Author Topic: Brewery Financing for someone with no wealth/collateral  (Read 5228 times)

Offline johnnyb

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #150 on: January 04, 2012, 01:54:17 PM »
Thanks for all the great answers guys - it's been very helpful even if not quite what I was hoping to hear.

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #151 on: January 04, 2012, 02:01:59 PM »
don't get me wrong I think you should go for it! what's the worst that could happen? Check out Hess brewing, they seem to be making a go of it! and healdsburg beer company for the other end of the spectrum. He has been doing this for a few years now. He hasn't quit his day job yet though.
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Offline johnnyb

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #152 on: January 04, 2012, 02:18:25 PM »
don't get me wrong I think you should go for it! what's the worst that could happen?

Personal bankruptcy and losing all my investor's capitol?   :o

I mean I'm certainly willing to bust my butt and take some major risks, particularly with my own money, but only if the rewards potentially offer a viable business venture moving forward.

If my property was zoned for multi-use and I had a suitable detached building to site the nanobrewery, I would consider starting on a really small scale. But as it stands now I would need to lease commercial space and also meet whatever demands the local municipality makes of me as far as outfitting the facility, which basically means a money losing proposition with almost 100% certainty as far as I can tell so far.
 
« Last Edit: January 04, 2012, 02:22:56 PM by johnnyb »

Offline tschmidlin

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #153 on: January 04, 2012, 02:51:24 PM »
don't get me wrong I think you should go for it! what's the worst that could happen?

Personal bankruptcy and losing all my investor's capitol?   :o
Whenever people tell me I should open a brewery and they'd invest, I tell them to consider it a gift, not an investment.  They might get their money back some day, but they shouldn't expect to.  Most don't offer again :)
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Offline johnnyb

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #154 on: January 04, 2012, 03:00:04 PM »
You mean some of them actually do offer again? I would really like to try your beer some time - you must brew some really good stuff!  :)

Offline Thirsty_Monk

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #155 on: January 04, 2012, 03:47:20 PM »
There is one more thing to consider.
Health Insurance.

On site sales have higher margin but you have to have someone who is there to serve it.
Consider non traditional / returnable packaging.
Take deposit for your packaging.

Self distribution.
Consider that you will spend fair amount of time distributing.
This goes nicely to brand building.
You are in charge and control your growth.

Bottled beer has higher margin then draught beer (at least for me).
Draught market is tough.

Good Luck.
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Re: Brewery Financing for someone with no wealth/collateral
« Reply #156 on: January 04, 2012, 03:55:34 PM »
They might get their money back some day, but they shouldn't expect to.

Isn't that the definition of an investment?
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Offline majorvices

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #157 on: January 04, 2012, 04:03:26 PM »
There is one more thing to consider.
Health Insurance.

On site sales have higher margin but you have to have someone who is there to serve it.
Consider non traditional / returnable packaging.
Take deposit for your packaging.

Self distribution.
Consider that you will spend fair amount of time distributing.
This goes nicely to brand building.
You are in charge and control your growth.

Bottled beer has higher margin then draught beer (at least for me).
Draught market is tough.

Good Luck.

I would like the option to be able to self distribute but having a distributor is well worth it. We are able to have our beer from Huntsville to Auburn and soon even further. I could never do this myself or pay someone.

As far as bottles, the profit margin is higher but so is the amount of labor.

Not disagreeing with my fellow cohort, just adding some side points.
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Offline tschmidlin

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #158 on: January 04, 2012, 05:23:09 PM »
They might get their money back some day, but they shouldn't expect to.

Isn't that the definition of an investment?
Most people don't ever consider that they might lose everything they invest.
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Offline tschmidlin

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #159 on: January 04, 2012, 05:27:01 PM »
You mean some of them actually do offer again? I would really like to try your beer some time - you must brew some really good stuff!  :)
Sometimes.  The key is to only serve the good stuff ;)
Tom Schmidlin

Offline majorvices

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #160 on: January 04, 2012, 07:53:37 PM »
You mean some of them actually do offer again? I would really like to try your beer some time - you must brew some really good stuff!  :)
Sometimes.  The key is to only serve the good stuff ;)

Bhahaha!  ;D
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Offline johnnyb

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #161 on: January 04, 2012, 08:16:21 PM »
You mean some of them actually do offer again? I would really like to try your beer some time - you must brew some really good stuff!  :)
Sometimes.  The key is to only serve the good stuff ;)

Well if I ever do meet you, no need to waste your good stuff on me. I don't have any money to invest in your brewery as evidenced by my involvement in this thread!  :P

Offline tschmidlin

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #162 on: January 04, 2012, 08:27:09 PM »
You mean some of them actually do offer again? I would really like to try your beer some time - you must brew some really good stuff!  :)
Sometimes.  The key is to only serve the good stuff ;)

Bhahaha!  ;D
Same holds even after you go pro, right Keith? ;D
Tom Schmidlin

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Re: Brewery Financing for someone with no wealth/collateral
« Reply #163 on: January 05, 2012, 05:41:38 AM »
You mean some of them actually do offer again? I would really like to try your beer some time - you must brew some really good stuff!  :)
Sometimes.  The key is to only serve the good stuff ;)

Bhahaha!  ;D
Same holds even after you go pro, right Keith? ;D

Both home and pro brewing.  ;)
Keith Y.
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Re: Brewery Financing for someone with no wealth/collateral
« Reply #164 on: January 05, 2012, 08:16:36 AM »
I'll add to this: As a homebrewer you have so much more control over your beer. You can pull it if it starts to develop flaws. As a pro I have dumped beer without hesitation, hurts as much or more than at home. But it is really difficult when you go to a pub or restaurant and your beer is not serving properly due to under-carbonation or signs of other flaws. I can honestly say we have done a pretty good job of quality control - unlike other local breweries we have gone well over a year without a returned keg. That is a real accomplishment IMO and one that I am proud of. Unfortunately there have been a few beers out there that developed stability problems that I am not too proud of. It's a tough gig to sit down with a pint of your own beer to discover that it is not what you had hoped it would be. Sacks the ego pretty hard. When it is homebrew you can just pull the tap. But once the beer leaves your brewery it is not yours anymore.
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