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We have a trivia question in order to register to prevent bots. If you have any issues with answering, contact us at cass@bartowel.com for help.
Introducing Light Mode! If you would like a Bar Towel social experience that isn't the traditional blue, you can now select Light Mode. Go to the User Control Panel and then Board Preferences, and select "Day Drinking" (Light Mode) from the My Board Style drop-down menu. You can always switch back to "Night Drinking" (Dark Mode). Enjoy!
Beau's Keeping it Real
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Bytowner
- Seasoned Drinker
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- Location: Mechanicsville, Ottawa
Beau's Keeping it Real
Article from G&M on Beau's quest for investors who don't want to ruin everything.
a very nice article on Beau's. Hopefully they can do well with their expansion plans!
This bit is a bit odd though:
This bit is a bit odd though:
Am I the only one who reads that as implying the article is essentially an advertising piece? Or am I misinterpreting?Mark Evans is a principal with ME Consulting, a content and social media strategic and tactical consultancy that creates and delivers ‘stories’ for companies looking to capture the attention of customers, bloggers, the media, business partners, employees and investors.
While we're on the subject of article on Eastern Ontario breweries, here's one on Hogsback:
http://www.emcottawawest.ca/20110421/ne ... +good+year
http://www.emcottawawest.ca/20110421/ne ... +good+year
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S. St. Jeb
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midlife crisis
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- Location: Toronto
Venture capital can be scary. Did you know the way it basically works? As I understand it, in exchange for venture capitalists giving you money you sign an agreement handing over to them, on paper, a substantial chunk of your business. Then, as your newly-invested business makes more money you can in theory buy full ownership back from them bit by bit. There's a repayment schedule and you have to keep meeting those goals. If you fail, they step in and take your business away from you - costing you your entire investment.
I have heard people actually lost a business just because they signed an investment deal they did not really understand - or was impossible to meet.
That doesn't mean you cannot find a intelligent, 'hip to what you do' investor with whom you can structure a deal that works for both of you. The article seems to focus on the others!
I have heard people actually lost a business just because they signed an investment deal they did not really understand - or was impossible to meet.
That doesn't mean you cannot find a intelligent, 'hip to what you do' investor with whom you can structure a deal that works for both of you. The article seems to focus on the others!
In Beerum Veritas
Although you are right about how investors work, they normally don't want to get invested past 50% because as your ownership diminishes your incentive and drive for the idea will wane and thus their investment will suffer.
Investors are what they are, you are selling a portion of your business for the capital infusion, if you are able to secure a loan and want to pay the juice on it then more power to you but most banks are not willing to post a substantial loan on a wing and a prayer and a weak financial statements. Where a venture capitalist/investor might based on the idea and what they see the potential for that idea. Of course the business would get access to the contacts/expertise of the investor which normally would justify the reduction in ownership.
Sometimes it is the necessary evil.
Investors are what they are, you are selling a portion of your business for the capital infusion, if you are able to secure a loan and want to pay the juice on it then more power to you but most banks are not willing to post a substantial loan on a wing and a prayer and a weak financial statements. Where a venture capitalist/investor might based on the idea and what they see the potential for that idea. Of course the business would get access to the contacts/expertise of the investor which normally would justify the reduction in ownership.
Sometimes it is the necessary evil.
I respect the investor's position, they assume a liability.
And obviously the tricky thing is finding one who maybe understands malt & hops, who perhaps had an epiphany and loves great beer. The person who can see the business potential a little from the point of view of those who would WANT the product, and really see WHY it would sell even better if A, B, C were put in place.
It's vision and passion is it not?
And obviously the tricky thing is finding one who maybe understands malt & hops, who perhaps had an epiphany and loves great beer. The person who can see the business potential a little from the point of view of those who would WANT the product, and really see WHY it would sell even better if A, B, C were put in place.
It's vision and passion is it not?
In Beerum Veritas
That's why it's tough to find the "right" investor. I've stopped watching Dragon's Den because it's frustrating. There are some people that come in with amazing ideas but because the dragons can't see them doubling their money in a short period of time they pass. Or if the product can't be mass produced or mass appeal they pass.
I posted about this back in the "Cheeses" thread weeks ago but its a better idea here
This makes me think of Monforte in Stratford.
This person started a new dairy by "selling CSA subscriptions"
At Monforte, $1000 bought you the right to $1500 worth of cheese over 5 years ($300/year). Lesser options are available too ($500 for $750s worth etc).
She has raised over $400K, built the dairy and is making cheese.
http://www.monfortedairy.com
Could Beau's expand this way?
It would get around the "investors wanting lime in the beer" issue. I doubt none of the cheese investors give "input" on how to make cheese??
Would you invest $1000 for $1500 in Beaus beer over 5 years?
I think I might...I have wasted more on less. (I am looking at you Nortel
)
Would 999 more of you beer geeks do the same?
Would 4999 more people pony up and then they'd be at the required $5M.
And just like this thread started, the G&M had an article on Monforte a year ago
http://www.theglobeandmail.com/life/foo ... le1541128/
This makes me think of Monforte in Stratford.
This person started a new dairy by "selling CSA subscriptions"
At Monforte, $1000 bought you the right to $1500 worth of cheese over 5 years ($300/year). Lesser options are available too ($500 for $750s worth etc).
She has raised over $400K, built the dairy and is making cheese.
http://www.monfortedairy.com
Could Beau's expand this way?
It would get around the "investors wanting lime in the beer" issue. I doubt none of the cheese investors give "input" on how to make cheese??
Would you invest $1000 for $1500 in Beaus beer over 5 years?
I think I might...I have wasted more on less. (I am looking at you Nortel
) Would 999 more of you beer geeks do the same?
Would 4999 more people pony up and then they'd be at the required $5M.
And just like this thread started, the G&M had an article on Monforte a year ago
http://www.theglobeandmail.com/life/foo ... le1541128/
My wife and I "invested" in Monforte, and while it's an interesting model that works for some businesses, but I'm not sure how well it would work for Beau's (or any other brewery). The main issue is how the "investors" would get their beer.
With Monforte, we were given a yearly supply of vouchers which we can exchange for cheese at any of the farmers markets where they have a stall (there are several in Toronto, and some outside of the city as well), or in the retail store at the dairy itself should we ever be out that way.
Unless Beau's can convince the LCBO to accept similar vouchers - or find enough "investors" that are able to visit the brewery on a regular basis to pick up their beer - it might not be very practical.
With Monforte, we were given a yearly supply of vouchers which we can exchange for cheese at any of the farmers markets where they have a stall (there are several in Toronto, and some outside of the city as well), or in the retail store at the dairy itself should we ever be out that way.
Unless Beau's can convince the LCBO to accept similar vouchers - or find enough "investors" that are able to visit the brewery on a regular basis to pick up their beer - it might not be very practical.