The actual facility where apples are crushed into cider is referred to as a cider mill. It might be on the same property as the apple orchard, but it doesn’t have to be. Cider mills may produce hard ciders and even apple wines from apples, in addition to non-alcoholic cider.
Table of Contents
Follow these ten steps to start a cider mill business:
Plan your Cider Mill Business
Create a legal entity for your cider mill business.
Register your Cider Mill Business for Taxes
Create a Business Bank Account and a Credit Card
Create an accounting system for your cider mill business.
Get the Permits and Licenses You Need for Your Cider Mill Business
Purchase Cider Mill Business Insurance
Define your Cider Mill Company Brand
Make a website for your cider mill business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide on creating your own cider mill. 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 cider mill business?
The expenditures of starting a cider mill company might be pretty inexpensive, particularly if you do it as a hobby initially. A secondhand five-gallon press costs less than $100, and you may not need much more than that to create cider! However, individuals wishing to accomplish things on a bigger scale would most certainly need to invest several thousand dollars on equipment, as well as the expenditures of land and space, advertising efforts, employee pay, and company insurance.
What are the continuing costs of running a cider mill?
Ongoing costs include equipment upkeep, employee salary, business insurance, and the real cost of the ingredients.
Who is the intended audience?
Because most people consume cider in some form or another, the market is very open. Cider mixes well with a variety of cuisines or on its alone, making it one of the simpler goods to sell.
How can a cider mill generate revenue?
Cider mills normally sell their cider to supermarkets, grocery shops, restaurants, and pubs, but they may also sell to people directly via their website or a tiny booth at a farmers market. They may also provide paid tours of the mill and sell extra cider to visitors.
How much money may you charge your customers?
Hard apple ciders may cost $10 or more at a restaurant or bar, but regular apple cider costs roughly $1 for eight ounces. Sparkling cider costs roughly $3 for 25 ounces.
How much money can a cider mill company make?
Given that apples can be acquired or produced for pennies, selling a single bottle for $3 may be a lucrative enterprise. With a 40% profit margin, you’d need to sell 1,000 bottles every week to earn $1,200 at that pricing.
How can you increase the profitability of your company?
Having your own orchard on-site might be a terrific way to boost your income. You may organise family-friendly activities like apple picking or bobbing. If you offer hard liquor, consider creating a small bar in your cider mill. Depending on where you live, you may be able to hire out the area for special events like weddings or retirement celebrations. There are several communities in which a full-service cider mill may flourish.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your cider mill company is sued, forming a formal business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
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
To run a Cider Mill, certain state permissions and licences may be required. 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 Cider Mill is often operated from a storefront or at the mill. 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 Cider Mill 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 regulations and zoning restrictions for your business’s location to guarantee that your Cider Mill is in compliance and may receive a CO.
Regulations Concerning Food
When selling food, you must get a licence from your local health authority; all enterprises serving food must pass a health inspection. Tips for Passing a Health Inspection
Federal laws govern what may and cannot be added to, marketed as, or processed with food. A Food and Drug Administration resource on the procedure of opening a food company is attached: How to Launch a Food Business
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.
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 advertise & market a cider mill company
You might begin by selling to friends or family members, or you can make contacts with distributors straight immediately. Those planning to establish large-scale cider mills could consider hosting a free celebration where they distribute samples or allow people to participate in the pressing process. You may also utilise internet advertisements to attract folks to test your goods. Paid advertisements are often the most effective strategy to generate new business rapidly.
How to Keep Customers Returning
Customers desire a high-quality product that they can brag about to their friends. Ciders must be consistent in flavour and be reasonably simple to discover and purchase. Consider providing branded coasters to bars to get customers to learn more about your cider. This is an additional cost, but it might be precisely what you need to generate true attention.
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.