Tag Archives: tasting room Vancouver More stats

26 Days to Go …. Inspection, We’re Hiring (Soon) and Marketing

On Friday of last week, we had our contact from the Liquor Control and Licensing branch pop in for an inspection.  This is a super important moment, as they are essentially the eyes and ears of the government arm responsible for allowing us to make beer (a manufacturers licence).  Our inspection went well, at least we think, and we should be getting some answers this week, so we can legally start brewing beer in the next week.  That is a big if, and should we get this license, we are on schedule for a early December opening.  If not, we can kiss goodbye an early December opening.

Iain has promised he can brew beer that takes about 3 weeks to go from brewhouse to glass, though it will be a lot less time than he hoped, it is possible.  We are definitely going to swing open the doors and have a beer line-up that is not necessarily reflective of our exact wishes, but we wouldn’t be the first or last to do this.  Over time, we will brew a larger armamentarium of beers that will make beer lovers and newcomers to craft beer happy.

With this eventuality, we have many other things to do, not the least of which is to hire staff for the front of the house.  We expect that we are going to need to hire about 10 – 15 people to work in the tasting room, depending on the number of shifts each person is looking to work each week.  If you are interested in working with us, prepare for a call for resumes in the very near future.

We are also busy working on the marketing material and information for our brand.  While many of the major items have been decided on (like logo, can design, business cards, beer glasses, growlers, etc) there is a seemingly endless list of small things to do.  Items like pricing of all items, food in the tasting room, an artists call for submissions, meeting with neighbours who may visit our brewery, sales calls to resellers, video, photography, getting exterior signs fixed, etc.

With all this going on, it is hard to find the time to help out in the brewery very much of late.  Both Iain and I have been contributing less and less to the job of completing the work in the brewery, and more on the task of getting ready to make and distribute beer.  I know my time in the brewery is down to about 25 hours per week of hard labour, and Iain is even less as he is spending time cleaning, preparing, turning valves …. god knows what the heck a brewer does, but I am sure it is all important stuff.

Anyhow, lots of stuff to do, so I am going to get cracking at it ….

30 Days to go …. Running out of cash

Where the hell has all our cash gone?  Sometimes I wonder how this business is costing us so much money.  How the heck do other breweries start a brewery for so much less than we are spending?  I know we have bitten off more than we can chew, but seriously, what the heck.  Running out of cash is not an option for our business, so we have moved on to plan B, plan C and soon plan D.

We have raised $1,200,000 and we figured that would be enough to get us to day 1.  As you know from reading my previous blog posts (check the finances category), it was a process getting to a point that we were comfortable.  About 8 months ago it seemed like we would go over by about 20% and so we secured a loan and line of credit to cover this amount.  We felt comfortable we would have more than enough to get through the tough times to day 1, and then profitability.

Surprise, surprise, a few things go over and all of a sudden we are projecting a cash shortage starting about 60 days after we swing open our doors, that reaches a maximum about 180 days after we open for business.  Thats right, even though we will be open and selling beer, and doing well, we will still be running out of cash.  It makes us scratch our head and realize the importance of keeping our costs down, and brewing some kick ass, killer beer.

So we have a few options for gaining access to this additional funding.  If you come to a situation like ours, here are the paths you can take to secure medium term financing (longer than 12 months, but shorter than 5 years).

  1. Get funding from your shareholders.  Maybe you have a shareholder that has deep pockets and is willing to lend you some cash for a short-term to help with your cash crunch.
  2. Get financing from the BDC.  The BDC is able to help with financing, especially if you have equipment or machinery that you are able to secure the loan against.
  3. Raise additional money.  Either from your current investors, or another batch of new investors who can help you keep your loan commitments down and your cash position positive.
  4. Owners lend money to company.  Thats right, time to put your money where your mouth is.  Take a line of credit that you have personally, and sign over the funds to the business.
  5. Pre-sale some of your products.  Thats right, maybe you can sell some of your capacity to another brewery, or start selling your merchandise before you open in order to help with smaller amounts of money.  This won’t work with larger sums.

I am sure there other ways of getting money, but these are the options we have available to us.  We have 2 strong contenders and 1 outlier, and we think one of these is going to work out for us.

One thing is for sure, manage your money, stay on top of your finances, and don’t forget to always have your next 3 possible steps planned out.  If you don’t, you might get to a fork in the road and have insufficient options available.  This is not a good place to be, especially when you are near opening day.  It would suck to come this far and have it fall to peaces at this point.

One of these options will provide us the money we need, and we hope we make the right choice.  Only time will tell whether or not we did make the correct choice.