I faced the same problem of brew command not found while installing Homebrew on mac BigSur with M1 processor.
I - Install XCode if it is not installed yet.
II - Select terminal.app in Finder.
III - RMB click on Terminal and select "Get Info"
IV - Select Open using Rosetta checkbox.
V - Close any open Terminal windows.
VI - Open a new Terminal window and install Hobebrew:
/bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/master/install.sh)"
VII - Test Homebrew installation.
IIX - Uncheck Open using Rosetta checkbox.