Becoming a winemaker (although a dream job) is not the only way of getting your foot into the wine business. If you are ambitious, confident, and passionate about wine, becoming a wine broker might be your next move. As a wine broker, you act as the middle man between buyers and sellers. If the buyer and seller end up in business together, you earn a commission. In this article, we provide you with four tips to consider when starting your own wine broking business.
1. Create A Business Plan
Before starting any business, it’s good to flesh out your goals and objectives in a business plan. The process of creating a business plan forces you to think about how are you going to get from A to B.
In regards to a wine broking business, think about the following:
- How extensive (or refined) will your inventory be?
- What area will you anchor yourself? Is it a hub for hotels and restaurants?
- Do you plan on being a sole trader or do you have a partner in mind?
- What will you set your commission at?
- Are you going all-in or is this a side project?
If these questions are overwhelming, start by conducting some market research. This will help you to get your bearings on the wine industry. Moreover, you’ll get valuable insight into what works and what doesn’t.
It’s important that after you’ve created your business plan that it is reviewed regularly. Aside from making sure you are on track, it may need to be amended to account for changes in the business.
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Get started2. Establish Your Business
In order to make your business official, there are a few hoops to jump through.
Business Structure
Firstly, you’ll need to decide on your business structure. As a fresh wine broker, you can go it alone (sole trader) or you can bring someone else on board (partnership). When the business expands, you can change your business structure to become a company.
Australian Business Number
Secondly, you’ll want to ensure that you have an Australian Business Number (ABN). An ABN is how your business is identified by the government and the public. You’ll need your ABN at the ready for invoicing and tax purposes.
Business Name
Thirdly, consider whether you want to register your business name. A good business name is one that reflects your brand and is easy to remember. Be sure to check that your business name is available before committing to any marketing plans.
Liquor licence
Lastly, you’ll need to have a wholesaler liquor licence. The requirements and application process will vary depending on what state you are operating in.
3. Build Your Network
Now that you’ve established the base of your business, it’s on to developing a strong network. You’ll want to vet your sellers and buyers to ensure that they are reputable and reliable. If a seller can’t meet the stock requirement, this will reflect poorly on your business. Same goes if a buyer is late on a payment.
Additionally, you’ll want a diverse network. As a wine broker, you are essentially a wine matchmaker. Thus, it’s important that you understand what each buyer is after. Not all buyers are after the same thing.
4. Prepare Your Pitch
Here comes the pitch to seal the deal. At the start, you’ll have to do a lot of cold calling to secure a meeting. Work on your elevator pitch and don’t get disheartened by the process.
When given the opportunity to host a wine tasting, show off your vast knowledge of wine. Educate yourself on the wines as much as you can – appearance, smell, taste, everything! It’s good to know the origin story of the wine-maker and their best sellers. Also, be ready to provide alternatives. A good wine broker has an option for all preferences.
Conclusion
Starting your own wine broking business is an exciting venture. As much as you are selling wine, you are also selling yourself. Remember to work your charm, be tenacious, and always an active listener.
By working through the tips above, we hope that we’ve made this a less stressful (and hopefully more enjoyable) process. If you are after more tailored advice, please reach out to one of our business lawyers.
