Tag Archives: Starting A Craft Brewery

Best Practices: Tank delivery

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After having received our fermenting and conditioning tanks, there are some things that we learned, and I would like to pass them onto anyone else that is ever going to receive tanks.  There is a lot to know, but basically it comes down to preparing properly and having someone to help.

We ordered our fermenting and conditioning tanks from China, so ours arrived in the least convenient manner possible.  By shipping container, at a random time during the day.  This was the start of the challenges, but thanks to an amazing person, we quickly learned how to get everything off the containers in a safe and efficient manner.  Here is my list of things to do and not to do.

  1. Plan the day ahead of time:  Duh!  Just make sure you tell all the other trades what is happening, and plan for guests to not show up, even though it is a really exciting day.  It is not one that you can socialize on or anything else.
  2. Work with Customs Broker:  Don’t leave this to the last moment.  Make sure you have someone that can help you get the shipments into your port of entry.  We selected a company about 1 month ago, and it was a very good choice.  If you are BC based, let me know and we can connect you.
  3. Bring in other shipments into Canada ahead of this shipment:  Order something, anything as if you have a history of bringing shipments over $2,000 into Canada, then customs is much less likely to open one of your containers.  Why is this an issue?  If they open any containers, they charge you an inspection fee and it can run over $1,000 per container they look at.
  4. Rent a second forklift:  Having a second forklift made our job a lot easier, as one forklift could focus on bringing the equipment into the warehouse, which left us with another that could support or help out where needed.  Get the second forklift with long forks, and get a pair of fork extenders for your own forklift.
  5. Get strapping, wood and other materials ready beforehand:  You should have lots of cardboard on hand for putting between the forks and any tanks, wood pieces for resting the tanks on, straps for securing the tanks when offloading, etc.  All of these things will make your day go a lot smoother.
  6. Have your team all ready and available during the day:  Even if 2 or 3 of you are unloading the stuff, everyone else who is around should be ready to help out as needed.  We had a few tricky moments, and if we didn’t have 5 or 6 sets of hands around, it would have been a lot more difficult.
  7. Think about a professional:  Lucky for us, we employed the services of someone who works for Ripley tanks.  This person was the only reason we got through the day.  He has unloaded heaps of containers in the past, so his knowledge about the process was more than invaluable.  He led our team, and he made things go quickly and easily.  We had only one mishap and that was due to driver error.
  8. Plan for a long day:  It took us 12 hours to unload 20 tanks, which ranged in size from about 15HL to 30HL.  If your tanks are smaller, it might go a little quicker, but we averaged about 2-3 tanks per hour depending on the size.
  9. Work efficiently for cost savings:  We received 2 free hours per truck that was delivering the tanks.  If we went over, we would have to pay.  So be quick and get things off and move on.  There was a time that we had about 8 tanks sitting in our parking lot.
  10. Plan for the wrong order of tanks:  We received our tanks in an order that wasn’t ideal.  The result, we had to have a plan of where to put them, and how they would go into our space.
  11. Get your Glycol and Floor Coatings completed ahead of delivery:  Our tanks are still in the same position as when they arrived, as we don’t have all our floor coatings complete, and our glycol system is still a work in progress.  If we had these things complete, we could easily  start putting our tanks in their final position.  My advice, plan ahead and get this stuff done as quickly as you can.
  12. Make extra room:  You will need twice as much space as the tanks will occupy, for storage, moving them around, placing and re-placing.  So the day before, make sure you create this space.

I am sure there are other things we did and didn’t do, but I can’t think of them right now.  Hopefully this list helps, and if you have specific questions, please don’t hesitate to email me.

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10 BBL Brewhouse for Sale

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During the process of starting a brewery and writing a blog about starting a brewery, I have met and continue to meet many fascinating people.  These are people who are willing to do as others have before us, and risk everything they have achieved in order to start a business.  You see all sorts of personalities and business ideas come through, and they run the range from amazing to crazy.  Some people have leased a space without even having a business plan, and others have strong marketing backgrounds, and others lots of home brewing but no commercial brewing experience, etc, etc.

One of the groups that I have recently met purchased a brewhouse with the hopes of using it for their own purposes, but their circumstances have changed and they are looking to sell this.  So there isn’t much more to say than this:  If you are looking for a 10BBL brewhouse with all the parts and potentially someone to help consult with you, send me an email, and I can connect the two of you.  I don’t know the price, and I don’t even know all the equipment that is included in this set-up, but from the quality of the individual who is selling it, I am sure it will work out well.

If anyone you know is looking for used equipment, please pass along this information.  I know it is very difficult to find equipment in the marketplace, given the growth of craft beer throughout North America.  Having  an inside line like this can be a huge help in starting a business and saving cash on the most important part of your business.

As always, send any information to:

startingacraftbrewery@gmail.com

 

Hammering out the Electrical Details … its sometimes a 4 letter word!

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Actual Conversation that took place at 9am Friday morning:

Matt: What about the following Electrical items:

8.1c-3, 4.32b-1, 8.0a-9

Iain: Where is that in the plans?

Matt: I can’t find them, do they even exist?

Iain: Here they are. A 5 horse power pump 3 phase 220 volt and 2 outlets

Matt: Those outlets and pump aren’t in my plans

Iain:  They are in my plans, but they are in the wrong spot

Matt: Where is the number for the engineer, I need to call him.

Get used to hearing these kinds of things when it comes to putting electrical infrastructure into your building. The work requires continuous attention to detail, and meetings between your electrician, electrical engineer, general contractor and the end-users (us)! There are lots of false starts and errors, so prepare mentally for this. Getting as much correct as you can early in the process will mean fewer change orders, which ends up saving you a lot of cash.

One of the biggest challenges we have had around the electrical work is the process. It is an inexact science and one that is full of frustration and teeth grinding. The process kind of goes like this:

  1. Pick your equipment and finalize this before anything else can start.
  2. Determine the power needs of that equipment.
  3. This is a chicken or egg thing. On much equipment, you can choose what kind of power it will take, which means you need to know what kind of power you have available. For much of your equipment you can have it made to the power you want to provide.
  4. Convey this information to the architect and electrical engineer who produce drawings for your electrician.
  5. Determining the exact location of the equipment on the floor plan. You need to have this buttoned down, so that all the information can go back up the line to everyone that needs it
  6. Make sure that all this stuff meshes with the latest version of your layout. Sometimes you electrician is working with non-current plans, which means that different tables and arrangements will result in different locations for power needs
  7. Making sure that the workers who are going to do the work know what is going on.
  8. Check back with everyone to make sure that all is ok.

Clearly, this is an inexact process. It is one that seems easy at first, but when you really look at it during the process, it is really hard. Trying to coordinate all of this is so difficult. We have had meetings where people literally leave steaming mad because they have been given the wrong information, or their workers haven’t followed the changes … there is a lot of coordinate.  Moreover, if you get anything wrong in that process you literally need to spend an hour push up and down the line to everyone else, explaining what happened and what the new plan is.

It is also important to get equipment using 600V where possible. In short, using a higher voltage makes electric motors more efficient, as there is less current needed. We are lucky in the sense that we have the power available to do this, after we are spending a bunch of money to upgrade the service from the street.

There is always going to be the stuff that people have overlooked. For instance our electrical engineer missed a couple pumps in our layout, so it was never discussed again until we found this out. When this happens, everyone scrambles to find these on the plans, and when you don’t you start to question what has happened and what you can do.

To help make this process easier, you should always try and work with professionals and engineers who are supreme communicators. You will need to be in constant contact to ensure that everyone is on the same page and everyone within their teams are also on the same page. It also helps that the electricians who are doing the work are committed to the job. If they can’t have someone at the brewery all day 4 days a week, you should look elsewhere.

Don’t forget to plan for power outages, and share the plan for renovations with everyone and every sub-trade. People need to know when power is going to be cut, when deliveries are being made and when floors are being coated. If you don’t coordinate this information, others will waste time and become increasingly frustrated with your job, potentially leading to bad outcomes down the road.

It becomes so apparent through this process that things like the electrical upgrade, floor issues, seismic needs, and sprinkler additions/installation are huge costs and enormous burdens to have to deal with. It is one of the reasons I have always told people who are interested in starting a brewery to make sure you find a space that has some of these things done. You may not be lucky enough to find one with everything completed, but the more of these major items completed, the quicker and cheaper your retrofit will be.

 

 

Best Practices 1st 1/2 of Mechanical

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Having just got through the Mechanical portion of the construction of our warehouse, I feel like there is a lot of information that is crucial and really important for future reference.  In all, this is probably the part of the job that is filled with the most grunt work.  It is messy and for the most part thankless work that requires lots of lower back strength and willpower.  There are times that I wanted to quit for the day, but what served the process really well was to persevere and make it to the end of the day.

Like every major step of this process, I have learned much about this portion of the construction process, and I have completed a chart below that helps to summarize the key learnings.

  1. Pick the Right Mechanical Contractor:  This is likely the most obvious item on this list, but the one that needs the most time and attention before things start.  Make sure you work with a mechanical contractor that is willing to work with you throughout the process.  Things like are they going to dedicate their time to the job, are they using 1 man or a 3 man crew, or even how many days of work do they expect the sections to take.  Knowing some of the details, will help your expectations be in line with reality
  2. Make sure you look for ways to cut costs, and make sure to negotiate these reduction in fees can go into your pocket and not your mechanical contractor:  By this I mean, if you want to change something, like a trade waste interceptor or location of a drain, the expectation is that they will not overcharge you for this.  You will need to talk about items that could change down the road.  We have changed a lot of stuff.  Hot water tank, locations of drains, flow meter, trade waste interceptor, and a bunch of other small stuff.  What is important is that we talked about this early on in the process, and we have hammered out a good deal with these kinds of things.
  3. Get ready to dig:  You can hire someone to dig, and the cheapest we could find labour through someone else is $25 per hour all in.  If you want to hire someone off the street, they are not going to be covered by WCB, which is a big no-no, and more importantly if something happens, you are screwed.  So this means that to save money you are going to be working that shovel.  Between Iain and I, we spent over 150 hours combined on the shovel, which by my quick math has saved us about $4,000.  It doesn’t seem like a lot, but in the grand scheme of things, that is $4,000 more we have for something else.
  4. Get the right size trade waste interceptor:  Getting a TWI too big or too small will mean trouble no matter how you cut it.  If you get one too large, you won’t have to clean it out very often, but it will be a pain in the ass to install into your floor.  A TWI that we looked at was over 11,000 lbs, which had a list of issues when you were trying to install.  If you get a TWI that is too small, it might be a lot easier to install, but you will be calling every month to get it cleaned out.
  5. Use a plastic trade waste interceptor:  We ended up going with a plastic TWI which solved all our problems.  It was less expensive that a traditional TWI and it was a lot lighter than a normal TWI, at only 350 lbs.  In fact, it only took of us to lift it in the hole.  Make sure you make the decision on this early in the process.  You don’t want to hold up the process with fretting about a decision.
  6. Get drawings from your Structural engineer early on in the process:  I have written a full post about our issues around a structural engineer, so if you follow my blog you know well our issues with this area.  In short, get your structural engineer on board early, and make sure you agree to a timeline of what needs to be completed and when.  If your expectations are met, you are golden.  If your expectations aren’t met, then you need to take action.  At the end of the day, it is your ass on the line.
  7. Get lots of quotes:  There is more to this aspect of the process than just the mechanical work.  There is laying out of the floor plan, concrete cutting, concrete removal, digging, grading. forming for concrete, installation of rebar, drilling of holes for rebar, packing holes, filling with dirt, compacting, and likely more and more digging.  You can choose to do some of this on your own or you can pay someone to do it all.  Our advice, save some money and do it yourself.
  8. Don’t forget about the flow meter:  I can’t say that I know too much about this, but definitely the city of Vancouver requires a flow meter, located after the TWI, to measure the amount of effluent you pass into city sanitary sewers.  Make sure you include this in your plans when you dig, so that you aren’t left doing additional digging afterwards like we did.
  9. Upgrade the water line:  We didn’t need to put an upgraded water line in, but you will likely be doing this through this part of the process.  I can’t say I know anything about this, but I have heard it costs about $10,000 and up depending on how far the line needs to go.  I am sure its no harder than any of the other digging that happens, it just adds to the amount you are doing.
  10. Tamp the ground excessively:  It is better to tamp the ground more than less, so that you have less movement of the substrate down the road.  This is pretty simple, but it is easy to overlook as the whole process is so grinding.  Just do one extra pass to make sure all goes in well.
  11. Cover up areas near the concrete pour with plastic:  Pouring concrete is a dirty, messy job and the guys that do it, don’t really care about anything other than getting the job done.  We were given the advice to cover areas around the concrete pour with plastic, so that the spray of the pouring wouldn’t get everywhere else.  We are really glad we did this, and it saved us a lot of headaches.  The few areas we didn’t cover we wish we did, as they are sprayed with concrete and we can’t get it off.

The toll this brewery is taking on me

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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.

The jobs involved in opening a brewery …

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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!

Floorplan Update and Best Practices

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Some of you may have come across a story written by Greg Clow of Canadian Beer News.  If you live in Canada and you are serious about beer, you should be checking his website on a regular basis.  Click here to link with our story and Canadian Beer News.  His article focused on Strange Fellows operations and what our full floor plan will look like when complete.

I have included both the layout we have moved forward with as well as the side profile of the space, so you can get a sense of the way our operations will look.  Not unlike anything else we put out there, things will change somewhat as we move ahead; however, 90% of what is on paper here will be represented in our build-out at the space.  Once you commit to submitting building, electrical and mechanical permits, you are also committing to what you have on paper.  So in other words, the size of a window in our tasting room that overlooks the brew house may get bigger, but we have committed the location for the bathrooms, the trade waster interceptor and the trenches.

Brewhouse Layout March 2014

Brewhouse Profile March 2014

We have allocated a total of $12,500 for permits throughout this process.  I have blogged about them a little bit under The Process of Starting a Craft Brewery, subcategory X:  Government Stuff.  There are lots of permits you need and getting them all in a timely manner is important.  To be honest, the process of preparing for permits and approval is one of the keys to getting this process right.  In short, for your business to move forward you need to submit for your permits in a timely manner, with information that is well thought out, thorough and correct.  Changes or missed steps here will cost you down the road.  Read more about permits at the page linked above (and I will add more details in the next week).

Anyhow, coming full circle here, our floor plan was a real labour of love.  Like any decisions you make with a partner, there is give and take.  However, when you add in an architect, mechanical and electrical engineers, a general contractor and your finances, you get a mish-mash of opinion and information.  You can never make a decision without effecting every other decision you have made in the past, and every other decision you will make in the future.

Some of the keys when creating a floor plan are as follows:

  • Keep everything as central as possible.  The longer runs you have for any electrical or mechanical, the more cash you will bleed.  For us, moving our main electrical panel 10 feet saved us $3,000.  So you can see that small changes can make a big difference.
  • Plan for the future, but prioritize getting to day 1.  It is important to think a couple of steps ahead here, at least that is what I have heard from other breweries, but don’t lose sight that you need to get to day 1.
  • Look to save money at every step.  Ok, maybe you are better at this than I am, but we are in full cash saving mode, and we feel like we have been for a long time.  Any chance we can save money on something, we are doing it.
  • Tasting room and Retail area.  A huge part of all these breweries starting up in Vancouver is the ability to sell your products from your business.  It takes what was once an impossible task, and makes it so much more realistic of an opportunity.  So make sure you design a space that works for your brewery.  For us we wanted something intimate, open to the brewery, and simple.
  • Work with sub trades early in the process.  You don’t have to pick who you are working with, but bouncing plans off them will give you real world answers to questions you have.  It was also help you find savings and efficiencies in your space.
  • Another dilemma on decisions.  You can have things done quickly, you can have things done for your budget, and you can have things done inline with your dreams, but at best you will get 2 of these things, but most of the time you will only get 1 of these things.  What will you pick?
  • Call the room where you mill your grains a “grain cracking room”.  Trust me on this one, it will save you a bunch of headaches at the City
  • Depending on if you are focusing on production or focusing on tasting room/retail sales, your layout may be different.  For us, we are a production brewery first, so the layout and design of the space tried to take this into account as much as possible.  Process workflow, material in and material out, future expansion are all important to us, and are reflected in our space.
  • Keep your cooler close to the tasting room.  Iain has so much experience with this kind of thing, that he is adamant that these 2 things need to be connected.  He talks about the shorter the run of lines, and being able to connect our taps to tanks instead of kegs will save us heaps of time.

What really gets us excited about our space is the connection between the tasting room and the brewery.  When you are sitting in our tasting room, you will quite literally be 10 feet away from the brewhouse.  Want to watch Iain add hops to a brew, just sit back enjoy your beer and watch from your perch.  You will also be able to have a first hand view of the barrel storage area, which we think is a really cool thing.  We also think the art gallery will add a nice connection to the local community, and we hope the growler and retail area will have good process flow so as to not back-up too much.

As I have always said, Iain is really good with this kind of thing, so if you have questions about how to lay your brewery out, feel free to contact us.  At the end of the day, follow your instincts on the way things should be.  Whether you have experience with this kind of thing or not, make sure you follow what you would want as a consumer.  You will deal with enough people along the way that aren’t into craft beer (like contractors, architects, etc) that their opinion will help to balance yours out.  Stay positive and you will find the way.

 

 

 

 

 

 

 

 

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Thanks for the Support

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Not much to say here, but thanks for the support and words of encouragement I have received from everyone who visits my blog.  I want everyone to know that I am touched by the kind words you have passed along, and the nice things you have to say about what I am doing.  It motivates me at times like this (12:45am Wednesday morning) to write my blog and take the time to connect with others.

When I started out in this process, I found there was a lot of information online, but a lack of details on what to do and how to get it done.  There were a few other blogs, but nothing itemizing the process of inception to brewery opening.  So it was my idea to add to the information out there in small way.  To see the positive feedback and read the messages that people are sending me has truly blown me away.

So thank you to everyone that visits this blog. I hope I can continue writing posts and inspiring others, as I was inspired by others who started on the path to realizing their dreams before getting ‘off the couch’ myself.  There is a quote that I love, and it goes like this.  “A dream doesn’t come reality through magic; it takes sweat, determination and hard work.”  Colin Powell (I think).  This is more true than you can ever realize.  I would probably add to this a little luck and a lot of sleepless nights.

As always, if you have any questions, or if there is anything you would ever like me to discuss, please contact me and I will blog about it when I can find the time.

General Update on Things

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I have received some feedback lately around wanting a general update on our progress.  There seems to be genuine interest in how the overall project is going versus what we are encountering on a daily basis.  As such, this post is a little more of a general update on our progress rather than a general rant about this process, or a specific detail of things.

So as you likely know, we have submitted a development permit to the City of Vancouver for a space in East Vancouver.  On Thursday of last week, we were told we’ll be given an answer on this permit in the next couple weeks.  We are waiting for this permit, as we can’t lease the space we are interested in without first getting approval to brew there by the City.  In Vancouver, the only buildings that you can outright lease and know with certainty you can brew is M2.  The trick is that there isn’t a lot of M2 zones, and the buildings we were looking at in M2 just weren’t right for us.  So we ended up in an I2 zone, which is one where brewing beer is conditional upon submitting a development permit.  Any potential for us to use this space hinges on getting this permit, so we are waiting with fingers crossed to get good news.  As of Nov 18th, no news!

Another big process is collecting and securing money from investors.  Luckily, an investment in our brewery is eligible for the eBC tax credit, which basically means that 30% of each investors money is returned to them in the form of a credit from the government of BC.  It looks like we need to raise over $1,100,000 so everything we can do to help secure “financial partners” is welcomed with open arms.  We are going to be collecting money in the next 2 weeks from our investors, so I hope that what people have committed is what they are going to offer us.  If not, I am sure I will post something around my frustration with this.

Financing is another part of the business that is really important.  We will need both an operating loan and a line of credit in order to make the business float during the crucial first couple years.  Opening a brewery can be a recipe for financial hardship, as the line between profit and loss on a monthly basis is razor thin.  If sales fall behind a little bit, and costs are a little higher than expected, money can go out the window very quickly.  Luckily for us we were approved for a loan and line of credit to make our finances come together.  These will total about $450,000, and when added to the money we are raising we feel like we should be in a good position to make things work.

The layout of our space and submission for building permits is something we have been working very hard towards.  In fact, this has taken the majority of our time of late.  With the arrival of our Development permit by the end of November <fingers crossed>, we would like to have our building permit submission ready to go.  This means that we need to have the layout of the space virtually complete, have the work needed by engineers complete, have all the drawings and work from our architect complete, and to have all other inputs ready to go.  It seems really easy when I sit here and type this, but the reality is that there are so many moving parts to this, that it is incredibly complicated and difficult to carry out.  Finalizing the layout of our space has taken us over 8 weeks, as there are SO MANY variables to consider.  For example: Needs now versus in the future when we grow, tasting room connection to brewing space, retail area, production flow and functionality, the location of existing services, proximity of different spaces that need to be connected, etc, etc.

Equipment is something that we need to have ready to go, so that we can be sure it is ready in time for production.  We have looked to China, Europe, Canada and the USA for our brewhouse and tanks.  To be honest, I can see why this step can be either really easy, or one of the most difficult steps.  No two quotes seem to be alike, and the unknown factors of quality, timeliness of delivery, and follow-up support make these intangibles even harder to gauge in terms of importance.  A big hurdle to buying Canadian is the price.  Companies like Newlands and Specific Mechanical are local and have a good reputation in the business, but their prices are among the highest.  Moreover, it sounds as though some of the other start-up breweries have experienced some trouble with them.  Then there are the systems from Europe, where the quality is top notch, and the price matches.  Moving East to China, the land of cheap equipment, but one where the after sale service is poor, and other local breweries have experienced trouble with having to repair brand new equipment.  All of these things make choosing one company to work with very difficult.  At the end of the day, it is a balance between all these things, and hopefully one company stands out as the best.  At this point, we have no idea which one it will be.

Another huge part of this process is our name.  For the time being we are letting this one go for a few weeks.  While we don’t have an official name yet, the focus groups we ran were instrumental in getting us closer to making this choice.  The only problem is that we are putting out other fires that are more important at this time.  Things like financing, layout, legals, accounting, etc.  We anticipate having our name by the end of the year, and that should give us 8 months to create a brand around this.  I hope this is enough time and that we make decisions that are based on sound principles.

The legal side of things is something we kind of let slip and caused us a lot of grief and unnecessary stress.  In order to raise money and run a proper incorporated company you need to have:  A shareholders agreement (aka a partnership agreement), a subscription agreement, a set of articles for your company, and a share ownership agreement.  All of these documents are tedious to create, and require the hard work of a legal team.  Reviewing and revising take a lot of time and mean that you are continually working on getting these documents ready so that you can raise money, and provide a framework to investors on how your company will operate.

There are literally hundreds of other little things to do, some of which are major and some of which are minor pieces of major components.  There seems to be nothing that isn’t important in some way to the overall picture of this brewery.  To be honest, I would love to find the time to blog about all these things, but I just feel too much pressure to write about them, rather than working away at them.

I have never felt so many different kinds of stress!

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One of the things about opening a brewery that you go through is STRESS!  Thats right, a word deserving of capital letters, because it is not something, when you are dreaming of this, that you think about at all.  In fact I had friends and other entrepreneurs tell me about stress, and I always dismissed it, or paid it some superficial lip service about how I was a laid back guy and it wouldn’t get to me.  Well it did get to me over the past month.

What I have realized is there are different levels of stress.  I will try and talk about each and how it relates to starting a brewery.

Instantaneous Stress:  This is the stress that comes out of nowhere, like being late for a meeting, which is very intense and lasts a very short period of time.  Often it is unexpected, and comes and goes before you even realized what the heck happened.  I don’t mind this kind of stress, as I don’t loose sleep at night thinking of how I am going to be late for a meeting the next day because of traffic or not leaving enough time to get there.

Decision stress:  As I have blogged about previously, there are heaps of decisions you need to make when you open a brewery.  Name, bottle size, engineers and architects, size of tasting room, branding, financials, company structure …. you get the idea.  Sometimes, you only have the odd decision to make, but other times you have 5 or 6 big decisions to make and they compound to make the decision even harder.  How do each of these decisions cumulatively effect your business, and will you end up with the company that you thought you would have?

Performance stress:  Ok, it might put a smile on your face, but it isn’t that kind of stress!  This is the kind of stress I feel when I think about me as an individual living up to my expectations, and those of my shareholders, and everyone else that is depending on this business to be a success.  Full stop, I worry that my performance in the day to day operations will be good enough.

Long term success stress:  This is the kind of stress that keeps you up at night.  Will I be able to make money, will I be happy, how will this business effect my personal/work life balance, and will I have any investors that want to be friends with me if this business goes bankrupt?  When you are investing thousands of hours in time, and thousands of dollars without a paycheque, failure is not an option.  I am far too old and far too deep into life to have another “learning experience.”  The only way I can cope with this stress is yoga before bed and exercise.  It seems to be the great balancer in my life, an I hope to always have time for this.

Family stress  I think we all feel this, and it goes without saying; the stress of my families well-being and happiness is more important than anything else.  I love my wife and kids too much to sacrifice their long term happiness.  How will my kids respond to me being gone 12 hours a day for the first year of this business?  How will my wife feel about the same thing?  I think the only way to deal with this is to unplug 1 full day a week, and to pick your spots when you work versus when you spend time with your loved ones.  I only hope I get the right mix!

Beer Nerd Stress:  Thats right, I said it.  I worry about how our beer will be received from the world of beer nerds.  While we are certainly going to sell our beer to everyone that wants to purchase it, I think the opinion of local and abroad beer nerds really matters to me.  I want to make beer that I would be proud to serve to those “in the know”.  Unique, unapologetic, and delicious.  I would hate my brewery to be a company that was put alongside other less than respected breweries.  It would ruin this whole process and take away from my dream to be a respected brewery.

I’ve Got Something to do:  This is the stress associated with having a deadline, and a finite amount of time to complete this task.  This stress is right up there for me.  Its like a real life episode of Chopped.  Recently I ran a couple focus groups on naming my brewery (I will blog more about this later), and the days leading up to the first focus group was intense.  It was 2 days of preparing, emailing, calling, booking, rebooking, re-emailing, buying, printing …. etc.  This is a really hard type of stress to deal with, as any escape from this stress will only put more pressure on you.

The stress of all these things …. In other words the stress of all this stress!:  The last bit of stress that comes to mind, is the stress of all these things.  Cumulatively, all these stresses can stress you out.  This is the kind of stress that can really impact you both in the short term and definitely in the long term.  The only way to deal with it is to stay positive, believe in yourself and those around you, and to make lists.  Ok, maybe there are some other ways also, but every person is different, and I am certainly one that falls into that category.

My next blog will focus on the naming contest, and the 3rd stage of that process.  I hope that we have our list of 3 names in the next couple days, and then pass this out to the world for their opinion.