Tag Archives: Brewery Financials

34 days out …. sneak peak at our Layout

Not much to say on this post.  I am a little foggy this morning, and needing to get 2 blog posts out as I missed one from yesterday.  The first post today will be around the finalized layout and look of our tasting room, and the exterior elevation of our space

We agonized for months over how exactly to design and locate the entire production and front of house spaces.  There were likely 5 or 6 meetings with our architects to get this correct, and hopefully at the end of the day, we got it right from a production standpoint, but also a tasting room standpoint.

Some keys about the front of the house:

  • The tasting room has a direct connection to the brewhouse, where most of the fun stuff happens in brewing beer
  • The art gallery is directly connected to the tasting room, allowing people to view some artwork while they visit the brewery
  • We have 2 long communal tables, which is a direct result of bring people together through beer.  If you want to come to our brewery and sit quietly on your own, you might have a tough time
  • We will have lots of natural light.  There are about 14 windows across the front, that will provide heaps of natural light into the space
  • There is a moderately separated retail area from the tasting room, which will allow the patrons of each to not interfere with each others good time
  • The lines from our serving tanks to the tasting room are crazy short, as the cooler is right there
  • The front of the house has really high ceilings, something you can’t really see in the drawings, hopefully making the space very interesting and welcoming

As for the exterior of the building, not much to do other than clean it up, repaint and put a few new doors in to make the building secure and a little more functional.

There was a lot of found value in the space, which we have tried to salvage and add to in a positive and authentic manner.  Both Iain and like things that are authentic and interesting, and we hope to have created a space that is, if nothing else, both of these things.  We hope you pop-in and say hi the next time you are in the area.

Architectural drawings Oct 31.2014

 

36 days out … Use a Notebook and to do list!

Of the many things this process has taught me, there are several that stand out as key learnings overall.  Its hard to say how one should practice for these things, but likely knowing about them, reading books about them, and talking with others about them are a huge help.

The first thing that I have learned is how to get things done.  I feel like I have always been quite productive in my life.  Not quite sure where I got this, but ever since I turned 30, I have increasingly become a highly productive machine.  To that end, one of the best books I read for preparing for this venture was Getting Things Done by David Allen.  You will not be disappointed if you make the time to read this book.  It will help you be more productive with your days, and organize your life to stay on top of all the details.

Another trait that I knew was deep inside me, but never really exposed is an ability to work long hours with little sleep.  Normally, I am a high energy guy, so when it comes to sleep I like to get 7 hours of bed time a night.  Continuing to exercise and stay fit means that sleep is important.  However, for the past couple months, this has been shaved down to about 5.5 – 6 hours per night, with one night a week at 12.  I find I am capable of this, definitely a little more grumpy, unhappy, etc, but that should be expected.  Find your ability to work long and hard, and you will be in a good position to succeed.

One last trait, one that might just possibly be the most important trait is the ability to not get overwhelmed by the gravity of this situation.  Really, this is one of the most stressful and intense situations an average person could go through, and with the help of friends and family, I have managed to stay positive and on track.  If you have a tough time dealing with stress and multi-tasking, you will need to either take course, read or learn to deal with this possibility.

Another huge help is always having a notebook that contains a to do list.  Make sure you cross things out when they are complete, so you can get the satisfaction of accomplishing something. To do lists are key as are notebooks with all your notes from meetings and discussions.  I can’t tell you how many times I have referenced the book to find something I have been looking for.

Until next post, keep on keeping on!

General Ramblings

A lot of the things we have been planning for sometime now are taking shape.  The big decisions we had to make early on have all been made, and now we are left to make them all fit within the scope of this project, which is changing a daily basis.  As such, things like tap location, size of custom cabinetry, location of bar sinks, and hundreds of other little decisions need to be looked at.

We have made many errors both big and small along the way, as making so many decisions is bound to result in a bad decision or 2 ….. or 20!  So here are the mistakes we have made that come to the top of my mind, and things you should be mindful of not doing.

  1. Make sure you agree to delivery dates for equipment and services provided to your brewery.  If you don’t have specified drop-dead dates, you can’t hold people to a timeframe in getting things done.  For example, if your website needs to be created by June 1st, but you don’t have this in your contact with your web designer, then you are left with no recourse should things take longer.
  2. The marathon of this is truly day in and day out a grind.  I love what I am doing, and it is a passion and dream all rolled into one, but it is still a grind.  The first 6 months seem to go by quickly, and your energy reserves are used, the next 6 months you have moments of highs and lows, and then the next 6 months hit.  I would say this is where we are.  We don’t celebrate our accomplishments enough, we are knee deep in financial duress, and we are about 2-3 months away from making any money.  Take 1 day off a week, as it will do your mind good.
  3. Its better to have stuff arrive when you need it, not before or after.  This is virtually impossible, but getting a big piece of equipment early is in a way just as bad as getting it early.  Get your stuff delivered when you need it, and shade a little to the earlier side of things.
  4. There is an endless amount of forms you need to fill out for the Government, so always keep on top of this.  I try to spend a couple hours a week reviewing our progress and making sure we are doing all that we can to keep these things moving forward.
  5. Schedule meetings wit your partner.  I can’t tell you how many times my partner and I try to meet about something and it gets interrupted or cut short because of something else.  We are realizing it might be best to have meetings elsewhere that are important.  Planning the business is more important than working in the business
  6. Finding time to do social media is the hardest thing some days.  When you are working on building a brewery, your free time evaporates and days just cruise by.  Always find time to connect with people on social media.  For some that is doing it as the day goes on, and for me that means doing it twice per day.  We have learned so much from others, and connected with so many great people, it would be a shame not to have done this.
  7. Include your landlord in decisions that effect the building.  If you have an amazing landlord like we do, they will want to be a part of things, so it is important to let them have some say.  After all, it is their building and your business is their business.
  8. Always have a plan B ready for action, especially when it comes to your financials and marketing.  Getting stuck with one idea, or one way of doing things is a real challenge in any aspect of this process.  It evolves so much, that it is much better to wave in the wind like a flag and go with the flow.
  9. You will need money, lots of money, and you will likely need more as the process goes on.  If you think you are different than everyone else who has started a business, or undertaken a massive renovation, then do so at your own peril.  We thought we would be good after 4 or 5 revisions to our budget, only to have the wrench of a delay resulting in us needing more money.  My advice would be to research as much as possible, and leave a bucket of money with about 15% of your overall budget to get to day 1 so that you can mitigate these risks.
  10. Marketing needs to represent who you are.  Since we are a team of 2, it is harder to get this right, as we are both very different in what we like.  Also, we wanted something other than what represented who we were for some time.  Once we decided to go with our gut, we found a path to happiness and cool branding, representative of our beliefs and opinions.
  11. If you are having a tasting room like us, the front of the house is a big enigma that is full of unknowns and expensive items.  Walk carefully through this minefield.  We messed up tap locations, counter top height, layout, approval process, etc.  A lot can go wrong so make sure you think this through.
  12. Don’t forget about these electronic items/systems:  POS ($5,000) AV ($2,500) Security system ($1,500) and CCTV ($4,000).  They add up to a lot, but we couldn’t imagine not getting these things right.  Also, try to include these items on your electrical contractors scope of work early on, as it will save you $$$.
  13. Spend too much money on non-critical things.  Don’t spend a lot of money on a forklift, but get a used one.  Don’t pay any of your carpenters to clean up at $55 per hour, do it yourself. Don’t get a bin until you are ready for it, do a couple dump runs on your own.  You get the idea.

I am sure throughout today, I will make 10 decisions with my partner, 7 of which we get right, 1 we are not so sure about and 2 that are wrong … only we won’t know it until some later point.  The point is sometimes you need take your time and make the right decision, and others you need to make any decision, just make one immediately to keep things moving forward.  The key is to think about when key decisions need to be made, and factor that into your approach.  If a decision doesn’t need to made, take a day to sleep on it.

I am sure I would be able to add about 10 more things to this list if I had the time or more mental horsepower right now.  Hopefully you can add more to this list via the comments below. Thanks for reading and until my next entry.

Marketing Decisions

One thing I have underestimated up until now is the number of decisions that need to be made for marketing.  I always thought the big marketing decisions were the tough ones, but now walking through this process, it is the small ones that suck all your time and cause the most headaches with the schedule.  Paying others to do some of your work will help bring in a fresh opinion, move things forward, and get you to a place you wouldn’t otherwise have gotten.  It will still take hard work and lots of re-working things to get them right.

As a craft brewery, we kind of thought that marketing was secondary to making really great beer, and having a great tasting room to hang out in.  For the most part, it still is but the gap has narrowed quite measurably.  With so many amazing breweries swinging open their doors in the past few years (Brassneck, Parallel 49 Brewing, Powell Street Brewing, Postmark, 33 Acres, Steel and Oak, Yellow Dog, Main Street, and many more), it is now imperative that your brand be spot on.  Don’t get me wrong, I don’t think you need to have a perfect brand for customers to see, rather I think you need to achieve a few important things in your message:  Authenticity, why you did this, and what makes you so different.

Yes, yes the quality of beer is still paramount.  Make crappy beer or have the same selection of beer at your brewery week in and week out, and you will find yourself floundering.  At the end of the day, consumers care most about this.  But the people that spend their hard earned dollars at breweries also want to see a brand that meets their expectations.  What makes it harder for a brewery to meet these expectations, is that no 2 people have the same ones.  Some want authentic, and others want playful, some want seriousness, and others want unique.  What do you want?

Getting back to my original point, we decided to go in the direction of making something we think is representative of us.  Authentic, Fun, and pretty straight forward.  However, what you set out to do, like everything in this process, is not necessarily what we are going to end up with.  You see, making thousands of decisions over a period of months, if not years, puts you down a path that you didn’t necessarily intend.

For instance, we always wanted our brand to be what it has become.  But to think that we named our company Strange Fellows Brewing is somewhat comical.  My partner and I always wanted a more serious name, but through indecision, other names being taken (this is huge) and the input of others, we ended up with Strange Fellows.  This set off a cascade of events that has slowly morphed our brand into something that neither of us could have imagined.

Also changing where we ended up is the list of decision that we needed to make, with each of these decisions having hundreds of little decisions to make the big decision:

  • website design and look and feel – hundreds of decisions in this bucket
  • can versus bottle versus growler – design, size and look
  • label for all product
  • logo – you will need to pick something that works on its own, with your can design, and in sizes all the way up to a decal on your car to sign-post at your brewery
  • bottle cap
  • merchandise
  • growler design
  • your story and how it relates to your brand
  • business cards
  • tasting room design meshed with your personal taste, budget and consumers taste

Each of these, and many others, have hundreds of layers to the decisions you need to make.  Its not as simple as just making the choice and living with it in a bubble.  Your decisions are not mutually exclusive, as one decision will impact another, often forcing you to rethink exactly what you are doing.  Let me give you an example.

We knew we wanted to put our beer into cans, so we charged ahead with this.  However, we didn’t know what kind of beer to put into cans.  So we had to decide which of our favourites we were going to brew, and put that out there to the world, without ever actually brewing these beers.  Which means you need to talk about flavour, alcohol percentage, etc without ever having tasted the beer.  Then you need to make a description of the beer, a beer name, a theme to your beer, create a UPC code, get preliminary approval from the LDB, get all the details on the can correct and be happy with where it is at about 10-12 weeks before you plan on packaging this product.  You see, cans need to be manufactured and that takes some time, which means before you even do anything, you need to have all your marketing complete.

It also means that once you make decisions, going back on those decisions will change other aspects of the design.  Invariably you will makes changes, and while you have your head down in the sand making all these decisions and changes, you end up with a can that may be great, but also may be quite far from where you intended to end up.  We’d be lying if we didn’t admit to this, as well as every other craft brewery in the Province.  So go easy on those people who have missed the mark with their marketing, as they may have gotten to a place they didn’t intend, and have no way of getting out.

To me, marketing matters most in terms of how much I connect with a brand.  This is everything from; what are the owners like, what is their message, what does the beer taste like, what are their thoughts on craft beer, why are they making beer, is this their passion, what other breweries do they like, and are they helping to keep Vancouver at the forefront of craft beer.  If a brand conveys all this information to me, or if I pick up on these things along the way, my decision on whether I like the brand is already made.  A company could miss 2 or 3 of these things and be alright, but if they miss 2 or 3 of these things and one of them is the quality of the beer, then I will move on.

For us, we’ve had the luxury of time, which has been our worst enemy for cash, but our best friend for crafting our story.  Having a brewery build-out that has taken about 9 months, in addition to a 12 month period that we were actively working on our brand, which comes after about 1 year of starting the process.  All this has meant we’ve been able to work out the kinks, and get it where we are pretty happy.  We could still make a few changes to our marketing, but for the most part we are pretty stoked about it.  I went through my diaries and have the following summaries from just our name selection:

  • January 2010 started working with my brother on a brand called The Crafty Monk
  • Over the next 18 months came up with a logo, and design for label
  • January 2012 met Iain Hill and started our partnership.
  • March 2012 Iain and I agree that we need to come up with a name together that is indicative of both us.
  • July 2012 changed name to Low Countries Brewing
  • Sept 2012 worked with Iain’s wife Christine on logo and branding.  We had a really tough time making the name look interesting and work well.
  • October 2013 after a year working with Low Countries Brewing, we decided to ditch the name as it was boring and not exactly what we wanted to do anymore,
  • January 2014 false start on Allegory brewing
  • February 2014 with our partnership about to dissolve over indecision about our name, we finally agree to Strange Fellows.
  • March 2014 to present we worked on our branding and marketing to end up where we are, which we hope is a pretty good place.

Without the time we had available to us, we might have ended up with a name like The Crafty Monk, or Allegory, both of which would have led us down a path that is much different than where we are today.  So take your time in making decisions, as creativity knows no time boundaries.  It would also relate to this entire process, as for us, getting all aspects of this project correct the first time is the most important thing.

 

90 Days Out?!?!

Give or take a few days, we are about 90 days from opening our brewery, and the list of stuff we need to do and decide on seems to have only gotten longer and bigger.  When you are about 90 days out, the major decisions have been made, but there is still a lot of decisions to be made that can change the outcome of this process.  Let me recap where we are in the process so you can see what needs to be done.

We have finished all the in-ground mechanical work.  So plumbing, running conduit, reinforcing of concrete for tanks, upgrading floors, pouring curbs, trade waste interceptor, flow meter, drains, and a bunch of other stuff has all been decided.  That means we have made decisions galore to get to this point.  Having someone on board like Iain Hill, who has experience in starting a brewery is huge.  He has been down this road before, and knows what is a need to have and a nice to have.

We are currently getting all of our walls built  for the brewery interior, and while there is little work for the partners to do, there a lot of office work for us to complete.  The work of our carpenters is really important, albeit very slow.  Building walls and making sure they are square, level and plumb is tedious work at best, and requires a crew to make sure it all goes well.  While construction is at this point, there is a lit of other things we need to accomplish.

Most of the items revolve around the front of house.  We need to take the bar from conceptual to design.  That means we need to know what we are putting in the bar, the dimensions of those items, where we want shelves, drawers and other items, where does the sink go, where the POS goes, how many POS, etc.  All of this information then gets meshed with the best practices of our architect and then created into a set of drawings for us to send out to tender.  Once we choose who makes them, they then need to be manufactured, delivered and installed. The whole process seems to take about 12 weeks, so timing is of the essence.

While all of this is happening, our mechanical contractor is running pipes overhead, to and from all the important locations in the brewery, and our electrical contractor is upgrading our power and making things happen from an electrical point of view.

Now is also the time to start deciding on exterior colours and upgrades as we are nearing the time when this will need to be completed.  We have been working towards getting our sign ordered and it has been a bit of a mess in knowing who to use and what to get.  Our exterior sign is old and is going to cost a bunch of money to repair.  So do we pick something that is going to hold for a couple years, until we have cash to really replace it, or do we make the big upgrade now?  We are leaning towards saving the money as we have made a mess of our budget.  Saving money when we can seems really important.

All of our major equipment has been ordered, and we are just looking for odds and ends to round out the brewing side.  Iain is busy working on the draft system/growler fill area, and what we are going to do and how all that is going to come together.  I can’t say I know much, but what I know seems to confuse me.  Looks like we can go with a few different options, and each has pro’s and con’s, which I can fully describe at this time, as I haven’t been working in that bucket.

The schedule which I spoke about in my last post, gets changed almost daily, and drop dead dates are really important to adhere to.  So is having regular meetings to stay on top of all the decisions that each partner is making.  For instance, I have the exterior sign, website construction, marketing buckets to figure things out in, and Iain has the bar and equipment buckets to work in, and before you know it, you can make decisions in your own mind without talking to the other person.  So you seem to spend hours writing emails and following up on things with your partner, just so they know what they heck is going on.  A bit tedious, but sooooo important.

From here, we have lots more to do, and while we are very close, it feels in a way like we are so far away.  Its hard to think that in the next 90 days, all that is our space and mess of things, will get cobbled together into a usable brewery and tasting room.  Sometimes it still doesn’t feel like it will happen.

How to Keep all the Balls in the Air – A Schedule!

Having a schedule for the process of opening a brewery is huge.  I am not talking a little to do list of what needs to get done and when.  I mean an excel spreadsheet with the major items of starting a brewery in headings and then a timeline of when decisions need to be made.  It is the only way to keep all the balls in the air and make sure you don’t delay in decisions that need to be made, or forget others.

Unfortunately, we have gotten away from our schedule and it has come back to bite us in the ass a little bit.  Let me explain, and hopefully you can create your own so that you don’t have the same thing happen to you.

When I was first writing our business plan, I had a schedule of all the things that I thought we would be doing.  It was really about 30-40 lines of action items, with a date.  Click the link below for a copy of an older schedule that I was using, and while I updated it partially along the way, it was never really a living document.

Schedule for LCBC

What we really needed was a document that my partner and I updated weekly, that was really much more thorough than the one you can view by link.  I would have put various headings like:

  • Sales and Marketing
  • Equipment
  • Retrofit of Warehouse
  • Accounting
  • Raw Materials
  • Electrical
  • etc, etc

Under each of these headings I would have subcategories with all individual items that need to be done.  For instance, under the equipment heading I would have the following:

  • Brewhouse
  • Kegging
  • Packaging
  • Conditioning/fermenting
  • etc, etc

This way we could track all the details that need to get done.  This is really important.  A lot of details can fall through the cracks, so make sure you have a living schedule document that you can refer to on a regular basis.

There are some other benefits to a schedule. It can track timeline for decisions, like getting quotes from suppliers.  A schedule can also set drop-dead dates for decisions, which I highly recommend, as if you delay some decisions they will have a snowballing effect on other decisions.  A schedule can also help to identify who needs to do what in a partner ship.  Having a responsible person for an action might seem redundant, but it can just make sure there is someone doing the work, and not a moment of, “I thought you were doing that!”  Lastly, a schedule can help you sleep at night.  Instead of thinking about all the things you need to do, just go to bed knowing that there is a list, and so long as you keep the schedule up to date, you need not lose sleep.

So next time I start a brewery (insert laughter here), I will be sure to use the schedule like I have used the cash flow, marketing plan and retrofit budget …. as much as I can.  Let this be a lesson for you as well.  Create a schedule and make sure you update and check it weekly.

 

Quick Update on Things …

I think back to the days when we were first getting started with the brewery, and I can’t help but think how much time I had to do things.  It didn’t seem like I had a lot of free time, but in reality I did.  What I really had was the ability to get on top of things, which I have completely lost now. Let me try to explain.

When you first start writing your plan, you have time to dream, think about your beers, your brand, name, etc.  It is a natural part of things, and something that if we didn’t do, we wouldn’t be doing this.  As time moves on, you tend to get to more of the meat of the operation, and you need to start figuring out some details.  As time progresses, you think you have figured out a lot of the details of your space.  Things like brewhouse, packaging size, general location of warehouse.  You think you have made a lot of these decisions, but you haven’t.

You continue to work on your business plan, making what you think are decisions and changes of direction …. and then you do it.  You find a space to lease and you take possession.  This is when it starts to really happen.  You actually start making decisions, like general contractor, architect, brewhouse size, etc.  You think you are doing well, because you have made actual and concrete decisions.

What you don’t realize, is that you have only started on the tip of the iceberg.  There are thousands of decisions to make.  None of them are more or less important than any of the others.  Think of details such as these:  Size of cooler door to the inch, length of drainage trenches down to the inch, slope on concrete pour down to the degree, exact location of trade waste interceptor, etc, etc.  There is so many small decisions to make, it can become overwhelming.

Coming full circle, each of these decisions take time, and trust me when I say, you have very little of it.  Your funnel at the top is getting loaded faster than you can empty it.  About a year ago, you could pound out a good 60 hour week and be back on top of everything, but that is a pipe-dream now.  A 60 hour week will only mean that I have about 300 hours of unfinished work sitting around waiting for me to complete.  There is no way of catching up short-term, it is a matter of prioritizing and getting small jobs done.

Add to all this the work around the brewery.  I have been tying rebar and working around the brewery 7 days a week for the past few weeks, and there is still so much to do.  Take for example a typical day in my life.

  • Get up at 5am to 530am
  • Work in front of my computer until 745am
  • Get kids off to school and lunches made 830 to 9am
  • Drive into brewery to do work 930am
  • Manual labour all day at brewery until about 930 am to 3pm
  • Home to do work in front of my computer (accounting, marketing, business planing, etc) 330pm to 5pm
  • Down time, hang with family, 530pm to 8pm
  • After kids in bed, back to computer for more work 8pm to 11pm
  • Off to bed to do it again

This is a pretty standard day, and I know one that my partner also goes through.  If you are going to open a brewery, and you want to take an active role in starting it, be prepared for a day like this.

What you will find is that how badly you really want to do this will go a long way to making the above feel like work, versus feeling like a dream.  Luckily for Iain and I, the long days are a dream and the passion is burning brighter than ever, so we know we have made the right decision.

Best Practices … Writing a Business Plan

I spent the night on Sunday at Hoppapalooza, one of the best events for Vancouver Craft Beer Week, hosted by the amazing Alibi Room.  I had the chance to speak with many amazing people at party, many of whom gave me great suggestions and advice on what choices to make with our brewery.  I was asked numerous questions about our business and starting a brewery, which I found very interesting and flattering.  One of the questions I was asked several times throughout the night, was about writing a business plan.  It is also one of the questions that I get asked most often via email, by way of this blog.

So instead of going on and on about the business plan, what to put into it and what not to put into it, I figured it would be best to just give a few pointers and then a list of important points to consider when creating one.

  1. Start with the end in mind:  Yes, this is one of Stephen Coveys 7 habits of highly effective people, but I have always liked this point.  So in other words, what are you going to use the business plan for?  Your answer to this question will directly effect the scope of your plan.  A plan to just figure out your operations might be a little different than one aimed at investors.
  2. Put more into it, get more out of it:  Our business plan was a real labour of love.  We put excessive amounts of time and energy into our plan, as both Iain and I have personalities that make us overly fastidious about this kind of thing.  So we spent a lot of time making sure that we planned every detail, and projected every scenario, good and bad.
  3. No matter what, this is your roadmap:  We refer to our business plan on a regular basis, and it has become a living document for our business.  The great thing about having a plan is that it also allows any difference in opinion you may have with your partner to be vetted.  Moreover, the roadmap ensures that when you opinion changes in the future on something, you can judge it against a baseline, of what you once thought.
  4. Plan for about 6 months minimum:  I can’t see how you could write a well thought out business plan in less time than this.  Our business plan was a solid 12 months of writing, and then about 2 years of reviewing and revising every component of it.  By the end of the 2 years, our plan had completely changed several times over to become what it is now.  Moving forward, our plan will surely continue to change, and each time, we will take the time to update the details, so that our roadmap stays accurate.
  5. Its all about the financials:  Your cash flow is the most important part of the business plan.  It has to be realistic and it has to prove that you can make money quickly and consistently.  If you financials don’t add up, then you need to re-evaluate what you are doing  and the approach you are taking.  Our cash flow has become a monster, and it is something that without, we would be lost.
  6. Keep it short and sweet:  No matter what, but out all the crap.  Your plan should be no more than 25 pages written and about 25 exhibits.  For your financial projections, create a high, low and medium.  Shoot for the stars with your high projections …. say Parallel 49 or Driftwood.  Aim for realistic on the medium …. say Powell Street or Coal Harbour.  Seriously tank on the low, so you know what could happen …. say Surgenor or other under performing brewery.  The low will get you out of bed at 5am, the high will keep you dreaming of what could be, and the medium is likely where you will end up (I think).
  7. Don’t use we, use your company name:  Maybe this is just a stylistic thing or my personal preference, but you are not talking about you, or your life.  You are discussing a business that you may or may not be a part of down the line.  According to your lawyer and accountant, your business is an entity unto itself, so refer to it that way.
  8. Have sub plans for various facets:  We have a marketing plan that is about 25 pages, and a production plan, that is also about 25 pages, along with a few other plans we are working on.  Each of these detailed plans will be shortened and augmented to fit within your plan.  Just put a note in that section of the business plan, that there is more information if the reader so desires.
  9. Non-disclosure:  You may be handing out your business plan more than you think, so you will need to decide who needs to sign a NDA and who doesn’t.  From what I read, anyone that is a seasoned investor, don’t bother asking them to sign one.  It will be insulting.  But for others who are already in the business, or locals who you might think will tell the world what you have planned, it is your call.  We really never had anyone sign our NDA, other than some local brewery owners who we were going to partner with (but didn’t) several years ago.
  10. Prepare a presentation:  Maybe not if you don’t need any investors, but for those of you who need outside investment in your brewery, create a power point presentation of your plan, and summarize the key points.  Make sure you let the people know what is in it for them.  They will always want to know what they will get in return for allowing you to use their hard earned money.  Practice your presentation over and over, until you feel at ease.  Make sure you try it out on a few people before you go to any actual investors.
  11. Prepare to get rejected:  I didn’t track all my failures as much as could have, but I will tell you that I met with about 50 people over the course of 18 months, and we have only about 10 investors in our brewery.  That meant I had a 1 in 5 success rate.  You may be much better than this, but no matter what, expect some people to pass on your opportunity.  Don’t take it personally, ask a lot of questions why they didn’t go with you, and learn so that you can minimize this moving forward.
  12. Be proud, positive and confident:  I am overly realistic, so one of my biggest challenges was that I didn’t sugar coat anything for anyone.  I never promised that we would make it, never promised riches at the end of the journey, so if things did go off the rails, I would have my conscious clear.  However, you can still be proud and positive about what you are doing.  In fact, this is super important.  No one else will believe in you, if you don’t believe in yourself.
  13. Use a business plan guide:  I have my business plan guide in storage, so I can’t tell you which one I used, but be sure to have a guide that will help walk you through each of the key facets of your business plan.  A guide explains all the details that you need to know, and will help you determine how to best write your plan.  I have written a total of 4 business plans in my lifetime, and I still wouldn’t consider writing a business plan without some sort of guide to help write the plan.

So that is my best practices on writing a business plan.  I will gladly send you a copy of my business plan, should you want to see what we created.  Just send me a message.  Best of luck, and writing a business plan can be a lot of fun, so make sure you prepare yourself for an amazing journey.

 

The toll this brewery is taking on me

There are so many amazing parts to starting your own business.  Things like never having a boss again, being able to build a business and brand, making choices based on your own preferences and opinions, and how every day is a new and amazing adventure.  These are experiences beyond words and they have helped to make the process of starting a craft brewery all that you think it would be.  The other side of this equation involves many other experiences and instances that are less than glamorous, or things that become worse through this process.

One of these things is the relationship you have with family and friends.  It is not that the business directly effects these relationships, rather the extra time and attention starting a business takes will eat into the amount of time you have for those close to you.  It is a slippery slope to walk, and one that you will often find yourself on the wrong side of.  There are many ways to get back to the other side, but it takes ingenuity and changing the established patterns you have …. and lots of coffee.

For me family is everything.  I love spending time with my wife and kids.  For the most part it is a release from the challenges and grind that makes up starting a business.  However, that can become a challenge when you have a list of 40 or 50 hours of work sitting on your desk.  Things like entering information into Quickbooks, marketing, ordering equipment, budget revisions, brewhouse work, manual labour, meeting with trades people, and even writing this blog.  All these things help to chip away at any sense of release you can enjoy when not at your desk.  In other words, your mind starts to wander when you let it, when sometimes what you need is to forget about the business.  That is always easier said than done.

Starting a brewery also means that you have a LOT less time for family and friends.  Saturdays become work days, early mornings are the domain of getting to-do’s checked off your list and late nights are for preparing for the following day.  Sitting with my wife watching a little TV, figuring out who is working when, or even talking about life seems like something we rarely do anymore.  Life is busy enough with all that is going on, but to think how much time I have taken away from focusing on my life partner is a little alarming.  Same goes for my kids.  I have been accustomed to being there for my kids over the past 7 years.  I pride myself on coaching their sports teams, dropping off and picking up them from school, and helping with the myriad of chores around the house.  All of these things become much harder to do when you are focusing on your selfish dreams.

This selfishness is something we all deal with at some point.  Maybe you are looking for additional work to pay off some bills, or you are back in school trying to get a degree, or maybe you are starting a brewery!  No matter how you break it down, being selfish results in different things at different times in your life.  When you are in your 20’s, focusing on yourself is a lot easier that your 30’s, when family becomes a (really good) drain on your time.  Now that Iain and I are into our early 40’s, the lack of time for family and friends is only made worse by a lack of energy.

So with all this in mind, I should officially take this forum to apologize to my dear family and my amazing friends.  I am sorry that you don’t see me as much, or hear from me as much as you have in the past.  Or when I am around I might be distracted or preoccupied with thoughts of my life.  Just know that during this chapter of my life, my focus has changed and that I hope balance and normalcy will return one day.  Until then, maybe tell me to lighten up or crack a joke when you can, it will help me be in the moment.