FAMILY BREWERS

Business plans, pro forma’s, and capital, oh-my!

Posted on Oct 13, 2011

We thought that raising investor capital was going to be the hardest part of the whole effort.  We started to get really excited about the potential of the opportunity.  The more excited we got and the more we tasted the beer, Rudy and I started to ratchet up the amount of money we were willing to risk on this opportunity.  At the end of the day, we decided to fund the whole thing between the two of us and get a loan for the rest.  It’s a little scary thinking about it, but here we are.  To say that we’re committed would be an understatement…

Working on a business plan is an enlightening process for someone not very familiar with the industry (like Rudy and I).  I’ve started a handful of businesses and each one has unique aspects.  A brewery is a complex and capital-intensive business.  It’s unlike any that I’ve been involved with to date.  I’ve spent countless hours on the phone talking to equipment suppliers, researching used equipment opportunities, and trying to understand everything that needs to come together for this effort to be successful.  I’m a firm believer in uncovering as many surprises as possible at the very beginning.  In business, the rate of surprises is a critical variable to watch since it is an indicator of how well you’ve got things under control.  We’re finally getting to a point where I feel like we’ve got our arms around what needs to happen and have uncovered most of the “known unknowns” that we started with along with a number of “unknown unknowns” that so far haven’t been too bad.

Now that we’ve got the investor capital in place we’ve moved onto the banking process.  More to follow…

 

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