Free Distillery Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
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Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- Loan Amortization and ROI Tools
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $400,000 for the development of a
distillery while showcasing the expected financials and operations over the next
three years. Distillery, Inc. (“the Company”) is a New York based corporation that will produce and
distribute a number of specialized spirits for regional and national
distribution. The Company was founded by John Doe.
1.1 Products and Services
Mr. Doe intends to develop a highly specialized distillery that will produce a number of
seasonal and specialized spirits including whiskey, vodka, and gin. At this
time, Mr. Doe is not only sourcing the required equipment for the business, but
also a highly experienced spirits specialized that will apply their years of
experience and specialized recipes to the Company’s spirits. The business
expects to distribute approximately 2,000 cases per year.
The third section of the business plan will further describe the services
offered by the Distillery.
1.2 The Financing
Mr. Doe is seeking to raise $400,000 from as a bank loan. The interest
rate and loan agreement are to be further discussed during negotiation. This
business plan assumes that the business will receive a 10 year loan with a 9%
fixed interest rate. The financing will be used for the following:
-
Development of the Company’s Distillery location.
-
Financing for the first six months of operation.
-
Capital to purchase equipment related to producing spirits.
Mr. Doe will contribute $75,000 to the venture.
1.3 Mission Statement
Distillery’s mission is to become a recognized regional (and then national) brewery that
provides an outstanding variety of specialized spirits.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
distilling industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the
expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first
three years of operation. Mr. Doe intends to implement marketing campaigns that
will effectively target individuals within the target market. The Company will
also regularly reinvest a substantial portion of its after-tax cash flow into
expanding the Distillery’s production and distribution infrastructure.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Distillery, Inc. The Company is
registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Distillery
requires $400,000 of debt funds. Below is a breakdown of how these funds will be
used:
2.3 Investor Equity
Mr. Doe is not seeking an
investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of
Distillery, Inc.
2.5 Exit Strategy
If the businesIf the business is very
successful, Mr. Doe may seek to sell the business to a third party for a
significant earnings multiple. Most likely, the Company will hire a qualified
business broker to sell the business on behalf of Distillery, Inc.
Based on historical numbers, the business could fetch a sales premium of up to 7
times earnings.
3.0 Products and Services
As stated in the executive
summary, the business intends to hire a spirits and distilling specialist that
will provide the Company with an expansive number of spirits that it will
distilled in tanks and casks owned by the business. At any given time, Mr. Doe
anticipates that the business will have three types of spirits in production. On
an average yearly basis, the Company will produce and distribute 2,000 cases to
distributors on a regional and national basis. As will be discussed in the fifth
section of the business plan, the Distillery intends to develop an expansive
marketing campaign that will effectively brand the Company’s premium line of
spirits. At the onset of operations, the business will produce a whisky, gin,
and vodka.
In the Company’s facility, the
business will be able to produce, bottle, and distribute all products offered by
the Distillery.
It should be noted that at all
times, the business will comply with all local, state, and federal laws
regarding the production, bottling, and distribution of alcohol based products.
Mr. Doe is committed to operating the Distillery with the highest professional
standards in the industry.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the distillery industry, the customer
profile, and the competition that the business will face as it progresses
through its business operations.
Currently, the economic market condition in the United States is moderate. Unemployment
rates have declined while asset prices have risen substantially. However, the
Distillery will operate with moderately high profit margins that will ensure
that the business can remain profitable despite the current economic climate.
4.2 Industry Analysis
Within the United States, there are approximately 700
distilleries that provide a number of hard liquor products. This industry is a
sub-segment of the greater alcohol production industry. Aggregately breweries in
the United States generate $19 billion of revenue while providing
jobs to more than 40,000 people. Payrolls in each of the last five years have
exceeded $1.8 billion. The distillery segment of this industry accounts for
approximately 20% of the aggregate revenues and payrolls generated each year.
The growth of this industry has
remained strong in recent years as the popularity of distilled liquors has
increased among the general public.
4.3 Customer Profile
As there are many distilleries
competing locally, regionally, and nationally, it is difficult to determine the
average customer that will purchase the Company’s brands of hard liquor.
However, among its targeted demographics (which will be used in conjunction with
the marketing campaigns discussed in the next section of the business plan),
Management has outlined the following characteristics that will be common among
the Company’s end user:
-
Annual household income of
$50,000+
-
Lives within a 50 miles radius
of a major metropolitan area.
-
Has an interest in specialty
distilled spirits
-
Gender Demographic (75% Male,
25% Female)
-
Between the ages of 27 and 65
4.4 Competitive Analysis
This is one of the sections of
the business plan that you must write completely on your own. The key to writing
a strong competitive analysis is that you do your research on the local
competition. Find out who your competitors are by searching online directories
and searching in your local Yellow Pages. If there are a number of competitors
in the same industry (meaning that it is not feasible to describe each one) then
showcase the number of businesses that compete with you, and why your business
will provide customers with service/products that are of better quality or less
expensive than your competition.
5.0 Marketing Plan
Distillery, Inc. intends to
maintain an extensive marketing campaign that will ensure maximum visibility for
the business in its targeted market. Below is an overview of the marketing
strategies and objectives of the Company.
5.1 Marketing Objectives
-
Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.
-
Establish relationships with local and regional alcohol distributors within the
targeted market.
-
Regularly attend festivals and contests within the Company’s regional market.
5.2 Marketing Strategies
As the distillery industry has
grown significantly over the past ten years, Mr. Doe feels that it is imperative
that the Company hire a public relations and marketing firm to assist the
business in properly positioning its products regionally and then onto a
national level. As such, Mr. Doe is currently sourcing a number of regional
marketing firms that will act as both a developer of the Company’s
advertisements as well as a publicity agent.
Mr. Doe will regularly attend
well known beer/spirits festivals, contents, and other events that focus on the
products produced by distilleries. If the Company can produce outstanding
spirits, then the business can easily penetrate the specialty spirits market by
advertising awards, accolades, and other recognition generated from these
events.
Finally, Mr. Doe, at the onset
of operations, will work closely with regional and local distributors that sell
hard liquor products to local bars and taverns. This will ensure that the
business will be able to divest its initial batches of spirits from the onset of
operations while Mr. Doe and the Company’s retained marketing firm generate
substantial interest in the brand.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However,
if you have hundreds of items, condense your product list categorically. This
section of the business plan should not span more than 1 page.more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
-
Distillery will have an annual
revenue growth rate of 16% per year.
-
The Owner will acquire $400,000
of debt funds to develop the business.
-
The loan will have a 10 year
term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic
downturn, the business may have a decline in its revenues. Premium alcohol
products are considered to be a luxury by most standards, and as such, during an
economic recession the business may experience a drop in top line income.
However, and as stated earlier, the business will generate significant revenues
from each case of produced liquor, and the Company will be able to remain
profitable and cash flow positive even in the event of moderate revenue
declines.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
.
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis