Planning Your Distillery

[jbdavenport1]

So you're still planning your distillery? So many things to consider. One example:  Are you buying or leasing your major equipment?

If you buy the equipment you have huge upfront outlays of capital. If you lease the equipment, you can avoid the huge upfront cost...but you will like pay more in the end (finance charges). 

But consider this...this is an industry with big surprises during the build out phases. In our instance it took nearly twice as long as we planned and about 30% over our initial budget...ll from things that 'surprised' us. Like an over zealous building inspector. 

Had we bought our equipment, we would not have had the financial flexibility to adapt to these surprises. By leasing, we 'kept powder dry' for those overruns and surprises. We didn't go into to full operations 'cash poor'.

 

If you're still planning your distillery and would like an outsiders view on your plans, let me see if I can help.

 

20 plus years in the finance industry. PhD and MBA. Have taught finance at both the undergrad and grad level. Have started several successful businesses including running our own distillery.

 

[iliasm]

You opened my eyes with the leasing equipment, thank you John! Even though I'm late into this game, going forward I'm looking for opportunities to lease.

Cheers,

-ilias

[MG Thermal Consulting]

Especially when you get down to cooling equipment and you've run out of cash.

I've been using them for customers that want add-ons that are energy savers for paybacks that will pay for the add-on.

[jbdavenport1]

5 hours ago, iliasm said:

You opened my eyes with the leasing equipment, thank you John! Even though I'm late into this game, going forward I'm looking for opportunities to lease.

Cheers,

-ilias

Happy to help. Leasing can be a big help as you expand. Oftentimes, coming up with that second big outlay is even harder than the first.