Tag Archives: Vancouver

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.

General Contractors and Sub-contractors

One of the most important decisions you can make is around construction of your brewery.  Do you want to have a general contractor guide the process, or do you feel like you have enough time and energy to take the lead on piecing together the build-out?  Depending on your skills, the amount of time you have, your preference for this kind of thing and most importantly your budget, your decision may already be made for you.

We decided to work with a general contractor, Graham Disher of Disher Contracting.  The process for looking to team with a contractor was relatively painless, as at the end of the day, we decided to work with someone that was willing to work with our constraints.  In other words, we are able to offer some ownership shares in lieu of having to raise the money and then pay it as a fee.  In fact, because craft beer is growing so much right now, you could take this approach with many of the different trades that come through your space, and you would be able to do well for yourself in foregoing fees.

At any rate, Graham was also a good choice for more than just his willingness to work with us.  He had the time to dedicate towards our project, he has good experience that will serve us well in various aspects of the buildout, he was trustworthy (and he has continued to show us that), and what he doesn’t know, he goes about learning in a quick and positive manner.  When you add all these things up, we felt good about teaming with Graham Disher, and we would not hesitate to recommend him for your brewery (once he is finished ours of course).  Get in touch with me if you want to be connected, as he is one of those contractors who is too busy to worry about a website and all that.  In other words, he is hard to find online.

Back to the process of looking for a general contractor.  We met with 4 different GC’s after tossing around the names of about 12 or 15 that were passed our way or in our “rolodex”.  The 4 we met with all had experience, but were all at different stages of their business life cycle.  One company had been around for about 30 years, another just a couple years.  When you meet with these companies you take a list of questions, usually around the process of working with them, budgeting, who is on job, costs, estimates for work, their ideas for your job, experience in this field, etc.  When you start asking questions you will clearly see that there is a big difference in how each of these guys run their business.  Everything from their presentation, to how they budget, when they invoice, what jobs they sub-out, and so on.

What we came to was a list of pro’s and con’s for each contractor, which you then weigh against all the other factors.  Big ones for us include:  What is their mark-up, when could they start, who is going to be site supervisor, how much time are they going to dedicate, how many other jobs do they have, what is their crew like, what is their vision for the project,  what is their timeframe, what are the biggest challenges and how will they overcome, how are they with change … you get the drift.

As for subcontractors, this is really a 2 step process.  The first is to meet with various sub trades that are going to be important to your job.  Likely you will meet with electrical and mechanical  trades people.  You will also do this with the help of your general contractor.   The first objective of meeting with them is to understand what changes you can make to your plans to save money, while at the same time meeting with them to understand who is going to be the best fit for your project.  We met with 4 or 5 electrical and 4 or 5 mechanical contractors.  That allowed us to get some feedback and gauge who was going to work within our constraints the best.  Usually you are basing discussions off a set of drawings that aren’t yet complete.

Hopefully soon after this you will get some IFC drawings for the build-out, and then you can distribute to the 2 or 3 sub-trades that you think would be the best fit.  Once you get the estimates back, you can play them however you like, to try and get a better deal and position the job in the best position for your interests.  For us, number one was not money believe it or not … it was time.  Who could get started and complete the job (in other words, who could dedicate the most manpower to this job) in a fair period of time.  Second was money for us.  Of course all the companies we met with had the proper experience and were keen to be a part of this … that was just standard.

We picked our Electrical Contractor – Clear Energy Solutions.  They have solution in their name for a reason.  They offered us great advice on what to change and what could be streamlined to save money and time.  I would highly recommend these guys to  be at least a part of the bidding process.

We picked our Mechanical Contractor – Nathan from Meridian.  They are a great outfit that has experience in residential and commercial work, they were willing to work with our timeline and they were excellent on price.  I would also recommend these guys to anyone else for all their mechanical needs.

If you want more information on any of this stuff, let me know and I would be happy to add to the information I have put out there.  Bottom line, there are lots of great companies and lots of bad companies and general contractors to work with, just make sure you take your time to make the right choice.  Saving a little money won’t seem worth it if you have to spend extra time on a project.

Webcam is up … and almost working perfect

We have added a webcam to our brewhouse, and after earning a undergraduate degree in this kind of thing, it is now live.  While there is nothing to see this weekend, and the feed needs a little refinement, we are now able to broadcast live the process of starting a brewery.

We hope that in combination with this blog, and the other information we have put into the world, we will encourage many others to follow their dream and start a craft brewery.  It is a labour of love, but something that you will never regret IMO.

Anyhow, we will be sure to post a schedule of when things are happening, so that you can watch the process of starting a brewery from the comforts of your own home.

Click here for the link and I promise that within a couple days the feed will be more clear.  For now, the camera is pointing to the South half of our warehouse, but as things happen it will shift back and forth between both areas, so you can see everything that is going on.

A Crushing Day for Us ….

Well, the last 36 hours has been full of angst on behalf of both Iain and myself.  We finally received a detailed budget from our general contractor, and to put it bluntly, we are going to be way over budget on building our brewery.  It is an extremely bitter pill to swallow, especially after the increases we have made throughout this process to our budget.  At the end of the day, we are building a much larger brewery than we anticipated, and with a larger brewery comes bigger costs.

When I look back at my old copies of the business plan, I have to chuckle to myself as I once thought the retrofit of a warehouse, not including equipment, was going to cost about $400,000.  I look at that number and can’t help but think how naive I was.  That is both a good thing and a bad thing.  If I knew how much this endeavour was really going to cost I might have passed on following this particular dream.  I thought the $400,000 was enough to put up some walls, trenches, upgrade power, and put all the equipment in.  Boy was I wrong.  This was about 2012 when I was really starting to get into planning this brewery

Fast forward to late 2012, and after much encouragement from other brewery owners that I met with, we increased this amount to about $550,000.  In my mind, this was an increased of about 30% over my initial budget, and I thought this would be plenty.  But as you learn more about what is required to retrofit a warehouse, the number keeps getting chipped away.  All of a sudden, the additional money that came with a bigger budget seemed to have disappeared.

Fast forward again to early 2013, and it was time to increase the retrofit budget again.  It just seemed impossible that with tasting rooms and their pending approval, along with the realization of additional costs with most spaces, that we could retrofit a space for any less than about $650,000.  At the time, this seemed like a good number, and even included a sprinkler upgrade and water line upgrade.  We figure we would be free and clear, so we charged ahead with this number in our mind.

It was at this time we started to inquire with investors about financing our brewery.  We based many assumptions on this cost, including how much we needed to raise from angel investors.  $650,000 seemed like our golden ticket to get everything we wanted.  So we charged on and hoped that we could what we wanted for this amount.

Then in the summer of 2013 we found what would eventually become our warehouse.  It was bigger than we really needed, but it gave us an excellent location, and most importantly a great landlord that wanted a brewery in his building.  We had our architect in, a couple contractors, some sub trades, engineers, etc and they all pointed to a retrofit cost of about $725,000, depending on a lot of things, such as electrical upgrade and flooring.  I have written about these items in the past, and they were huge uncertainties with out space.  So we moved forward with a newly increased budget of about $725,000 for a retrofit.

So fast forward to this week.  We met with our architect and general contractor to discuss the quotes they have received from sub trades (like mechanical contractor, electrical contractor, concrete slab specialist, etc) and also the budget from our general contractor on all the little things that make up our brewery.  All of this information, along with our wishes and desires, was put into a spreadsheet and at the very bottom of a huge excel file, there sat what was the anticipated retrofit cost of our brewhouse.  The total estimated cost for our retrofit was (drum roll) …. $925,000. 

It is hard to put into words what was going through my mind when this was presented.  It was like someone kicked me in the stomach …. and then kicked me again.  It was awkward for our architect and our contractor, as they could see that what I had believed and what I had assumed was wrong.  I must have looked like a deer in headlights.  Even now, I am fully consumed by frustration and anger that I just can’t seem to shake.  How is it possible that I ever thought $400,000 was enough?  It just seems plain old absurd!

We are so deep into this process, so far down the road, that there is no option but to find solutions.  For starters, it is very likely that the tasting room will have picnic tables and used chairs, be lacking any real artwork and design aesthetic, and have very little “extras” that other tasting rooms might have.  We have also had to dial back a few optional pieces of equipment that we hoped to have for the brewery.  Essentially, there will be a cascade of changes that are mostly out of our control, in addition to some extra cash that we need to raise from investors.

If I could pass some information onto others, I would make note of the following costs you might be looking at:

  • Electrical Upgrade – $75,000 and up
  • Mechanical – $125,000 and up
  • Tasting Room – $50,000 and up
  • Labour costs – $100,000
  • Development and Building Permits – $10,000
  • Concrete – $25,000 and up
  • Boiler and Installation – $35,000
  • Contingency – Easy 10% of your budget
  • Architect Fees – $25,00 and up
  • Engineer Fees – $20,000 and up
  • Management Fee (from General Contractor) – Cost plus 10%
  • Epoxy Flooring – $15,000 and up

Of course there is a long list of other small items, and they have all creeped up in cost, as we have a 9,000 square foot space.

In another few months, I will be sure to post all of our business plan online, so you can see for yourself what all the details in starting a brewery are.  For now, just know that what you think things will cost, will likely double from your initial estimates.  Just hope and pray that you have way more money than you need, or at least a network of people who would be able to offer some financial support to your business.

I hope to have some answers to our dilemma early next week, and I will pass along any notes I have on how to find savings in a budget that doesn’t seem to have a lot of wiggle room.

 

Bottle vs Can for a Craft Brewery

One thing we have long struggled with is the type of packaging we are going to put our finished product in.  Speaking with other craft breweries, we are not alone in the uncertainty we face in making this decision.  I have summarized the pros and cons of each decision, and I hope at the end of the post, you can give me some feedback on what is the best in your mind.  Starting your own brewery is a great thing, but it is important to have a firm sense of what you want, and merge that with the financial and marketplace dynamics you face.  In other words, what you started out wanting may not be what you end up with.

Really there are 2 choices that you can put beer into.  Either cans or bottles.  Before I dissect each of the options, here are some general comments.  I had long thought that cans were the clear environmental choice, but a few articles haver pointed me back in the direction of uncertainty.  Click here to read one article.  So with no clear winner on the environmental side, what about taste.  I hear anecdotally that people can taste the plastic in cans.  Does this mean they don’t pour the beer out of cans into a glass (yikes).  Also there is the image.  Is the wider market really ready for high quality craft beer in cans?  I know Steamworks and Central City have their beer in cans, and by all accounts do very well, but could you imagine a much smaller player, like 33 Acres or Bridge Brewing putting their beer in cans?  Would it make a difference at all to your perception of them.

Cans:   Cans are a good option for a brewery for a variety of reasons, but there are some downsides to them, which I have tried tried to summarize below.  Essentially, there are 2 options for can sizes 355ml or 500ml.  The smaller can is more North American while the larger can has a much more European feel to it.

  1. More transportable and lighter than bottles
  2. Beer keeps better in cans than bottles
  3. Per unit cost is less expensive than bottles
  4. About 66% of all beer sold in BC is sold in cans
  5. Government liquor stores want new listings in cans
  6. Canning lines are more expensive than bottling lines and notoriously more finicky.  We have quotes for a canning line at $90,000, and the price can go sky high from there
  7. Minimum orders for cans are about $30,000
  8. You need to figure out what beer you are going to sell and then hope the market likes it, as production time for cans is much longer
  9. Image of someone drinking from a can doesn’t always conjure up quality craft beer
  10. Lead time for can orders is much longer than a bottle label order
  11. A couple different sizes of cans which completely change the look and feel of the marketing

Bottles:  On the other hand, bottles are a great option for a new brewery, as the 650ml bottle is the standard size for craft beer, and is well established in the BC marketplace.  Not unlike cans, there are both pros and cons to packaging beer in bottles.

  1. About 33% of all beer sold in BC is sold in bottles
  2. A beer bottle doesn’t put off any odd tastes, whether perceived or not
  3. A beer label allows for more colours and detailed artwork
  4. The amount of time needed for artwork and printing is much shorter than producing cans
  5. Bottling lines are less expensive than canning lines, and you can buy change-over parts to switch between bottle sizes
  6. We have quotes for bottling lines at about $60,000 and the price can go way up from there
  7. There is a much wider variety of bottles available to put beer into (all are in ml):  330, 341, 350, 500, 650, 750, 1000
  8. Government liquor stores are trying to get out of bottles, so a listing with BCLS is much harder to obtain
  9. In my opinion, a bottle of beer put out a different image than a can of beer

So you can see how we are conflicted on the decision that we are going to make.  We have flip-flopped back and forth from cans to bottles and we have really wrestled with the decision.  What would you do?  What would you want us to do?  The trouble we now have is that we can no longer waffle on this decision.  We need to place our order so that we can get our equipment in time for the launch of our brewery.

So vote here, and let me know what you think.  I would love to hear from you as well.

Another general update on progress and happenings at the Brewery!

It seems like I have been knee deep in the process of starting a brewery, that I have neglected to update the readers on our progress.  From the brewhouse to tanks, and forklifts to logos, there is a lot happening at the brewery, and the level of activity seems to have picked up.  In addition to the office and administrative items that have kept us busy for the past 6 months, you can add in the retrofit of our space to things to do.

For starters, Iain Hill has officially left his position at Yaletown Brewing Company to join operations full time.  For several months Iain has been burning the midnight oil after a long day at the office, and he now has the ability to focus on starting our brewery, which is amazing on many levels.  Finding a brewery (and in my case a business partner and equal) is a huge step in the process of starting a brewery.  Its one thing to be a home brewer like many of you.  You understand some of the components of brewing beer, and you have experience with the lingo and terminology, but its entirely another thing to be in charge of a commercial brewery.  With a qualified partner, the beer we make will be of good enough quality that it will offer us a chance to have success.  If you want to follow Iain Hill on twitter, his account can be found here.

We have sent out tenders for our warehouse to electrical and mechanical contractors.  This has been a bit of a process for us.  When you apply for building permit, you have a sense of where things are going to go, and this is reflected in the drawings your architect prepares for you.  However, when it comes to the technical details of these aspects of the brewery, you engage with mechanical and electrical engineers to complete these drawings.  Getting the details correct on these drawings is critical to getting accurate quotes from trades people that will be doing the work.  If you hand over a set of drawings for tender and they change immensely, you will get dinged for additional expenses throughout the build-out phase.  My advice would be to push ahead with these drawings at every opportunity, so that when you get your building permit, you are not at a standstill like we were.  We will literally lose a month from our possible start-date as we were not ready the next step.

Doing things in the brewery that don’t need a permit is also something that is very important.  We have decided to paint the inside walls of the brewery with a marine grade paint, to keep mould from becoming a problem.  Well painting a house is a job, but painting 6 metre high walls in a brewhouse that is 9,000 square feet is a little bigger of a job.  This is something that we really should have started earlier as well, but given the delays in getting started with the rest of the work, we will have this finished within the week.  Once the walls are painted we can move forward with cutting floors open, and getting our brewery ready for building.

If you ever need advice on buying a forklift, I can tell you that we had a great experience and I would love to share it with you.  At the end of the day, when you are spending so much money on everything at a brewery, trying to save money on items like forklifts can go a long way.  We managed to save about $5,000 against our budget, and while that will get sucked up quickly elsewhere, the point is you need to save money when and where you can.  We had a budget of $10,000 for a forklift, charger, and man cage (for doing work on the ceiling of the brewery).  After about 30 hours of work, research and seeing what the options were, we purchased an electric forklift that will hopefully meet all our needs for now and into the future.  Sure we might have to spend money on repairs, but we are not going to lose much money on this machine as it already has depreciated to nothing.  If you are looking; side shift, electric drive, 40 inch forks, 180 inch lift height, and a smart charger that is compatible with your machine are all must haves.

In terms of the voting on our logo, it looks the voting has ended up at 50-50!  After all that, we have a divided opinion on what we should be going ahead with!  As such, Iain and I are going to meet and make a decision on what we should move forward with.  We look forward to making a decision so that we can move forward with other aspects of our marketing.

Our landing page for the website should be up and running in about a week.  I know there has been delays (like everything it seems), but we hope to have an interesting landing page that will continue with giving everyone a sneak peak into starting a brewery and our operations.  More to come on that front shortly.

I have found an individual that has helped me with odd jobs at the brewery so far, and I would recommend to anyone else who is looking at starting a brewery, to find someone with some technical background in general labour … what I mean is find someone to help you that can do some electrical, plumbing, painting, heavy lifting, etc.  We have found a man to help us, and he has been a saviour for us.

From an equipment standpoint, we have ordered our brewhouse and we are very close to ordering our packaging equipment and conditioning/fermenting tanks.  We are trying to determine exactly packaging equipment we want, as the choice we make will help determine our entry point into the market.  If you go cans, you come across as more of a middle of the road company. If you go with bigger bottles (650ml) then you come across as more of a craft operation.  So we are wrestling with what exactly to do, and I hope we can make a decision in the next week.  As for the tanks, we are grinding the suppliers on their price, and hope to get our ideal package within our budget.  We think it is better to go a little bit smaller on the tank farm, knowing that you may run out of capacity quickly, than spend all your money on equipment and have very little left over for everything else.

Thats it for now.  Should there be anything else you want an update on, as always, let me know and I will include it for my next blog.

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.

New Breweries Opening In BC

We are set to be part of an amazing community.  It is the quality of people in this business that not only encourage new breweries, but also support the current breweries in the market.  People like you to be honest.  You read blogs about beer, you support craft breweries, you tweet about beer, you talk to all your friends about the amazing beers you’ve had, and you travel near and far to taste different beers.

The result of this is to encourage new breweries to open.    In fact, I pulled this graphic from the Brewers Association in the USA to show how the number of breweries has skyrocketed over the past 25 years.

126-Brewery-Count-HR

It makes a person ask the question, how many breweries is the market capable of sustaining?  Trying to guess this is like trying to figure out how much higher real estate prices can go in Vancouver.  So I grabbed the closest comparison to beer …. wine!  It made me wonder how many wineries are there now.  I found this graphic from wines and vines and it shows the number of wineries in the USA over the past few years.  As you can see, there are more than 7,500 wineries in the USA, which is about 5,000 more than the total number of breweries.

Winneries in USA

So when I see this, it makes me feel like there is a lot of room in the market for more breweries right?!?!  If there are 5,000 more wineries than there are breweries, then there must be room for anther 2,500 to 4,000 breweries???

So what does all this mean to the number of breweries in BC?  Well, the most excellent beer writer and blogger Jan Zeschky of the Province Newspaper recently published an article on new Breweries opening in 2014 in this great province.  Click here for the full article.  He identifies 19 new breweries that are set to open this year, which will surely be a record for British Columbia.

We are set to be part of this amazing community, and when I think pragmatically about things, I believe there is a lot of room for all the breweries opening up, and more.  So if you dare dream about opening a brewery, or any other business for that matter, do it.  Life is too short to put it off any longer.

I am living proof (and so is this blog) that your dreams can become reality, so long as you have a plan, you spend the time needed, and you surround yourself with amazing people.  Of course, there are a few other details that need to go along with these big picture things, but don’t let them get in the way of following a passion.

So bring on the 19 new breweries this year, and I say bring on another 19 next year and 19 more the year after that.  Lets fill the marketplace in BC with as wide a variety of breweries as possible.  I also hope that these breweries continue to do wild and amazing things with the beer they make.  Lets push the boundaries, lets challenge the ordinary and lets realize the potential that is within each and every brewery in this province.

The cat is out the bag ….

For those of you who want to know a few more of the details about what is happening with our brewery, Jan Zeschky (The Province Newspapers most excellent food and beer writer) has released an updated guide for new breweries planning to open in 2014.  The article shows there are 19 new breweries that plan on opening their doors this year alone!  All are in various stages of development, and it means that this year will be a banner year for new breweries in this amazing province.  For a full read of this article, click here.

While this is really exciting for the beer drinks of this province, and it will likely cement British Columbia as the beer capital of Canada, it also adds a whole new dimension of stress.  If you are a regular reader of my blog, you know I wrote about all the various kinds of stress you feel in opening a brewery.  Click here for a link to this post.  Well, now we can add another type of stress to the mix:  Why would someone pick my beer over all these other great options?  Seriously!  We plan on making good beer, but don’t all of these other breweries as well.  We are nice guys, but aren’t all these other breweries as well.  We plan on having a cool tasting room, but so does everyone else right.  You can see why there is a little stress in my mind!

Another question you ask yourself, and not that the answer really matters, but is anyone else going through similar stress and anxiety ?  I see all of these pictures and posts of people smiling and having fun, and I think how come I up neck deep in stress and work, and everyone else looks so happy?  I guess some days you doubt yourself as this process really sticks it to you.  I find it important to grind through the days that are a challenge and savour the days that are a success.  The reality is that sometimes you feel like you are all alone!

At any rate, I digress.  We are really excited to be a part of the surging craft beer scene in BC, and I hope that we can add value both in terms of our beer, and in terms of the information we provide to the general public.  I hope this blog has inspired some people to dream, and for others I hope it has saved them a bucket of money on mistakes.