Read more
Build success from start-up to expansion with a solid foundation of finance principles geared specifically toward small beverage producers. Learn how to interpret financial reports and create basic pro-forma statements for launching a brewery, purchasing equipment, or determining new locations. Discover pricing models that maximize profits. Learn how to build budgets and use them to hold staff accountable. This book will provide insights and results-oriented data to help you run a more successful brewery.
List of contents
TABLE OF CONTENTS
Foreword Acknowledgments Preface 1. From Dream to Reality: A Craft Beer Business Journey 2. Introduction to Financial Management Basic Financial Statement Introduction
Accounting: General Structure of Transactions
Accrual Accounting versus Cash Basis AccountingChart of AccountsInternal Controls3. Balance Sheet and Income Statement Balance Sheet
AssetsInventoryFixed Assets (Capital Expenses)LiabilitiesEquityKey Ratios: Balance Sheet
Current RatioQuick RatioAccounts Receivable DaysAccounts Payable DaysInventory TurnoverIndustry Benchmarks for Key RatiosIncome Statement (Profit and Loss)
Cost of Goods Sold (COGS)Accounting for Inventory and COGSGross ProfitOperating ExpensesInterest ExpenseDepreciationNet Income versus EBITDAKey Ratios: Income Statement
Gross ProfitEBITDANet Income4. Cash is King! Cash Reserves
Statement of Cash Flows
Format of Statement of Cash FlowsSteps to Calculate the Statement of Cash FlowCash Flow Forecasting
5. Interpreting Financial Statements Chart of Accounts
Every Statement Tells a Story
What the Balance Sheet ShowsWhat the Income Statement ShowsGenerating Relevant ReportsMonthly Financial Review
Interpreting Financial Statements
Period-over-Period GrowthCOGSGross Profit %Payroll %NOI %EXERCISE
6. Finding Breakeven and Costing Beer Breakeven
Finding the Accurate Cost of Beer
Brewpubs and TaproomsLaborTaproom COGSTools for Costing
Planning and Start-Up PhaseAdolescenceMaturity7. Options for Growth Self-Distribution versus Third-Party Distribution
Retail versus Wholesale
8. Operating Budget Types of Budgets
Sales BudgetProduction BudgetAdministrative BudgetsOther Budgeting ApproachesConclusion
9. Sources of CapitalDebt versus Equity
Who Should Invest
Four Must-Have Documents When Working with Investors
Term SheetPro Forma FinancialsOperating AgreementSubscription AgreementHow to Manage Investor Expectations
Annual Investor MeetingsQuarterly UpdatesInvestor DistributionsHow to Prepare Pro Forma Financial Reports
EXERCISE
10. Business Life Cycle Start-Up
Early Stage
Adolescence
Maturity
Exit
Employee Stock Ownership Plan (ESOP)
Appendix A. What to Include in Your Business Plan Executive Summary
Company Description
Products and Services
Market Analysis
Strategy and Implementation
Organization and Management
Financial Plan and Projections
Conclusion
Appendix B. Sample Chart of Accounts Brewery
Brewery with Restaurant
Appendix C. Sample Full Budget SpreadsheetAppendix D. Ten-Week Budget Calendar Appendix E. Sample Term Sheet for XYZ Brewing Company, LLC Appendix F. Choice of Entity/Significant Tax and Other Considerations Glossary Index
About the author
By Maria Pearman
