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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. After reading the remote accountant reviews, and coming to a conclusion, here are a few steps to take that ensures that your back office is in order:
- 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?
- 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.
- 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:
- What is your experience with TTB reporting?
- Can you help my brewery grow? How?
- What retail/restaurant experience do you have?
- What manufacturing experience do you have?
- Are you familiar with industry specific software that can help my processes?
- Our goal is to grow distribution statewide and then expand across multiple states, can you grow with us?
Considering your move
To keep up the momentum of the last post I have come up with a list of five “thought points” a potential brewery should consider while planning their arrival; enjoy:
- Capital – Do you have the money it takes to open a brewery? I see undercapitalized businesses across many industries, and it doesn’t work. Under capitalization is the equivalent of roofers affixing shingles with bubble gum, it simply won’t last if you didn’t hire the experts from Best Indianapolis roofing company for this job. Seek council to understand the capital requirements to open a brewery; oh yea….use nails.
- Plan – Do you have a plan? I am not talking about a traditional business plan. I am talking about a PLAN. Traditional business plans are for winemakers, you’re brewing beer guy. I am talking about: brewery layout, 1, 3, 5 year goals, parking, expansion, marketing, staff, benchmarks. Can you feel the energy you are about to bring? We can’t predict the future, but we can plan.
- Distribution – What does distribution look like in your state? Here in Florida, all wholesale must pass through a distributor. Some states have self-distribution and that is a GOOD thing. Depending on your state, a refrigerated truck purchase may be on the horizon.
- Back office – I am confident you know how to operate all those valves and tanks, but can you balance your check book? The accounting and compliance piece may be a little more than the wife can handle. Hire someone knows the industry, they will get it! This is important for two reasons: 1) because proper record keeping will keep the TTB out of your hair and 2) you want to know if your operation is profitable.
- Culture – Who will you serve? I understand anyone who bellies up to the bar and has money; but what does that person look like? Culture benefits more than just the patrons, it’s the unspoken writing on the wall every business owner strives for. Define your culture, and the people will come.
Craft Brewing
West Coaster’s bear with me; Midwesterners please be patient. I know what I am about to say is SO a decade-old for yall, but here I go. I am excited about craft brewing!!! This industry is less than 5 years old to my wonderful city, and the momentum is not slowing. While I love beer, my excitement stems from the contribution these businesses are having on the US economy.
Two years ago I was given the awesome opportunity to help open a local brewery. While I spend most my time in the back office, I can feel the energy. The smells, employees, fork-lifts, tanks, patrons, all exude positive energy. What makes craft breweries so exciting? I came up with a few thoughts:
- “Love not War” – While their ingredients may be special, expensive, and exotic, I can promise you blood is not being shed over them. It is a peaceful product which if you hang around long enough…. will make you smile. Take that diamonds!
- BRIC, be gone – During the last 5 years, the U.S. has taken a slight beating from Brazil, Russia, India, and China. I meant to say the U.S. (minus) the craft brewing industry. Communism and slave labor can’t intrude.
- Ingredients – This one is my opinion; well actually; all of these are my opinion, but especially this one. The luscious, succulent ingredients craft breweries are using don’t interest the big boys. Why should InBev purchase breweries using expensive German hops when they can continue to sell us the watered down, rice filled, cheap crap? Economics 101 folks: the big boys understand their space.
- Communities – Who doesn’t crave a little community in their life? Every time a craft brewery opens, a new community is born. Whether you lean on the brewery for an afternoon pint or host a fundraiser in the taproom, it brings people together to help a local cause.
Craft Breweries are here to stay. The economic development they bring to cities is awesome and communities love them. This excitement is why I love to serve the industry.
Apple Babies
Does anyone know what happens 9 months after a new Apple device is released? Ok, me neither but I have a theory.
Last week I had the opportunity to hang with some of the brightest minds in the Advertising, Accounting, Legal, and IT industries. This was the first “Verasage Fellows and Friends” event since the passing of Steve Jobs, so you can imagine with a group of innovators, Apple was top of mind. We discussed how Apple creates over $6k per sq ft in each location, compared to Tiffany’s $3k or JC Penney’s $150. We rattled off some more amazing figures but it wasn’t until we began talking about Apple’s attention to detail that I became emotionally connected. More specifically, the experience of opening a new Apple product. I am torn between the beautiful box and that damn cute card that awaits me, reminding me to enjoy. Enjoy. Itsmagic delivered on a business card.
That’s deep folks.
I will admit when I open a Apple product, I get the goosies. The pleasure/comfort part of my brain is firing and it feels good. And I know I am not alone; I am not alone because Apple activates hundreds of thousands of devices a month and delivers the goosies to all those people. Now lets take it one step further. What if I said I believe the pleasure sensation felt from opening a new Apple product had direct correlation to sex. Could you deny it? Would you deny it? Just remember the feeling when you opened that iPad. Yes, one could argue, “Chris, thats like saying a purchase from L.L. Bean could start a baby boom.” And I would call you a bozo. The sacred experience begins when you are holding the shrink-wrapped box. Then comes the unwrapping, followed by the opening. Finally your product and that damn cute card.
So yes, I believe 9 months after Apple releases a new product we experience an influx of newborns.
Did I mention my wife got a iphone yesterday, enjoy.
IC Opportunities
I spent the last 48 hour in chilly Chicago with a group of thought leaders who command attention in the accounting arena. Jody Padar organized the first annual (maybe quarterly) IC Opportunities Event which brought together practitioners, vendors, media, marketers, state societies to discuss the direction of the profession. Greg Kyte, our resident comedian, welcomed us with a colorful keynote. Vendors in attendance included representatives from Intuit, Thomson Reuters, Wolters Kluwer, Sharra Chan of Orange Door, Jennifer Warawa of Sage, Kasey Bayne of Freshbooks, Sarah Johnson of Inovautus, Peter Wolf of Azamba Consulting, Kathleen Echeverria of bill.com, Tamera Loerzel of Convergence Coaching and Michael Redisch of Cloudsway. Our media friends were Danielle Lee of Accounting Tomorrow and Rick Telberg of CPA Trendlines. Oh, and how can I forget, Jackie Brown representing the MACPA, only the COOLEST state society in the land.
Jody started the brain dump bright and early with a discuss on “the Gap.” The four areas we focused on were Mobile, Could, Social, and Project Management. In groups, we discussed the external and internal forces that prevent firms from adopting. The discussion moved to suggestions on how the four areas could gain more traction with the traditional firms. In the afternoon Geni Whitehouse, Jason Blumer Kasey, Sharra, and Joe Manzelli moderated deeper round table talks on Social, Cloud, and Project Management.
I was honored to be invited to an event like this. I was so happy to leave the comfort of my office, during tax season, and engage my brain in the future of accounting. My take-aways from the event were; the profession is moving in a direction to offer creative services above and beyond the traditional “tax-man” services. Acceptance of cloud and mobile technology will be a must for these services to flourish.
Jody, when is the next one?
Thrivecast and Andriod
Self-proclaimed Googleites,
Come one, come all; and feast on the work-around to listen to Greg and Jason‘s Thrivecast on your Andriod device.
Copy the link below and paste it into your RSS feed reader or Google Reader, it will update automatically.
http://www.screencast.com/users/JasonBlumer/folders/THRIVEal%20Podcasts/itunes
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