The Beer Chronicles

All about beer

How to set up a microbrewery step-5 – Financial analysis

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During our feasibility step we discussed about financial part also. However in this step we shall discuss financial part  little more in detail and will also explore the costing part.

Since we are done with the market study, feasibility study and we have a handy business plan ready, we can now be more focused and concerned about the costing related to different activities that we will follow while setting up a microbrewery.

Following are some points which should be addressed in course of doing the financial analysis:

  • How to raise fund – shareholders, partners, cooperative, venture capital, equity drive etc.
  • Debt analysis – mortgage, bank loan, lease financing, tax calculations etc.
  • Operating cost – Daily costs involved in running the business like wages, rent, utilities, and interest payments on outstanding debt etc.
  • Licensing cost and other basic amenities cost.
  • Equipment cost- used or new one – (We shall discuss on this in detail in coming posts)
  • Manpower requirements – How many human resource will be required like Brewmasters, Accountant, Engineer, Logistics, Admin, Legal, Marketing, Consultant etc. How many of them would be on payroll, contractual basis. What would be the total manpower cost.

I would suggest that one should try to be very detailed while doing the costing. Doing this activity also gives us a fair picture  on the kind of costs that one has to incurr. This also helps us in identifying areas where we can save on costs like renting a property already available or aquiring land or for example raising funds from friends and family or mortgaging property to raise funds.

In next post we shall discuss on project planning to take thing forward.

Stay tuned and share your views/questions.

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