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Business Plan


Seth

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Hello everyone I was just wondering when it came to writing your business plans what did you feel was the most important thing to start with other than what you desired to make? Any information would be helpful since I am trying to write a plan myself.

Thanks in Advance

Seth

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Ponderables:

Who's the audience for the plan? Yourself as a reminder in the future? Potential partners / angels / vulture capitalists? Where do you put detail and where does an outline suffice?

What's the purpose/focus of the business, for which the product line is the end expression? What's the story?

Who are your consumers? Who are your customers? How do you communicate and sell to each?

What's the business and regualtory environment? What do the businesses similar to you look like? How is your case different and simlar?

Setup expenses and timeline

Operating costs - overhead

Operating costs - things that scale with production

Operating logistics - raw materials in to product out. Space, equipment, people, material, information and their interact and movement.

Income/Expense projections

Basic fiscal goals and metrics - earnings, debt to capital ratio, etc. (How do you make fiscal decisions?)

What I glossed over in mine that I wish I didn't:

Time expenditure as well as monetary expense.

A complete skill set inventory - and an assesment of source, proficiency and cost for each

Marketing

Marketing

Marketing

Hmmm... Did I mention marketing? I was warned up front (by the local SBDC) that my marketing plan was weak. It was good enough that Google shows that other people have picked up elements from it. (I had posted excerpts on the website.) But experience has shown it was merely a handwave. Good enough to start, but 7 years in I think I finally know enough to write a real one (on the project list for this winter). In particular, I didn't reserve capital funds for marketing about 4-5 years in, when I hit the wall in what word of mouth was doing. And all the cash flow had gone to improving production capability and developing a fuller product portfolio (aka inventory).

As a distiller, you want to make product. As a business operator, you want to sell it. Vastly different jobs.

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Goggle "how to write a business plan". There's many sources of information for the basics. Much of it written by business people. You'll have to do the legwork to figure your market, as well as the goals for your plan.

One important goal is to give you an idea of how you'll go about accomplishing what you want to do. You need to determine what you need to do, when you need to do it (and in what order), and have a good idea what things will cost. Going through this process will help provide you with a lot of information about how to accomplish what you want to do. Further, you'll have enough information in order to answer questions from bankers, lawyers, insurance people, etc. and also possible suppliers.

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Seth,

Your question at first sounds like you are asking for a handout, but you ask for the one thing that is considered most important. So here goes: "How you will raise the funds to get to stage 2?". The "How" needs to be suppled by you. Stage 2 is implementing the plan and spending the funds so you can start making product and even more $$. The choice you make now will drive how much you have to spend, and where the dollars will go after you start making them. There are lots of options, and google is the best place to start, but not rely solely on. Once you can afford it, then it's time to get the accountants and lawyers involved. They pinch your wallet, but are practically required to do things right now a days.

Good luck,

-Scott

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Seth,

Your question at first sounds like you are asking for a handout, but you ask for the one thing that is considered most important. So here goes: "How you will raise the funds to get to stage 2?". The "How" needs to be suppled by you. Stage 2 is implementing the plan and spending the funds so you can start making product and even more $$. The choice you make now will drive how much you have to spend, and where the dollars will go after you start making them. There are lots of options, and google is the best place to start, but not rely solely on. Once you can afford it, then it's time to get the accountants and lawyers involved. They pinch your wallet, but are practically required to do things right now a days.

Good luck,

-Scott

Scott-s a

Thank you and everyone else for their advice, I will put it to good use. I apologize if you thought I was looking for a handout. I was merely looking for some insight and knowledge as to what was the first step. I have learned through reading this forum or a few months that everyone's business plan is useful to them on an individual level and everyones is customized to their area, market, product being produced, and etc. So I thank you guys for that information as well. I really appreciate your help

Thanks

Seth

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  • 4 weeks later...
Guest Liberty Bar - Seattle
Goggle "how to write a business plan". There's many sources of information for the basics. Much of it written by business people. You'll have to do the legwork to figure your market, as well as the goals for your plan.

Seth, that's the best advice here.

Keep in mind, the reason for a BP is not just to give to potential investors, but MORESO, to force you to do the research that you did not even know was necessary in order for you to even get close to talking to someone about your business.

For instance, ESPECIALLY with opening a distillery, there's SO MUCH that you need to know beyond the final product. What are the laws of your state? What kind of still? Where will you get your still? Who will operate your still? Who knows the state and federal laws in order for you to conform to those laws? Who is in charge of the labeling? What kind of bottle will you use? Will that bottle work with a labeler?

That's probably 5% of the info in your business plan - a plan which will probably be 50 pages at least before you are close to finished.

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Hello everyone I was just wondering when it came to writing your business plans what did you feel was the most important thing to start with other than what you desired to make? Any information would be helpful since I am trying to write a plan myself.

Thanks in Advance

Seth

Seth,

I would suggest that you end up writing multiple plans. One for yourself - the master plan with all the bells and whistles. One for the local P and Z. One for the investors......

Time is a serious resource contraint that should also not be ignored.

Good Luck.

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I would suggest that you end up writing multiple plans.

Yup.

We had 2 official plans for our S-corp fundraising. One plan was over 75 pages that we treated as our "manual" and which we kept up to date with new info as we learned it. The other we called the "loan package" which we passed out to potential investors. The loan package was 10 pages of actual business info and another 14 pages of stuff the lawyers added for disclosure and other important details related to the investment relationship that was going to be formed. We were told that 10 pages was way too many but that was the best we could get our original 75 pages summarized into. We printed and distrobuted over 100 copies of our loan package and landed 18 total investors across 3 states. Fundraising is a numbers game, and the more you put out there, the more you will eventually sign on as shareholders.

Also, something that helped us out incrediably was a state program put in place by the Finance Authority of Maine (FAME). They offer a program called the Maine Seed Capital Tax Credit Program which acts as an incentive for instate investors where they can recieve 60% of their investment back in the form of state income tax credits over 5 years. Coupled with their share of our operating loss they can claim in the first couple years of operating, and some of our bigger instate investors will actually make money on their investment even if we go out in a big ball of flames. Not sure if other states offer similar programs, however as soon as we were accepted for the FAME program, we had people contacting us wanting to invest. It was a nice feeling to say the least and essential to getting us to our goal.

And speaking of goal, we raised $4.10 for every $1 we borrowed. Its not going to be the same for everyone, but it made the decision for the banks much easier in these "tough economic times" by bringing a ton of cash to the table.

-Scott

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  • 2 weeks later...

I'm still working on my business plan for a distillery, but have written several in the past (as a partner in other business ventures). And one of the best things I've found about writing a detailed b.plan is that a well thought out plan will provide you with a document to "live by". In any business there are ups and downs, but a solid plan will keep you moving in a forward direction. This is not to say that there shouldn't be a point of flexibility, but you can make that part of the plan.

Good luck to you Seth.

Burton

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