“There are no big problems, there are just a lot of little problems.” -Henry Ford
When you face a big problem, like building your brewery budget, it’s best to break it down into little problems.
I define these ‘little problems’ as the 6 building blocks of your financial plan.
These 6 building blocks are listed below with a brief description of each.
Something to remember: You don’t need to solve each of these little problems in order.
Start with easier problems. Maybe the loan schedule is easier to put together. Start there.
Build some momentum. Work the little problems one by one, and before you know it, you’re done.
6 Building Blocks of the Brewery Plan
- Sales Forecast – Taproom, wholesale, self-distribution. Model out your major revenue streams.
- COGS / Margin Plan – Build up the cost of your beer: direct material, direct labor, and overhead
- Operating Expense Plan – Start with your biggest expenses (payroll and occupancy costs)
- Capital Expense Plan – List out the equipment you’ll need to buy (think kegs, tanks, delivery van)
- Loan Schedule – Build a simple ‘amortization schedule’ in Excel to create your debt payment schedule
- Cash Flow Drivers – Create a dashboard to measure ratios for inventory, accounts receivable, and accounts payable
Check out the video below on the 6 building blocks and financial models I use to build the best brewery financial plan ever.
If you’re ready to build your best brewery financial plan ever, we are here to help.
Our Beer Business Finance Association Membership includes all the resources you need to build a road map to achieve financial success.
