to name a few examples.
Invest in Your Brewery in Honor of International Beer Day!
Now that you’ve learned about the ways to utilize a small business loan to improve your brewery, it’s time to decide how you’ll spend your additional financing. It’s important to consider your business’s biggest struggles. If you’re understaffed, and your employees are overworked, you should use your loan for hiring. Or, if your business has grown significantly and you’ve outgrown your brewery’s location, it might be time to expand your space or look for a larger one. It’s important to remember that every business is different, so use your loan to make enhancements that make sense for your brewery!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.