Page 8 - Beverage Master December January 2020
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Craft Beverage














































               •  Encourages a collaborative working environ-         How much will I expect my revenue and expenses
                  ment between operations personnel, manage-        to increase?
                  ment and owners.
                                                                      Will I need to tap into my line of credit or find
               •  Fosters “bigger picture” thinking.                additional financing as I start up?

               •  Enables you to run different scenarios such as:               Next You Will Need To:

                  a.  Impact of cash collection practices and       •  Obtain historical revenues, expenses and cash
                      terms (when and how)                              flow for last two to three years.
                  b.  Impact of accounts payable terms and dis-
                      counts (when and how)                         •  Develop a template to forecast one year into
                  c.  Cash flow for an event                            the future.
                  d.  Adding a new revenue source
                  e.  Leasing or building a new brewery or tap-     •  Review historical growth and forecast growth
                      room                                              based on discussions with management.
                  f.  Debt restructuring
                                                                    •  Prepare a formal report outlining the significant
               •  Can ease the burden of sudden and significant         assumptions and the forecast results.
                  changes.
                                                                        a.  Key assumptions
                 The first step to creating a cash flow projection      b.  Increase operating revenue
               is to define your approach and assumptions. For          c.  Increase operating expenses
               example, you may want to evaluate the financial          d.  Capital additions: production or brewing
               impact of adding a new seasonal brew. A few key             equipment, delivery trucks
               questions to ask are:                                    e.  Debt service / borrowings
               6      December - January  2020      BEVERAGE MASTER





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