In this ten-part blog series, I will explore the ten steps that are suggested that you should take to start-up a brewery of your own in Maryland.  

Step 1:  Create a business plan.

Quite simply, a business plan is a document that sets forth, in writing, what you are going to do with your business and how you are going to do it.  It helps you identify the marketplace opportunities, threats, and your business’ prospective strengths and weaknesses. The process of creating a business plan enables the prospective business owner to put his or her great ideas on paper and think through the hurdles in the market that he or she may face, the opportunities he or she may be able to take advantage of, the type of financing he or she may need and what, if any, prospective profits, he or she may anticipate over the first number of years in business.

Additionally, a business plan is typically required in the event that the business owner wishes to obtain funding through a financial institution, such as a bank, or a sophisticated investor. Those parties will want to ensure, prior to giving the business owner any funding that he or she needs, that the business has the potential to profit, has identified the necessary obstacles to success and has sufficiently addressed how the business can overcome those obstacles.

Typically, a business plan will have three key sections:

• The Business Concept – In this section, the business owner will describe the industry, the type of business structure, the product and/or services that will be produced, and the necessary steps to achieve success.
• The Marketplace – In this section, the business owner will identify and analyze its target market and the demographic makeup of the target market.  Also, in this section, the business owner should perform a SWOT (Strength, Weakness, Opportunity and Threat) analysis, to identify key hurdles and opportunities in the marketplace.
• The Financials – In this section, the business owner will layout his or her income and cash flow statement,  a balance sheet, and perhaps a break-even analysis. 

Within these three sections, typically the business owner will include the following seven subsections:

• Executive Summary
• Business Description
• Market Strategies
• Competitive Analysis
• Design and Development Plan
• Operations and Management Plan
• Financial Factors

Business plans do not, necessarily, need to be voluminous. The average business plan consists of approximately fifteen to twenty pages in length. Regardless of length, business plans should sufficiently summarize all of the points set forth, above, in a concise but comprehensive manner. To save investors time, the executive summary, which should be placed at the beginning of the plan, should provide a succinct summary of what is included in the remainder of the plan. This allows busy investors to get a feel for your prospective business and how you plan to move forward so that they can determine, in a relatively short period of time, whether they have enough interest in the business to continue reading.

You may also want to visit your local Small Business Administration office or SCORE.org, for further advice. These are organizations that can help you develop your business plan and provide you with practical advice.  

Once you have completed your business plan, you are ready for step 2…forming your business entity!

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. Accessing this blog and reading its content does not create an attorney-client relationship with the author or with Miles & Stockbridge. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

[View source.]