We received some disappointing news about a week ago! We have been synthesizing what it means and how it will impact our business, but more importantly what we can do to mitigate the risk we are going to experience. It looks like we are going to push our opening day from late October to December 1st.
We know how people really hate a company saying one thing, and then going about their business only to do something else. It was not our intention, and to those people who have been following closely, we are sorry. Not unlike anyone else, it was never our intention to put a date out there that we couldn’t make. We tried to keep our foot on the gas pedal, while being realistic with our expectations. We lost quite a bit of time at different points, considering the number of trades we had coordinate and the size and scope of our retrofit. I have written about managing the schedule, working with a contractor and other items around the build in the past, so I won’t rehash those again.
This I know as true: The bigger your build, the more expensive your build will be and the longer your build will take. I would use the analogy of having both the wind and tide against your boat, where the wind is money and the tide is time. The sum of these 2 problems becomes greater than each part. Let me try to explain, when you have a bigger build than you expect, it will cost more than you budgeted because of the size of all your work gets bigger. Like longer electrical wire runs, mechanical runs, more concrete, etc. What also happens is it takes longer to build, which means you will need more money in getting to day 1. No matter what you pay for lease, insurance, wages, etc on a monthly basis, whether you are ahead or behind the schedule.
Getting back on topic, some components to our build will be delayed by about a month. So instead of having these items in place to move things along, our build-out of the brewery will be measurably slowed because of this delay. It is crushing and cruel all at the same time. All the effort we have put into beating drop-dead dates, the overtime we have paid to our construction crew, and the early mornings and late nights we have experienced all seem for not right now.
The biggest impact of this delay will be to our finances. Instead of having the money we need to make it to day 1, we are now going to dilute our company, and raise more money. There is no creative accounting that can make up for a 1 month loss of revenue, while still experiencing many of the fixed and variable costs our business will come up against. We don’t quite know what options are available to us, but hopefully we can find a solution that keeps us afloat and allows us to make it to day 1 intact.
So I guess the good news is that I will keep blogging, as I seem to have a little more time on our hands. More importantly, we can stop rushing so many decisions in order to make sure we make the correct choice. I plan on blogging about a few other things, all of which will help with people who are following our path.
You know that the people like me that follow closely have no problem with delays. We totally understand that shit happens. We are very excited for the opening date but things always happen. Just keep fighting the good fight guys!
Thanks Mike. I wish our banker felt the same way :o) He is not nearly as ok with delays that cost us money and time.
Darn. If only I owned a bank. Lol.