Things to Remember when Venturing Into Small Wine Business

Many people have a romantic vision of what it is like to get into the wine business. They imagine long, sunny days of visiting their vineyards, swinging by their wine cellars and tasting their wines, and selling their bottles to an eager and appreciative crowd.

But this is quite unrealistic because the wine business is actually one of the toughest, most competitive and most capital-intensive businesses around. You have to wait years before you make any sort of profit, and by then you will have spent more money than you first thought you would.

Still, there is profit to be made in this industry, with past years showing remarkable growth and good forecasts in the future. The wine business is appealing too, because there are several business models that you can follow. You can be a wine grower or a wine distributor, or you can work in the other side businesses of wine such as starting your own wine rack construction business or operating your own wine bar.

Small Business – Some Helpful Tips to Succeed

The key to the wine business is to start small. Launching with a small business allows you to test the waters and see for yourself what kind of wine varieties you’d like to produce or check what part of this business you’ll want to be involved in.

Another one of the most important small business ideas with regards to wine is to find or develop your own niche. As we mentioned above, the wine business is a very competitive business with hundreds of players in the market. You have to find your unique selling point or your specific angle. For example, if you grow and age a flavor or fruit that is distinct to your locale, you need to focus on this and use this as your small business marketing strategy.

Make sure also that you don’t over leverage. Overleveraging is when you borrow too much money and can’t pay off your debts. This might happen if you expand way too rapidly without having a matching demand for your wine. A key to a small business solution is to develop a good pace for your expansion efforts.
Also, don’t underestimate the amount and complexity of paper work that you will need to do to get your wine business running. There are special permits to secure since your business will involve alcohol.

You also need to get the standard business licenses, the tax identification numbers and liability insurance, plus you’ll need to register to pay special excise taxes. The key here, since you are a small business, is consulting an expert who is familiar with the ins and outs of the paper work and red tape involved.

The last tip is to tap into networks of people and be on the lookout for other small business opportunities. People to watch out for are restaurants, caterers, wedding planners, and even hospitality schools. These people can be potential partners and clients, so make you sure you do enough legwork in this area.
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