Corporate ate CPA type Tom Retir ired ed law aw enforcem - PowerPoint PPT Presentation

Chris is Corporate ate CPA type Tom Retir ired ed law aw enforcem cement nt

Feeding the beast: Does your business model work? • About our Business • What do you mean by Business Model? • Hudson Valley Distillers, by the numbers • Lessons Learned • Summary

Feeding the beast: About our Business • Farm Distillery 100 miles North of New York City • Family owned and operated • Destination distillery • Mostly apple based spirits

What do you mean by Business Model? More fixed costs Larger infrastructure (The Beast) $19.99 $43.50 ~90,000,000 bottles per year ~9,000 bottles per year $75M PPE <$1M PPE Margin Volume

The Difference between a model and a Plan Field Marshall Helmuth Carl Bernard Graf von Moltke, Chief of Staff of the Prussian General Staff from 1857 to 1871 “No plan of operations extends with any certainty beyond the first contact with the main hostile force” Tom & Chris, two poor guys that started a distillery “Your business plan can change, but you’ve probably got once chance to get your business model right”

Hudson Valley Distillers by the numbers • July 2013: Purchased Farm & began restoration • February 2014: Completed Fed and State permitting • April 2014: Open to the public • July 2014: Production process online, began selling to liquor stores and restaurants • January 2014: Opened the “Cocktail Grove” Profit/Loss by month Jul Aug Sep Oct Nov Dec Jan Feb Mar Revenue Expense Net Income

Hudson Valley Distillers by the numbers Direct Cost Elements by Product and size 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - 375ml Vodka 750ml Vodka 375ml Applejack 750ml Applejack Bottle, Label/Screen print, stopper Cider Taxes Distilled Water

Feeding the beast: Hudson Valley Distillers by the numbers $10,000 gross $10,000 gross profit requires profit requires 330 bottles 576 bottles $10,000 gross profit requires 72 bottles Our business is roughly 2/3 retail and 1/3 wholesale

Feeding the beast: Hudson Valley Distillers by the numbers Average transaction size SALES BY PRODUCT LINE $50 Bottle Sales Cocktails, Food Merchandise $45 $40 10% $35 $30 $25 $20 50% $15 40% $10 $5 $- Distillery Cocktail Grove

Summary ry • Don’t assume anyone else’s Business Model should be yours • Selling direct to the public requires less equipment and yields higher margins • More and larger equipment breeds complexity

Miscellaneous Lessons Learned • Choose vendors carefully • Artisan Still Design • Laser-On • Don’t forget merchandise • Working capital will be more than you think, i.e. bottles, labels, barrels, • All that being said, don’t go too small

Contact info • 1727 Route 9 Clermont, NY 12526 • info@hudsonvallydistillers.com • www.hudsonvallydistillers.com • www.facebook.com/HVDistillers