Though the wine industry took a hit during the COVID-19 pandemic, it has been on the rise again since bars, restaurants, tasting rooms, and other businesses reopened. Today, vineyards and wineries face a world of opportunity.
Like craft breweries and local distilleries, local or family-owned vineyards are becoming more popular as more and more consumers gravitate toward small, local brands. At the same time, wine businesses in more unique locations are gaining online popularity and making a name for themselves among giants from more iconic winemaking regions.
With all of this in mind, it’s easy to see why purchasing a vineyard is an exciting prospect. But is vineyard ownership on the rise? Should you buy in? Read on to learn how to make the most of this opportunity and set yourself up for success as you enter the wine industry.
Is a Vineyard the Right Decision?
Every potential business owner faces crucial questions: Is this the right decision? Is now the right time to make this investment? The honest answer is that only you can decide.
However, if you put the time and money into it, owning your own vineyard is an extremely lucrative and personally rewarding endeavor. Plus, with small, local, and unique wineries gaining popularity across the nation, now is a great time to establish a clear brand and make your presence known among the crowd.
Choosing the Right Business Model
When considering whether it’s the right time to buy into vineyard ownership, you need to figure out what kind of business model you want.
If winemaking is your passion and you want to own your own business, running your own vineyard and winery could be the perfect choice. However, that also requires you to research the market, master winemaking and grape growing, and market yourself right to stand out among existing competitors.
Alternatively, you might want to run your own vineyard but work with an existing winery to sell your grapes. This will require you to create business deals and draw up contracts with an existing winery or wineries.
Consider Your Financing Requirements
Once you know what kind of business you want to run, you need to make a financial plan. Think about the cost of buying the vineyard, as well as expenses for equipment, materials, construction, and employees. Don’t forget to factor in maintenance and upkeep. Lay out your projected costs and revenue so you can compare relevant financing options and find a vineyard financing solution that works for you.
Vineyard ownership is on the rise; if you think you should buy in, Farm Plus Financial can help. We specialize in loans for winery and vineyard owners throughout the country. Find versatile options, competitive rates, and support from a friendly team of experts when you work with Farm Plus Financial today.