Time for a Career change

[wookster]

Was going to post this in the "layoffs in the oil patch" thread but didn't want to hijack it worse than it already is. Long story short, I was laid off from an oil company in October of last year. In April I got a new job, not in the O&G industry but in financial, taking a 30% pay cut in the process...but its still way more than EI was paying me so beggars can't be choosers right?

Anyways, not on here looking for sympathy, but to look at what will hopefully be the bright side. I am going to open a micro-brewery here in the Calgary area with a partner. I've been brewing beer in my basement for the past 5 years so I've pretty much got the processes down, now its just a matter of implementing them on a bigger scale and such. My partner is a business major so I'm relying on him to take care of that side of things and this is still in the early stages of getting a business plan together etc.

Making beer is pretty much the best and most satisfying hobby I've ever had so a chance to do that for a living is very appealing to me, and my wife is supporting me 100%. I probably never would be taking this plunge if I still had my job in the O&G industry to be honest, so hopefully for myself at least, this will be a positive outcome to the past year or so. (My wife was also laid off from a service company 4 months before I was - made for a depressing year in the Wookster household).

Anyways, I know a bit about the brewing industry in Alberta and new bylaws in Calgary have made it quite enticing to go into that industry. With that said, I know there are others on this site that are very savvy when it comes to business and hopefully there are some people here in the brewing industry as well that might want to share some knowledge, or in any case, wish me luck!!

[Canehdianman]

I'll definitely wish you luck!

Is your plan to set up a brewery/tap room/tasting room? that seems to be how a lot of them get started.

I know the guys who started Banded Peak Brewery (I actually used to brew with them) and that's pretty much what they did.

Can't wait to drink some of your brew!

[Hackey]

I'll be a consumer but won't be investing today. Sorry I'm out. Good luck.

[The Yen Man]

Good luck! Who knows, in 10 years time, you could be reflecting back on this post and thinking, damn, that was the best decision I ever made in my career.

[Crumpy-Gunt]

Good luck brew. Dont wook too hard.

[afc wimbledon]

Obviously a ten percent discount for CP members.

[Locke]

Good luck man, going into business for yourself is one of the hardest, most grueling, difficult and brutal things you will ever do, but if it works out it is also one of the absolutely most rewarding and one you'll never regret.

[Bandwagon In Flames]

Good for you that's going to be super exciting compared to your previous jobs I'm sure. I feel like brewing beer in Canada has a high success rate. We drink more beer than any other Country in the world after all.

The only recommendation I can give you would be to take advantage of existing brewery tours in Calgary. See how they operate and try to squeeze any trade secrets out of them. I've done the Minhas brewery tour which gives you an idea of what a smaller scale brewery looks like. I also heard about a bus tour that visits 4-5 different breweries in Calgary and is good fun.

Also, I feel like Canada is seriously lacking in Belgium style sweet tasting beers. Would be a great way to corner the female beer drinking market. I had a dark 8.5% Belgium beer that tasted like black forest cake. I feel like it would be a big hit in Calgary.

[brocoli]

Good luck Wookster. Can't wait to be a consumer for you.

[Engine09]

Definitely scary to lose a job, 2 years ago I was laid off and drove home in complete shock. After falling back on my old trade for a few months I'm back in my field and things are pretty stable.

By the way, got a few jobs from guys here on CP which helped kept me afloat during that time. If you need the new location painted I'll do any work you need for a bare bones hourly rate. Spraying/rolling brick, epoxy coating concrete, painting drywall, etc. Will be significantly less than a contractor.

[Flash Walken]

If I can give you any advice on the product aspect of it, you may want to take a trip to Vancouver and do a tour

The city is hopping with microbreweries but most of them are terrible.

The successful ones have followed a very basic process.

1) Plan for what your flagship beers are going to be and develop a theoretical production calendar. This will be important to forecast your costs but more importantly the size, scale and complexity of your actual process. Planning on a lager as a flagship? Understand then that you will make little money on it and if it is popular you will consistently be under production pressure.

2) once you have identified what your flagship beers will be, spend the rest of your time perfecting them. As a start up microbrewery your Customer aren't going to have a bunch of opportunities to try your product like they would major label, so if the beer isn't good, you are more likely than a major to see your Customers vanish. Based on what I have seen and tasted in Vancouver, this step is basically lost on the brewery owners who are mostly just scrambling to get beer out the door to keep the lights on. There is so much ####ty beer on the market in Vancouver it is hurting the industry. This is a tragic mistake but can be avoided by step 3.

3) keep your overhead as low as possible! This is what kills the brewery. Many of the breweries starting up in Vancouver at over a million dollars in debt before they even open their doors. This is a quick way to turn your beer hobby labour of love into a soul crushing lead weight. Go to Storm brewing in Vancouver on commercial drive and see the location and equipment James the brewer is using to make some of the best and unique beers in the city. Then keep in mind when he started the brewery that the location was significantly more undesirable than it is now. Significantly.

Good luck, brewing beer is awesome.

[Locke]

On another note, hopefully without coming across as a shill, I know you've got a partner taking care of of the business side but let me know if you need any accounting or business help.

[afc wimbledon]

The Vancouver market is absurd, I'm in east Van and I'm waiting for the logical conclusion of a weed dispensary operating inside a craft brewery that operates from inside a Starbucks

[GreenLantern]

I have the best name for a micro brew ever, but it will die with me if I never get the balls to do what you are doing. Best of luck and I can't wait to try your beer.

[Jbo]

Just a couple thoughts/tips.

1) Your biggest capital cost is going to be brewing equipment. If you are able to avoid buying new, you can sometimes get great stuff at pennies on the dollar if another brewery is upgrading or foreclosing.

2) Keep it simple. Do one or two beers and do them well.

3) Build a brand. Local breweries like Village, Wild Rose, Grizzly Paw have been active in the local community, and built there brands. When you see some of the craft beer bars in town, there are a million taps pouring different beers. You need something that makes you stand apart (besides a good beer)

4) Last piece of advice. Educate yourself on business. Great to have a partner that knows business, but if you don't at least have the fundamentals on your numbers, cash flow, expenditures etc. You can get in trouble in a hurry.

Good luck! I know two guys that followed the same dream, one here in Calgary, and one out East, that did the same thing. One is very successful here in town and the other is just getting started. The first thing you need in business is passion, and it sounds like this is it for you.

[Kybosh]

Random musings:

1) Get a good accountant and lawyer to carry you through incorporation and beyond. I can recommend some as well as Locke.
2) Different organizations are out there to provide funding and loans for equipment (i.e. Ag loans, BDC etc.). You obviously need a rock solid business plan to approach these however.
3) If you document what you're doing well (i.e. batch reports, test analysis, waste batches etc.), most breweries can get some money back in SR&ED credits (Scientific Research & Experimental Development). The amount of money you can get back depends on how much you spend and quite a lot of other factors though (i.e. get a good accounting team).

[Weitz]

Don't make hoppy beer. The trend is dying.

And it sucks.

[Table 5]

Good luck with the new business!

If you ever get to the point of needing a brand developed and designed for your beer, I have a few nice beer label options in my "rejected, but always liked anyway" pile of past design work that are looking for a retrofit, ha.

[J pold]

Feel free to PM if you're looking for space. I know of a few good listings for micro-breweries in Calgary.

[OutOfTheCube]

And remember -- fun hobbies stop being fun hobbies once they become work.