WitWonder said:
Matty, great thread and thanks for sharing. How are you planning to promote the brewery (budget)? Also, are you just selling at the door or are you trying to get taps elsewhere and supply kegs - I'm thinking this is harder than it sounds? I assume you've worked out how much you need to sell / month and worked that back to number of customers avg dollar spend etc to break even etc. Many businesses go under (your wife sounds like she'd know) because they are undercapitlised. Make sure you can tap your investors on the shoulder for more working capital should you need it. Have you applied for any grants from local government/council (no idea if there's any available, just a thought for a tourist venture).
Hi WitWonder!
I'd have to say that I'm pretty lucky being born and bred in Albany and then deciding to start the brewery. Albany being a small city (~33,000 people) its still like a large town. I know a lot of great people and we have had a lot of help from local business, friends and family. So far I have only promoted the brewery via social media and word of mouth. And jeez has it spread like wild fire. We haven't allowed a budget for advertising as it could be never ending. Our base level for the business plan is to supply fresh beer to the local market only. Anything above this is a bonus.
Our plan is to run as a micro production brewery, cartons and kegs, for local liquor retailers, pubs, bottle shops and restaurants etc. We are also operating a cellar door with a sampling bar (including consumption on the premises as the WA liquor laws have recently changed) including growler fills / sales. As part of your liquor licence application you need to show that you have outlets for your alcohol and obtain letters of support from local business to submit with the application. This makes you have to source places that will stock your beer before you even start producing, I'm lucky in my case that most of our prospective customers have approached me as we have SFA in the way of local beer options and Albany is renowned for local produce, so they've practically been beating my door down!!
I think a major component that has made it easier for me was having a comprehensive business plan right from the start. I developed that well before I even found a suitable property to build the brewery. Its not hard to do and has left me in good stead. At the time I took my current income from working FIFO Oil and Gas and set that as my projected gross profit income for the brewery then worked everything backwards from there. Then you work out all your associated costs (as best you can) by ringing a lot of suppliers etc to figure out prices. Then I set a carton price, keg price and beer / litre price and tied it all together. I included everything I could think of including estimating rough water / power usage from my residential bills. That's a pretty simple look at it but it gave me a rough idea of where to start and then I update the brewery spreadsheet nearly everyday now!
I absolutely agree about the under capitalization comment. I suppose I've been lucky to have a lot of good people help me in different areas and also worked hard to reduce any borrowing as much as possible to give us the best chance of success.
I haven't researched any grants / assistance yet but just yesterday, the guy who runs my local store was telling me about an advertising grant available from the local small business centre. I'm going to stir them up this week and i'll let you know how i go!!
Thanks for the feedback WW and hopefully catch you for a beer at some point.
Cheers
Matty Wilson