View Full Version : First attempt at raising funding.

07-08-2015, 06:27 PM
Greetings to the group,

Allow me to introduce myself as the boards newest member, with some specific questions. So thanks in advance, and apologies for anything that has been discussed. Awating your reading pleasure is a quick background, followed by the facts, then questions.

I have one of those ideas that keeps getting better. So for about the last year I have been "stacking ammo" for a 2.5 million dollar quest for one of those "lager then life deals." The basis is turning an old building into a beer brewing and production facility. I'm at a point I can figure out the numbers so I'll toss it out and see if how it goes. BTW my experience with investing goes to about the Shark Tank level, and I am willing to look up big words I may not know.

One million and change to buy the property and start permitting. 750K remodel to existing property. 500K brewery production equipment. The balance for all the other jazz.
At full production reached in the first 2- 3 years, gross profit is conservative 2 million with a 30% profit.
I currently make enough money to finish filling my "ammo box". Things like a more professional, thorough marketing plan, including statistics and financial analysis. Beginning conceptual, legal, architectural and other professional fees.

The questions of course, revolve around money. Mainly how much of it I can make:) or expect to make after having a person, or people finance nearly all of the project? How much of a percentage is someone going to want? In addition to all of their money back will they want that percentage forever? I would also like to offer a small percentage to a key employee in addition to his or her salary. I understand that every deal is different, but where is the starting point?
It has also been suggested it to me to separate the property from the business. Sounds like a good idea to me. I'm assuming the purpose is to split the liabilities and define who keeps what in a worst-case situation?
It has also been suggested to produce good beer. Will the beer be good? Would you at least try it?
I think I understand what a private placement offer is. and a Reg-D offering. *I think these things are going to apply to me but how much of that will I need to know?
Any thing I left out?
Did the spell check work?

Thanks for your time and I welcome responses.
Mr. T

07-14-2015, 10:05 AM
Welcome and I am also new here, glad to make your acquaintance - although you may not like what I am about to say hehe

Although I know nothing about this type of thing, I have worked for a fortune 500 manufacturer that sells to top distributors and retailers like walmart, lowes and homedepot, and from my experience, it sounds like you may be putting the cart before the horse.

Why would you want to invest all this money for production facility without already having a beer recipe to make? Shoot even if you had the recipe, AND a purchase order for 500K bottles of beer - why would you bother with this plan at all? You could outsource production and delivery to a much more experienced vendor for cheaper.

Sounds like you are just in love with the idea of running a beer plant. Yet you have no beer recipe that is unique or even in demand, no customers wanting to buy said imaginary beer, and no plan for actually making a profit.

You would probably be better off just buying an existing beer plant and taking it over, improving it, and turning a profit that way. It will be much quicker, lot less risky, and provide a clear path to profits rather than wasting your 2.5 mil on product creation, testing and marketing.

I really hate to be the dream smasher but I cannot help my realistic view. Hope this helps talk some sense into you!

Think of it like this, you watch Shark Tank right? Me too.. do you think Kevin, Damon, Mark Cuban, or any of them would invest in a beer plant that has no beer recipes that are unique or even in demand, and no customers wanting to buy said imaginary beers?


07-15-2015, 05:59 AM
I just want share more knowledge about business here. I'm looking forward to see more informative topic about businesses. Thanks!

07-16-2015, 04:32 PM
Hello Jason, thx for your reply and it is appreciated.

I will agree with you... You may know nothing about the current small batch, local craft beer revolution. What do y'all drink around them Fortune 500's? Hehe. ( please do not take my jokes personally:)

Without getting into detail the craft beer numbers are on a huge upswing, poised to go even higher. The market is still growing to it's full potential, and I personally am banking on the fact good beer is, and will continue be a highly desirable commodity.

Now as far as the beer goes... I am sorry to say that a beer brewer is seldom paid what they are worth. So offering a percent of the business to the right person will be key to good beer. Let's be real, if the beer sucks the business will fail. These people do exist their passion for brewing and crafting fine beers is their life work. So let's pretend the beer is awesome like a PBR or a Natty lite.

The location is the unique, proprietary value to this particular venture. So taking some of your advise and "hitching the horse to the front of the beer wagon." Perhaps I should focus more on buying the dirt.

It's going to take a lot more to smash my dreams than a harsh opinion, so again thx for yours.


07-17-2015, 02:19 PM
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08-11-2015, 04:42 PM
In my opinion, and I'm only a college graduate with a BBA in business and finance, if you do not want to give up shares or equity in your business the best course of action is a loan or a LOC ( line of credit). Now with both of those things being said, you do NOT want to go with either of those options thru a bank (the interest rates are ridiculous, they'll require collateral and the time it'll take you to actually get a yes or no from them you could have completed an entire pregnancy and delivery) or a traditional lending broker because YOU will have to pay the broker AND the lender's fees plus interest and collateral. I'm a B2B lending specialist and business consultant so I have helped many small business owners grow their businesses from mom and pop status to national chains. Call me. 469-814-8245 JoAnna Snowton with Stonebridge Lending

09-16-2015, 02:25 PM
Hi everyone!

I'm also new to this forum. I'm a graduate of not a business related major but I'm quite near to finance. I hope I can learn a lot from here especially in starting up a business.

09-18-2015, 07:02 AM
I would exhaust all resources that don't involve spending or borrowing money.

09-21-2015, 01:10 PM
welcome and 2 things,

The first one is I have worked with a company that helps companies establish their own brewing and bottling companies and also build out your bottling company for you. Based on the company information, it appears that they can build a whole bottling facility for less than half a million. the advantages is that they can also provide you with the Brands to start developing in order to start profiting if you do not have your own brand. I do not represent them, I just worked with them before.

I am a financier of acquisitions and investments trough a corporate lending firm called Fundkite. If you are looking to finance a particular acquisition or investment, My company can lend your company up to $2 million for your acquisition. Send me a message with all the pertinent information that will help us finance the company, or just contact me for more details.

12-23-2020, 06:49 AM
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