Posts Tagged ‘financial projections’
This may not be the final post in the series, but writing a business plan is one of the key steps necessary to opening a brew pub or starting most any business. You need the business plan to apply for financing or perhaps to secure a lease or even a key permit or license. Writing a business plan is work. A great amount of time can be spent refining a business plan and more business plans get written than get financed.
Writing an entire business plan was never a goal of this blog series, but providing some of the numbers, resources, and information that goes into a business plan was among the goals. I found a pub business plan posted online that was made available for free, specifically to help others open a bar. Brewing beer was not part of this business plan. It is dated but with the exception of including brewing as part of the operations and brewmaster among the key staff it has all the major sections you can expect to see in the average business plan.
It is still available on the forum I found it, but I also put a copy on WordPress.com to ensure that it remains available as long as this blog is online. The numbers are mostly all there, but need to be revised and adapted for the new decade and British Columbia. Part of that work was done by me in my big spreadsheet post. I thought we should look at the major sections of an actual business plan and the information they should contain. Potential investors and funders will want answers and if you don’t even know the questions, you will look foolish in a key meeting that may determine the future of your dream.
You can’t anticipate every question, but the most important questions such as the experience of the team, the depth of the market and industry research, the veracity of the sales forecasts, the details of the startup costs, these can be researched and written up prior to any important meetings.
Read the rest of this entry »
The third in our series on opening a brew pub deals with market research. Market research is the process of determining whether sufficient demand exists in the area of the province you hope to operate your establishment. Without sufficient sales volume you will not be able to keep your brew pub running, you need to convince yourself and your potential backers that sufficient demand exists for the products and services you propose to sell.
There are three types of research your should conduct. Market research can be further broken into two types, primary and secondary. Primary research is carried out by the prospective business owner, asking specific questions of potential customers, or observing say the walk-by traffic at a potential location. I won’t be doing any primary market research, but prospective brew pub owners definitely should. Secondary market research is data which you yourself do not collect. This includes all the information published on the Internet or in books. Secondary market research can be very accurate and useful, but does not completely replace the need for primary market research. The final research that needs to be undertaken is industry research. Market research covers the people who potentially buy your goods and services, Industry research covers everything else: competitors, suppliers, government regulations, etc.