Posts Tagged ‘Setting up a Microbrewery’
Okay, so as of now we are done with first five steps required to set up a microbrewery, they are Conceptual examination, Market intelligence, Feasibility study, Project justification and Financial analysis.
Today we are going to discuss the next step which is project planning. Till now we have gathered and analysed lots of relevant info/knowledge. In this step we are going to convert that knowledge to concrete plans, objectives and deliverables.
Project planning basically is a discipline to pin down as what all steps are required to complete a project within a certain timeframe, along with defined stages, and with designated resources. It can be divided into 4 simple steps as follows:
Setting objectives – measurable objectives in terms of timeframe.
Identifying deliverables – specify when and what task would be delivered.
Planning the scheduling – Effort required for different series of tasks along with the schedule.
Making supporting plans – who will do what work, communication channel, amount of risk involved in accomplishing the different tasks etc.
Now let us look at some of the points we need to look at while doing a project planning for a microbrewery set up:
- Master schedule – with smaller tasks and respective goals
- Work break up – who is doing what, how and with timeline
- Complete details of every step – like detailed engineering, working drawings.
- Lists – for different vendors/contractors/suppliers
- Procedural strategy
- Procurement commercial terms and conditions, warranties
- Liability list ready – during construction, operation, product
- Cost control estimates
- Cash flow forecasts, establish contingency plan
- Equipment decision – new/old, who will supply
- Basic amenities – like electricity, water, transportation/logistics
Tell me if I am missing any point in project planning. In next post will discuss about the implementation part.
Share your views.
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.
At this point, we will know if it is worth proceeding. The assumptions in the Feasibility Study can be tested and formalized to enable final investment decision to be made. Based on the outcomes of feasibility study we create a business plan.
The business plan builds on the information that was obtained through the feasibility study, but provides a more detailed and specific blueprint that map out the microbrewery strategy. A business plan is similar to operating a company on paper. It sets out the goals of the microbrewery and how we intend to reach those goals.
There are two basic purposes of a business plan:
External purpose – The business plan helps to obtain financing from potential investors/banks. A business plan generally an answer to the common question of the investors, “Why should I invest in this business?”. They analyze how well we have analyzed the business opportunity and planned accordingly. So the business plan becomes the primary fund raising tool also. That is why it should provide an honest and straightforward examination of the business opportunities.
Internal purpose – A business plan provides a blueprint for us to follow. It helps in listing down all the business activities which is useful to evaluate the all aspect of business. It also serves as parameter against which our performance can be measured as we go on gradually to setting up a successful microbrewery.
The other areas which need to address in business plan are industry knowledge gathering, market intelligence, operation management, financial plan, risk analysis, review and right implementation. Some of the points we have discussed already and rest of them will be discussed in my coming posts.
In my next post I’ll discuss in detail about the financing part.
Keep your views/questions coming along this journey of setting up a microbrewery!!
Continuing my previous post about Microbrewery and opportunities in India, this post is about how to establish a Microbrewery.
The idea of starting your own microbrewery is a potent combination of business and pleasure. Starting a Microbrewery and selling Beer is becoming a hot and trendy business in India. Microbrewery start ups have a substantially better than average success rate as compared to other businesses.
Besides the availability of funds, there are certain factors which need to be considered before setting up a microbrewery. They are:
Selection of brew: What kind of Beer you want to brew and what variety/quality will make you to stand above the competition from commercial Beer or other microbreweries. This can also be answered with what kind of Barley, Water, Hops, Yeasts (any special strain) etc. you want to use to get that special Beer you wish to brew.
Location of the Microbrewery: As of now the concept of Microbrewery in India, is restricted to bigger cities like Gurgaon, Pune, Bangalore, Delhi etc. These cities follow global trends and it is more likely that people here have an inclination to try more variety/ flavored Beer over the commercially available ones.
Requirement of space: This usually depends on the capacity you want to produce, types of equipments, sitting capacity (in case of Brewpub) etc. Because of its size, a reasonable Microbrewery can be started in a single room or the basement/ terrace of your apartments (Depending on availability of power, water and appropriate licences)
Licensing: The license for operating a microbrewery is issued by the respected state excise department. If you wish to start a pub also along with microbrewery then you need to apply for a separate license.
Equipments: Based on the Beer type and the capacity, the brewing equipments are selected. The basic equipments are Mash tun, Hot liquor tank, kettle, wort aeration, apparatus, plate heat exchanger, vessels etc.
Most of it is usually available for online buy, but it is preferable to interact with someone knowledgeable from the industry. Usually hiring a Microbrewery consultant eases of a lot of your pressures. They can help you with all the requirements, processes, formalities, setting up, procuring and some amount of marketing too.
In the next post I will talk about the costing that go in setting up a Microbrewery