How To Start A Barrel Making Company

A cooperage, or barrel manufacturing business, is a company that specialises in the creation and building of wooden barrels and casks.

Follow these ten steps to start a barrel manufacturing business:

Plan your Barrel Manufacturing Company

Create a legal entity for your barrel making business.

Register your Barrel Making Company with the IRS.

Create a Business Bank Account and a Credit Card

Create an accounting system for your barrel-making business.

Get the Permits and Licenses You Need for Your Barrel Making Business

Purchase Barrel Making Business Insurance.

Define your Barrel Making Company Brand.

Create a website for your barrel making business.

Configure your Business Phone System

Starting a company entails more than just registering it with the state. We’ve put up this straightforward guide to getting started in the barrel manufacturing industry. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.

STEP 1: Make a business plan.

A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:

What are the initial and continuing expenses?

Who is your intended audience?

How much money may you charge your customers?

Fortunately, we have done a lot of the legwork for you.

What are the expenses of starting a barrel-making business?

The initial expenditures of starting a barrel building company will mostly include equipment, supplies, and maybe a rented space for a workshop and storage facility. Wood and metal banding may be reasonably priced, depending on the quality of wood used and availability in your area. The tools required will be a combination of hand and power tools, with circular and mitre saws, jigsaws, planers, and sanders accounting for many of the power tools and hammers, chisels, and other woodworking and finishing hand tools accounting for many of the hand tools. A fire source, like as a propane stove or tiny flamethrower, will also be required for the “toasting” process of the barrels, in which the interior is torched to help seal and flavour the barrels. You will also need insurance for the company and yourself or your employees, a business licence, rent and utilities for your workshop, and a few delivery and work vehicles to transport raw materials and completed goods.

What are the recurring costs of a barrel manufacturing business?

The bulk of your overhead will be made up of material and shipping charges, as well as rent and utilities if required.

Who is the intended audience?

Your primary market will be brewers, wineries, and distilleries. By designing items that these firms need, you will most likely occupy a niche with limited competition.

How does a barrel manufacturing company earn money?

The wholesale and retail sales of barrels and casks produce money for a barrel manufacturing company.

How much money may you charge your customers?

Individual barrels typically cost $350-450, with more specialty wood, such as French oak, commanding upwards of $1500 per barrel.

How much profit can a barrel manufacturing company make?

With the rising demand for high-quality wood barrels, the earning potential is fairly considerable. If a barrel firm sells 400 barrels per year and averages $400 per barrel, its gross returns will be $160,000.

How can you increase the profitability of your company?

Although the bulk of your barrels will be sold to booze producers, barrels may also be used as furniture and themed installations in homes and businesses, such as table bases, chairs, and coffee tables. Some older or broken barrels may be marketed as flower and garden planters. Finally, there is a business that refurbishes or resells old barrels. If a barrel is made of a particular wood, repairing or refurbishing it for resale may be more lucrative or cost-effective. Many craft beer businesses flavour and infuse their beers using bourbon, scotch, and cognac barrels. This practise is beginning to spread to many sorts of spirits.

STEP 2: Establish a legal entity

Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.

Creating a legitimate business organisation, such as an LLC or corporation, safeguards you from being held personally accountable if your barrel manufacturing company is sued.

STEP 3: File your taxes

Before you can begin for business, you must register for a number of state and federal taxes.

To register for taxes, you will need to get an EIN. It’s really simple and completely free!

Taxes on Small Businesses

Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).

These guides will teach you more about small company taxes:

Taxes on LLCs

LLC vs. sole proprietorship

Corporation vs. LLC

S Corp vs. LLC

How to Form a S Corporation

S Corporation vs. C Corporation

There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.

STEP 4: Establish a company bank account and credit card

Personal asset protection requires the use of distinct business banking and credit accounts.

When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.

Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.

Establish a business bank account.

Opening a business bank account is not only required when asking for business financing, but it also:

Separates your personal assets from the assets of your firm, which is required for personal asset protection.

It simplifies bookkeeping and tax reporting.

Create a net 30 account.

Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.

Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.

Apply for a business credit card.

Obtaining a business credit card benefits you in the following ways:

Put all of your company’s costs in one location to separate personal and business spending.

Build your company’s credit history, which will be important for raising funds in the future.

STEP 5: Establish business accounting

Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.

STEP 6: Obtain all required permissions and licences

Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.

Requirements for State and Local Business Licensing

Certain state licences and licences may be required to run a barrel manufacturing firm. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.

For information on local licences and permissions, visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

Occupancy Certificate

A barrel manufacturing company is usually conducted out of a workshop or factory. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.

If you intend to rent a space:

In most cases, it is the landlord’s obligation to get a CO.

Before leasing, ensure that your landlord has or can get a valid CO for a barrel manufacturing company.

A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.

If you intend to buy or create a location:

It is your responsibility to secure a valid CO from a local government entity.

Examine all building rules and zoning standards for your business’s location to verify compliance and the ability to acquire a CO.

Workplace Safety Requirements

Because barrel production necessitates the use of potentially hazardous instruments, it is essential that you and your company adhere to all labour safety regulations, which may be found here.

STEP 7: Obtain commercial insurance.

Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.

There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.

Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.

STEP 8: Establish your brand

Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.

How to Promote and Market a Barrell Manufacturing Company

Online blogs, a website, and social media sites are all excellent places to start. Then, hit the street and establish personal relationships with the booze firms. Consider local billboards or a sign outside your warehouse after you’ve established yourself. Your items will attract clients as you become more well-known, but keep in mind that your company will always be dependent on the reputation you develop, which is why every customer, whether long-term or prospective, deserves your finest, most professional attitude and outward look.

How to Keep Customers Returning

Professionalism, pleasant interactions, and quality items supplied on time and as asked will typically keep the majority of your consumers loyal to your company. Given that demand often surpasses supply alternatives, you just need to maintain a respectable output level and never over-promise what you cannot provide.

STEP 9: Create your company’s website.

After you’ve defined your brand and designed your logo, the next step is to build a website for your company.

While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.

The following are the primary reasons why you should not put off developing your website:

Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.

Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.

STEP 10: Install your company phone system.

Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.