Growth happens for businesses that manage cash carefully, plan years ahead, and treat regulation as a constant.

Willie Blazer knows what it means to build a company in an industry where the rules are complicated, the costs are high, and the payoff takes years. A veteran of the United States Armed Forces and the U.S. Forest Service, Blazer co-founded Willie’s Distillery with his late wife, Robin, in Ennis, Montana. Blazer has spent more than a decade navigating capital intensity, federal regulations, and supply-chain volatility in the spirits business. He recently shared his experience with me on The Big Idea podcast from Yahoo Finance.

Blazer’s perspective comes at a difficult moment for the industry. According to the American Craft Spirits Association, in 2024, U.S. craft spirits producers sold 12.7 million cases, a 6.1-percent year-over-year decline, with total retail sales falling to $7.58 billion. That was down 3.3 percent from the year before. At the same time, the number of active U.S. craft distilleries dropped to about 2,282 in 2025, a decline of roughly 25 percent in a single year, as closures and consolidation accelerated.

Blazer, now 16 years into building his business, distributes spirits across about eight states, with online platforms allowing shipment to roughly 30, and a long-term goal of reaching all 50. His longevity in a shrinking category reflects a set of operating principles shaped by hard lessons. Blazer’s experience answers a question many founders are facing right now: How do I grow a small business when costs, laws, and regulations keep changing?

Capital intensity is the first test.

Before launching Willie’s Distillery, Willie and Robin spent six to seven years researching the spirits industry. Even with that preparation, the capital demands were greater than expected.

“It’s a pretty capital intense startup business,” Blazer explained. “We didn’t have any money, or really know anybody with money, so it took us a while.”

Getting the distillery off the ground ultimately required a mix of a Patriot Express Loan from the U.S. Small Business Administration, local bank financing, and backing from friends and family.

The pressure never fully goes away in a business where inventory takes years to turn into revenue. As Blazer puts it, “If you run out of money, you’re out of business.”

Long timelines force longer planning.

With aged spirits, the timeline itself becomes the business model. “Some of our products sit in barrels [for] two, three, four, eight years,” Blazer said. “You’ve got to plan five years’ worth of… cash flow projections.”

That reality forces forecasting grain prices, barrel availability, storage capacity, and future demand far beyond a typical annual budget.

Customer demand drives pivots.

As costs rose and supply chains tightened, Blazer expanded beyond whiskey into vodka, gin, and specialty products. That flexibility helped the company respond to consumer preferences and disruptions such as glass shortages.

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“We’ve been pretty good about adapting and being able to pivot and not just stick to what we think is going to work, but what the consumer is telling us they want,” he said.

Regulation is a constant, not a surprise.

Spirits producers operate under federal regulations, much of which is rooted in Prohibition and post-Prohibition-era law.

“Definitely have a good attorney,” Blazer advised. He explained that distilleries fall under Code of Federal Regulation Part 19, which he described as roughly 400 pages, with significant discretion left to ATF field agents.

Blazer relies on legal counsel and trade organizations to interpret rules and flag changes before they become expensive problems.

Focus determines longevity.

In the early years, Blazer and his wife both worked 100-hour weeks to get the business off the ground. As the company matured, focus became more important than sheer effort.

“You’ve got to focus and prioritize,” he said. “This isn’t about me or my ego. It’s a team, just like the military.”

One rule continues to guide decisions. “If it’s not making money, don’t focus on it.”

In a contracting craft spirits market, Blazer’s approach is deliberately practical. Staying in business comes first, and growth follows only for businesses that manage cash carefully, plan years ahead, and treat regulation as a constant rather than a surprise. As Blazer often reminds himself, the best thing about being in business is you’re still in business.