Better Than Ever

Craft beer-maker Brooklyn Brewery had 11 years under its belt when the team decided to take the plunge into e-commerce. It was 1999, and the thought of selling craft beers online was, well, intoxicating.

Co-founders Steve Hindy, 58, and Tom Potter, 51, (who has since left the company) went to friends and family for capital, raising more than $1 million. But within months, they knew the site wasn't going to be profitable, so they had to throw in the towel.

The experience put a financial and emotional strain on the company. "When we folded," says Hindy, "[we sighed] and said, 'Let's get back to selling beer.'" Fortunately, the brewery's distribution infrastructure had significant offline value. Four years after closing the website, the company sold its distribution assets for a cool $11 million. This year, the brewery expects to sell more than $14 million worth of beer. Hindy says the important thing is to admit your mistakes and learn from them.

This article was originally published in the June 2007 print edition of Entrepreneur with the headline: Better Than Ever.