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I need some direction from the more experienced forum members.. Timm, Russel, Linus, etc... My experience is extensive with marketing, distribution and sales of beer. I have always said I wouldn't get back in unless I could do it right. I have difficulty in thinking small scale. I figured out where the investor capital is. To do my project "the right way," I need $3 or 4 MM including cash. That will take much longer to raise and more equity would be sold than I may care to part with. It would buy a large parcel of land, build at least 12,000 feet including a large tap room, 30 bbl 4 vessel brewery, can line and all the other necessary line items.
My PPM lawyer would like me to keep the raise around $1 MM. I figure I can get an SBA 504 for another $1 MM. I can't wrap my head around how to build something that has profit potential on $2 MM of budget. I have an excellent location with tourism at over 1 MM people per year, the tap room should do a half million gross $$ on the low side. The theme is brilliant, fits in with the surroundings and translates well in almost every state. I have no interest in renovating a building and getting in that way. This must be done from ground up.
The land will cost $200-250 K. A smaller building of 5000' will easily cost a half million and there's no room for a can line. Wholesaling kegs will bring around $220 per barrel, no where near the margins on cans. on premise draft is a high maintenance game and tap handles and cooperage costs are high. I will do kegs but believe cans are a more viable way to build volume and margin these days. I'm not sure how much wholesaler commitment i can garnish with no can packages and self distribution is geographically illogical. I want to have $250-500 cash on hand when I open to weather the first 2 years. So that leaves not much for equipment or space to put it in.
As we know, replacing the brew house is the biggest PITA. The savings by getting a 15 bbl aren't that much compared to the 30. Quotes are around $450 for the 15 and $600 for the 30. I am not much of a believer in the nano thing, even with the tap volume I mentioned. So, where would you guys scale down? Do I build 5000' and put the 30 in it and run on tap income with a small amount of draft? Add the mobile canning guy which always sounds like a leaking cluster F. Do I build a tap room and enough space for a 7 or 10 bbl and eek it out for 2 years until I am more bankable and have significant investor interest from patrons and convert this into a pilot and build the big one out back down the road? Do I wait until I have the 3 or 4 that I really need? Do you need more information? What's the direction you would take on two million of budget, an excellent theme and a crapload of national sales and distribution experience in craft beer. (ie. we will sell whatever we can produce)
Thanks in advance and looking forward to your advice..
My PPM lawyer would like me to keep the raise around $1 MM. I figure I can get an SBA 504 for another $1 MM. I can't wrap my head around how to build something that has profit potential on $2 MM of budget. I have an excellent location with tourism at over 1 MM people per year, the tap room should do a half million gross $$ on the low side. The theme is brilliant, fits in with the surroundings and translates well in almost every state. I have no interest in renovating a building and getting in that way. This must be done from ground up.
The land will cost $200-250 K. A smaller building of 5000' will easily cost a half million and there's no room for a can line. Wholesaling kegs will bring around $220 per barrel, no where near the margins on cans. on premise draft is a high maintenance game and tap handles and cooperage costs are high. I will do kegs but believe cans are a more viable way to build volume and margin these days. I'm not sure how much wholesaler commitment i can garnish with no can packages and self distribution is geographically illogical. I want to have $250-500 cash on hand when I open to weather the first 2 years. So that leaves not much for equipment or space to put it in.
As we know, replacing the brew house is the biggest PITA. The savings by getting a 15 bbl aren't that much compared to the 30. Quotes are around $450 for the 15 and $600 for the 30. I am not much of a believer in the nano thing, even with the tap volume I mentioned. So, where would you guys scale down? Do I build 5000' and put the 30 in it and run on tap income with a small amount of draft? Add the mobile canning guy which always sounds like a leaking cluster F. Do I build a tap room and enough space for a 7 or 10 bbl and eek it out for 2 years until I am more bankable and have significant investor interest from patrons and convert this into a pilot and build the big one out back down the road? Do I wait until I have the 3 or 4 that I really need? Do you need more information? What's the direction you would take on two million of budget, an excellent theme and a crapload of national sales and distribution experience in craft beer. (ie. we will sell whatever we can produce)
Thanks in advance and looking forward to your advice..
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