Originally Posted by archer75
While you won't know for certain what salary you can draw for awhile you must have revenue forecasts? Operating expense forcast? A business plan? Some sort of idea what to expect or if the business is even viable?
It would be unfortunate to find out a year later the business doesn't earn enough to provide a salary!
I'm just trying to figure out how to best determine these values before starting a business. If I won't be able to quit my job and pay my bills there's no point in my pursuing this.
Each situation is going to vary widely based on location, demographics, brewery size, whether you fund it in cash vs a loan, whether you have a tap room selling at retail vs wholesale to a distributor or a combo of both, etc etc.
That being said, I saved what I needed to support my family for a year ($50k) so that I can actually quit my day job and do this full time. After year one, I plan to draw what I currently make at my day job. Our business plan is very modest, and I think we'll beat all of our projections by a long shot, but we're being cautious and planning accordingly.
On a side note, if you plan to be able to do this full time and be able to draw a salary to live on after a year, and you're not doing a brewpub, 15 barrel is the MINIMUM size I would even consider looking at.