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Thread: New Nano/Micro Brewery in Virginia - Business Plan In Development

  1. #1
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    Jan 2019
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    Fairfax County VA
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    New Nano/Micro Brewery in Virginia - Business Plan In Development

    First of all, thank you to the admins/mods for activating my account even though I'm not technically employed by a brewery (yet).

    I'll try to keep this short and sweet. My friend and I are partnering up to develop a business plan for opening our own gig. He's a professional brewer, I work in the creative and advertising field. In theory, we'd save a lot of money on outside marketing and creative costs behind the brand by doing that all in house. We have a name and logo picked out, we have a theme picked out and have started working on 3D tap room concepts to show potential investors in the future. We're pretty hell bent and determined to pitch to investors and not a bank. We both believe it's just not a very safe to go the way of a business loan from a bank at this point in our lives.

    He wants to start with a 3BBL system with the concept in mind of keeping a continuous rotation tap list on hand, perhaps a few repeats in the beginning.

    Our next step we're working on is meeting with a financial advisor. Neither one of us are "math" people. I've seen example business models from a friend of mine who was a professional brewer. It was quite detailed, down to how much the hoses would cost for your dishwasher to be replaced a year later.

    ----- With all that ^^^ said ----
    I'm sure a few of you reading have been in these shoes before. What are some additional things for us to think about, or even resources?

    The math is going to be biggest obstacle to get nail down and the most time consuming. The second most consuming I'd have imagine would be working with contractors to take concepts and execute them. Anything else dealing with the beer and brand itself, I'm not worried about... piece of cake.


    Any and all comments and suggestions are welcome, I may not respond immediately; but I will be monitoring the thread.

  2. #2
    Join Date
    Feb 2018
    Location
    Fort Wayne, Indiana
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    Quote Originally Posted by DevilHornsHB View Post
    First of all, thank you to the admins/mods for activating my account even though I'm not technically employed by a brewery (yet).

    I'll try to keep this short and sweet. My friend and I are partnering up to develop a business plan for opening our own gig. He's a professional brewer, I work in the creative and advertising field. In theory, we'd save a lot of money on outside marketing and creative costs behind the brand by doing that all in house. We have a name and logo picked out, we have a theme picked out and have started working on 3D tap room concepts to show potential investors in the future. We're pretty hell bent and determined to pitch to investors and not a bank. We both believe it's just not a very safe to go the way of a business loan from a bank at this point in our lives.

    He wants to start with a 3BBL system with the concept in mind of keeping a continuous rotation tap list on hand, perhaps a few repeats in the beginning.

    Our next step we're working on is meeting with a financial advisor. Neither one of us are "math" people. I've seen example business models from a friend of mine who was a professional brewer. It was quite detailed, down to how much the hoses would cost for your dishwasher to be replaced a year later.

    ----- With all that ^^^ said ----
    I'm sure a few of you reading have been in these shoes before. What are some additional things for us to think about, or even resources?

    The math is going to be biggest obstacle to get nail down and the most time consuming. The second most consuming I'd have imagine would be working with contractors to take concepts and execute them. Anything else dealing with the beer and brand itself, I'm not worried about... piece of cake.


    Any and all comments and suggestions are welcome, I may not respond immediately; but I will be monitoring the thread.
    A big hole in your plan that I see is you are not taking the majority of risk. Investors will want nothing to do with you unless you have a substantial amount of your own money in the deal.

    Also, remember investors are going to cut into your paycheck down the road.

    A SBA loan at 10% APR might seem like a lot now, but when you have to pay your investors you might be rethinking that decision. SBA will also help you build a business plan.

    I would say that since this is your first venture in the industry, keep it self funded and simple.
    Last edited by AmbrosiaOrchard; 01-09-2019 at 07:18 AM.

  3. #3
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    Jan 2019
    Location
    Fairfax County VA
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    Thanks for the feedback, while we're aware of the challenges involved with skipping a bank entirely.. we feel it's worth a shot. If we're told by X amount of potential investors that the business plan looks solid, but they can't move forward with out some risk on our end then we'll take it from there and analyze where we're at. I say this with the utmost confidence that if we were to get involved with a bank and for some unfortunate reason the business fails... both of our wives will kill us in cold blooded murder and hide the evidence after losing our homes to the bank.

    I spoke to the president of the agency I work for a short while back about starting a small businesses and talking points to investors. He made a really great point about one strategy. In theory, if you pitch to an investor in stages, they're more likely to come around to the idea. Will we go shut down a lot? Most likely, and we're anticipating that to happen. This is all in hopes of finding the right investor that will not only back our project but believe in it as well. So for example, we'd ask $X for stage 1 followed by $X for stage 2 once we've gotten there and so forth.

    We were also informed that "49, you're fine". Meaning you're okay if the investor get's no more than 49%. Hopefully a financial advisor/mentor could further confirm that theory.

  4. #4
    Join Date
    Feb 2018
    Location
    Fort Wayne, Indiana
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    53
    Quote Originally Posted by DevilHornsHB View Post
    Thanks for the feedback, while we're aware of the challenges involved with skipping a bank entirely.. we feel it's worth a shot. If we're told by X amount of potential investors that the business plan looks solid, but they can't move forward with out some risk on our end then we'll take it from there and analyze where we're at. I say this with the utmost confidence that if we were to get involved with a bank and for some unfortunate reason the business fails... both of our wives will kill us in cold blooded murder and hide the evidence after losing our homes to the bank.

    I spoke to the president of the agency I work for a short while back about starting a small businesses and talking points to investors. He made a really great point about one strategy. In theory, if you pitch to an investor in stages, they're more likely to come around to the idea. Will we go shut down a lot? Most likely, and we're anticipating that to happen. This is all in hopes of finding the right investor that will not only back our project but believe in it as well. So for example, we'd ask $X for stage 1 followed by $X for stage 2 once we've gotten there and so forth.

    We were also informed that "49, you're fine". Meaning you're okay if the investor get's no more than 49%. Hopefully a financial advisor/mentor could further confirm that theory.
    You should definitely connect with the SBA. They were a big help when we were planning. https://www.sba.gov/

    We ended up getting financing through the FSA, we are classified as a farm and purchased our building and farm land, can't beat 1.5% APR.

  5. #5
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    Jan 2019
    Location
    Fairfax County VA
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    Forgive me if this is a stupid question, but... do you have to put up collateral for an SBA loan? Or can you get approved off credit scores?

    I'll def check out the site though.

  6. #6
    Join Date
    Feb 2018
    Location
    Fort Wayne, Indiana
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    53
    Quote Originally Posted by DevilHornsHB View Post
    Forgive me if this is a stupid question, but... do you have to put up collateral for an SBA loan? Or can you get approved off credit scores?

    I'll def check out the site though.
    Typically ~20% but that collateral can come from investors.

    SBA is normally used for equipment. You might get better rates if you finance through the manufacture of equipment.

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