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How to Start a Brewery in 2026 (Complete Operations Guide)

How to start a brewery in 2026: concept, TTB licensing, buildout, equipment, recipes, business model and the taproom POS that runs day one.

Davaughn White·Founder
11 min read

The honest version of how to start a brewery is that you are starting two businesses at once. The first makes beer -- a licensed manufacturing operation with tanks, a brew schedule, and a stack of federal and state paperwork. The second sells it -- across a taproom bar, an online store, a distributor, or all three. Most first-time founders fall in love with the first business and underestimate how much the second one decides whether they survive.

Here is the path in one breath: write a concept and plan, secure your licenses (the federal TTB Brewer's Notice is the long pole and it is slow), lock a location and build it out, buy the brewhouse and fermenters, develop and scale your recipes, choose whether you are a taproom, a distributing brewery, or both, stand up the taproom tech that takes the money, and market the launch. Budget in the hundreds of thousands to low millions depending on size and market -- confirm real numbers for your area. Below is each step in order, with the part nobody warns you about.

Step 1: Nail the concept and the business plan

Before a single tank arrives, decide what kind of brewery you are. A neighborhood taproom that sells most of its beer by the pint over its own bar is a fundamentally different business -- different margins, different licenses, different tech -- than a production brewery that distributes kegs and cans through wholesalers. Many breweries blend the two, but you need a primary model, because it drives every decision that follows.

Your business plan should be specific about volume (barrels per year), revenue mix (taproom versus distribution versus DTC), and the local market. This is also where you pressure-test the money: brewing is capital-intensive and margins on self-distributed beer are thin. Lenders and investors will want the model before they want to taste the beer.

Step 2: Licensing -- the TTB Brewer's Notice, state, and local

This is the step that humbles everyone. Opening a brewery in the United States means clearing three layers of licensing, and they stack:

  • Federal: the TTB Brewer's Notice. Issued by the Alcohol and Tobacco Tax and Trade Bureau, this is your permission to operate a brewery at all. It is the long pole -- apply as early as your premises and entity allow, and expect a wait measured in months, not weeks.
  • State: a brewery or manufacturer license. Plus registration for state excise tax and often label or brand approval. Rules and timelines vary enormously by state, so check yours specifically.
  • Local: zoning and occupancy. A certificate of occupancy, building and health permits, and sometimes a separate local liquor license. A taproom adds food-service and occupancy requirements on top.

Start early, because the federal approval alone can take months, and you generally cannot brew for sale until it clears. This is genuinely specialist-grade compliance work -- many founders hire a lawyer or consultant who does only alcohol licensing, and it is money well spent. It is also worth setting expectations plainly: no business-ops software, Deelo included, files these for you. One theme runs through all three layers -- excise tax. Both the federal government and your state tax the beer you produce, and you will file excise returns on a schedule. Producing the numbers behind those returns is exactly what brewery ERP platforms like Ekos, Breww, Ollie, and Beer30 are built to do -- not something a taproom POS or an all-in-one business platform handles. Plan for that specialist from the start if you will distribute. For how the tools compare, see the best brewery software guide.

Step 3: Find the space and build it out

Breweries need more than square footage. You need floor drains, three-phase power, an adequate water supply and wastewater handling, ceiling height for tanks, and a loading situation for grain in and kegs out. If you are adding a taproom, you also need the front-of-house: a bar, restrooms sized for occupancy, and a layout that moves people. Buildout is where budgets blow up, so get contractor quotes against a real floor plan before you sign a lease, and confirm the space is zoned for both manufacturing and retail sales if you want a taproom.

Step 4: Buy the equipment

The brewhouse is the heart, but it is only the start of the list. You will spec a brewhouse sized to your volume, fermenters and brite tanks, a glycol cooling system, a cold room, kegs, and -- if you package -- a canning or bottling line or a mobile canner. Used equipment can cut the bill significantly, and many breweries start smaller than their ambition and grow tank by tank. Lead times on new tanks can be long, so order well ahead of your target open date.

Step 5: Develop and scale the recipe

Homebrew glory does not automatically survive the jump to a fifteen-barrel system. Scaling recipes changes hop utilization, fermentation behavior, and timing, so plan for test batches and adjustment before you commit a flagship. This is also where production tracking earns its keep: as soon as you are brewing for sale, you need batch records, ingredient tracking, and consistency -- the job of a brewery ERP, not a spreadsheet you will outgrow in a month.

Step 6: Choose your business model -- taproom, distribution, or both

Now commit to how the beer reaches drinkers, because it sets your tech stack. A taproom-led brewery lives and dies by on-premise sales, so the register, events, and a loyal regular crowd matter most. A distributing brewery lives on wholesale relationships and the invoices, POs, and delivery logistics behind them. Many do both, plus direct-to-consumer can releases and merch online. Whatever the mix, the money side needs a system before day one -- not after the first busy Saturday exposes the gap.

Step 7: Set up the taproom tech and POS

On opening day, the beer is the product but the point of sale is the business. This is where Deelo fits a new brewery: one login runs the taproom POS (free on every plan, standard Stripe processing around 2.9% plus 30 cents -- verify current pricing), the online store for can drops, gift cards, and merch, the events calendar and bookings for tours and private parties, the wholesale invoices to your accounts, and the customer list that turns first-timers into regulars.

What Deelo does not do -- and this matters when you are choosing tools -- is track batches or file your excise reports. So the clean setup for a distributing brewery is a production ERP for the brewhouse and compliance, and Deelo for everything a customer or an account ever touches. A taproom-only brewery can often lead with Deelo and keep production tracking lightweight until it grows.

Step 8: Market the launch

A brewery launch is a local event, so treat it like one. Build an email and SMS list from the first day you can collect one, and use it to fill your opening weekend and every can release after. Deelo's marketing and CRM tools handle the list, the campaigns, and the loyalty, while the events app runs launch parties, tap takeovers, and trivia nights that keep the room full on slow weeknights. The breweries that thrive are rarely the ones with the best beer alone -- they are the ones that turned a neighborhood into regulars, deliberately.

Run your new brewery's business side on Deelo

From opening day, Deelo gives a brewery one login for the taproom POS, online store, events, wholesale invoicing, and marketing -- so you can point a production specialist at the brewhouse and compliance, and let Deelo handle everything customer-facing. Explore the brewery page or start with the taproom POS. When you are ready to go deeper, see the brewery operations guide.

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Frequently Asked Questions

How much does it cost to start a brewery?
It varies widely, but most brewery startups land somewhere in the hundreds of thousands to low millions of dollars once you account for equipment, buildout, licensing, and working capital. A small taproom-focused nanobrewery sits at the lower end; a production brewery with a packaging line and distribution ambitions runs far higher. Build a detailed model for your specific volume and market rather than trusting a general figure, and confirm local costs directly.
How long does it take to get a TTB Brewer's Notice?
Plan for months, not weeks. The federal TTB Brewer's Notice is typically the longest single item on a brewery timeline, and you generally cannot legally brew for sale until it is approved, on top of state and local licensing that runs in parallel. Apply as early as your entity and premises allow, and consider hiring an alcohol-licensing attorney or consultant -- this is specialist compliance work, and delays here push back your entire opening.
Do I need special software to start a brewery?
You need two kinds, and they do different jobs. Production and compliance -- batch tracking, cellar management, and the reporting behind TTB excise filings -- call for a brewery ERP like Ekos, Breww, Ollie, or Beer30. Running the business -- the taproom POS, online store, events, wholesale invoicing, and marketing -- is what an all-in-one platform like Deelo does in one login. Many breweries run one of each; Deelo does not track batches or file excise, so pair it with a specialist if you distribute.
Should I open a taproom, distribute, or both?
It depends on your margins and your market. Taproom sales carry the best margins because you sell directly to the drinker, so many new breweries lead with a taproom to fund growth. Distribution expands reach but thins margins and adds wholesale complexity. Plenty of breweries do both plus direct-to-consumer online sales. Choose a primary model in your business plan, because it drives your licensing, your buildout, and the tech you need on day one.
What is the first thing to set up for a new taproom?
The point of sale, because nothing else matters if you cannot take money cleanly on opening day. Beyond the till, you want an online store for can releases and gift cards, an events calendar for launch parties and tap takeovers, and a customer list you start building immediately. Deelo bundles all of that in one login, so a new taproom can stand up its entire customer-facing operation without stitching four tools together.

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