The idea of purchasing a winery in California is a dream many entrepreneurs and wine connoisseurs share throughout their lives. If you’re fortunate enough to make that dream come true, there are some things you need to know beforehand and prepare yourself for before you purchase a winery in California.
Know Your Soil
The soil in these vineyards is some of the best soil found around the world, rich in minerals, and growing thick vines of grapes throughout the Napa Valley. The soil in this area is primarily sedimentary soil, which is full of chalk, alluvial soil, limestone, and slate, among other blended types of soil. Some vineyards will have soil brought in from other places in the state when the nutrients start to dry up in the ground. According to Geotechnicalinfo.com, soil will weigh between 70 and 150 pounds per square foot, and that means that lots of large trucks will have to bring it in if you need fresh soil.
Know Your Stone Minerals
Not only does the soil impact the wine, but so do the stone minerals found in this soil and the ground nearby. The minerals in these stones are carried through the soil to the plants and help grow healthy vines. According to Allied Market Research, the worldwide natural stone market was valued at $33.8 billion in 2020 and is expected to reach $57.6 billion by 2032. If there aren’t natural stones at the winery you want to purchase, you will want to bring some in for aesthetic and natural purposes.
Understand Your Liability
You will need to budget for liability costs, especially on a property with lots of guests and serving alcohol. The rules in California are a bit different from those other states, and you need to be prepared before you have your first incident. California is currently an at-fault state, which means that the party responsible for causing an injury or accident will be held civilly and financially responsible for any medical costs, property damages, and other accident-related expenses. As the winery owner, you could be held responsible if you are found to be that negligent party. This should also be posted so that when your guests visit, they see this and avoid causing injury to someone else while they’re at your winery.
Establish a Budget
As the owner of a winery in California, you will need to have a budget prepared and outlined for operating costs and getting your winery up and going. Your budget should include any initial upgrades and changes you need to make after you purchase and before you open for guests. The next step is to calculate your monthly costs, including inventory, labor and salaries, utility costs, and insurance premiums that you should have as a business owner.
To protect this budget and the expenses you have taken on as the winery owner, you should have an insurance agent build your commercial insurance policy with the required coverage and then add in liability expenses and property protection. The risk for damage is much higher in this business, so you should have funds available so you don’t have to pay out of pocket.
Create a Reservation System
If the previous owner didn’t already have a reservation system, now is the time to offer these digital reservations and manage them with follow-up calls to confirm the reservations before the guests come. With reservations, you can manage how many people are on the property and manage your liability risk during this time.
Take On The Winery Business
Review these different areas of the winery business and make sure you’re prepared to make the purchase. You need to know the risks but also the rewards of having one of the most lucrative properties in the United States. Once you have these systems in order and looked at the property, you’re ready to purchase and move forward with owning a winery in California.