How to Start a Kombucha Business

How to Start a Kombucha Business

A lot of people wonder how to start a Kombucha business because, well, it is one of the fastest-growing sub-segments of beverage production in recent times. And what’s more, it is still growing with unbelievable scale and profit potential.

But how exactly do you start a Kombucha business? 

You start a kombucha business by charting out an extensive business plan, obtaining all necessary equipment, going through with the actual brewing, and of course marketing your final beverage in the most effective way possible.

Quick tip: An LLC is the best company structure for MOST Kombucha businesses. If you are ready to start your new company, we recommend you go with either ZenBusiness ($49) or IncFile ($0) to get your business structure set up correctly.

We also have a complete breakdown of the 7 best LLC services available in case you wanted to review your options.

In case all of these seem vague, don’t worry, below is a more detailed, step-by-step guide on starting your kombucha business. We go over the legal areas of establishing your business, the necessary equipment needed for a smooth operation, and the profit potential and costs of scaling your business.

Why You Should Start a Kombucha Business

As mentioned above, kombucha is one of the fastest-growing groups of beverage production in recent times. Not only has it greatly picked up in terms of market share over the years, it also has great potential regarding what’s to come.

For instance, it is estimated that by 2026, the market size of kombucha business will hit $6.2 billion dollars.

Add these with the fact that it really doesn’t take too much to begin the business, you start to get a clearer picture as to why it would be almost criminal to not start a Kombucha business if you can.

Step 1: Planning Your Business

The fact that you’re going to be running a Kombucha business, no matter the size and scale, does not indicate that you would not have to chart a business course. You chart a business plan for your kombucha business just as you would for an Etsy business, or a used-car business.

In short, regardless of whichever industry you choose to enter, and which avenue and marketing strategy you choose to employ, planning is the key to success.

And what’s more? It is also your means of defense against failure. There is nothing that spells doom more than entering into an investment journey without carrying out through research and planning beforehand.

It is also worth mentioning that your business plan in this case has to include delivery strategy, and, most importantly, cost planning.

Cost Planning  

Cost planning a business involves identifying beforehand the monetary expenses and resources needed to get the business off the ground, and moving seamlessly.

It is highly important to spend as much time on cost planning mainly because one of the biggest challenges you can face in a business is to get a satisfactory point where everything is starting to look rosy, and then hit a painful snag thanks to lack of sufficient funds.

And when it comes to a Kombucha business, regardless of the nuances involved, cost planning is just as important as in any other business.

What are the Costs of Getting the Business Going?

The costs of getting a Kombucha business started include the cost of acquiring necessary equipment, the cost of bottling and packaging your finished product, and the cost of marketing and promotion.

Of course, this all depends on scale. For instance the sophistication of your brewing equipment is all dependent on how big or small you’re starting out.

Starting out on a small scale in your home will not require as much sophisticated equipment as it would if you were to start on a larger scale. Same goes for the cost of packaging, and promotion.

There is also the cost of a proper legal setup, licensing, certifications, and nutritional analysis.

All in all, we estimate that if you’re going to set up a kombucha brewery at home on a small scale to start with, you can come up with a perfect system for about $1000.

What are the Recurring Costs?

The recurring costs involved in running a Kombucha business are down to the costs of maintaining equipment, keeping promotion campaigns going, and acquiring needed supplies for bottling and labelling.

And then there are the costs incurred when you start to scale your business as you go, which we will discuss further in the coming sections. 

Step 2 – Target Market

Analyzing a target market ensures that you’re not just shooting a wild hail-mary shot in the wind. Instead, you have a targeted niche audience with a higher chance of a conversion.

So who is your target market as a Kombucha brewery runner? First of all, you can choose to appeal to folks who already have an affinity for Kombucha, or even go further and reach out to newer beverage lovers who are looking for something healthier and more satisfying.

The best part of Kombucha is that when people try it out, and learn of its health benefits, it’s hard to go back to drinking beers or other unhealthy beverages. And that’s one of your leverages.

How Exactly Does a Kombucha Business Make Money?

At the risk of sounding redundant, a computer business makes money by brewing Kombucha and selling to interested consumers. Depending on the scale, you may choose to sell directly to final consumers at a local farmer’s market, or in bulk to retailers and restaurants to sell on your behalf.

How Much Do You Charge Customers?

Depending on how established the brand is, a store-bought 16 pound bottle of kombucha may be sold at anything from $3 to $5.

How Much Profit Can a Kombucha Business Make

The size of your business determines how much you’re going to make, obviously, but another thing almost as important is your distribution strategy. Distribution is key when it comes to estimating the profit potential of your business.

Most states allow self-distribution and this can increase your earnings by about 50%. Choosing to go through a distributor, though, is a less stressful and more assured process as they (distributors) would already have the connection to gain access to shelves and placements that you may not.

Having a distributor also guarantees that pickup and delivery tasks are off your hands.

What are the Costs of Scaling?

The cost of scaling your Kombucha business involves getting bigger and better equipment, so that you increase your output by a significant margin. You will also have to profoundly increase your marketing expenditure, labor costs, and of course the legal costs of expanding to more states and territories.

What Types of Equipment Do I Need For a Kombucha Business?

Producing Kombucha on a small scale does not require such a high level of sophisticated equipment. Some of the most important things you’d need include a fermentation vessel, and you can easily make use of a large glass carboy for this purpose, for a small-scale operation from your home.

You also need some sort of racking cane system to move your Kombucha from the first vessel to another larger fermentation vessel, and of course, you need a filter and bottling equipment if you’re going to be bottling your Kombucha on your own.

For more information, you can consult any brewery or winery equipment supplier.

Looking to set up the perfect legal entity for your Kombucha business? For most people an LLC is the best way to protect your personal assets in your new business.

We recommend you go with either ZenBusiness ($49) or IncFile ($0) to set up your Kombucha business for success!

Naming Your Business

Ideally, for your Kombucha business, as well as any other business really, you should choose a name that stands out, and is easy to remember, and at the same time, is available for registration with the appropriate state body.

You should go through this step before filing your articles of organization – which will signify the official establishment of your LLC, or whichever company structure you choose to go with.

Register For Taxes

You register your business for taxes by obtaining an official Employer Identification Number from the IRS, as well as other appropriate state organizations, depending on which particular state you choose to establish your company in.

Obtaining an EIN is a relatively simple affair and should not take up too much of your time.

Business Bank Account

No matter the business you choose to go into, your personal finances must always be separated from your business. This ensures that you’re safe from liability and are able to keep track of business growth better.

You can also use your business account to build a solid business credit that makes you eligible for an even greater range of financial benefits including business credit cards, better interest rates, and so on.

Step 4: Business Accounting

Business accounting is what comes next after opening a business bank account. Opening a business account, you see, is one thing, keeping proper track of your income and expenditure flow, is another.

Of course it doesn’t hurt to hire a proper accountant for this purpose if you can afford it. Professional accounting tasks are quite demanding, and time consuming. Having someone to take the chores off your hands is usually a luxury, especially when you’d rather have all your attention focused on other important aspects of running your Kombucha business.

Regardless of which way you choose to go, though, once your business really starts to grow, hiring an accountant may become more and more imperative.

Step 5: Permits and Licenses

Assuming that you would have done your research in the planning section regarding governmental laws and licensing, this is the point where you actually comply by acquiring all necessary licenses and permits.

Step 6: Business Insurance

Getting business insurance is not only great for keeping your business safe from unforeseen liabilities, it is also legally mandated and a no-brainer for any business owner.

The policy you choose to go for is up to you, as there are a lot of options in this regard for business owners.

Step 7: Defining Your Brand

Branding your business is as important for a kombucha business as it is for a national fast-food outlet – the reason for this is quite simple: it helps get your name out there in a way that ensures it sticks to the mind of customers and potential customers.

Having a recognizable brand also breeds trust and can bring in more customers than the most vigorous of advertisements. 

Promotion and Marketing 

Having a great brand, as mentioned above, is great for marketing, for a kombucha business as well as any other. And then there’s the peculiar fact that Kombucha Itself isn’t as popular as some other beverages. Now while some can choose to see it as a deterring factor, you should instead choose to see if as a propelling one.

It means that this great business is just waiting for people to come over and carve out their brands, and a share of the market.

So how do you promote your Kombucha product? You can choose to do this by striking a partnership with local beverage dealers, restaurants, running a discount sale on bulk purchases.

And of course you should always leverage the power of the internet by establishing a strong online presence. We discuss more on this below, but first, a few words about customer retention.

Customer Retention

Why is customer retention so important in a business? It’s simple, customer retention is one of the greatest forms of marketing. It is ultra-targeted marketing, without having to do any of the heavy lifting that comes with marketing to new customers.

With customer retention, you already have your set of customers, who have proven to be willing and capable of purchasing your product. The next thing to do then, on your part, is to ensure that they keep coming back, and even refer more people to your business.

So how do you ensure customer retention in your Kombucha business? By serving out high-quality products, of course. Add this with a dose of professionalism, customer service, and solid follow-up, and you will have yourself a self-sustaining business in little to no time.

Online Presence

Building an online presence is like having a fresh new supply of oxygen for your business. It is practically providing your business with a fresh, new source of revenue. And what’s more, there is no limitation to how far you can go.

Traditional marketing and local outreach are great. But in the 21st century, businesses that don’t expand their reach to the internet space have a lesser chance of survival that do.

By building an online presence, either through your search engine optimized website or social media pages, you are effectively helping new customers find you as easily and seamlessly as possible.

Step 8: What You Need To Enter into a Kombucha Business 

Who is a Kombucha Business Suitable For?

A Kombucha business is suitable for anybody who has a love for beverages and has the general idea of how to brew this particular health-friendly beverage.

Now you don’t have to have a big restaurant or work at a brewery to get your home-based Kombucha going, but sometimes it does provide something of an edge, seeing as you would already have a few technical know-how in that line of business.

Skills and Experiences

The skills needed to start a kombucha business is the knowledge of how to brew the beverage in the first place. Having a prior experience working at a brewery, or running a brewery, or working at a restaurant with a brewery, can all come in really handy for those wanting to start a kombucha business.

What is the Growth Potential of a Kombucha Business?

The growth potential of brewing Kombucha is immense. It all comes from not just being able to produce more units, but also being able to enjoy the economies of scale that come with having enough experience and a solid setup upfront.

For instance, once you get the initial equipment costs out of the way, you will never have to pay for those things again, which means that as you brew more bottles of kombucha, your cost per unit becomes greatly reduced, and subsequently your net profit increases.

And the more you scale and get the initial costs out of the way, the higher the profit potential becomes. In no time your Kombucha business may be raking in higher six figures every year.

Find a Business Mentor

Finding a business mentor, no matter what niche or industry you choose to get into, can never hurt you. At worst you gain some knowledge you’ll hold on to forever, and at best you get people willing to work you through challenges and ensure that you do not make the same mistakes you did.

All in all, you end up with an easier path to success than you would have had without a mentor. So find someone you trust and respect who’s been through what you’re about to go through, and you’ll have a bigger chance of success.

Build a Team

Building a team ensures that you enjoy all the benefits that come with division of labor and economies of scale. Of course it goes without saying that once you get big enough, building a team becomes a priority. Every business has its moving parts, and no matter how savvy you are, as your business becomes bigger, it gets a lot harder to keep track of all of these moving parts on your own.

And this is where you start to build a team, to facilitate even more growth.

About the Author Nell

Leave a Comment:

56 comments
Davidhub says July 7, 2021

ivermectin coronavirus stromectol tablets – ivermectin tablets uk

Reply
Davidhub says July 8, 2021

http://ivermectinstr.com/# ivermectin oral

Reply
Brendangak says July 12, 2021

erectile dysfunction natural remedies: buy prescription drugs online legally – herbal ed

Reply
Brendangak says July 13, 2021

ed treatment natural: best non prescription ed pills – ambien without a doctor’s prescription

Reply
Peterrer says July 17, 2021

buying viagra online viagra pills – where can i buy viagra over the counter

Reply
Wayneelego says July 21, 2021

buy cheap cialis uk cialis online daily – monthly cost of cialis without insurance

Reply
MarioPhing says July 25, 2021

п»їcipro generic buy cipro online canada – buy cipro

Reply
MarioPhing says July 26, 2021

where can i buy cipro online buy cipro online – ciprofloxacin 500mg buy online

Reply
Williamdom says July 29, 2021

cialis soft generic cialis online purchase – top sale viagracialis

Reply
Williamdom says July 31, 2021

cialis brand name without prescription where to buy cialis in usa – cialis black box warning

Reply
RonaldScori says August 2, 2021

viagra pills original teva generic viagra cost – lowest price viagra no prescription

Reply
RonaldScori says August 3, 2021

order viagra without prescription buy viagra in melbourne – on line viagra cheap mastercard

Reply
Floydcrula says August 12, 2021

amoxicillin 500mg capsule cost amoxil for sale – amoxicillin 775 mg

Reply
RonaldHaw says August 14, 2021

ivermectin 12 stromectol tablets – ivermectin price

Reply
Earn Online says August 15, 2021

I simply could not go away your site prior to suggesting that I really loved the usual information a person supply in your visitors? Is going to be back incessantly to check up on new posts.

Reply
RonaldHaw says August 16, 2021

stromectol oral stromectol 3 mg tablets price – ivermectin 2%

Reply
Williamtox says August 18, 2021

ed medications over the counter buy prescription drugs without doctor – canadian drug pharmacy

Reply
Williamtox says August 19, 2021

herbal ed prescription drugs without doctor approval – canadian drugstore online

Reply
ThomasKep says August 20, 2021

stromectol buy uk ivermectin – ivermectin cream

Reply
ThomasKep says August 22, 2021

plaquenil south africa plaquenil – plaquenil price in india

Reply
Gerardomuddy says August 24, 2021

how long does cialis keep you hard original cialis uk – how much is cialis without insurance?

Reply
How to earn online says August 24, 2021

I simply could not leave your site before suggesting that I actually enjoyed the standard info an individual provide for your visitors? Is going to be again ceaselessly in order to check up on new posts.

Reply
Gerardomuddy says August 26, 2021

cialis black uk cialis no prescription canada – real cialis

Reply
chó toy poodle mini đẹp says August 27, 2021

Wonderful blog! I found it while searching on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you

Reply
manhwaland says September 1, 2021

Im obliged for the article post.

Reply
furosemide cost says September 8, 2021

lasix 10 mg furosemide is prescribed for enura vot

Reply
ephelay says September 8, 2021

buy cialis 5mg

Reply
best blog says September 8, 2021

It’s really a cool and helpful piece of info. I’m happy that you simply shared this useful information with us. Please keep us informed like this. Thanks for sharing.

Reply
goodrx furosemide says September 8, 2021

furosemide price walgreens furosemide 20 mg cost enura vot

Reply
aplikacje mobilne says September 9, 2021

Wow, superb weblog structure! How long have you ever been running a blog for? you make blogging look easy. The entire glance of your web site is fantastic, let alone the content! firmonet

Reply
furosemide without prescription says September 9, 2021

cheap lasix lasix tablet price enura vot

Reply
Presiut says September 9, 2021

http://buytadalafshop.com/ – Cialis

Reply
Thotbam says September 9, 2021

Stromectol

Reply
aplikacje android says September 9, 2021

I was reading some of your posts on this website and I conceive this site is very instructive! Continue putting up. firmonet

Reply
furosemide cost says September 11, 2021

furosemide 20 mg tablet buy furosemide online enura vot

Reply
Web chăm sóc thú cưng says September 12, 2021

I simply wanted to appreciate you yet again. I’m not certain the things that I would have made to happen without those opinions discussed by you on such a area. It had been the frustrating setting for me, nevertheless being able to see the very expert approach you managed the issue took me to cry over joy. Now i’m grateful for your help and then pray you really know what an amazing job your are undertaking teaching some other people all through your website. Most likely you’ve never got to know any of us.

Reply
invisalign cost says September 13, 2021

Nice read, I just passed this onto a friend who was doing a little research on that. And he just bought me lunch since I found it for him smile Therefore let me rephrase that: Thank you for lunch!

Reply
ivermectin 9 mg says September 14, 2021

ivermectin gel ivermectin 8000

Reply
Viobbyilt says September 16, 2021

zithromax coupon

Reply
z pack medication says September 16, 2021

isotretinoin worldwide no rx by money order

Reply
hibouct says September 16, 2021

https://buypriligyhop.com/ – buy priligy pills

Reply
furosemide wiki says September 16, 2021

Does Cephalexin Work On Nail Infections

Reply
ivermectin pill cost says September 17, 2021

ivermectin 90 mg buy ivermectin cream

Reply
jeardon says September 17, 2021

https://buylasixshop.com/ – Lasix

Reply
Skibfliek says September 18, 2021

furosemide lasix

Reply
ivermectin 2mg says September 18, 2021

stromectol tablets for humans stromectol usa

Reply
dreguch says September 19, 2021

http://buyzithromaxinf.com/ – zithromax 250 price

Reply
can you buy plaquenil over the counter says September 21, 2021

cialis performance enhancer

Reply
Priligy says September 21, 2021

Can Amoxicillin Kill Yeast

Reply
Playede says September 22, 2021

Plaquenil

Reply
oppopscop says September 22, 2021

Priligy

Reply
Pemoemisa says September 23, 2021

https://buyplaquenilcv.com/ – hydroxychloroquine for sale over the counter

Reply
Google says September 23, 2021

Here are a number of the internet sites we recommend for our visitors.

Reply
buy clomid 50 says September 23, 2021

generic clomid otc enura vot

Reply
Add Your Reply