No offense, but I can't forsee many folks jumping to invest money in your brewery with that kind of structure.
Originally Posted by brewerynbeef
Breweries are a relatively high-risk venture, and my personal opinion is the folks who invest their money in these ventures should be looking for a 30% IRR, at a minimum.
Giving out 15% of your profit til it's paid back could be a LONG time, and half to 1% isn't likely to be very much unless you turn into the next Dogfish Head. Proposing half to 1 % is a good way to get punched in the face.
I have always approached things from a straight equity perspective. You own X% of the company, you get X% of the dividends. Plain and simple.
Now there are other structures out there, if you want an accelerated payback structure (most useful in instances where the people putting up the bulk of the money are not getting the bulk of the ownership) - think more along the lines of 75-100% of all profits until they are paid off, then it converts to their ownership %.
Hope this helps.
Freetail Brewing Co.
San Antonio, TX