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Craft Distillery

how to sell them and how much you can sell. How the project capital costs. For this step, you’ll need
will you set your product apart from the crowd? an experienced process engineer, like VITOK. If the
Will you be selling purely onsite in your gift shop, distillery is desired to attract tourists, you will also
selling regionally, nationally, internationally? This need a good architect.
step usually requires some expertise from someone
who has knowledge of distribution and marketing,” “If so, both should be hired simultaneously, as
Archer says. they’ll need to work together to combine the most
efficient operation with the desired visitor features.
“Second, you’ll need to establish a business Experience allows the process engineer to quickly
model. A distillery project generally requires very and accurately estimate the costs for distillation
deep pockets. The design phase could last as much equipment, installation, piping, electrical and con-
as a year, construction two years, and then matura- trols. Likewise, an experienced architect can esti-
tion time for whiskeys can take several more years. mate the building costs, including construction,
How will you provide both construction and operat- HVAC, grounds/landscaping, fire safety, etc. Thus,
ing capital until you’re in the black? Some startups the more experience with your project team, the
choose to distill white spirits initially to create an less cost and more accuracy you’ll receive in your
income stream. Others choose to purchase aged capital cost estimate. Once your costs are known,
whiskeys and package them under their label. One then it’s time to secure funding.”
can also distill products for others at bulk rates.
Regardless, the business plan is your road map to Archer stresses that any project budget must
financial success, but it has to be based on solid include a line item for contingencies. “One import-
data.” ant piece of advice from my two decades in this
industry – never underestimate your budget contin-
A good business plan won’t cut corners on reliable gency. Whenever you put a shovel into the ground,
engineering and design, Archer says. “One critical you never know what you’ll dig up. At project initi-
feature of the business plan is the to determine ation, there are many unknowns, and these should

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