Tag Archives: r and b brewing

Its official, we are going to be delayed in opening …

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.

 

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The jobs involved in opening a brewery …

There are many things to do in starting a business, that much is for sure.  But let me be the first to say that there are about twice as many jobs to get done as you first anticipate, when you are conjuring up your business plan months and years before actually taking that leap of faith.  With the help of this post, you can plan ahead, learn some skills, mentor from someone who has experience, take a few classes, or just meet someone with a complimentary skill set to yours.

In no particular order, here are the things you need to be good at:

  1. Salesperson:  Maybe I put this first because I feel like there is so much of this process that you need to get buy-in on.  Whether it be your spouse and why they should support you in opening a craft brewery, investors to see a bright future in your business, or even possible partners to believe in what you are doing, you are always pitching an idea to someone it seems.  Not a lot of people have sales experience, so I would recommend Spin Selling by Neil Rackham
  2. Janitor:  Get really good at sweeping.  This means finding a messy floor somewhere and getting a good broom and going to town.  A couple techniques.  There is the long stroke or the short stroke.  I seem to prefer long strokes on smooth surfaces and short strokes on rough surfaces
  3. Accounting:  There is no way you want to get behind on this one.  From the start, have a good idea of your plan for taking care of the books and reporting this information.  We use an accountant and they have set us up on a system that works with their office.  Essentially, we track everything in quickbooks, pay every bill and invoice, and then push this to them at the end of the year.  Easy enough, but it was a long road to get here.  My recommendation is to use Quickbooks, which is available online for $250.00 or so.
  4. Digger:  Another really important skill to have.  I suggest you head to the beach, and try digging a couple holes and a trench.  Do this a couple times a week, so that when it comes time to dig up floors, or shovel dirt, you are in prime shape to make this happen.  A key here is to manage your shovel loads.  Not too much dirt now …
  5. Marketing:  I have always kept marketing separate from sales as I think they are 2 very different things.  In short, marketing is the long term plan and vision for your brand, and sales is the day-to-day activity.  Read some books, look at other companies, brands and marketing whenever you can, and learn from others who specialize in this to get a better understanding of what you should (and shouldn’t) do.  My book recommendation here is Permission Marketing by Seth Godin.
  6. Steelworker:  My hands don’t lie, you will need to get good installing and tying rebar and wire.  I suggest you go get a job tying rebar for a week at a local construction site.  Make a B-Line for the site super and tell them how your baby soft hands are in need of toughening up.  Don’t forget to strengthen your lower back as well, as you will be bending over for most of the day.  Just find your happy place, and try to think about how great it will be to serve your beer to the world when you are finished.
  7. Decision Maker:  You will need to to learn how to make decisions based on the advice of others.  It will often involve a complex set of parameters with varying opinions, the exact answer you must decide on your own.  Good examples is whether to lease that warehouse that is empty or what floor plan to use for your brewery.  You will get opinions from realtors, bankers, lawyers, engineers, accountants, architects, and even your friends and family, but at the end of the day, you make the decisions, so don’t overlook or underestimate what is important to you and how this decision will play out long term.  My book recommendation is Crucial Conversations by Kerry Patterson, a must read.
  8. Painter:  Up, down, up, down, repeat.  Think of Mr Muyagi in the Karate Kid, and practice for painting with painting.  This process should actually start with power washing, so find a dirty piece of concrete and let loose about 1,000 PSI to see what it feels like.  When you have mastered use of the wand, you can move to painting.  This involves a lot of cutting plastic poly, taping, and scraping.  So get ready for the time of your life!  Remember patience is the key to getting a good paint job.
  9. Social Media:  There are some breweries that open and they have put nothing out there, while there are others who tell everyone what they are doing every step of the way.  I wouldn’t say one approach is right and the other is wrong, I would just say if you aren’t active in social media, at least understand what is happening and how you will take part in that down the road.  My book recommendation here is Guerrilla Marketing
  10. Psychologist:  When you are dealing with trades people, construction workers, and general labourers you are going to hear stories that will make you cringe and make you smile all at the same time.  Time to talk some sanity into these people!
  11. Human Resources:  you are going to hire people down the road, so its important that you understand what skills your team has, and what skills you would like to add to the mix.  Without question, every person you hire is important, but the first couple out of the gate will truly make or break you.  Hiring for Attitude is my book recommendation for this bucket
  12. Bathroom Cleaner:  Thats right!  Get down on your hands and knees and scrub.  Great preparation would be to head into your local Frat house and start cleaning the toilets.  You see, trades people have the aim of a 3 year old boy, and the cleanliness of …. well a construction worker.  So rubber gloves and eye protection are mandatory, while hazmat suit and respirator are optional.
  13. Copywriter:  A bit of sales and a bit of marketing in here, but that is not the point.  You need to be able to convey information to others in written word.  Whether it is your brand statement to consumers, a letter to your architects expressing your desire for changes to a plan, or the content on your website, you need to be able to write in concise terms.  Personally, I am not the best at this, as those who read my blog with regularity can attest, but it sure is something you can work on … like I do in writing this blog.  My book recommendation is Writing that Works.
  14. Phone Hanger Upper:  You will get good at hanging up the phone.  This is a product of having a lot of phone calls, but also a lot of telemarketers call.  I find the best way to get out of the conversation is to cut yourself off mid-sentence, that way the other person will think the line was disconnected.  Don’t hang up while they are talking, as it is a giveaway you did the dirty.
  15. Retail Manager:  A huge portion of a new breweries sales take place at the tasting room and growler fill area.  For a company like Brassneck, the experience they gained from their previous experiences only helped to make their retail experience what it is …. amazing.  Same goes for Bomber and others, as their retail experience only helped them to make sure they got the retail area perfect.  For us, we need to find help on that front.  We need someone who will understand what we are doing, and help us to nail it.  We are looking for this person and hopefully they can come on board at the right time.
  16. Mechanic:  We have yet to experience this one for the most part, but it would be wise to learn some basic skills around fixing things.  I have heard the horror stories of things breaking down and needing repair in a brewhouse are too numerous to mention, so knowing what to do, or who to  call is a very important component of keeping operations smooth.  Remember, red is positive and black is negative.
  17. Delivery Person:  When the production gets going, we know that a good portion of time will be driving around and dropping off product.  We view this interaction as very important, and something that we need to do in person.
  18. Production:  Maybe I put this last because it is the most important on this list.  I still maintain that we can get everything else on this wrong, or not have any skills in those areas, but as long as you make a quality product that is consistent, you will do well.  Maybe I am a little naive, but having good beer will make everything else easier.  So this is where you need to make a choice:  Either find someone who knows and wants to handle production, or learn the skills necessary yourself.  Guys like Ben Coli are a good example of someone who wanted to handle production themselves.  I would be antithesis of this, as I always knew there would be someone else handling this part of operations.  I think at the end of the day, you need to decide what role in the business you want to have, and go for it.  Book recommendation here is any and every book that has to do with brewing or production.

The most interesting thing about this list is that you will be doing all of these things on a daily basis.  There are days I go from item to item to item, and then I repeat a few of them.  That makes the job interesting, but also means you have to get really good at prioritizing, multi tasking, and working in several silos all at the same time.  For instance, as I write this post I am also answering emails, texting my partner and yelling at my kids!

Landing Page Is Live

The process of getting all your customer facing material complete is full of ups and downs, set-backs and great moments.  For some reason, we always seem to be behind everyone else in getting this stuff complete!  If you have followed this blog, you know that things like our name, our logo and our packaging are works in progress.  Some days it feels like we will never get all the the items completed in time for launch which is now less than 5 months away.  Yikes!

This week we crossed of one small piece of our brand off the list:  Our Landing Page.  It was completed over the course of about 12 weeks, and while it is pretty simple, the process was full of change and tough decisions.  In the end, we are super happy with what we ended up having.  If you want to view our landing page, click on this link to be redirected.

Key learnings from landing page development, and web development for that matter:

  1. Start on this sooner rather than later:  Don’t wait as long as we did.  Consumers want to connect with you, so make sure you allow them the opportunity to do that.
  2. Expect 12 weeks start to finish:  If you are anything like us, there will be changes, u-turns, miscommunication, and a few other things that I can’t even mention.  All this makes a rather simple task a lot more of a grind.
  3. Prepare a brand guide:  This is a key step in the process to getting your brand ideal and message known to yourself, and then to others who are going to work with you.  Don’t leave it to a 30 minute meeting to let a web developer get a feel for your brand.  There has to be something concrete they can sit and read, minimizing the margin for error.
  4. It takes a while to see progress:  It feels like trying to get out of bed some mornings.  There are a couple false alarms, there is snooze involved, a little confusion, and a lot of light steps to get going.  Sometimes, after getting going, you just head back to bed and let it go for a little.  Building a website is a LOT like this.
  5. Stay connected with those helping:  No doubt about it, the more leash you give someone, the more likely they are to go down the wrong path and end up at a place that doesn’t mesh with you and your brand plan.  So have regular meetings and ask to see enough information to be kept abreast of things.
  6. Get detailed scope of work:  When you first sit down to finalize an agreement with a developer lets say, you will agree to a scope of work for your project.  If you want to add something down the road that is not in this scope of work, you are going to pay out of pocket.  As such, either agree to a rate for extra work, or budget in 10% of the total hours for misc work.
  7. Speak up: If you don’t say what you do and don’t like, you will not end up with a finished product that matches what you thought you would have.
  8. Balance:  Not sure what else to put as a heading here.  Sometimes you need to let someone else decide what is best for your brand, which goes against your taste or preference.  Others you need to get that person to change direction, against what they like.  It is a balance and one with no prescribed way of moving forward.  Just hope that you, or those you surround yourself with, have enough similarity and differences in opinion for a healthy relationship.
  9. Build from Scratch or use a wordpress:  Thats right, you will need to decide whether your website is built from scratch or uses wordpress as the foundation.  One costs more, but gives you a very custom website, and the other is much less expensive.
  10. Do something unique:  For us, in addition to writing this blog about starting our brewery, we added a webcam to our website, so people who are interested can view what is going on during construction without having to be there.  Just having another website with the usual information is not enough in my opinion.  Craft beer is booming, which is a great thing in so many ways, but also means you need to stand out a little bit.
  11. Brand Continuity:  Make sure that your website reflects who you are, the beer you are going to make, the brewery you are going to build, and what you think you should represent.  If you get away from this, you will end up at a place that is entirely what you don’t want.

So there it is.  Another set of best practices for starting a brewery.  There is so much more to a website than meets the eye, so don’t take this for granted.  Get thinking about this early on, and start much sooner than you think you need to.

The End of One Dream …

How do you thank someone for the ultimate sacrifice?  OK, we aren’t talking giving up a kidney, or sacrificing their own life in the line of fire, but my amazing wife has provided me with the means to start this brewery.  Thats right, starting this brewery is taking sacrifices from more than just myself and my business partner.

Let me give you a little context.  There is nothing my wife has wanted more over the past 5 years than to build a home.  A place to have memories, raise our family and get away from the daily grind that is our life.  We both envisioned the process as an arduous one, but at the end of it, you would have a home that you helped bring together.  It was her dream, and we worked hard to make it happen.  We bought a piece of land about 3 years ago with the dream of building our home …

Let me take a further step back.  About 10 years ago, I started talking to friends and family about the dream of opening a brewery.  Thats right, this has been a 10 year process for me.  In a way I have become the definition of patience (and for anyone that knows me, this in itself is a little hard to believe, but thats another story).  For the first 4 years, it was a lot of business planning, sampling, and more planning.  The dream seemed very far away  About 6 years ago, I started to get more serious and decided to get my real estate licence, allowing me the time to get out of my full time job, and focus a little more time on my brewery, as being a Realtor allows for a healthy dose of flexibility.  I ended up parting ways with my job in 2011, and have been focusing on real estate and starting a brewery for the past 3 years.  As time has moved on, I have kept getting more and more serious.

So back to 3 years ago, when my wife and I purchased a property for developing.  We purchased knowing that my brewery dream may or may not come together (it has been 7 years that I was talking about it with no progress after all), so we just went with it, and hoped things would work out.  As you can imagine, we followed down both paths simultaneously and didn’t try to overthink much of anything.  My wife hoped that things would work out with her dream of building a house, while I hoped that things would work out with my dream of starting a craft brewery.

You can imagine where this headed.  About 6 months ago we subdivided our property and were finally in a position to think about building our dream home on one lot and selling the other.  This was a moment that we waited for about 20 months to happen, so it was a great moment for our family.  It was about the same time that things with our landlord got very serious for the brewery space.  We made an offer on our commercial space for the brewery, and we were finally in a negotiation with a landlord.  You see, we had tried unsuccessfully for 12 months to lease spaces, and never got to the point of actually being in negotiations.  The process with this landlord was going so well that we applied for a development permit (what you need to get to be allowed to produce beer … a key step to say the least) with the City of Vancouver before we had a lease in place.

Not knowing how all this would go, we continued forward with the dream of building on our property.  We continued to meet with an architect, and we moved forward house plans to the point where we were ready to build.  We just needed to sell one of the lots and we were ready to start building on the other lot.  Selling anything in the last 4 months of 2013 was difficult, especially a property like ours.

Fast forward to very early January 2014.  We finally found a dance partner for one of our properties.  This meant we could sell a property and begin building on the other.  However, it was also in January that we knew we were going to sign our lease.  So it meant my 2 worlds were colliding and we had no certainty with which to make a decision.  Essentially, do we move forward with selling only one property and hope that we can find a way to finance building a house on the other property, all the while, financing a significant part of the brewery.  If you have been following my blog, you know that I always think Cash is King, so it would be so tough to do both.

At the end of the day, after a lot of tears, arguing, and selfishness to be completely honest, my wife and I agreed to follow the dream of starting a brewery.  The time and financial burden of building a home, in addition to the time and financial burden of starting a brewery proved too much for us to handle.  So we decided to sell both halves of our property instead of just one half, allowing our family to focus on my dream, and bringing to the end another dream.

Think about it from the standpoint of my wife.  Every time I talk about the brewery, I stay up late or get out of bed early, every time we write a cheque to pay for something, every time some asks how things are coming along, and every time I come home to our rental house, my dream is at the expense of satisfaction in her life.  People ask me about the brewery and I get excited, and when people ask Deanne about building a house, she just sees my dream, at the expense of hers.  When people ask what has been the hardest thing about starting a brewery, it is this.

So, to come full circle, I hope one day to be a brewery owner and build my wife a house of her dreams.  It might be a few years before his happens, but I do plan on returning the favour to her for the sacrifices she has made for me.  I can’t think of a more selfless person, and for this I am forever indebted to her.

My amazing wife has given up her dream of building a home on our property, allowing me to start a craft brewery.  Her sacrifice is the ultimate and one that will allow me to stat a craft brewery.

My amazing wife has given up her dream of building a home on our property, allowing me to start a craft brewery. Her sacrifice is the ultimate and one that will allow me to stat a craft brewery.