Timber Creek Brewing

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Timber Creek Brewing is a craft brewery and taproom in Wisconsin. We plan to brew small batches of ales and lagers on a seven-barrel system in a building of about 4,500 square feet, and to sell most of it across our own bar. The taproom will have 16 taps, a small food menu from local vendors, board games and a patio. We will also sell cans and crowlers to take home and kegs to nearby restaurants and bars.

Craft beer drinkers want fresh beer and a place to enjoy it. The best small breweries are neighborhood gathering places, where beer is only part of the draw. A taproom earns far more per pint than wholesale, so a brewery that sells most of its beer over its own bar can make a living on a small scale. The business takes real capital, and the first two years are usually the hardest.

Here is what our numbers show. We expect about 42,000 taproom pours, 6,000 cans and crowlers and 180 kegs in Year 1, which brings in sales of $464,700, growing to $1,210,433 by Year 5. We expect a loss of about $159,400 in Year 1 and a loss of about $72,400 in Year 2 while the taproom builds regulars, then a profit from Year 3 ($41,500), growing to about $167,600 by Year 5. By Year 5 we are near the limit of a seven-barrel system, and growth beyond that would need new tanks and financing that this plan does not include.

We need $620,000 in total. Of that, $443,000 is startup costs (the brewhouse and tanks, the taproom, the build-out, licenses and setup) and the rest is cash to cover the first months. I am putting in $170,000 of my own money, and I am asking for a $450,000 SBA loan.

I am Jake Hollis, the owner and head brewer, with 9 years of brewing experience at two regional breweries and a brewing science certificate. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Timber Creek Brewing is a small, independently owned craft brewery in Wisconsin, planned as a limited liability company (LLC). We will lease about 4,500 square feet in an older commercial building near a downtown area, with a taproom of about 1,800 square feet, a brewing area and cold storage.

Our mission. To brew well-made, approachable beer and to build a welcoming neighborhood taproom.

What we believe. Good beer is made with care, cleanliness and patience. We keep the beer list varied and balanced, serve responsibly and treat the taproom as a community space for everyone, with food, games, music and events.

What we offer:
- Taproom beer. Sixteen taps of our own beer, including a flagship lager, a pale ale, a stout and seasonal beers, plus non-alcoholic options.
- Packaged beer. Cans and crowlers to take home.
- Wholesale kegs. Kegs for nearby restaurants and bars, as state law allows.
- Food and events. Food from local vendors, trivia, live music and private events.

Who we serve. Adults 21 and older within about 15 miles, local restaurants and groups that rent the space.

What we do not do. We do not serve anyone under 21 or who is visibly intoxicated. We do not sell outside the channels the law allows, and we do not make health claims.

How we are run. I am the owner and head brewer. A taproom manager and part-time bartenders staff the bar. An assistant brewer joins in Year 2. A small advisory group of a restaurant owner, an accountant and another brewer tells us what is working.

Where things stand today. We have a lease option, quotes on equipment, recipes tested on a small system and letters of interest from four restaurants and a local grocery. Before we begin, our attorney will review the lease, and we will confirm what the federal brewer's notice, the state permits and local zoning require.

Problem & Opportunity

Craft beer has grown into a crowded field. Many towns now have several breweries, and customers choose based on quality, atmosphere and a sense of belonging. Distribution to stores is difficult, margins are thin and large breweries control shelf space. Many new breweries have closed after a few years, mostly from underestimating capital needs and relying on wholesale.

The economics favor the taproom. A pint sold over the bar brings in much more per ounce than the same beer sold to a distributor, and a taproom customer will often buy food, merchandise and a second round. A brewery that builds a loyal local crowd can grow steadily on a small scale.

Starting is costly. A brewhouse, fermenters, a cold room, a bar and a build-out run well into six figures. Federal and state licensing takes months. Beer must be brewed before it can be sold, so cash goes out before any comes in. Insurance, floor drains and wastewater rules add cost.

We want to be clear about what we know and do not know. Demand for local beer is strong in many places, and the taproom model works when the location and the beer are good. We will use the most recent numbers for our area in our final plan and will not overstate them. We do not know how quickly the taproom will fill, so our plan assumes losses in the first two years and cash to cover them.

Products & Services

Timber Creek will make consistent, drinkable beer and run a taproom that locals use every week.

How it works, step by step:
1. Licensing and setup. We file for the federal brewer's notice and the state brewery and retail permits, and confirm zoning and wastewater rules with the city.
2. Brewing. We brew on a seven-barrel system, two to three batches a week, and ferment in tanks for two to four weeks. We keep a record of every batch and test the beer before it is served.
3. The taproom. Staff pour beer at the bar, check identification for everyone who looks under 30 and cut off service when needed. We offer flights and non-alcoholic options.
4. Food and events. Local food trucks and caterers serve in the taproom, and we host trivia, live music and private events that fill slow nights.
5. Packaging. We sell crowlers filled to order and small runs of cans, and we use a mobile canning service until volume justifies our own.
6. Wholesale. We sell kegs to nearby restaurants and bars within what state law allows.
7. Cleaning and quality. We clean tanks and lines on a schedule and keep logs. We track pours, waste and customer feedback.
8. Taxes and compliance. We pay federal and state excise taxes on time and file the required monthly reports.

Why this approach is strong. A taproom with a good bartender, a steady event calendar and beer people want to come back to earns more per barrel than any other channel.

Market Analysis

Who we serve: adults 21 and older within about 15 miles, restaurants and bars, and groups that rent the space.

Our primary group is local beer drinkers and visitors. We will use the most recent numbers for our area in our final plan. Our secondary group is restaurants that want a local tap.

How we sized our plan. We plan about 42,000 taproom pours in Year 1 (about 140 a day), 6,000 cans and crowlers, 180 kegs and 4,000 food, merchandise and event sales. That is about 350 barrels of beer. By Year 5 we plan 78,000 pours, 19,000 packaged units and 680 kegs, near the limit of the system. Our Year 1 prices are about $6.50 per pour (including flights), $15 per can or crowler pack and $165 per keg, rising about 3% a year.

Demand data. Letters from four restaurants and a grocery cover about a third of the Year 1 keg sales. We do not count on any one account.

We do not make every style, and we do not chase trends. We focus on a small list we can make well.

Competitive Landscape

Other choices for craft beer drinkers, and what makes us different.

- Other local breweries. Some are excellent. We compete on beer quality, atmosphere and events.
- Brewpubs and bars. They offer a wide menu and many beers. We offer our own fresh beer and a place built for it.
- Large craft brands in stores. They are widely available. We offer fresh, local beer and a place to enjoy it.
- Distillers, cideries and wineries. They compete for the same night out.
- Restaurants. We pair with them for food rather than compete.

What makes us different.
- Fresh beer brewed on site.
- A taproom designed for neighbors, families and groups.
- A rotating event calendar.
- Careful finances: we count on the taproom and not on distribution.

What we do not claim. We are new. Established breweries have loyal followings. We plan to earn trust one pour at a time.

Marketing & Sales Strategy

How we will reach customers.

Opening. A soft opening for friends, family and neighbors, then a grand opening with live music and a ribbon cutting with the chamber of commerce. We will invite local press and bloggers.

Regulars. A mug club for regulars, a weekly event, a text club for new beers and a loyalty program.

Groups. We will offer the space to running clubs, trivia leagues, wedding parties and companies, with a simple price sheet.

Wholesale. We will visit local restaurants with samples, offer a house tap and keep clear, simple prices.

Online. A Google business listing, social media with photos, a website with the tap list and a calendar of events.

Pricing. About $6.50 per pour on average in Year 1, with flights and happy hour specials, about $15 for a four-pack and about $165 for a keg.

Operations Plan

How the business will run.

Setup (the 6 to 8 months before opening). We will form the LLC, file for the federal brewer's notice and state and local licenses, sign the lease, build out the space with floor drains and power, install the brewhouse and tanks, pass inspections, hire and train staff and test brew. We will not sell beer until the permits are in hand.

The space. About 4,500 square feet with a brewing area, cold room, taproom, patio and restrooms. Rent is $5,625 a month in the plan.

Staffing. In Year 1: I serve as owner and head brewer. A taproom manager and about four part-time bartenders staff the bar. An assistant brewer joins in Year 2. We train all servers in responsible alcohol service.

Production. We brew two to three batches a week and keep about three weeks of beer in tanks. Ingredients, packaging and cleaning supplies cost about $1.55 per pour, $5.40 per packaged unit and $62 per keg in Year 1.

Compliance. We keep production, inventory and sales records, file monthly reports and pay federal and state excise taxes. The federal excise tax rate is lower for small brewers.

Safety. We follow rules for pressure vessels, chemicals, carbon dioxide and confined spaces and keep an emergency plan.

Payments. Customers pay at the bar. Wholesale customers pay in about 30 days, so about 5% of annual sales is owed to us at any time. We hold about 8% of cost of goods in ingredients.

Insurance. We carry general and liquor liability, property, product liability, workers' compensation and business interruption insurance. Insurance is about $14,000 a year in Year 1.

Management & Organization

The people who will run Timber Creek.

Jake Hollis, owner and head brewer. A brewer with 9 years of experience at two regional breweries and a brewing science certificate. He leads brewing, quality, licensing and finance. (Replace this paragraph with your own background.)

Taproom manager. Runs the bar, events, staff and inventory.

Assistant brewer (from Year 2). Brews, cleans and packages.

Bartenders (part-time). Pour beer and serve guests.

Outside advisors. An attorney, an accountant, an insurance broker and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and head brewer $55,000, assistant brewer $40,000, taproom manager $44,000 and part-time bartender $17,000 each. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (6 to 8 months ahead): get at least 3 letters of interest from restaurants, get equipment and lender quotes, confirm federal, state and local permit requirements, form the LLC, get an EIN and open a business bank account. Sign the lease only after the lender's commitment is in hand.
- Year 1: about 42,000 taproom pours, 6,000 packaged units and 180 kegs; $464,700 in sales and a loss of about $159,400.
- Year 2: about 56,000 pours and an assistant brewer; $695,324 in sales and a loss of about $72,400.
- Year 3: about 66,000 pours and the first profit; $901,913 in sales and a profit of about $41,500.
- Year 4: about 72,000 pours; $1,061,599 in sales and a profit of about $101,000.
- Year 5: about 78,000 pours, near system capacity; $1,210,433 in sales and a profit of about $167,600.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: pours per day, average ticket, barrels brewed, waste, wholesale accounts and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $620,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $443,000, listed item by item in the Startup Costs section: $145,000 for seven-barrel brewhouse with a mash tun, kettle and heat exchanger; $62,000 for fermenters, brite tanks and a glycol chiller; $38,000 for kegs, a cold room, a canning or crowler station and cleaning equipment; $48,000 for taproom bar, taps, seating, a point-of-sale system and a small kitchen setup; $90,000 for build-out: floor drains, power, water and ventilation and taproom finishes; $13,500 for lease security deposit and first month of rent; $4,500 for federal brewer's notice, state and local brewery and retail licenses and plan reviews; $7,000 for attorney and accountant: lease review, licensing and setup; $12,000 for opening grain, hops, yeast and packaging; $14,000 for brand design, exterior sign, glassware and a website; $9,000 for hiring, training and the first insurance payments.
- The cash the business uses before it breaks even, about $42,481: because the equipment and build-out are paid for before the first pint and the taproom takes time to fill.
- A cash cushion of about $83,375: three months of Year 1 operating costs.
- Together that comes to about $568,856, rounded up to the nearest $500: $569,000.
We are raising $51,000 more than that, $620,000 in all, to cover the loan payments and the extra cash the early years take. With this funding, the lowest year-end cash balance is about $18,000, at the end of Year 2.

Where the money comes from:
- My own money: $170,000.
- SBA 7(a) loan for equipment, build-out and working capital: $450,000.

Kind of funding we are looking for. An SBA 7(a) loan through a bank that lends to breweries, plus our own equity. Lenders for a brewery look at the owner's experience, the lease, the equipment quotes and a realistic cash plan for the first two years.

How we will pay it back. We expect a loss of about $159,400 in Year 1 and a loss of about $72,400 in Year 2, then a profit of about $41,500 in Year 3, a profit of about $101,000 in Year 4 and a profit of about $167,600 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan. The loan is planned at sba 7(a) loan for equipment, build-out and working capital at 12.75% over 10 years, about $6,653 a month. That is about $6,653 a month in all, and it is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: a personal guarantee, a lien on the brewing equipment and business assets and the signed lease.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with a smaller system or contract brew at an existing brewery while you build a following, which lowers startup costs.
- Phase 2: once you have a following, open your own taproom and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and brewing credentials.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- The lease or lease option and a floor plan.
- Equipment quotes and the build-out estimate.
- Your federal brewer's notice and state permit applications.
- Insurance quotes or proof of insurance.
- Your recipes, a production plan and a draft tap list.
- Letters of interest from restaurants and groups.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Taproom Pours and Flights: about $6.50 in Year 1, rising to $7.32; about $1.55 in direct costs, rising to $1.81; about 42,000 in Year 1, growing to 78,000.
- Packaged Beer: Cans and Crowlers (per unit): about $15.00 in Year 1, rising to $16.88; about $5.40 in direct costs, rising to $6.32; about 6,000 in Year 1, growing to 19,000.
- Wholesale Kegs (per keg): about $165 in Year 1, rising to $186; about $62.00 in direct costs, rising to $72.53; about 180 in Year 1, growing to 680.
- Taproom Food, Merchandise and Events (per sale): about $18.00 in Year 1, rising to $20.26; about $9.00 in direct costs, rising to $10.33; about 4,000 in Year 1, growing to 9,500.
- Taproom pours about $6.50 each in Year 1 with about $1.55 in ingredients and packaging; cans and crowlers about $15 with about $5.40; kegs about $165 with about $62; food, merchandise and events about $18 with about $9, rising about 3% to 4% a year.
- Pay (a full year, per person): owner and head brewer $55,000; assistant brewer $40,000; taproom manager $44,000; bartender and taproom staff (part-time) $17,000.
- Other yearly costs in Year 1: brewery and taproom lease $67,500, utilities for brewing, cooling and wastewater $21,000, insurance: property, liability and liquor liability $14,000, excise taxes, licenses and compliance $6,000, marketing, events and distribution support $14,000, equipment maintenance and cleaning supplies $17,000, accounting and legal $6,000, point of sale and software $3,000, payroll taxes and benefits (staff) $18,000. These grow between 3% and 10% a year.
- Startup costs and equipment ($443,000 in Year 1, then $10,000, $10,000, $12,000, $12,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 18 days after service. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs