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Foreshot last won the day on January 13

Foreshot had the most liked content!

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About Foreshot

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  1. Foreshot

    Bostonapothecary signing in

    "Reactions" is one of the books I'm reading based on your recommendation. Thanks for all the work you do. Even though I am not a rum person I have learned a lot about flavor development reading through the Arroyo's works and other information from your website.
  2. https://www.reuters.com/article/us-texas-whiskey/fields-of-dreams-texas-researchers-seek-to-redefine-u-s-whiskey-idUSKBN1JD09C
  3. Foreshot

    New Podcast - Still Talking Podcast

    So I put this in another thread but I should post it here. I really like your podcast. For me, to make it even better, get more technical. Most startup craft people don't have educational backgrounds in brewing/distilling. The people in your podcast mention technical terms but tend not to expand on them. Do that. Most of us don't know fully understand what they might be going over. It might seem a little pedantic to the listeners but it's not. We need that background info. Good luck!
  4. Foreshot

    Wording for lease

    Ok, thanks. I agree - I would rather have it simple.
  5. Foreshot

    Wording for lease

    Hi everyone, Is there specific wording that is needed for a lease or is as simple as "Lessor acknowledges that the lessor's intended use is a distillery"? Thanks!
  6. Foreshot

    Ownership Structure

    There's way to much to put into a single post - or even a book. The best advice is to have a good lawyer to guide you through this. A couple common scenarios to think about. For each one you should think about how you want to reflect that in the agreement. 1. Everything is cool, you keep close to your business plan, everyone does what they need to do. Eventually people will want to sell their shares, when to do distributions, bonuses, etc. 2. A partner/owner go nuts/bad divorce, etc. This include purposefully trying to take more money out of the company if things go well. Bad divorces can really do a company in. They may be more concerned with vendeta and not money. 3. Things go bad, equipment fails, low sales, bad reviews, etc. Investors are pissed. You need more money to go on or you need to file bankruptcy/liquidate. You need to understand how you want to handle these situations and have a lawyer put them into legalese. As other people stated above the majority of the agreement will concern duties, milestones, and exits. Research "term sheets" on google. You'll see a variety of rights and riders. One I would have in there is a "Right of First Refusal". It allows investors to get the valuation for their shares (good for them) but you get the option to buy it to keep control (good for you). Watch the control of the board of directors if you have one. Ensure your lawyer keeps you in control. Maliciously savvy investors know how to manipulate them to remove your control. Anti-dilution controls are good for people in your situation that you are bringing the skill/labor and not the money. If things go well then the people with money can force the issuance of extra shares to gain more control of the company.
  7. Foreshot

    Possible Mash Infection, Need Help

    Honestly you probably should call a consultant. Dr. Heist at ferm-solutions.net, white labs, or someone else that identify a sample of the infection. It's better than losing product.
  8. More examples: http://www.glassrev.com/product-sheets-usa
  9. Foreshot

    Help! Artemisia pontica..

    Yeah, it does help if you look up the right name... Sorry.
  10. Foreshot

    How to determine outputs/ still size

    Bluefish for the win. For pricing look at other distillers around you. I would charge similar rates as them. You're selling a premium product, don't try to price match regular commercial spirits. Unless you're experienced in the industry you're never going to be close to what your actual sales will be except by happenstance. With most startups (not just distilling) you're most likely going to be selling a lot for the first 2-4 months. You're probably going to be getting at least some free press & general buzz. Ride that wave as hard as you can. It is that 2-4 month point when your product/marketing/location/etc will start to dictate your sales. Short of having a perfect product you're most likely going to see a drop in sales. Just be ready for it. Also are you selling bottles only? If you're in a state that allows a bar do that. Unless you're selling a lot of bottles the bar will likely make you more money than bottle sales. Sorry I can't help you more.
  11. Foreshot

    Help! Artemisia pontica..

    Seeds are easy to get: https://www.amazon.com/Wormwood-Artemisia-absinthium-Seed-Needs/dp/B002TTGO3C Not a really good option for 1-2 plants though. Want to start a farm, all good. :)
  12. Foreshot

    New Application TTB consultation

    Same here. He's great to work with.
  13. Foreshot

    Valuation Comps

    I should have stated that the key to getting beyond the 3-5x range is making it so that an investor has little risk or has to do little to manage the business. If an investor can drop a load of cash off at your door and then get a good return with little or no activity then you can ask for a higher multiple. This would mean having a business that has solid experienced management, been around a while (3-5 years minimum), strong balance sheet/cash flow, with little likelihood of something negative on the way, and good growth prospects. If an investor will need to be an active part of the business other than being on the Board of Directors they will want a better return for their time spent on the business.
  14. Foreshot

    Valuation Comps

    One year of expected earnings. Most investors want 20% or higher returns of their initial investment. That means 5 years or less. Most look for 3-4 meaning 25-35% return. It's hard to break the 3-5x earnings model unless you have very high earnings or there other extenuating circumstances that could lead to better than expected returns. Once you get beyond family and friends investors aren't really generous. You might get 1 year to get things up to speed, but it probably won't last much longer than that. They will expect something year 2 and beyond. If you get a good guy you might be able to do convertible debt bonds. It can lower costs the until they are converted. In the US it keeps the debtor higher if there is a bankruptcy so some investors prefer it. The vast majority of investors consider only the cash returns. The increase in value of the company is normally not considered in their calculations. The increase in value is their reward for the risk they undertake. You can argue 'til your blue in the face. Investors don't care. I will admit I am a bit jaded after dealing with startup companies, your experience may be better.
  15. Foreshot

    Valuation Comps

    3-5 times earnings. Unless you have something magical it's unlikely you're be able to go above that. If you're going for distribution as a major source of income & you have no experience stick to the low end. Distribution is about marketing/sales more than anything else. Lots of bad products sell as well as good stuff because of marketing. If you're going for more of a local distillery/pub: Smaller town keep it lower, bigger town or tourist area then give it a little more. If you have any local breweries with a similar business model you can ask them what they would value it at. You will be somewhat close. And most investors that know what they are doing will ignore your numbers anyhow. Until you've been in business a few years your numbers are a guess.