How to Find Funding for a New Brewery (Part 2)
The first step to find funds for a new brewery is to create a sources and uses schedule. We covered that in Part 1, which you can find here: create a sources and uses schedule.
The next step is to build your financial pro forma.
This is a forward-looking financial plan that will list out expected sales, cost of goods sold, margins, operating expenses and the almighty net income.
Lenders and investors will want a 3-year plan, showing expected results by month, and an explanation of assumptions used to build up the numbers.
For example, assumptions might include the following:
- Taproom sales are forecasted using an assumption of $1200 per BBL.
- This number is arrived at by assuming 200 pints per BBL at $6/price per pint.
- Payroll expense is projected on the included supplemental schedule. This schedule includes expected employee hires, dates of hire, and compensation details.
Building the financial plan takes time, however, to speed up the process and give you additional resources to help out, check out this free financial template and 60-second explainer video.
P.S. Learn more about the network of beer industry financial professionals: the Beer Business Finance Association. We talk about brewery loans, funding, and cash flow all the time!