Start Up Brewer Compensation

[Run4BeerCO]

I wasn't sure where best to post this so I went for general discussion. Anyways...

I have the opportunity to open a new brewery with financial backing. The two partners already have a coffee shop and they want to build out the space next to it and use the coffee shop as the taproom in the afternoon/evening with hopes of taking over the adjacent restaurant. They have no brewing experience so I will be relied upon to design everything from the ground up and get beer to the taps. They will handle the actual build out per my needs and handle most of the front of the house (coffee shop).

Since I'm not bringing any capital to the business, but will be running all aspects of the brewery, what sort of compensation should I be looking for? I obviously understand they are putting up a lot of money and deserve to recoup their investment, I also don't want to stifle the growth of the brewery by asking for too much which makes me hesitant to ask for too much profit share. I have thought that I could ask for a portion of my profit share to go towards building a capital stake in the business as a way to avoid hindering the business but still getting value for my efforts.

Other than that, I am completely lost for what would be best for everyone. Any advice would be greatly appreciated.

Cheers.

[nohandslance]

Here In Reno wages run from $12 for an assitant brewer, to $17 to $25/hr. For Head Brewer. If you are doing the build-out. Put in for $40/hr. Or match what the. GC is getting.
Factor in all the benefits and all the out of pocket expenses you pay when running to hardware store for that one bolt or copper fitting you forgot to order.
Good Luck.

Lance

[Run4BeerCO]

I won't be doing any of the actual build out work. I am in charge of designing the brewery layout (to be formalized by the architect), selecting all the necessary equipment, and finally formulating recipes and making the beer. They are handling all the business end stuff, i.e. permits, financing. Without either side this venture is dead in the water so I've thought about asking for equity in the company. We will be growing this together after all. I understand too that equity isn't worth all that much, especially if things don't work out, but the determined brewer in me wants to give the brewery the best chance to succeed. I feel taking a monthly paycheck would go against that, so I'm trying to figure out what is the best situation for all three parties to to get what they want.

[Viridian]

I won't be doing any of the actual build out work. I am in charge of designing the brewery layout (to be formalized by the architect), selecting all the necessary equipment, and finally formulating recipes and making the beer. They are handling all the business end stuff, i.e. permits, financing. Without either side this venture is dead in the water so I've thought about asking for equity in the company. We will be growing this together after all. I understand too that equity isn't worth all that much, especially if things don't work out, but the determined brewer in me wants to give the brewery the best chance to succeed. I feel taking a monthly paycheck would go against that, so I'm trying to figure out what is the best situation for all three parties to to get what they want.

You should certainly ask for equity in the company - but you have to ensure that your work ethic supports that moving forward. Being part owner means that you get very few days off, sick time, or opportunities to go home and let someone else figure out problems.

That being said - with that being a start-up - you will likely not see any profit checks for the first few years; if the business side management is smart, they will re-invest every penny of company profit for the first few years. That is assuming of course, IF you make a profit. My cash flow projections show my start-up brewery operating at a loss until 7 to 9 months into operation (using conservative projections of course).