Small craft beer distributor

Bars, restaurants, breweries' taprooms with off-site accounts, liquor and grocery stores, and event venues in your area.

You buy beer at a wholesale price and sell at a markup to retailers. Revenue grows with the number of brands carried and accounts served, and with how often each account reorders.

• Sales and relationship building
• Inventory and route planning
• Comfortable lifting kegs and cases
• Knowledge of craft beer

• Alcohol is heavily regulated: check your state wholesaler license, local permits and federal TTB requirements before buying any stock
• Many states have a three-tier system and franchise laws that limit who can sell to whom and make it hard to end a brand contract, so check them and get a lawyer to review agreements
• Startup cash is tied up in stock and delivery vehicles, and retailers may pay on credit terms, so plan for cash flow
• Beer is perishable and temperature-sensitive, so check cold storage and keg handling needs
• Check general liability, commercial auto, product liability and workers' compensation insurance once you hire drivers

Startup costs are typically around $40,000 to $200,000, depending on stock, delivery vehicles and cold storage. Cash is tied up in stock and vehicles, and retailers may pay on credit terms, so plan for cash flow.

Monthly revenue is typically around $15,000 to $75,000, depending on the brands you carry, your territory and how many accounts you serve. The estimate assumes at least about 35 hours a week.

Check your state wholesaler license, local permits and federal TTB requirements before buying any stock. Also check your state's three-tier system and franchise laws, and have a lawyer review brand agreements, since contracts can be hard to end.