The Financial Projections section of your brewery business plan is an important component that provides investors and lenders with an understanding of the anticipated financial performance of your business. It provides
investors and lenders with a clear picture of the expected return, which is important for them to make an informed decision.
Before beginning this section, it is important to conduct research on the industry and the market in order to understand the financial potential of the business. This research should include an analysis of the current
and projected trends in the craft beer industry, as well as a review of the financials of similar breweries.
Once you have conducted your research, you can begin to develop your financial projections. This should include an Income Statement, Cash Flow Statement, and Balance Sheet. The Income Statement should list your
estimated sales, cost of goods sold, operating expenses, and net income. The Cash Flow Statement should list expected cash inflows and outflows, such as inventory purchases, payments to vendors, and loan payments.
The Balance Sheet should list assets, liabilities, and equity.
In addition to these financial statements, you should also include a detailed explanation of your assumptions and methodology used to generate the financial projections. This should include an explanation of the
factors that have been taken into consideration, such as sales growth, cost of goods sold, operating expenses, and capital expenditures.
Finally, it is important to include a sensitivity analysis that outlines the potential impact of changes in certain key assumptions. This helps investors and lenders understand the risks associated with the business
and how the company may respond to changes in the market.
By providing a detailed and accurate Financial Projections section in your brewery business plan, you will demonstrate to investors and lenders that you have a clear understanding of the financial potential of the
business and that you are prepared to manage the financial aspects of the business.