We’re Establishing Vineyards #5: Business Plan
As I’ve already quoted, “to make a small fortune in wine, you first have to spend a large fortune.” There’s a lot of truth in this saying, because establishing a vineyard is one of those ventures classified as capital intensive, meaning it requires significant financial resources at the very beginning of the investment.
To help us understand how much of a fortune we need to invest, wise people invented what we commonly call a business plan. Personally, I believe such a plan is also important for another reason: it’s a chronological plan of action—by reading it, I know what to do and when.
Okay, but where and how do I begin? I started online. Although the amount of information available in Polish is rather limited, I found some gems. One of them is a study written a year ago (and therefore still relevant) by Wojciech Bosak, a renowned journalist and promoter of Polish winemaking. “Profitability#atfp_close_translate_span# of Wine Production and Opportunities for the Development of Commercial Winemaking in Poland”. The author clearly breaks down the individual investment, production, and maintenance costs of a sample 2.5-hectare vineyard. My own calculations confirm this. Not including the cost of purchasing the plot, establishing a single hectare of vineyard requires approximately one hundred thousand zlotys, regardless of whether I’m planting one or ten hectares. Of that one hundred thousand, 30% is for seedlings, 40% for scaffolding (material and assembly), and finally, 30% for soil preparation, mechanical planting, and fencing. It’s certainly possible to do it cheaper. For example, hand-dig 5,000 holes per hectare or buy cheaper seedlings from less reputable producers. But, as wise winemakers always tell me, remember that this is an investment for forty years or more, and if something doesn’t work out right from the start, it’s not easy to correct it later.
Since I lived in the States and speak English fluently, it was natural for me to reach for American materials. I read dozens of articles and essays, but what helped me the most “Writing#atfp_close_translate_span# a Business Plan: An Example for a Small Premium Winery” and “Starting#atfp_close_translate_span# a Winery in Illinois: Profile and Business Plan Workbook”. Both publications are essentially examples of written business plans that can be modified to suit your needs. Of course, you should take into account the differences (for example, irrigation systems, so important on the West Coast of the United States, are practically nonexistent here). Despite the differences, 90% of the activities are identical. However, prices in dollars or euros can be verified on Polish websites (e.g.: winiarz.pl)#atfp_close_translate_span# while simultaneously wondering why it’s so expensive here! I suppose similar business plan sources exist in other “guilty” countries, but of course you have to speak the language.
My final piece of advice is to ask people in the industry. I did just that, and I have to say I gained a lot of valuable insights from those interactions. Generally, people in this world are friendly, and when they see that you’re genuinely interested in a topic, they’re happy to help.