I know that many of these topics have been covered in different iterations. I'm continuing to read through everything on this site - the information is priceless.
I have been working on the early Alpha version of my business plan for about five months. It isn't much, and I had a kid in the meantime, so, well, but anyhow I feel like I'm working through it.
I met with a local business incubator that I know has space for light manufacturing / food type uses. I also and more importantly, wanted to talk with them about mentoring and business coaching services they offer. I certainly had a wonderful discussion with the man in charge -- a man who has successfully coached many businesses.
I'm going to skip straight to the numbers.
I've figured about $350k to get started - $150k for equipment, $150k for buildout, and $50k for initial inventory and other (I have a more detailed cost break down). I have about $50k in equity in my house, maybe $20k in cash, and that much again in retirement funds.
My plan is to make Gin and Genever (from grain) on a 150 gallon system. I know that Gin is nowhere near the volume of Vodka and that Genever is basically unheard of...
I was a little dissappointed when he said their space wouldn't work. Ceiling requirement aside, he was pretty well convinced that a distillery was an incompatible use with what they have there. I think he thought it would be explosive or something. But anyhow, that isn't the end of the world.
What really took me back was when he said any kind of bank financing was pretty much out of the question. He said for the "second still," sure, but until I have a track record, no way. He suggested I start coming up with an exit strategy of how Angel investors could make a 5-to-1 return. Now, I understand venture capital and the risks, but coming up with 350k with no bank component blows my whole business plan out of the water.
I'm curious if others are having luck with banks at this scale or if using venture capital is pretty much a foregone conclusion.
If so, that's okay too, and I'll just have to start small. Like, WAY small. But I can live with that.