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Thread: What am I missing here???

  1. #1
    Join Date
    Mar 2018
    Location
    Marietta
    Posts
    10

    What am I missing here???

    Iím working on financials for our 2 BBL Nano startup, if anyone has a minute check out this google doc of P&L and let me know what you think. Thanks!

    https://uploads.tapatalk-cdn.com/201...0a8928416c.jpg

    https://uploads.tapatalk-cdn.com/201...ab5dd1056d.jpg

    Edit: added image files instead of a Doc link.
    Last edited by DTimblin; 04-02-2019 at 12:00 PM.

  2. #2
    Join Date
    Jun 2014
    Location
    Wisconsin
    Posts
    2
    Couple of quick things I noted. How did you go from producing 24BBL/month to 480BBL/year?

    Depending on your location and local beer scene etc, figuring on selling 285 beers every single day you are open may be on the optimistic side.

  3. #3
    Join Date
    Mar 2011
    Location
    The South
    Posts
    169

    5bbl or larger

    My two cents...

    Please try to start with a larger brew system than 2bbl. I reviewed your attachments. You are servicing a $150,000 loan at $3,000 month. A 2bbl system ainít gonna cut it in the long run and will be brutal on your labor costs if you are the least bit successful.

    Please try to piece together something/build it yourself/frankenbrew some tanks etc. to get to at least a 5bbl system. Making your own frankenbrew equipment at the 5bbl size is easy and can be put together for around the same cost of a nice home brew system.
    Last edited by Catfish002; 04-02-2019 at 02:08 PM.

  4. #4
    Join Date
    Mar 2018
    Location
    Marietta
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    10
    Quote Originally Posted by drbenj1 View Post
    Couple of quick things I noted. How did you go from producing 24BBL/month to 480BBL/year?

    Depending on your location and local beer scene etc, figuring on selling 285 beers every single day you are open may be on the optimistic side.
    I may have forgotten to change the yearly BBL when I downsized the brew house from previous numbers. 🤔

  5. #5
    Join Date
    Mar 2018
    Location
    Marietta
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    Quote Originally Posted by Catfish002 View Post
    My two cents...

    Please try to start with a larger brew system than 2bbl. I reviewed your attachments. You are servicing a $150,000 loan at $3,000 month. A 2bbl system ainít gonna cut it in the long run and will be brutal on your labor costs if you are the least bit successful.

    Please try to piece together something/build it yourself/frankenbrew some tanks etc. to get to at least a 5bbl system. Making your own frankenbrew equipment at the 5bbl size is easy and can be put together for around the same cost of a nice home brew system.
    I ran the numbers at 3.5 BBL and 5 BBL and they definitely look better, Iím just looking to minimize my upfront costs and see if itís viable as a start up. Fully aware that if weíre as successful as we hope, having a plan to expand the brewhouse and cellar would need to be in place for less than a year out from opening.

  6. #6
    Join Date
    Mar 2011
    Location
    The South
    Posts
    169

    Debt kills breweries

    Nano sized system + $150,000 loan = your 2bbl system will be listed for sale here on Probrewer within a year (due to either realizing you needed a much larger system or you have already gone out of business)

    Will your loan cover both your 2bbl system costs and your 5bbl-15bbl expansion system costs within a year?

    Not trying to be harsh...but wanting to stress if going into $150,000 worth of debt for an undersized system is really even a good idea.
    Last edited by Catfish002; 04-02-2019 at 05:22 PM.

  7. #7
    Join Date
    Mar 2018
    Location
    Marietta
    Posts
    10

    What am I missing here???

    Quote Originally Posted by Catfish002 View Post
    Nano sized system + $150,000 loan = your 2bbl system will be listed for sale here on Probrewer within a year (due to either realizing you needed a much larger system or you have already gone out of business)

    Will your loan cover both your 2bbl system costs and your 5bbl-15bbl expansion system costs within a year?

    Not trying to be harsh...but wanting to stress if going into $150,000 worth of debt for an undersized system is really even a good idea.
    No problem being harsh, Iím looking for real opinions haha.

    The $150K is a ballpark figure for equipment/startup costs/raw materials/taproom buildout. If I can get the number down lower I for sure will take out a smaller loan.

    A similar project here (South Central PA) got started with a 1 BBL system and small taproom for about $60K but they worked like crazy the last 8 months and are just installing a 3 BBL system this week. Feels like if I can start a little bigger than that, and then expand more exponentially, our project will have a better chance and less risk of myself and my brewing partner burning out.


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  8. #8
    Join Date
    Sep 2012
    Location
    Moorhead, Minnesota
    Posts
    601
    Agreed go bigger than 2 BBL. Tanks aren't that much more expensive as you size up, it's worth it

  9. #9
    Join Date
    Nov 2014
    Location
    Montana
    Posts
    33
    Just wanted to politely pile on...

    Debt kills small businesses. Avoid it or minimize it as much as possible.

    Don't open with a 2 bbl system, start at least at 4bbl size. We started at 4 bbl, and within 2 years upgraded to 7 bbl. Happy with 7 bbl production now, 4 bbl production was a struggle to keep up, and we are only a tap room with no meaningful distribution.

    Good luck.

  10. #10
    Join Date
    Mar 2018
    Location
    Marietta
    Posts
    10
    Thanks everyone for the replies! Iíll probably go back at least to my 3.5 BBL numbers and see how they look with a smaller loan.

    Does anyone see any expenses or profits up there that seem wildly off??


    Sent from my iPhone using Tapatalk

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