Author Topic: Brewery Financing for someone with no wealth/collateral  (Read 8138 times)

Offline beerstache

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #45 on: August 16, 2011, 03:03:01 PM »
Thanks to everybody who has posted hear and for all the comments and suggestions.  Looks like a solid business plan is the way to start.  Anybody got examples on the web that I can use for a template?
Thanks

Offline bonjour

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #46 on: August 16, 2011, 03:09:04 PM »
Among other things call Erin and talk to her.
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Offline phillamb168

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #47 on: August 17, 2011, 04:21:51 AM »
Who's Erin? I'm not sure this was covered in my welcome packet.
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Offline bonjour

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Everything under 1.100 is a 'session' beer ;)

Offline phillamb168

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #49 on: August 17, 2011, 05:31:38 AM »
Ah, cool!
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Offline Tim McManus

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #50 on: August 17, 2011, 07:53:11 AM »
Thanks to everybody who has posted hear and for all the comments and suggestions.  Looks like a solid business plan is the way to start.  Anybody got examples on the web that I can use for a template?
Thanks

Sent you some info in a PM.
Tim McManus
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Offline morticaixavier

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #51 on: August 17, 2011, 07:56:04 AM »
Thanks to everybody who has posted hear and for all the comments and suggestions.  Looks like a solid business plan is the way to start.  Anybody got examples on the web that I can use for a template?
Thanks

Sent you some info in a PM.

me too?

Offline Kit B

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #52 on: August 17, 2011, 08:31:14 AM »
Yeah...Please, share.
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Offline Tim McManus

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #53 on: August 17, 2011, 08:48:54 AM »
I will start a new thread in the Going Pro section detailing many of the resources available.  Folks can add to it with alternative resources and other important information.  Give me a few hours to get organized, I am drinking from the firehose today (and it's not beer).
Tim McManus
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Offline Beer Monger

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #54 on: August 17, 2011, 11:23:31 AM »
This is precisely why I'm a member of the Flying Bike Cooperative Brewery in Seattle.  We hope to have our doors open by late 2012. 

I'm running for a position on the board this month.  http://tinyurl.com/3te5ppo
 
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Re: Brewery Financing for someone with no wealth/collateral
« Reply #55 on: August 17, 2011, 12:54:22 PM »
I understand that a 15 bbl system is a benchmark for the break even point.

With that you would obviously need the sales to support that. There should also be a plan for expansion in the event that the brewery sales increase beyond normal production levels.

This is a silly idea.  While you can't run a less-than-15 bbl production brewery forever you can certainly start smaller and increase the size as possible.  Seven barrels seems like a nice number for in house (non production) and I've seen a multitude of 10 bbl breweries make it just fine as production breweries.  All of those 10 bbl brewers (who are now big breweries) would advise against starting with the smaller system, but they don't recognize that they would have never made it with the increased costs of the larger systems.  Otherwise I agree with everything you said.  cheers, j

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« Last Edit: August 17, 2011, 03:57:09 PM by jaybeerman »

Offline Beer Monger

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #56 on: August 17, 2011, 12:56:05 PM »
Epic Ales in Seattle has been successful on a 1-2 BBL system.

Granted, he has to be brewing constantly (and he only brews 'unusual' stuff). 
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Offline nateo

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #57 on: August 17, 2011, 01:03:54 PM »
This is a silly idea.  While you can't run a less-than-15 bbl production brewery forever you can certainly start smaller and increase the size as possible.  Seven barrels seems like a nice number for in house (non production) and I've seen a multitude of 10 bbl breweries make it just fine.  All of those 10 bbl breweries (who are now big breweries) would advice against starting with the smaller system, but they don't recognize that they would have never made it with the increased costs of the larger systems.  Otherwise I agree with everything you said.  cheers, j


That's a really good point. It's easy for brewers to look back at the "mistakes" they made and wish they could've started on a bigger system. But it's true a lot of them are still in business, and got started on a system that was too small. And for every brewer who says you need a bigger system, there are brewers getting by on smaller systems. Everyone who has started a business wishes they had started with more capital than they had.
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Offline majorvices

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #58 on: August 17, 2011, 01:57:07 PM »
first person who shows me on paper how to make a living on a 1-2 bbl system get's a free beer.  ;) Once you run the numbers it becomes pretty clear. I can understand someone starting at 1-2 bbl (though, having gone through that I wouldn't recommend it necessarily) - can't ever understand staying at that level. The one exception I have been overlooking is a pub or tasting room. I'm considering production facility only.
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Re: Brewery Financing for someone with no wealth/collateral
« Reply #59 on: August 17, 2011, 02:15:19 PM »
first person who shows me on paper how to make a living on a 1-2 bbl system get's a free beer.  ;) Once you run the numbers it becomes pretty clear. I can understand someone starting at 1-2 bbl (though, having gone through that I wouldn't recommend it necessarily) - can't ever understand staying at that level. The one exception I have been overlooking is a pub or tasting room. I'm considering production facility only.

I've run the numbers 10,000 times about 10,000 ways and cannot find a way to do less than 3.5 bbl without slight difficulty or the possibility that unforeseen occurrence could shut down the brewery.  The numbers for 7 bbl look acceptable to me for the tasting room style with the possibility of some off-site production.  That said it’s my personal goal to support anyone who tries a small business and produces a good product.  cheers, j