Craft Brewery Financial Training Podcast

Today we talk about open book management for craft breweries. Open book management (OBM) is a system where financial information is shared with employees so that they can make better decisions.Better decisions lead to better financial outcomes, and better financial outcomes lead to a stronger brewery business for everyone.
In this podcast we dig into the Evaluation Stage of open book management. We talk about what open book management is, and what it is not. We cover the key things you should consider to determine if OBM is right for your brewery. And we review three books which are required reading if you want to implement OBM in your business.
Resources + Tools
Learn more about the Online Course: Open Book Management for Craft Breweries
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There are so many good business books out there that can help you improve financial results in your brewery business. Here are three of my favorite business books of all time:
Cash Rules: How to Learn and Manage the 7 Cash Flow Drivers for Your Company's Success, by Bill McGuiness

The book provides practical instructions to measure, monitor and improve cash flow in your business. The primary drivers of cash flow: Sales, Margins, Operating Expenses, Accounts Receivable, Inventory, Accounts Payable and Capital Expenditures.
I've taken this concept and modified it to be useful for craft breweries. Check out the Ultimate Guide to Cash Flow for more details.
80/20 Rule: The Secret to Achieving More with Less, by Richard Koch

You've probably heard of the 80/20 rule, otherwise known as the Pareto Principle. Essentially, it states that 20% of efforts create 80% of results. So, there's 20% of what you do that makes 80% of the difference. The challenge is trying to figure out what the 20% is so that you can do more of these things, and spend more time on efforts that really make a difference.
In the beer business you can use 80/20 to identify your most profitable customers and products (brands/SKUs). Run the analysis and you'll see that 80% of sales comes from 20% of your customers. And 80% of sales come from 20% of your brands. Then use this insight to improve financial results in your brewery.
Financing the Small Business, by Robert Sisson
Every brewery should have a financing strategy. A game plan so that you have access to capital when you need it. In good times, and in tough times, a good financing strategy will keep your brewery on solid financial footing.
The book covers how to approach banks, how to create loan proposals, how banks make lending decisions, and more.
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In today's podcast, we hear from Steven Quish from Cross Insurance. Cross has 40 office locations and 1000 employees. They work with over two dozen brewery clients, so they understand the beer industry.
Steve shares his perspective on insurance issues facing beer industry today. Topics range from Business Income Interruption insurance, to Workers' Compensation, and how to prepare a COVID impact statement.
What's a COVID impact statement? Why do you need this? Listen in to learn more.
We also discuss day to day insurance considerations for breweries. For example, certificates of insurance, hold harmless agreements and how to use a safety program to help reduce workers' compensation premiums.
Resources
Contact Steve Quish from Cross Insurance: squish@crossagency.com
Learn more about Cross Insurance
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Jon Reynolds from BrewPlan is a 40 year beer industry veteran. Jon works with breweries on new brand launches, setting up distribution networks, working with wholesalers and performing brewery analysis and feasibility studies (think of this like a business plan on steroids).
Jon subscribes to 30 industry publications, so he is well-read on current events (and past events) that are shaping the beer business.
In today's conversation, we cover a lot of ground on a number of topics that are useful and profitable for craft brewery owners and managers: How to use data to uncover opportunities in the market. How to strengthen wholesaler relationships. How innovation is the key to the future of craft brewery sales growth.
Jon's #1 tip on wholesaler relationships: You earn it when you make sales calls in their market. You'll get their support right away.
Resources:
Contact information for Jon Reynolds from BrewPlan
University of Vermont Business of Craft BeerJon's Favorite Industry Newsletters: Brewbound, Craft Brewing Business, Shanken News Daily
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