How to Start a Wine Tour Business

Start a wine tour business by following these 10 steps:

1. Plan your Wine Tour Business
2. Form your Wine Tour Business into a Legal Entity
3. Register your Wine Tour Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Wine Tour Business
6. Get the Necessary Permits & Licenses for your Wine Tour Business
7. Get Wine Tour Business Insurance
8. Define your Wine Tour Business Brand
9. Create your Wine Tour Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your wine tour business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Wine Tour Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a wine tour business?

Presuming you’re not going to plant your own vineyard, the costs to open a wine tour business are highly dependent on how you plan to conduct your tours. It may cost next to nothing to partner with a winery in your area if you plan to do the tours yourself. You can give the winery a cut of the tour profits as opposed to a cash offer to partner, which will save you on many of the upfront costs. Your expenses will rise quickly if you need to buy your own wine, provide food, or rent a space to conduct classes or tours. Some states or cities may need you to buy a Special Occasion License or special permit to run tours, so check your area's local regulations and fees.

What are the ongoing expenses for a wine tour business?

Wine tour operators should prepare their budgets for the following costs:

• Cost of wine/food
• Online advertising costs
• Guide salaries
• Special permits
• Tour-specific supplies (e.g., custom wine glasses, nametags etc.)

Who is the target market?

The target market for wine tours can be large. Most people are accustomed to social drinking, and even those who prefer beer or cocktails can normally be persuaded to go on a tour if it’s presented to them in the right way. You can also section your wine tours into beginner, intermediate, and advanced, so the material can be tailored based on how much experience and expertise your clientele already has with the beverage.

Or you can go after one specific segment if you prefer. For example, say you want to cater to a wine-centric upper-class. Your target market will narrow somewhat, but if you open in the right neighborhood, you could potentially attract the vast majority of people.

How does a wine tour business make money?

Wine tours usually charge for the length of the tour, which includes the cost of any food or wine samples provided. Businesses make money by charging for the time of the guide, as well as a small mark-up on any food or wine consumed or any products sold (e.g., bottles of wine, wine-related merchandise).

How much can you charge customers?

People will pay based on how much you give them, both in terms of tangible and intangible qualities. You can charge about $15 a person for a half hour tour that includes 5 different types of wines, or $40 for an hour long tour with 7 wine samples and gourmet appetizers. People will be willing to pay top dollar for excellent food, wine, and guides.

How much profit can a wine tour business make?

A wine tour business doesn’t necessarily need to cost a lot to run. If a half hour tour group gets 10 people at $15 a head, and it only costs $35 an hour for the guide and $20 for the wine, then that’s still $95 in profit for a half hour.

How can you make your business more profitable?

Wine tour operators may consider selling specific bottles of wine during the tours, with a cut given to the winemaker. There may even be money to be made by selling the actual grapes to amateur winemakers in the area, or wine-specific merchandise like magnets, T-shirts, or wine keys.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your wine tour business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a wine tour business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Liquor Licensing

Businesses involved in the sale of alcoholic beverages are required to obtain a liquor license from the appropriate state or local agency. A comprehensive list of laws by state (including necessary licenses, zoning laws, etc), curated by the Alcohol and Tobacco Tax and Trade Bureau, is included here.

Certificate of Occupancy

Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a wine tour business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your wine tour business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is good for someone who already has a healthy interest in how vineyards work, and who enjoys teaching people in an entertaining way. Ideally, it should be far less about enjoying a good bottle of wine, and far more about being a good (and organized) educator.

What happens during a typical day at a wine tour business?

A wine tour owner may conduct the following transactions on any given day:

• Providing tours
• Learning new wine techniques
• Advertising the business
• Training new employees
• Hosting special events

What are some skills and experiences that will help you build a successful wine tour business?

A formal education in either teaching or in winemaking may give you an instant leg-up. If you don’t have either of these skills, you’ll need to be skilled at finding people who can do the job. In addition, you’ll need to be organized, have a true eye for details, and have a sense of what your customers are trying to get from the tour. This will come in handy when you’re deciding what to include in the ‘curriculum’.

What is the growth potential for a wine tour business?

The growth potential can be quite staggering for wine tours — even in places that aren’t generally considered wine regions (e.g., Napa, Bordeaux, etc.) People may come more for the experience than they will for a taste of an expensive red.