Some feedback on my financial ratios/value is appreciated

[bstboy]

Hi All

New to the board here and building a business plan for a new craft brewery in my area.

My financial spreadsheet is about as detailed as I’ve seen after doing research over the past 2 years. The reason for my first post here is that I would like some community feedback on some of my ratios and values as it pertains to opening a 7BBL brewery. Here’s some of my main statistics, let me know if any of these seem way out of whack. Be advised these ratios are under a mature 350BBL per year model, that’s small potatoes but my business plan also goes into growth to 700BBL (through more brew sessions) and ultimately 1500BBL per year output (through expansion).

· pure taproom, no food sales, just beer and soft drinks
· 4000 sq ft facility (rent at $12/sqft/yr)


Net Profit – 14.4%
EBITDA Margin – 28.3%
Operating Margin – 24%
COGS (pure ingredient expense) – 6%
Total Cost/BBL (ingredients, labor, expenses, rent, insurance, legal, marketing, basically all operating expenses) - $530/BBL
Renovation of 4000 sq ft space - $350K
COGS + Variable Op Expenses – 25% of sales
Wages – estimated 25% of sales

Any feedback would be great, just want to make sure I’m in the ballpark here with some of these figures. Also, I can calculate pretty much any ratio or value requested, so if you have further questions for me, I’ll be more than happy to answer them.

Thanks

[bstboy]

No feedback? Does this belong in another thread perhaps?

[bstboy]

Quick Bump

[Fausto Yu-Shan]

Profit and Loss Statement

After reviewing your financial ratios of your business plan, however, without viewing the Profit and Loss Statement and the Balance Sheet is difficult to give you a good feedback because you cannot compare the current fiscal year with the past fiscal year to observe if there is an economic growth or decline.
As I understand, this operation is small and a theoretical case, although generates a 14.4 % Net Profit, I am intrigued in how the money was raised to renovate the facility (350K) and to buy the equipment, through a loan or investors and how much is paid in interests or dividends.

A bit difficult to calculate because we do not know the depreciation, likewise, if the wages (25.0%) paid are direct labor, indirect labor, sales salaries or administration salaries.
Also, I see that subtracting the Gross Profit (75%) minus the Operating Margin (24%) there is a 51% operating expense which is not specified.
Not to sound negative in the following simple sensitivity analysis, my concern is that if the sales or revenues decline in 10%, your company would be at risk, as well, the Opportunity Cost of the money would be better in another economical alternative in Case 2.


CASE 1
Revenues
Gross Sales 100
Net Revenues 100

Cost of Goods Sold
Ingredients 6
Variable OP 19
Net COGS 25

Gross Profit 75

Operating Expenses
Selling Expenses
Administrative Expenses
Operating Income before Taxes 24

Financial Expenses
Taxes

Net Profit 14.4

CASE 2
Revenues
Gross Sales 90
Net Revenues 90

Cost of Goods Sold
Ingredients 6
Variable OP 19
Net COGS 25

Gross Profit 65

Operating Expenses
Selling Expenses
Administrative Expenses
Operating Income before Taxes 24

Financial Expenses
Taxes

Net Profit 4.4