Recently, I presented a crash course on brewery finances at Brewbound Live.
It was an honor to be invited to speak and share what I’ve learned on the topic of finance and capital raising for craft breweries.
In this post, I will summarize the key points of the talk, and provide a download link so you can grab the full presentation deck.
Crash Course: Finance and Capital Raising for Craft Breweries:
- How to Become a Better Financial Operator
- One Simple Tool to Focus on Cash Flow
- When and How to Raise Capital
How to Become a Better Financial Operator
In my experience, brewery owners are exceptional at making great beer, focusing on quality and safety, and providing great service to customers.
But, the focus on finance and cash flow is a bit…lacking.
Without a focus on cash flow, you may find yourself out of cash. And out of business.
To become a better financial operator the first step is to set up systems to produce reliable financial reports.
Processes and procedures need to be created, implemented and audited to make sure everything is working properly.
Most importantly, you need to create a routine to read the financial reports and take action on what the information is telling you.
I’m a big fan of simple, one-page financial reports that are easy to read and provide only the most important information.
Metrics, KPIs (key performance indicators) and benchmarks are a great way to present simple, useful financial information.
To become a better operator, create systems to produce reliable numbers and set a routine so that you read the financial info on a regular basis.
One Simple Tool to Focus on Cash Flow
Financial reports don’t need to be five pages long and filled with lots of tiny numbers. A one page financial report will do just fine.
The one page report saves you time and brain power when reading your financial info. Best of all, if the report is short and sweet you’ll be more likely to read it on a regular basis.
Here is a Simple Cash Flow Tool that I have used to measure and monitor financial results in our business.
Use the spreadsheet as part of your routine to focus on cash flow in your brewery.
Wrap Up + Action Items
As promised, you can download my Brewbound Live presentation deck here.
Yours in Finance + Capital Raising,
Kary
Craft Brewery Financial Training Members: To get more details and step by step instructions on this topic, Log In to your account and access the Online Courses from the Member Menu.
Not a member yet? Sign up and get instant and unlimited access to Craft Brewery Financial Training online courses, resources and guides.
