Greetings,
My name is Andy (forum handle is 80 Proof) and I am writing a research paper for my MBA program on the financial risks associated with the microdistilling industry. I would greatly appreciate the help from those entering the industry and those who are established. If you would like to help but don't want your information visible to the world, please email me at amartsolf@bresnan.net.
I am interested in hearing your thoughts on the following:
1. Were entry costs a barrier for you to enter the microdistilling industry and how did you overcome the entry cost barrier?
2. Is your product mix a result of needing to generate revenue or more a desire to produce a variety of spirits? It has been my observation that microdistilleries tend to produce vodka and gin in order to get product to market and generate revenue, yet there is a great interest in producing spirits, such as whiskey, that age in barrels for years.
3. Do excise taxes pose a financial risk to your operation?
4. Was financing for your business start-up difficult to obtain?
5. Have you calculated a break-even point? If so, how long?
6. Have you calculated any financial ratios for your distillery such as return on assets (ROA), gross profit margin, and operating profit? If so, will you share and if not will you use calculators at www.bankrate.com/brm/news/biz/bizcalcs/ratiocalcs.asp ?
7. What is the greatest financial risk that you face in the microdistilling industry?
Thanks,
Andy