The “Commitment”

The next phase in brewery development is what I call “the commitment.”  Capital is committed, a location is committed, equipment is committed and en-route, construction starts and anxiety sets in.  You are actually doing this!  Along with your commitment to brewing awesome beer, you also have a commitment to your financial fitness.  Bookkeeping, payroll, brewers reports, tank labels, and brewing & packing schedules are a FEW of the items you must keep in order to ensure your fitness.  **I caution new breweries not to skimp on the back office expense for the sake of saving a few dollars in the beginning.**  The old adage “you get what you pay for” also applies to the accounting and consulting world.  Here are a few steps to take to ensure your back office is in order:

  1. Interview outsourced controllership firms – Take the temperature of the team.  Do they speak your language? Do they dress like you?  Are they excited about your entry into the market?  Do they intimidate you? Would you hire these people to work at your brewery?
  2. Research who is the expert in the space – While you may not be able to hire the expert during year 1, they may have some helpful advice to share.  Set a goal to eventually get to the level where you can work with the expert.
  3. Talk to other breweries – Breweries love to help other breweries, so ask them what their back office looks like.  Do they do it in-house or outsourced? Are they happy with the results?  Is it clean, or are they managing it on Excel?  Do they know what their cost per BBL is?

Your commitment to financial fitness is as important as the beer you produce!

Potential interview questions:

  1. What is your experience with TTB reporting?
  2. Can you help my brewery grow?  How?
  3. What retail/restaurant experience do you have?
  4. What manufacturing experience do you have?
  5. Are you familiar with industry specific software that can help my processes?
  6. Our goal is to grow distribution statewide and then expand across multiple states, can you grow with us?
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