sigh - I have an investor - damn

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Grinder12000

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said he would front me $250K. Sadly - I'm not sure I WANT too!!

for one thing - I can retire in a year (55) - NOT work and have a great living making almost what I make now! OR - I can make a hobby into a job - work VERY hard with stress.

No response needed - just trying to wrap my brain around this.
 
Someone's offering you $250K...nice problem to have.

There's a lot of stress and pressure behind that $250k though. You really have to weigh that debt against what you have to gain, lose, and work for. And I've seen first hand what can happen when you go from hobby to work. Work is work. If you miss the mark, then making up that deficit to your investor(s) is all on you one way or another.
It's a lot to think about.
 
Yikes, I'm hoping I can retire at 55. Actually 45 but it isn't going to happen. I don't see how you could start a business like that and not put your heart and soul but even in 5 years could you actually start to pass the reigns on to somebody else? Best of luck.
 
Well, $250K for WHAT? Is that even enough? What would he get in return? What would be your responsibilities? You would need all that written up clearly up front! Could you retire first and then start this venture? But if you don't want to, then it really isn't an issue, is it?
 
The biggest question is: how quickly does your investor expect to see a return? ANY new business can expect to be in the red for 2 years and that's with an immediately available product.
 
That certainly is a lot to wrap your head around. If there is anything I can do to give you some insight on owning and running a homebrew store please let me know.
 
Seeing as though $250K is the mark for building a small brewery... I presume that is what you are referring to.

I cannot tell you what to do, I am certain that if I were in that position that I would have a hard time making the GO, NO GO decision. Luckily, my complete lack of skill and inattention to detail keeps people with money at bay.

Okay you are looking to retire and taking on what ammounts to $250K worth of debt, or more. You are taking on $250K of someone elses debt. Would this venture preclude you from doing many other things that you would enjoy in retirement? Just some thoughts.
 
A famous brewing quote comes to mind:

"How do you make a small fortune brewing? Start with a large fortune."

If you will be financially responsible in any way, I would not risk your retirement. If there is no downside, and you will just be the brewer, I say go with your gut.
 
If you decide to not go for it and this investor wants to find a young brewer with an MBA, I know where to find one.

Hint: me

:D

Good luck with what ever you do.
 
I work just a few minutes away from Trader Joe's. I love that store.

I hate you because Norwalk has such a...er, it's the home of the...hmmm... um...well.... I hear there's a nice race track.

Sorry :off:

You never heard of our virus!!?? Now, I am upset!!


Sorry too guys, back to the topic. :eek:
 
Easy to understand the temptation but it seems as if you're on cruise control to a stable and happy retirement. When the hobby becomes a job, its a hobby no more. Say thank you, be proud that someone trusted you enough to make the offer, and then no thank you. Continue brewing on your own and loving life.
 
Typical startup costs are $500-600K for a new 20-30bbl microbrewery. One started up here recently for $280K, he pulled it off by hiring a consultant and the two of them essentially doing ALL the work (including setting up the tanks with a forklift). If you include the $80K for a bottling line he's putting in this summer it's $360K though he will probably double his revenue once he starts bottling since he already has a strong following in the area.

So my first response isn't whether to take the money but to consider that $250K likely isn't enough to be successful. Smaller breweries can be built for under $200K but then the problem is with a 10bbl system you don't have enough capacity to break even without working 6-7 days a week.
 
At 35, starting a brewery would have been possible. At 57, there is no way I could handle the physical aspect of running a small brewery.
 
You know guys... Grinder never mentioned anything about $250K for anything brewing related. Maybe the investor wants to start up a prostitution ring.

Don't do it Grinder... keep that a hobby man, just keep it a hobby.
 
You know guys... Grinder never mentioned anything about $250K for anything brewing related. Maybe the investor wants to start up a prostitution ring.

Don't do it Grinder... keep that a hobby man, just keep it a hobby.

'Cause you know you should never dip your pen in company ink.
 
Business is Business... do not go further in your due diligence if your main reason is because you love to brew beer as a hobby.

ask first, did you investigate the market thoroughly and come to a conclusion that there is room for you to start a craft brewery and make money... and if yes, is that what you want to do?
If I were retiring in a year with a good income... i'd leave it at that and just keep making my own beer. :)
 
... .another thought is, why would this person offer $250k without doing their own homework... seems amateurish and I would seriously walk away.
 
My take FWIW:
Keep the offer open and seriously research and discuss it with him over the course of the next year. If you can get through the hurdles of licensing and finding a distributor using your "pilot" batches in your spare time (ie how you already brew now). And you want to get it going, then after your retirement party take three months totally off from brewing. Come back and start the business with the security of the retirement/pension check rolling (assuming you have a pension plan) in...

IMO this is the perfect opportunity. Usually the biggest reason people don't go out on a limb to start a new business venture is that in most instances it means foregoing their current income stream with and uncertantity of how/when it will be replaced by the profits from the business...
 
IMO this is the perfect opportunity. Usually the biggest reason people don't go out on a limb to start a new business venture is that in most instances it means foregoing their current income stream with and uncertantity of how/when it will be replaced by the profits from the business...

That's a very good point. If you're retired, you can afford to make the business your hobby (if you think you would enjoy that). I know that if I had a backer and didn't need a steady income, there is no way you could stop me from at least taking it to the next step (checking the market, looking at distributors, etc..).

I would recommend doing some exploring and making sure you step back and think about it before you pass the "point of no return".
 
said he would front me $250K. Sadly - I'm not sure I WANT too!!

for one thing - I can retire in a year (55) - NOT work and have a great living making almost what I make now! OR - I can make a hobby into a job - work VERY hard with stress.

No response needed - just trying to wrap my brain around this.

Ok,

I have a few thoughts, if it were me in your shoes.

Red Flag #1
Wisconsin, looks to have some tough laws in regards to Microbreweries! (google search)

Red Flag #2
Not to be a jerk or anything, but you are a year from retirement! At least wait until then. Make sure that your retirement is not at risk.

Red Flag #3
What are the conditions with this "fronted" money? Is it a loan, or an investment,
An investment can be lost, and there should not be any sort of expected return on this investment at least 2 years, some of that $250K is going to be operations costs
A loan is something to run away from.
A loan that large is like buying another house at this stage of your life,

I don't know what you have already figured out or all of the juicy details
my comments are based off of the info given by the OP


Given that you can and will retire in a year, you are in great health, know that this money is an "Investment", understand all of the legal requirements, and have a pretty solid Business plan

This could be a dream come true !

-Jason
 
I've been retired for seven years. Although I loved all my 32 years working, I was made for retirement. And, as has been pointed out in this thread, work is work, and a hobby is a hobby. I enjoy brewing and my other pastimes too much to ever make a business out of them.
 
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