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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Buying a business - brewery
So my DH and our friend are looking to go in on a business together. They already have jobs and looking to buy a brewery close by that's for sale. They have gone many times for years with friends and brew and bottle their own beer. Place already has very knowledgeable employees that would stay and DH and friend know them well too.
DH does own his own contracting business and does well, but would eventually like to retire or do less back breaking work. Our friend works at a law firm.
I don't know... is it crazy to consider it? Sounds like it would be fun, but yes, a lot of work too.
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Posted 5/15/19 11:32 AM  |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Buying a business - brewery
It seems like it could be an opportunity for your DH to be involved in a business that really interests him.
A few things...I would have a business valuation done to confirm you are paying a fair price.
Anytime there is a partnership there is risk there. I would try to make sure that expectations on responsibilities are very clear from the start. Further if his partner is married consider that his share is shared and in a divorce situation is there enough available to buy her out or would you need to sell business.
Best of luck with whatever you decide!
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| Posted 5/15/19 12:32 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Buying a business - brewery
It sound exciting. Like you said, a lot of work, but if the guys find it fulfilling and something they would really enjoy, then go for it.
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| Posted 5/15/19 12:32 PM |
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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Re: Buying a business - brewery
Thanks all and thanks for the advise!
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| Posted 5/15/19 12:59 PM |
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pnbplus1
Family
Member since 5/09 5751 total posts
Name:
Mommy
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Re: Buying a business - brewery
I'd ask why it's being sold? Is it profitable and owner wants to cash out or is it something else?
ETA: but since your DH is interested in it and enjoys it, and has experience running a business, it sounds like a god match.
Message edited 5/15/2019 1:17:03 PM.
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| Posted 5/15/19 1:16 PM |
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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Re: Buying a business - brewery
Posted by pnbplus1
I'd ask why it's being sold? Is it profitable and owner wants to cash out or is it something else?
ETA: but since your DH is interested in it and enjoys it, and has experience running a business, it sounds like a god match.
They've been going for about 7 - 8 years now. The woman who owns it is planning on retiring. Been talking about it for years. In her late 60's he said.
Figured between DH knowing how to run a business and can fix things and our friend being a lawyer it's a good match. We'll see. It is something he loves and knows all about beer. LOL They have fun brewing when they go. They take friends too and always have fun.
My boys will have jobs there when they get old enough... LOL and they don't have a liquor license so they don't have to worry about that bc people come and brew it themselves.
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| Posted 5/15/19 1:40 PM |
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Re: Buying a business - brewery
I'd def. be for my DH doing that!!
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| Posted 5/15/19 2:22 PM |
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Buying a business - brewery
My concern would be who's going to be overseeing the business day to day if they both have jobs. You mention experienced employees, but someone still needs to be there.
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| Posted 5/16/19 10:41 AM |
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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Re: Buying a business - brewery
Posted by starbrightgirl8
My concern would be who's going to be overseeing the business day to day if they both have jobs. You mention experienced employees, but someone still needs to be there.
They don't open till late afternoon so during the day isn't a problem and pretty sure they are closed Mondays. I think between the two of them and including myself and friend's wife we'd help out a lot. Especially in the beginning and then eventually put more into this business. My DH does all the work himself being a contractor, soup to nuts. For me I'm thinking this would be a lot better for his health and he won't have to do back breaking work as much and put more into the brewery.
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| Posted 5/16/19 1:21 PM |
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schmora15
LIF Adult
Member since 9/08 2476 total posts
Name:
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Buying a business - brewery
It's more work and commitment than I would be interested in if I was retiring. Is it a resaurant too? What percentage is cash? It sounds like it would be a huge time commitment. If there's a large percentage of cash business you really need one owner there at all times.
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| Posted 5/19/19 12:36 PM |
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Lucky09
2017!
Member since 1/06 7535 total posts
Name:
DW
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Re: Buying a business - brewery
It sounds interesting and fun, but I do think it would be a lot to take on now, while he is still working FT. When would he be working on it / renovating? Evenings and weekends? That’s a lot of time to spend at a second job when you have kids, activities, other family and friend obligations etc.
Then, as someone stated above, if a operating as largely a cash business, an owner really has to go often to check in, collect the cash, check in with employees, etc.
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| Posted 5/19/19 8:25 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Buying a business - brewery
One of my concerns would be that with any type of restaurant or bar, you have to be there evenings and weekends - that's usually the busiest time. So if you are used to having family time or going out on weekends, you can pretty much kiss that goodbye
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| Posted 5/20/19 9:33 AM |
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mrsrainbow
LIF Adult
Member since 1/17 1465 total posts
Name:
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Re: Buying a business - brewery
I find it odd that no one has asked if either your husband or his friend have any experience in the following:
P&L
Forecasting/budgeting/revenue management/cash distributon/vendor terms/cost analysis
Food costs
Liquor costs
Labor costs
Food management
Mixology
Menu Creation
Health and safety codes/SOP
Human resources/hiring practices/EOE/training staff
Pricing
Marketing/branding
State and federal tax laws
Above all else, what is their investment?
etc etc etc
If they don't, I would highly suggest that they do more research to educate themselves before diving in headfirst. The owner who wants to retire is going to sell it to them like it's a dream business because she wants to retire and hand it off to someone else. Is this brewery successful, middlling or failing? What is their market share? Competition? What is their annual revenue? There is a reason why restaurant businesses are the riskiest businesses to enter into, especially if you are inheriting someone elses problems. If their idea of owning a brewery is "dude we own a brewery this gonna be fun and our wives are gonna help out" please watch Bar Rescue, Kitchen Nightmares, Kitchen Impossible or any other show like that because you'll be in for quite a surprise. I think you guys need to do a lot more research and due diligence.
Message edited 5/20/2019 10:19:06 AM.
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| Posted 5/20/19 10:18 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Buying a business - brewery
Posted by mrsrainbow
I find it odd that no one has asked if either your husband or his friend have any experience in the following:
P&L
Forecasting/budgeting/revenue management/cash distributon/vendor terms/cost analysis
Food costs
Liquor costs
Labor costs
Food management
Mixology
Menu Creation
Health and safety codes/SOP
Human resources/hiring practices/EOE/training staff
Pricing
Marketing/branding
State and federal tax laws
Above all else, what is their investment?
etc etc etc
If they don't, I would highly suggest that they do more research to educate themselves before diving in headfirst. The owner who wants to retire is going to sell it to them like it's a dream business because she wants to retire and hand it off to someone else. Is this brewery successful, middlling or failing? What is their market share? Competition? What is their annual revenue? There is a reason why restaurant businesses are the riskiest businesses to enter into, especially if you are inheriting someone elses problems. If their idea of owning a brewery is "dude we own a brewery this gonna be fun and our wives are gonna help out" please watch Bar Rescue, Kitchen Nightmares, Kitchen Impossible or any other show like that because you'll be in for quite a surprise. I think you guys need to do a lot more research and due diligence.
These are all very good points. Owning a business like this (and being successful at it) is a LOT of work and takes a LOT of time. It's not just the fun side that everyone sees
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| Posted 5/20/19 12:20 PM |
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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Re: Buying a business - brewery
Posted by chilltocam
Posted by mrsrainbow
I find it odd that no one has asked if either your husband or his friend have any experience in the following:
P&L
Forecasting/budgeting/revenue management/cash distributon/vendor terms/cost analysis
Food costs
Liquor costs
Labor costs
Food management
Mixology
Menu Creation
Health and safety codes/SOP
Human resources/hiring practices/EOE/training staff
Pricing
Marketing/branding
State and federal tax laws
Above all else, what is their investment?
etc etc etc
If they don't, I would highly suggest that they do more research to educate themselves before diving in headfirst. The owner who wants to retire is going to sell it to them like it's a dream business because she wants to retire and hand it off to someone else. Is this brewery successful, middlling or failing? What is their market share? Competition? What is their annual revenue? There is a reason why restaurant businesses are the riskiest businesses to enter into, especially if you are inheriting someone elses problems. If their idea of owning a brewery is "dude we own a brewery this gonna be fun and our wives are gonna help out" please watch Bar Rescue, Kitchen Nightmares, Kitchen Impossible or any other show like that because you'll be in for quite a surprise. I think you guys need to do a lot more research and due diligence.
These are all very good points. Owning a business like this (and being successful at it) is a LOT of work and takes a LOT of time. It's not just the fun side that everyone sees
Thank you. Not even sure if it's 100%. It's not just about fun, but something they love. My DH does own his own business. I know it's different, but he can run it and our family owns a few DD and his father owned a lumber yard for years. That part isn't new.
WIll go over everything with him. It's not a restaurant brewery. It's a business where people come to make and bottle their own beer and/or wines, etc. No food or alcohol is actually served. They are closed Mondays and never too later bc again, it's not a bar.
Thanks again for the info and definitely important to think about.
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| Posted 5/20/19 12:30 PM |
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