Craft beer bars and microbreweries are all the rage in the United States. Many modern consumers would rather try a local brew, than the same old beer from the big boys. But how do you break into the craft beer market?
In may seem like it is too late to open yet another craft beer bar. While it is true that there are a lot of places out there, it doesn't mean there aren't opportunities available.
Having the right product is vital in the craft beer market. Entrepreneurs need to distinguish themselves from both the known beers and the local competition. But there is another factor that will be just as important for your success.
Location, Location, Location
As the old adage goes, location is everything. We are not talking about where in your local city, but in which city is such a business needed by its residents. You may think your product will succeed in your city, but even with a superior product it may fall victim to over saturation.
Let's look at a test case of Gilbert, Arizona. According to the data on LaunchScore.com, the town of Gilbert is ripe for the picking for the next craft beer place. You can view the details yourself here.
Gilbert is within the Phoenix metropolitan area, and its local business scene downtown has been on an upward swing over the past few years. Many new, local, and hip eatery's are seemingly popping up overnight. If there is one thing people in the area like to do, it's to eat and be seen at these restaurants and pubs in the downtown.
With the explosion of interest in the craft beer market, a city like Gilbert is a perfect opportunity for such a business. There is currently limited competition in the area, and are in need of businesses like a microbrewery. There are events held every weekend in the area to promote local shopping and spirit of community. Both of which would help any new and upcoming bar that brews locally made beer.
According to LaunchScore, the right craft beer bar in Gilbert could potentially make a net profit of $129,839 in just its second year. With profits growing continually from there.
Community Growth Nourishes Business
As the cities such as Phoenix continue the mad dash of outward growth, opportunities for new business will also grow in places like Gilbert. There becomes a necessity to feed and entertain the people in these new places in new ways.
The price of rent in Gilbert is still fairly reasonable, and now is the time to get in the market and make a name for yourself. The demographic of Gilbert is getting younger, hip, and they are typically transplants from other parts of the country.
Craft beer bars are great places for locals in any community to get out and network, get to know their community, and create new friendships. What better way to beat the heat and broaden horizons than sharing a cold beer and some food with fellow like-minded people.
So when considering the craft beer market as your next business venture, be sure to keep such factors in mind. A move to Arizona might not be possible for you, but this was just one example. You can always check the score of this or any other business idea in your city on LaunchScore.com.
Cracking the Craft Beer Market is available on LS Blog
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