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Thread: Monthly Expenses

  1. #1
    Join Date
    Nov 2004
    Posts
    13

    Monthly Expenses

    Hello, I'm new to the Forum here and looking for advice for openning a new brewpub in the Northwest.

    For the past 4 weeks I've been doing a lot of research on costs; both startup and cost of operations. I plan on brewing on a 10BBL system making both ales and lagers. I plan to grow production to 1000BBL/year within 5 years. Some of the most difficult information for me to find has been the monthly expenses for the brewhouse. Can someone out there give me some general info on what their typical montly expense totals are? I know that there will be several variables that will impact my own expense, but I'm trying to get close enough to complete my proformas as accurately as possible.

    A total amount is fine, but if someone can provide more specific information on certain costs, that would great too. Specifically, can you let me know what you spend monthly on lease, legal fees, accounting, electricity, water and waste disposal?

    Thank you,
    -mbartole

  2. #2
    Join Date
    Feb 2004
    Location
    Black Mountain
    Posts
    74

    Huge Costs

    I am currently in the final hours (Ihope) of a micro setup close to what you are describing.

    I have been using some general rules suggested by many of the winderful people here at probrewer. There are a lot of threads to search out and read in the archives about setups, here are a few things I have learned.

    Have someone who has built a brewery before consult with you. This is really important for getting your to do list in order.

    RENT is a huge factor,

    For brewhouse calculations is the brewery gas or steam?

    Just the first stage of permitting with the ATF is long and aruous fraught with paperwork, and FBI background checks. To start the app process with the FEds you need...

    Local Permission, if you live in city limits Breweries usally need special town permits to operate, which the feds need to see first.

    bank account

    a space rented (or at least a contract to rent when the permit goes through)

    Federal tax Bond (start on this right away lots of notarizing and actual signatures getting mailed accross the country)

    An Idea of what equipment you want, Important to know you DONT need to buy equipment first (my mistake) all the FEDS want is proof that you have thought it out, and are serious, with the bond etc...

    You should probably spend at least 4 months doing the research. I spent a good chucnk of the last couple years of college with the brewery business plan as a side project, and I STILL screwed up a bunch of stuff. There are more agencies specific to your own municipality that you will just discover, then BAM 2-3 weeks delay due to paperwork.

    So budget lots of extra money and lots of extra time. Hopefully since you are in the NW you will run into people who are more familiar with your operations than where we located. Try to get a business partner, noone should/could do this alone without prior experience or an unlimited budget.

    Cheerse!
    Last edited by David Quinn; 11-30-2004 at 01:19 PM.
    Dave

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