Title: Business Plan For The Establishment of A Micro-Brewery (Craft Beer) in Freetown Sierra Leone

Company Name:
Director: Kishin Sham Mahtani
Tel: +60-124084655 (Malaysia Number)
+232 78988444 (Sierra Leone Number)
Email Address: kishinmahtani@yahoo.com
Title: Business Plan for the Establishment of a Micro-Brewery (Craft

Beer) in Freetown Sierra Leone.
I agree that reading of this Business Plan is strictly limited to me as authorized by

Company I agree that I shall not divulge or reproduce the content of this Business
Plan without the written consent of the Company.
I understand that any information provided in this Business Plan is in all respects
confidential in nature, other than information which is in the public domain through
other means. I agree not to disclose any information without the express written
permission of the Company.
This Business Plan includes “forward-looking statements and projections.” All such
statements and projections within this Business Plan, other than statements of
historical fact, regarding the company or its strategies, plans, objectives and
expectations, are all forward-looking statements. Although the Company believes
that the projections reflected in this plan are reasonable at this time, it can give no
assurance that these projections will prove to have been correct.
This Business Plan is not a financing offer. A financing offer is only valid with
an approved Private Placement Memorandum.
Business Plan Micro Brewery (Craft Beer) Page 1

Table of Contents
Cover Page ............................................................................................................................................. 1
Table of Contents .................................................................................................................................. 2
Executive Summary ................................................................................................................................ 3

Industry Analysis ................................................................................................................................... 5
Company Description ............................................................................................................................ 7
Market Analysis ..................................................................................................................................... 9
Economics of the Business .................................................................................................................. 13
Marketing Plan .................................................................................................................................... 19
Design & Development Plan ............................................................................................................... 27
Operation Plan ……………………………………………………………………………………………………………………………30
Management Team & Company Structure…………………………………………………………………………………..32
Financial Projections……………………………………………………………………………………………………………………35
Appendix…………………………………………………………………………………………………………………………………….38
References………………………………………………………………………………………………………………………………….42

Executive Summary:
Company is a well-established company located in Freetown the capital of Sierra

Leone. The business has been in the liquor business since the early 60’s and is now
looking to enter the lucrative microbrewery (Craft Beer) industry by investing in the
equipment and licencing with international partners Rustik Bru Brewing Company .
Company is a family business incorporated in 1939.
We are planning to penetrate a lucrative market in a developing nation that is seeing

annual growth rates of 9% and an increasing middle class that is more affluent than
its previous generation and a taste for products that can be differentiated on the
basis of quality.
Our products will be positioned very strategically and be of extremely high quality to
ensure customer satisfaction and supported by our extensive distribution network.
Our initial plan is to produce two main lines of Beers Auld Adage Ale™ and Black
Forge with the products being of the highest quality and taste.
Our target markets will primarily constitute young single affluent men in the age
range of 21 to 35 who are either working or in colleges studying. Company is
targeting a market share of 8% to be grown to 18% in 5 years targeting potential
sales of 1.5 Million dollars in revenue during this period. Company will pride itself on
our production ability and high standards of quality and introduction of an entirely
new line in the Sierra Leone market.
Company intent to provide our customers with more than beer, we intend to provide
a life style statement and though we assure the highest quality standards we also
ensure a positive life style association with our brand.
To prosper there is a need for Company to be flexible and responsive to delight

customers by providing them what they want and most importantly when they want it.
From product concept to goods dispatch we intend to ensure that every policy and
procedure, system and process must have the objective of improving the flexibility
and response of the whole company. There is a need for interaction between all
functional areas, particularly between marketing and manufacturing, if the
organization is to realize its full potential, with manufacturing being employed as a
strategic weapon.
Our marketing strategy will be based mainly on ensuring customers know what need
the product is able to fulfil, and making the right product and information available to
the right target customer. Hence we intend to implement a market penetration
strategy that will ensure that we are well known and respected in our respective
industry.

We will ensure that our products' does not compete on price but rather on lifestyle
experiences and quality and most importantly identifying with it an know that it exists,
including where to find it.
However our prices will also take into consideration the cost of production and
distribution so as to ensure that we remain viable and operational. The marketing
effort will convey the sense of quality and satisfaction in every picture, every
promotion, and every publication. Our promotional strategy will involve integrating
advertising, events, personal selling, public relations and direct marketing. In the
long term Internet marketing shall also be undertaken, details of which are provided
in the marketing section of the following plan.
It is important to recognize that we do not intend that our tangible resources alone
will make us potent competitors but more so our intangibles, such as our ability to
relate to consumers, management style, corporate culture and commitment. These
elements will differentiate us from our competitors and contribute towards the
development of a sustainable competitive advantage.
Finally we conclude with our financial projections and key financial ratios that justify
the investment and potential returns in this business opportunity.

Industry Analysis:
From Allied Market Research the Global beer market is expected to garner $688.4
billion by 2020, registering a Compound Annual Growth Rate (CAGR) of 6% during
the forecast period 2015-2020. A significant increase in the consumption volume is
believed to fuel the market growth across developing regions. Beer is a yeast
fermented alcoholic drink prepared from malt, and flavoured by adding hops.
The global sales figures are following an upward trend. Many brands are now
experiencing tremendous success due to the rise in the disposable income and
changing lifestyle of consumers. Exploiting a niche segment, matured markets are
also witnessing a dramatic shift in the high-calorie beer market trends and have
developed a taste for low-calorie beer. Likewise, continuous popularity of craft brew
has paved way for a new generation of producers. Alternatives to glass, such as
PET, makers are using durable yet ductile, affordable, and sustainable packaging
solutions such as cans. Consumption statistics also disclose a rapid growth in the
number of female drinkers.
Breweries are categorized into macro-breweries and micro-breweries based on the

production volume or size. The official war between them is on, with craft brew
companies continuously increasing their production capability. Macro-breweries are
offering quality and quantity across greater distances. At the same time micro-
breweries are benefitting too. Likewise, the emergence of breweries in less saturated
locales across the global avenues is welcome news. Recent changes in drinking
preferences have considerably increased the demand for micro-breweries, which is
anticipated to register a CAGR of 9.3% during the period of 2015‐2020. Larger
numbers of discerning consumers are now shifting towards the craft beer, owing to
its distinct taste and quality. So, with varieties of flavour, micro-breweries are
relentlessly expanding because of the growing demand for craft beer.
Microbreweries are defined by the industry as small breweries producing less than
15,000 barrels of beer per year and distribute the product for consumption off-
premises. According to the West African Association of Brewers, Craft beer
production has been increasing globally by 4.2% annually. This continued growth
trend yearly addresses the stability of craft beer in a variety of economic
environments.
One main advantage of a microbrewery is that they are able to supply their products
to the consumer when the product is at its peak of freshness. For a Microbrewery,
quality is the most important concern, given their small market share and limited
competitive edge compared to large national breweries. For this reason use of the
highest quality ingredients (malted barley, hops, yeast, and water) is more justified
as opposed to the use of corn and rice by large scale breweries to cut costs.

Beer consumption is greatly dominated by male consumers, with men accounting for
over 80% of the volume consumed. A large number of these drinkers are African and
favour a light beer. Of all the beer types, light beer has the strongest following
among women consumers. Women beer drinkers are more strongly attracted to
microbrewed beers than domestic beers. The appeal of microbrewed beers is getting
stronger on a yearly basis and is spread through social referrals.
Further The Financial Act 2016 on Alcohol tax has had a positive effect on beer
lovers to patronise the local brewery (Sierra Leone Brewery Ltd.) and as the
government imposed a steeper tariff of 100% on imported beers to protect local
industries which led to a 300% increase on the prices of imported beers. (National
Revenue Authority)
The industry has become attractive for local investors to start up and compete
against the only established brewery as there is no other competition at the current
moment. This is a Blue Ocean Market opportunity.
Some Key Points for Craft Beer in Sierra Leone:
• A sector with huge potential! First Mover advantage as currently no

competition in this sector
• Craft beer means natural beer brewed in a non-automated brewery using
traditional methods and premium, whole, natural ingredients, and no flavour
lessening adjuncts or extracts, additives or preservatives.
• The Craft Beer movement began in the United Kingdom in the 1970’s and has
subsequently spread to the USA, Canada, Australia, Brazil and South Africa
• Microbrewing is primarily a boutique business where beer is brewed inside a
premise in regulated quantities and served fresh, using quality ingredients.
• There is significant potential demand in this sector since the one beer style
(Lager) is provided by the industry.
• Young consumers are open to new styles of quality and flavourful craft beers
and globally turning down commercial beer.
Traditionally the investment to start a new brewery to compete against an

established one will be cost prohibitive, it is my belief however that political
regulation and populism to encourage local industries, technology advances that
have led to the cost of starting a microbrewery to be well within the reach of a savvy
investor and the intention is to compete in a blue ocean market where quality and a
life style is offered with a portion of profits being reinvested to grow the business and
into Research and Development as the long term prospects are very healthy for the
industry.

Company Description:
REMOVED
MISSION STATEMENT: To provide a

constant variety of exceptional, hand-
crafted beers and promote the highest
quality, tastiest and most creative craft
beer imaginable.

Company product will be under the local brand name “Removed” and be hitting the
market with two initial beers under the trademark licencing from Auld Adage Ale ™
and Black Forger Ale™ and the description of these two beers are as follows:
Auld Adage Ale™: 4.5% ABV, 24 IBU, 12 SRM. Artfully crafted, easy drinking and
light to medium bodied British inspired ale, Auld Adage is simple ale that is
amazingly tasty. Although this ale is full of flavour with floral hop aroma, you won’t
find the strong bitterness common to many American pale ales. Yet you will enjoy a
well-balanced amber coloured beer that is surprisingly refreshing! Black Forge Ale™:
6.0% ABV, 37 IBU, 40 SRM.
Black Forge is black ale. This is a wonderfully medium-bodied beer that has light
caramel notes and possibly a hint of chocolate! What makes this beer special is how
well-balanced the malt character makes this beer, without the perception of any
lingering bitterness
The objective is to double our monthly barrel capacity in five years of operations and
through our research and development to cater to local tastes and maintain a diverse
craft beer portfolio whilst initially starting off with a 7 year licencing agreement with
an internationally established craft brewer (Rustik Bru) with the aim to have our own
line suited to local tastes developed at the end of this licencing period. The goal will
be to release new beers yearly and tie up with seasonal and holiday special brews to
enhance the uniqueness of the brand.
Another strategy is to brew signature series beers and contracted recipes with local
bars and restaurants that we will be offering naming rights to the beers brewed and
we are working on the licence rights for the recipes Hefeweizen, American Dunkel,
Munich style Helles, Belgian Witbier, Rye-Wheat IPA, Honey Malt Amber ale,
Oktoberfest, Pumpkin Ale, Brown Porter and Dry American Stout. This idea will be
sold as a package and thought the bar or restaurant will have the naming rights we
will require the recognition that the beer is brewed by Company
Merchandising will be a way to market our brand and bring in other additional
sources of income. Company plan to make available an apparel line of T-shirts,
sweatshirts, hats and bags with the logo that will be available for purchase.

Market Analysis:
In Sierra Leone today there is an experience of rapid growth in the economy and this
has been brought about by the relaxation of foreign exchange policies and economic
policies to attract local businesses to industrialize further. The fiscal and monetary
policies of the government has been geared towards maintaining growth and this is
evidenced by the economy growing at a rate of 9% annually since 2009 which is very
high by global standards.
The current drive and emphasis of the Sierra Leone government on diversification to
an industrial base moving away from minerals and agricultural sector has provided
an opportunity for Company to work towards achieving this goal. This has resulted in
an implementation of modern production techniques, the transfer of knowledge and
the creation of an affluent middle class.
Having done a thorough and comprehensive research of the market, we have

realised that there is a need for a manufacturer that focuses on producing a high
quality brew that is tailored to its customers’ needs and social status.
There is currently only 1 brewery in Sierra Leone that has been in existence since
the early 60’s and we believe that there is a market need for something new (in this
case the Craft Beer being proposed) that particularly focuses on the affluent middle
and upper class looking for a life style statement. We intend to provide products of
extremely high quality which cannot be over-emphasized as our mode of completion
is to create a blue ocean market and enjoy the benefits of an established
infrastructure, brand and a first mover advantage. The marketing mix of our products
has been carefully and strategically put together to position them in the market.
Aware of the fact that we are going to be operating in a predominantly monopolistic

market (Sierra Leone Brewery Ltd.) structure we intent to ensure that our marketing
strategies take into account of the importance of our experience, infrastructure,
brand recognition to fit with our products capabilities and benefits and most
importantly the target market so that we can develop a strong and sustainable
position in the market place.
Our plan is a niche marketing strategy focusing on certain target markets particularly
in view of Sierra Leone Brewery Ltd dominant position in the local market. Our first
year goal is to aim for an overall target market share of 8% of the local market and
aim to grow this share by 20% annually for the first 3 years coming to 18% market
share at the end of 5 years. This share will vary with the actual products, with Auld
Adage Ale™ having a larger share than traditional beer due to its uniqueness.
We intend to implement an aggressive marketing strategy that is well supported by

our business functions, existing distribution networks and brand recognition. The
above influences our decision to enter the lucrative brewing industry opportunity in
Sierra Leone.

Further Sierra Leone’s population has been growing by 4.7% annually for the last
fifteen years and it currently has a 70% population below the age of 40. This growth
has been enhanced due to the increase in affluence and has created a customer
base that is open to a higher quality product than is currently available in the market.
Looking globally microbreweries have been favoured by young professionals in their
late twenties and early thirties.
Another potential growth area is that of the increase in the enrolment and opening of
new colleges and universities. Currently there are 35,000 college students in the
main cities of Sierra Leone and globally Craft beers represent 45% of beer sales in
campus communities.
Company will be focussing on the corporate, working class and leisure drinkers who
appreciate and are affluent enough to appreciate good quality beer. The working
class will come from the industrial, mining, banking, civil service, administrative and
financial sectors that constitute a large portion of the market. The corporate or
managerial segment constitutes managers who are looking for an image boost by
patronising an established brand the market and the leisure drinkers constitute the
university and college students who are known to spend for a good time.
Our most important group of potential customers are the young men just starting to
work and not yet started a family as they often converge after working hours to
socialise, watch sports, talk politics and update one another on their daily
happenings. These are the potential customers who require an enjoyable time whilst
drinking a good refreshing beverage. They appreciate good quality products and are
willing to pay a premium to be associated with such a brand and the perception of
being in the “in crowd”.
Sierra Leone is a country with some of the best ocean front beaches in West Africa
and has a high number of foreign and local tourists who would be looking to
experience local foods and drinks and have a change from the usual beverages that
they often have.
Our Marketing and promotional activities will be social media, and technology based
rather than the traditional mass marketing. Our objective will be to be the first thing
our potential customers see in their social media feeds and will be looking to work
with local influencers, sponsoring cultural events and local events, and advertising in
small niche magazines that is targeted towards young professionals and sponsoring
activities that target our potential customer base.
For our Market Analysis we have also conducted a SWOT Analysis which will help
us in subsequent sections to analyse our business plan thoroughly.
Strengths:

• Strategic market segmentation and implementation strategies.
• Existing Brand Name in the industry and Distribution Network
• Diversified market segments, ensuring the dependency on one particular
market segment
• Combination of skills in the management: the directors have wide experience
and know how in the liquor industry and are also tying up with licencing from
an established micro-brewery
• Establishment and maintenance of a strong capital base. No external funding
or liabilities undertaken
• An aggressive and focused marketing campaign with clear goals and
objectives.
Weakness:
• The introduction of new organizational practices and personnel from the

licencing company who have not previously worked with our management and
are not aware of the style of a family business in a different part of the world.
• Lack of established R&D facilities.
• Introduction of Beers from established markets that might not suit local tastes.
Opportunities:
• Specific nice and first mover advantage for the provision of high-quality brew,
enjoyment and refreshing beers.
• The younger generation of family members entering the business have a far
greater appreciation for craft beer and status symbols and images
• Current drive by the Sierra Leone government to protect local industries and
create jobs and promote the use of locally sourced materials.
• Internet marketing and sales- as communication networks improve the
customer base grows in proportion as we can reach more targeted customers
nationwide.
Threats:
• The potential growth may result in competition and market saturation could
occur.
• The current brewer may establish new lines and vertically integrate so as to
cut down the time to market and further control supplies that are obtained
locally. They have the advantage of economies of scale
• New marketing strategies and tactics by the established brewery or new
competitors.
• Government change in policy reversing the current 100% tariff on imported
liquors.
• Increase in imported materials/ingredients
• Crop failure due to drought/weather conditions of locally sourced ingredients.

Competition:
As the first microbrewery we have no direct competitor offering our product or

service, however there is a national brewery Sierra Leone Brewery Ltd and there is a
proliferation of imported brands whose business has been impacted by the tariff
increase of close to 300% and are no longer considered a threat.
Our plan is to market ourselves in such a way that customers will choose our
products over our competitors on the basis of our higher quality brews. We shall now
analyse our competitors as follows
Sierra Leone Brewery is the largest and most reputable manufacturer, supplier and
marketer of alcoholic beverages in the country and has been on the market for a
considerable period of time now. Due to its size it enjoys an economy of scale and
thus the competitive advantage of being able to offer low priced beverages in large
quantities to its target markets.
One of Sierra Leone Breweries' main products is Star Beer; though it will not be one
of our direct competitors it still has a strong market presence. Star Beer is currently
mass marketed in the whole of Sierra Leone and is popular amongst the rural and
town folk. Sierra Leone brewery has current intentions of going beyond these
borders. This is mainly because it is in its maturity stage and these efforts of going
international are meant to extend its product life. However a frailty of Star Beer is
that the product does not maintain freshness for a long period, which is debilitating
Hence our beer to take advantage of this weakness.
Furthermore based on our potential success and the yearly lowering of the
investment costs of starting a microbrewery we foresee potential competitors
entering the market within 12-18 months, but with our established brand, licencing
agreement, distribution infrastructure and the first mover advantage we do not
foresee any significant threat to our position and objectives.
Further from research globally the Brewers Association has documented that in most
craft brewing markets, several craft breweries located in the same geographic area
are actually beneficial to the growth and success of each brewery. So instead of
being worried about potential microbrewery competition we plan to be the industry
leader and work with them to help promote the industry allowing us to gradually
compete against the main existing brewers and allowing us to all benefit together
from a smaller marketing resource pool.
Our projected Market Analysis of our annual sales, market share and Beer
consumption in litres with the objective of doubling our capacity in 5 years is below
and our pricing structure takes into account our reduction in the cost of learning and
an increase in economies of scale. This will be covered in detail in our financial
projections and break even analysis.

Market Analysis
Beer Consumption in Litres
2018 2019 2020 2021 2022
Potential Customers Growth
University/College Students 20% 50,000 60,000 72,000 86,400 103,680
Working Professionals 20% 125,000 150,000 180,000 216,000 259,200
Foreign Tourists/Local Tourists 10% 25,000 30,000 36,000 43,200 51,840
Total 200,000 240,000 288,000 345,600 414,720
Annual Sales Forecast

$450,000
$400,000
$350,000
$300,000
$250,000
$200,000 Annual Sales Forecast
$150,000
$100,000
$50,000
$0
2018 2019 2020 2021 2022

The Economics of the Business:
Having researched the market and speaking to our international partners that we
plan to collaborate with the one advice that we got is “Whatever cost you think you
have for the brewery, multiply that number by three.” We originally before doing our
due diligence thought that we could put together this brewery for $150,000 (0ne
hundred and fifty thousand dollars). However in studying the economics of the
business we now see we need $450,000 as a minimum amount of capital to safely
and intelligently start and operate this brewery.
These financial projections are based on certain criteria and assumptions that are as
follows:
• We assume a strong economy, without major recession.

• We assume, of course that there is no unforeseen changes in economic
policy or disruptive technologies to make our products immediately obsolete.
An initial investment capital will be $450,000 for equipment costs and working capital
for a year. This is broken down into $360,000 in equipment costs and $80,000 in
working capital including leasing, labour, utilities and our licencing agreements.
This is a one-time fixed cost at start-up and Company believes that within five years
our business will be successful enough to offer opportunities to obtain a substantial
return on our investments.
For the first year an estimated product sales was determined in the amount of
$630,000 for the first year with a projected growth yearly of 14% average annualized.
This amount is based on producing 630,000 litres and working up to 1,000,000 litres
in 5 years. The selling price per litre is in the tables below as well as our revenue
projections.
Year Beer Price/Litre

2018 $1.00
2019 $1.05
2020 $1.07
2021 $1.09
2022 $1.11

The cost of brewing is dependent on the volume, quality and type of beer produced,
however as our focus is on a quality product and this is the niche we operating in we
expect our profitability to be higher than normal breweries. The product cost per litre
is expected to be about 30 cents on the litre but due to the industry that we operate
in that requires a heavy marketing outlay and promotion expenses we expect that to
add on another 30-35 cents per litre. Thus we are expecting to generate a large
gross profit to cover our fixed and variable expenses and will break even by the end
of the 3rd year. We are using a straight line depreciation method on our initial outlay
to reduce our tax liability for the first 3 years.
Our financial projections are calculations are below and attached as an appendix at
the end of this report for your reference.
Projections 5 Years
2018 2019 2020 2021 2022

Revenue
Product Service/Sales 630,000.00 705,600.00 804,384.00 933,085.44 1,101,040.82
Total Revenue $630,000.00 $740,880.00 $860,690.88 $1,017,063.13 $1,222,155.31
Expenses
Costs of Goods Sold
Management Salaries $180,000.00 $189,000.00 $198,450.00 $208,372.50 $218,791.13
Non Management Salaries $240,000.00 $252,000.00 $264,600.00 $277,830.00 $291,721.50
Production Expenses $300,000.00 $282,000.00 $262,260.00 $241,279.20 $219,564.07
Gross Margin ($90,000.00) $17,880.00 $135,380.88 $289,581.43 $492,078.61
Depreciation $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00
Loan Interest Payment $0.00 $0.00 $0.00 $0.00 $0.00
Total Operating Expenses $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00
Pre-Tax ($) ($162,000.00) ($216,120.00) ($152,739.12) $64,842.31 $484,920.92
Pre-Tax(%) -25.71% -29.17% -17.75% 6.38% 39.68%
Tax Provision (25%) $0.00 $0.00 $0.00 $16,210.58 $121,230.23
Net Profit ($162,000.00) ($216,120.00) ($152,739.12) $48,631.73 $363,690.69
The Key assumptions in our projections are as follows:
• A 12% growth in beer production in the first year followed by a +2% on the
yearly growth which is achievable in Sierra Leone
• A 5% increase in salaries per year to retain talent
• A reduction on production expenses of 6% in the first year followed by a
yearly reduction of +1% on the previous year through increased productivity,
lean six sigma and reduced cost of learning.
• A straight line depreciation method for our initial outlay over 5 years.
(Intentionally Left Blank – Attached Page will be Year 1 Financials)

Start Up Costs:
Items Quantity Cost Per Unit Total Cost
Capital Equipment
Kegs 1/6 BBL 300 $50.00 $15,000.00
10 BBL Brewhouse (mash/turn/Kettle/Control) 1 $90,000.00 $90,000.00
Air Compressor 1 $1,000.00 $1,000.00
Auger/Conveyor - 4Hp Motor 1 $2,000.00 $2,000.00
CIP- 200 Trolley 1 $12,000.00 $12,000.00
Cold Liquor Tank 40BBL 1 $2,000.00 $2,000.00
Fermenter 10BBL 2 $8,000.00 $16,000.00
Filter, Beer 1 $400.00 $1,500.00
Fork Lift 1 $4,000.00 $4,000.00
Glycol Coolant System 1 $18,000.00 $18,000.00
Grain Mill 1 $925.00 $1,500.00
Keg, Cleaning/Filling Station 1 $1,500.00 $1,500.00
PLC, Siemens 1 $15,000.00 $15,000.00
Steam Boiler 1,000,000BTU/Hr Max 1 $20,000.00 $20,000.00
Sub Total $199,500.00
Cold Storage Room
Cold Storage Room 1 $30,000.00 $30,000.00
Sub Total $30,000.00
Installation Charges
BrewHouse Installation Charges 1 $12,000.00 $12,000.00
Breweing Consultant/Instalation Supervision 1 $12,000.00 $12,000.00
Contractor Fees 1 $10,000.00 $10,000.00
Steam Boiler Installation 1 $4,000.00 $4,000.00
C02 Tank 1 $2,000.00 $5,000.00
Propane Tank, 1000 Gallon Tank with 800Lb installed 1 $3,000.00 $5,000.00
Miscelanous
Water Filtration System 1 $2,000.00 $2,500.00
Alarm System, Building Security 1 $2,000.00 $2,500.00
Brewers Bond 1 $5,000.00 $5,000.00
Cellar Equipment, Pump, Hoses and Miscelanous 1 $3,000.00 $3,000.00
Legal Fees for Brewery 1 $12,500.00 $12,500.00
Sanitizer and Acid Wash Supplies 1 $1,500.00 $3,000.00
Starting Inventory Grains, Rice, Yeast and Hops 1 $25,000.00 $25,000.00
Licencing Fees 1 $24,000.00 $24,000.00
Shipping Costs
Brewery Shipping Costs 1 $4,000.00 $5,000.00
Sub Total $5,000.00
Start Up Capital/Expenses $360,000.00

Working Capital $90,000.00
Total Start up Capital Required $450,000.00
Our Start-up costs are broken down to as much detail as possible and prices are
based on current quotes at time of ordering we will strive to get the best possible
terms and discounts offered by our suppliers.

Start Up Cost Allocation:
Start Up Cost Allocations
20% Capital Equipment

1% Cold Storage Room
44% Installation Charges
Miscelanous
17%
Shipping Costs
Working Capital
11%
7%
Net Profit based on Projections:
Net Profit
$400,000.00
$300,000.00
$200,000.00
$100,000.00
Net Profit
$0.00
($100,000.00) 2018 2019 2020 2021 2022
($200,000.00)
($300,000.00)

Break Even Analysis:
Our break-even analysis is based on running costs that we shall incur in keeping the
business running and is inclusive of salaries, wages, rent, water, electricity and
insurance among others. Some of our fixed costs will be included in these costs and
thus we aim to ensure that our sales levels by the end of the third year run above the
breakeven point.
$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
Revenue
$600,000.00 Operations Cost
$400,000.00
$200,000.00
$0.00
2018 2019 2020 2021 2022
The operations costs rise as we are increasing capacity and then we would start to
see the benefits of higher volumes and a more matured market with our revenue
projections we expect to start breaking even by the end of the 3 rd year and start of
4th.

Marketing Plan:
Our marketing strategies key will be focus as we are introducing craft beer for the
first time to Sierra Leone and targeting a niche market.Company will initially focus on
the local market and in the remote and previously inaccessible areas that we have
developed distribution through the years for our other products. Thus the form of
growth pursued will be organic as there will be a need to instil confidence in our
products and offer a life style statement mind-set change. Some of our key focus
areas will be
• Focus on building image and awareness through consistency and the

distinctiveness of our product.
• Focus on the quality and life style image associated with our brand and look
to produce social referrals through word of mouth. The aim is to through our
quality offering get our customers to evangelise our beer to their friends and
family. The nature of the product will require also a relatively heavy personal
selling component to our marketing strategy and we intent to always be active
in personal relationships with our customers and strategic allies keeping
abreast with their needs and wants through their feedback.
• Focus on advertising on several key media, TV, Radio and all forms of Social
Media.
To achieve our marketing strategy we plan to create life style experience customer
culture and to achieve this we require our distribution teams to first understand the
unique selling points of our products and promote not from a cost stand point but
from one of the brand being associated with success and an affluent life-style
through a value proposition.
This value proposition is about offering our customers fresh beer that refreshes them
with the highest quality ingredients and is done in an enjoyable atmosphere. Hence
we intent to
1. Market the benefits not the product

2. Ensure customer satisfaction
3. Develop long term relationships
4. Market the brand and company
We will aim to communicate this value proposition through advertisement, personal

sales and referrals from real people that emphasize how our products provide
refreshment, enjoyment and fulfilment to our customers.
For the short term we will need personal selling and advertising to lure and inform
our customers about the products we offer and the benefits of consuming our beer,
it’s about creating the awareness and buzz for the beer.

We intend to focus on improving our implementation, by working on key objectives
and better coordination of marketing efforts. For the short term at least, the selling
process will depend on personal selling and advertising to lure and inform potential
clients about the products we offer and the benefits of consuming our products. Our
marketing does not intend to affect the perception of need as much as knowledge
and awareness of the product categories.
The core element is differentiation and our beer will be sold with this in mind, we do
not intent to compete in a price sensitive market against an established competitor
so our strategy is about creating the “buzz” round the product. Our product is
30cents more expensive per litre in comparison to the products of the Sierra Leone
Brewery Ltd; however our value proposition is our unique selling point and to achieve
this we plan some of the following strategies:
Service Provision: the service aspect of Company marketing mix shall constitute a
critical element in delivering total quality. We intend that our customer service to be
key to the retention of the customers and our sales team shall be following up with
our customers on a regular basis to ensure that they are satisfied with the quality of
our products, the delivery times and the environment in which our beer is consumed.
This is to ensure our customers are not to be one-time wonders but regular order
seekers, when a Sierra Leonean in our target sector of the market thinks beer ours
should be the first that comes to mind and to achieve this we require that rapport and
understanding between customers and ourselves be an ongoing process. We won’t
sell and expect the customer to come back, but rather create the feelings of wanting
to be associated with our beer.
To achieve this we plan to use state of the art Customer Relationship management
information systems to create personalised database for our marketing team to
target our customers by knowing them better both personally (birthdays,
anniversaries, big occasions where beer could be consumed) and knowledge of their
previous purchases in terms of size, frequency and actual products so that we may
be able to forecast their demands and establish long term beneficial relationships.
Our customer service will be enhanced using our existing distribution networks and
we will work to extend competitive merchandising and credit facilities to our partners.

Pricing Strategy: Our objective is not to compete in a price war with the established
brewery thus we positioning our offering in terms of quality and life-style experiences
thus we must charge appropriately for the quality we shall be providing in addition to
the use of our established distribution networks. Hence we intend the price will
accommodate a mark-up that is 30cents/litre for marketing and promotion costs in
addition to our costs and expected margins. To our distribution partners we intend to
offer discounts for bulk orders which exceed the current 10-15% being offered by the
Sierra Leone Brewery Ltd. Our retail prices per litre will be $1.25 whereas our factory
prices will be as projected below.
Year Beer Price /Ltr Beer Retail Price/Litre

2018 $1.00 $1.25
2019 $1.05 $1.25
2020 $1.07 $1.25
2021 $1.09 $1.25
2022 $1.11 $1.25
As can be seen our strategy is to offer higher percentage gains to our distribution
partners and slowly over the years reduce it but ensure that the increase in volumes
compensate at minimum the same income levels with potential to grow exponentially
of the efforts put in by these partners in promoting our beer.
To be sustainable we intend that our income structure matches our cost structures
and to ensure that our people are paid well to assure good workmanship in
maintaining our quality. We are aiming for a gross profit margin of at least 25% in our
initial years of operation
Promotion Strategy: This will be based primarily in informing our potential customers
of our products and making the right information available to our target customers.
Since we are targeting three main segments the promotional tools and messages will
be customised to match the intended target market. However the one common
thread in all cases the marketing team will convey the sense of quality, refreshness
and lifestyle in every picture, every promotion and every publication.
Promotional campaigns will seek to promote the sharing aspect of the beer
customers drinking these products in a feel good environment with others who are
successful as they are or wish to be, our promotional activities shall be focussed
towards driving our overall strategy aggressively, developing internal consistency
within our teams and prepare them to confront any radical changes that may arise.

In a market like Sierra Leone we cannot afford to appear in, or produce, second-rate
material that make our products look less than they are. We intend to leverage our
presence using quality brochures and other sales literature, including promotional
material such as pens, complimentary slips and stickers. Due to the fact that our
products are in the introductory phase on the market, promotional expenses are high
in order to generate customer attention and knowledge of our products existence.
We intend to spread the word about our business through the following:
Advertising: In view of the fact that we are entering a market largely dominated by
Sierra Leone Brewery Ltd. which has an established brand and infrastructure we
intend to undertake extensive advertising of our products in addition to leverage of
our existing brand name “Your Brand”.
This is so as to instil awareness and knowledge of our existence in the market place
now for beer, which we shall aim to convert into market share. Hence the need to
ensure that our products are constantly available to our target market, and of
consistent high quality. Whilst we are committed to providing products of
uncompromising quality to meet the needs and expectations, we believe our
products should be advertised and promoted in an honest and ethical manner that
respects the values of our consumers' societies. A constant look out will also be
made of any special editions/events/celebrities in the local media, which may provide
an opportunity to advertise through link ups and strategic partnerships.
Events: These are increasingly becoming important to the younger generation and
by events we are looking at music concerts, soccer matches, sports activities, tying
up with social media influencers like celebrities and anything or activity that draws a
crowd constituting our target market. Not only will these increase awareness of the
products we will be able to take advantage of this in all our future promotional
campaigns, adding leverage to its reputation and image. Associating our brand with
success is the strategy, we will strive to work with winners and create the association
of winning with our brand.
Specific examples of events that we plan are brew master dinners, small off-premise
tastings, on premise tastings, and large festival tastings. These can be done in order
to get the product introduced to the public and the name to potential consumers. For
most of these, advertising will be necessary in order to achieve large turn-outs from
the targeted market. We also plan some large festival beer-tasting competitions and
to compete in the World Brewing Cup for exposure and to show that our beer can
stand in comparison to the top beers in the world. For the large festival tastings,
sponsorship, advertising, and public relations is often necessary in order to gain the
recognition required

Public Relations: Recognizing that we are relatively new on the market there will be
a need to organize an event, of grandeur nature, introducing ourselves onto the
market. At this we intend to invite potential customers, senior officials, including the
Minister of Industry and Commerce, and other stakeholders so as to penetrate the
market. In collaboration with this we also intend to place news stories and features in
magazines and newspapers to keep stakeholders updated on the latest
developments and to increase awareness.
We also plan to have a major festival initially in which we will assist in the recognition
and appreciation of Company in the surrounding community especially. Our efforts
on community service will show that the company has its community at heart,
contributing towards the establishment of a good and reputable image. Homes for
the under privileged will be also be built in the medium, to long term as we plough
back into the society we operate in. In addition we intend to pursue educational
sponsorship for the less advantaged but promising young individuals in the
community.
We also intend to experiment with a road show in the various often-neglected remote
areas giving out caps, bags, and other such prizes to individuals who answer
questions correctly. This will also enable our brand name and products to be better
known by the respective communities. However we are extremely confident that
these road shows if well planned will be a success as they encourage community
participation. Brewery tours shall also be arranged with interested stakeholders
including school children and college students. This is so as to increase awareness
of our facilities and products and also showing confidence in our production process
and standards.
Hopefully visitors will leave impressed and confident in our products, adding to the
possibility of positive referrals. These same tours will also be arranged with
prospective clients/order-takers.
Still in the infancy idea stage we have in mind the hosting the first 'Oktoberfest' in
Sierra Leone whereby guzzlers of our brews as well as first-timers are encouraged to
drink as much as possible whilst enjoying with friends and family.. Proceeds of such
festivities are to be donated to charities.

Personal Selling: This shall be undertaken in the form of sales calls whereby a sales
person will go out to potential customers and distributors informing them what
products we are able to offer them. In addition the sales person will listen to client's
needs at close hand, so as to ensure that the product is delivered timely and that it is
the right product as demanded by the target market. Close analysis shall also be
undertaken of the consumption patterns of the respective segment, that is whether
they prefer larger or smaller containers. This will ensure that our products are
customized as much as possible to the markets needs and wants.
In cases where there is the opportunity of obtaining a large order it may be

necessary for the top management to go out personally as this is a big thing in the
African concept of doing business, especially considering the fact that we are still a
relatively new product in the market.
Direct Marketing: This will be used, but only to a limited extent, in the form of
telemarketing and informing potential customers and obtaining referrals where
possible. In the case of telemarketing it will involve our targeting potential
customers/distributors of our products and informing them of our existence and the
products we offer. We may then arrange for an appointment with the respective
decision-maker/order-maker, with the intention being to lure them into ordering one
or more of our product lines.

Internet Marketing: The increasing growth of the Internet and Social media as an
information source provides an opportunity that we will exploit. However this will
require adequate planning and research so as to establish a professionally done viral
campaign. We will work with social media influencers to promote our beers to their
fans and have a team monitoring social media to quickly jump on when there is a
viral opportunity that we can exploit. Associating with success and promoting the
image will be a key element of our Internet marketing.
We plan to engage via social media, You Tube, Instagram and Twitter some of the
following:
• Pictures of the brewing process
• Blogs
• Stories of mistakes and mishaps
• Stories of success and news articles
• News of seasonal beers and new merchandise.
• Funny short videos
In all the above we intend to communicate our ability to manufacture good quality
brews that will satisfy the customer’s needs. Hence our messages will influence the
buying decision of prospective customers and distributors by emphasizing our
unique selling proposition, and persuade prospective buyers that we are different
from our competitors. All the above promotional tools shall be well integrated and
utilized in tandem so as to maximize their effect.

Distribution Strategy:
Company believe that through our obsession for improvement, and commitment to a
leadership position in our respective markets, we can overcome the traditionally
binding constraints of resource base, firm size and narrow conceptualization of our
business domain. This shall be undertaken through coordination and logical
integration of our existing distribution operations. We aim to reduce cycle time for
key processes, eliminate rework and waste, and optimize our human resources
utilization. To attain low lead-times we intend to implement the best practices of Lean
Six Sigma and Kaizen
We plan to use the following two Trade Channels:
• Wholesale Distribution Channels –for bulk purchases

• Retail Distribution Channels – to create the environment and atmosphere for our
brand
We intend to ensure that our breweries are located close to our major distribution
centres not only to minimize costs but also to enable our products to be easily
available, in the best condition, in the different markets nationwide. By engaging and
establishing good relationships with our network we intend our products to be readily
available to our target market.
Product Marketing (Sales Process and Tactics): Our product marketing will
emphasize the benefits of consuming our products, including refreshment and
enjoyment of top-quality brews. We intend to sell the opportunity to enjoy oneself
amongst friends, family and/or colleagues. This will come out in our advertising,
delivery and collateral such as sales literature and business cards. Our product
marketing's most important challenge will be the problem of being accepted and
appreciated on the market as a provider of quality products. Hence we intend to not
only meet customers' expectations but to exceed them.
We intend to focus on the individual or group who want to enjoy themselves through
the consumption and sharing of refreshing healthy beverages. However, not wanting
to limit our horizons in the initial period, we intend to be continually looking out for
opportunities that we may exploit. In all cases we intend to provide a thorough
understanding and appreciation of the products to the customer and the benefits of
consuming them.

Design and Development Plan:
There is a great deal of work that will go into each aspect of the brewery before the
beer can actually be produced and distributed to the public. This work will involve
planning, financing, and feasibility examinations. The significance of this commitment
as well as the determination for success or failure makes these preoperational
endeavours extremely important. A timeline of 24 weeks has been constructed and
the approximate length of time for each task is indicated to get us to market. The
following timeline can be seen below.
Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Task
Register Business
Hire Managers
Hire Brewmaster
Find Site Location
Warehouse Preparation for Equipment
Contact Raw Material Suppliers
Contact Equipment Suppliers
Order Equipment
Hire Assistants
Install Equipment
Order Raw Materials
Initial Marketing
Preliminary Production
Bottling and Kegging Distributing
Company should within the first 18 months of the business see whether the business
is on the path to success or failure. With enough cash flow to keep operations
running for two years we can afford negative net sales for the first three years till we
break even in the fourth year.
However there are some risks and challenges that could be faced and these are as
potentially as follows:
• Government legislation on beer production and distribution

• Sharp price increases on fuel and raw materials
• Fire flooding or other catastrophic damage to the property.
Although Your Brandare planning for success we have an exit plan in event of
failure.
• All building lease plans will have exit clause to break lease agreements in
event of failure.
• Raw materials in hand will be sold to local Brewery to recoup a portion of
material costs
• Capital equipment will be sold at fair market value to recoup some of the
investment costs

The projected development costs were covered in the set up costs and are expected
to be three hundred and sixty thousand dollars with a significant portion going
towards capital equipment.
Projected Start Up Costs

Capital Equipment $199,500
Cold Storage Room $30,000
Installation Charges $48,000
Miscellaneous $77,500
Shipping Costs $5,000
$360,000

Operation Plan:
Company will use an 8,000 square foot building in Freetown the capital city of Sierra
Leone which will be mostly manufacturing space with a small office. The major
investment in equipment will be for manufacturing, including a boiler, Mash Tun,
whirlpool, a series of twelve fermenters to begin, carbon dioxide, and bottling
machinery. This equipment will be owned by being outright purchased and have a
present value of approximately $360,000. As Company enters deeper into the beer
business, extra fermenters, carbon dioxide, and bottling capacity will be added to the
brewing process for the possibility of expansion. Company will expect to do virtually
the entire product manufacturing "in-house," along with the packaging and shipping.
The production system shall strive to attain service excellence in addition to

manufacturing safe, quality products. This shall be undertaken through the
engagement of modern production techniques using up-to-date assembly
technology. This will also result in low production costs being attained by Company.
The intended plan is to ensure that the suppliers engaged are committed and reliable
so as not to let down the final consumer in terms of the quality of the product and
time of delivery.
In order to improve productivity in our plants Company intend to reduce waste and
duplication in our breweries by streamlining administrative functions and promoting
and instilling a business culture that focuses on the teamwork rather than individual
productivity. By this undertaking we will optimize our productivity given our available
resources.
Suppliers
Company plan to obtain the vast majority of its raw materials from West African
suppliers. However as we are committed to fair terms of trade and promotion of local
business we intend to engage local suppliers as well. Hence raw materials will be
sourced from local communal and commercial farmers avoiding intermediaries so as
to minimize costs, ultimately benefiting the final consumer. The major advantages of
doing so is to get higher margins, faster payments and lower risks of payment
default. Through the use of economies of scale and leverage of our existing
businesses we aim to maintain low input and production costs.
Hence we intend to establish good rapport with all our suppliers and hence long
mutually beneficial business relationships. This shall be undertaken through working
closely with suppliers to ensure uninterrupted deliveries and sharing our experience
and best business practices to further develop our suppliers

Receiving (Incoming Quality Inspection)
Recognizing that the receiving of our raw materials is an essential element in our
entire business, we intend to ensure that it is done by responsible and certified team
members who will be present during incoming receiving to check the quantity and
condition of the consignment. During the actual process the receiving bay personnel
will mass check on at least 25%of the consignment as a sample size. Non-
confirming raw materials will be 100% inspected and in terms of quality will only be
approved for use by the consent of the managing director who would have
undertaken further analysis of it before taking such a decision to ensure no
compromise in our quality.
Storage
It shall be the policy of Company to ensure that all raw materials are stored in a
secure, clean and pest free manner. Stock takes and reconciliations shall be
undertaken on a regular basis, initially done at least once a week. The stock principle
of First in First out (FIFO) shall be implemented. Whenever stock is taken out it shall
be recorded on a separate stock or bin card, with reconciliations of raw materials
issued to the brewery, issued to production, losses, opening and closing stock taken.
Should any deviations arise these must be explained. This is to ensure we minimize
any wastage that could impact our margins thus increasing costs.
By-Products
Company intends to utilize every resource it has to the fullest possible extent. The
Brewery business has a lot of by-products that will be produced from our production
of the main product lines. However not wanting to pollute the environment, and our
community at large, we plan to utilize by-products whenever possible. This will
ensure that our resources are fully utilized and the environment protected.

Management Team and Company Structure:
Company shall evaluate the jobs it provides, paying competitive remuneration

packages against market benchmarks to employees for their agreed and set out
tasks. Consonant with its efforts to create added value by employees, Company
seeks to negotiate the provision of incentive pay delivery mechanisms against
achievement of agreed targets relating to accomplishment in the areas of
productivity enhancement, savings and other specific successes, that is, the
implementation of an effective performance management system.
Hence our human resources strategy will revolve around:
• Communicating openly and transparently; addressing strong and trusted:

o Internal communication.
o External communication.
o Stakeholder inclusivity.
• Responding and promoting human rights issues, such as equity in the workplace
and in community relations.
• Adoption of a good remuneration policy aimed at developing our people through
employee benefits, training and group initiatives.
• Maintaining preventative health and safety structures for employees and support
for surrounding communities.
Management Team
The management team, mainly comprising of the shareholders and has wide expertise
and broad knowledge is as follows
Kishin Sham Mahtani, Managing Director, 42 Kishin has a background in

Management Consulting and Business Start-ups and will be responsible for overall
direction and operational management. Mr Kishin is a strong business leader and will
be responsible for strategic planning and continued growth and business
development. In addition, Kishin will be the management lead for all public relations,
financial and investor services.

Company intends to compensate our personnel well, to retain their invaluable
expertise and to ensure job satisfaction and enrichment through delegation of
authority. Our compensation will include health care, generous profit sharing, plus a
minimum of three weeks’ vacation. As an equal opportunity employer, we respect the
diversity and human rights of our people, and strive to achieve optimal productivity,
while realizing the full potential of each employee. Awards will be given out to
outstanding individuals, groups and plants for hard work and production so as to
instil a sense of fun into the work and promote the maintenance of high standards.
Company recognizes that our employees contribute fundamentally to the company's
long-term prosperity. We intend to enhance our capacity to attract and retain people
of quality, through benefits such as housing and family education grants.
Employee health shall be of extreme importance. This is because the health of our
people is an integral element of employee well-being at work and at home.
Compliance with relevant legislation is a minimum target in our organization. We also
intend to minimize if not totally eliminate the number of isolated incidents of
intimidation in the workplace, so as to ensure that production and distribution are not
materially affected and sound relationships are maintained between employee and
employer and between employees as a whole.
In-house training shall be continuous with regular external training being undertaken
particularly following any new developments in the market. This is so as to ensure
that we are continuously able to anticipate our markets needs--a proactive approach,
which is so essential if we are to gain and maintain a competitive advantage.
Courses on brewing will be undertaken primarily in Sierra Leone. This will ensure
that our personnel are exposed to the latest production techniques and are able to
set their standards, or benchmark, using these organizations standards. Internal
training will not only include product and technical aspects, but also expand to give
much greater knowledge of customers, market trends, products, new technology
aids, time management amongst other such variables. We intend to conduct health
education sessions for groups and individuals on health risks in the workplace,
balanced with lifestyle education and employee assistance programs that
incorporate rehabilitation and counselling in a range of illnesses and social or
personal problems. This is of particular importance in view of the AIDS epidemic that
has grappled the country and continent as a whole to unparalleled levels.
We acknowledge the fact that successful recruiting, motivation and discipline

procedures are keys to the growth of the organization. Hence we intend to promote
and maintain good labour relations, strong morale and high quality work per
employee by the following methods.

1. We intend to use employee satisfaction surveys to shape the business, making
sure that the employee understands the goals of the firm, is customer focused,
proud of their work and work as a team. This will encourage employees to
become entrepreneurial and customer responsible, in addition to unifying staff in
customer focus and values.
2. Important notices and developments will be continuously communicated to
employers so as to keep them abreast of developments and promoting a sense
of belonging and oneness in the organization.
3. We will encourage our employees to put forward any suggestions they might
have regarding the improvement of any of the company's functions--an open
door philosophy. Such a culture will enhance innovativeness and creativity in
turn leading to job satisfaction and enrichment.

Financial Projections:
Company wants to finance growth mainly through cash flow and equity. We
recognize that this means we will have to grow more slowly than we might like. The
most important factor in our case is collection days, particularly with the bulk order
customers. We can't push our customers hard on collection days, because they are
extremely sensitive and will normally judge us on our terms. Hence they tend to have
a certain degree of financial authority. Therefore we need to develop a permanent
system of receivables financing systems, using a well-coordinated accounting
department. In turn we intend to ensure that these are compatible with our growth
plan, management style and vision.
Compatibility in this regard means:
• Fundamental respect for giving our customers value, and for maintaining a
healthy and congenial workplace.
• Respect for realistic forecasts, and conservative cash flow and financial
management.
• Cash flow as first priority, growth second, profits third.
• Willingness to follow the company and contribute valuable input to strategy and
implementation decisions.
Important Assumptions
The financial plan depends on important assumptions, most of which are shown in
the as annual assumptions. The monthly assumptions are included in the appendix.
From the beginning, we recognize that collection days are critical, but not a factor we
can influence easily. Interest rates, tax rates, and personnel burden are based on
conservative assumptions.
Some of the more important underlying assumptions are:
• We assume a strong economy, without major recession.

• We assume, of course, that there are no unforeseen changes in economic
policy to make our products immediately obsolete.

Ratio Analysis:
Financial Ratios
Sales Growth 27.30% 12.50% 15.00%
Percent of Total Assets
Accounts Receivable 33.33% 33.90% 33.59%
Inventory 17.78% 20.34% 21.37%
Other Current Assets 4.44% 3.39% 3.05%
Total Current Assets 58.14% 67.20% 72.22%

Long-term Assets 41.86% 32.80% 27.78%
TOTAL ASSETS 100.00% 100.00% 100.00%
Current Liabilities 65.52% 70.59% 74.36%
Long-term Liabilities 34.48% 29.41% 25.64%
Total Liabilities 18.73% 19.36% 21.50%
NET WORTH 81.27% 80.64% 78.50%
Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 70.00% 70.00% 70.00%
Selling, General & Administrative Expenses 65.60% 60.97% 56.82%
Advertising Expenses 6.74% 7.49% 7.80%
Profit Before Interest and Taxes 6.73% 13.27% 19.15%
Main Ratios
Current 9.41 7.82 9.71
Quick 8.51 7.23 9.13
Total Debt to Total Assets 19.60% 18.49% 14.16%
Pre-tax Return on Net Worth 22.24% 39.62% 46.72%
Pre-tax Return on Assets 17.88% 32.29% 40.10%
Additional Ratios FY 2003 FY 2004 FY 2005
Net Profit Margin 4.41% 9.07% 13.24%
Return on Equity 15.57% 27.73% 32.71%
Activity Ratios
Accounts Receivable Turnover 5.34 5.34 5.34
Collection Days 59 63 63
Inventory Turnover 10.91 12.61 12.61
Accounts Payable Turnover 18.32 12.17 12.17
Payment Days 28 23 27
Total Asset Turnover 2.84 2.49 2.12
Debt Ratios
Debt to Net Worth 0.24 0.23 0.17
Current Liab. to Liab. 0.41 0.6 0.67
Liquidity Ratios
Net Working Capital $214,662 $321,881 $501,943
Interest Coverage 15.84 41.7 81.85
Additional Ratios
Assets to Sales 0.35 0.4 0.47
Current Debt/Total Assets 8% 11% 10%
Acid Test 3.61 4.05 6.01
Sales/Net Worth 3.53 3.06 2.47

The above indicates our key financial indicators for the first three years. We foresee
major growth in sales and operating expenses, and a bump in our collection days as
we spread the business during expansion.

Appendix:
Start Up Costs:
Items Quantity Cost Per Unit Total Cost
Capital Equipment
Kegs 1/6 BBL 300 $50.00 $15,000.00
10 BBL Brewhouse (mash/turn/Kettle/Control) 1 $90,000.00 $90,000.00
Air Compressor 1 $1,000.00 $1,000.00
Auger/Conveyor - 4Hp Motor 1 $2,000.00 $2,000.00
CIP- 200 Trolley 1 $12,000.00 $12,000.00
Cold Liquor Tank 40BBL 1 $2,000.00 $2,000.00
Fermenter 10BBL 2 $8,000.00 $16,000.00
Filter, Beer 1 $400.00 $1,500.00
Fork Lift 1 $4,000.00 $4,000.00
Glycol Coolant System 1 $18,000.00 $18,000.00
Grain Mill 1 $925.00 $1,500.00
Keg, Cleaning/Filling Station 1 $1,500.00 $1,500.00
PLC, Siemens 1 $15,000.00 $15,000.00
Steam Boiler 1,000,000BTU/Hr Max 1 $20,000.00 $20,000.00
Sub Total $199,500.00
Cold Storage Room
Cold Storage Room 1 $30,000.00 $30,000.00
Installation Charges
BrewHouse Installation Charges 1 $12,000.00 $12,000.00
Breweing Consultant/Instalation Supervision 1 $12,000.00 $12,000.00
Contractor Fees 1 $10,000.00 $10,000.00
Steam Boiler Installation 1 $4,000.00 $4,000.00
C02 Tank 1 $2,000.00 $5,000.00
Propane Tank, 1000 Gallon Tank with 800Lb installed 1 $3,000.00 $5,000.00
Miscelanous
Water Filtration System 1 $2,000.00 $2,500.00
Alarm System, Building Security 1 $2,000.00 $2,500.00
Brewers Bond 1 $5,000.00 $5,000.00
Cellar Equipment, Pump, Hoses and Miscelanous 1 $3,000.00 $3,000.00
Legal Fees for Brewery 1 $12,500.00 $12,500.00
Sanitizer and Acid Wash Supplies 1 $1,500.00 $3,000.00
Starting Inventory Grains, Rice, Yeast and Hops 1 $25,000.00 $25,000.00
Licencing Fees 1 $24,000.00 $24,000.00
Shipping Costs
Brewery Shipping Costs 1 $4,000.00 $5,000.00
Sub Total $5,000.00
Start Up Capital/Expenses $360,000.00

Working Capital $90,000.00
Total Start up Capital Required $450,000.00

Five Year Cash Flow Projections:
2018 2019 2020 2021 2022

Revenue
Product Service/Sales 630,000.00 705,600.00 804,384.00 933,085.44 1,101,040.82
Total Revenue $630,000.00 $740,880.00 $860,690.88 $1,017,063.13 $1,222,155.31
Expenses
Costs of Goods Sold
Management Salaries $180,000.00 $189,000.00 $198,450.00 $208,372.50 $218,791.13
Non Management Salaries $240,000.00 $252,000.00 $264,600.00 $277,830.00 $291,721.50
Production Expenses $300,000.00 $282,000.00 $262,260.00 $241,279.20 $219,564.07
Gross Margin ($90,000.00) $17,880.00 $135,380.88 $289,581.43 $492,078.61
Depreciation $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00
Loan Interest Payment $0.00 $0.00 $0.00 $0.00 $0.00
Total Operating Expenses $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00
Pre-Tax ($) ($162,000.00) ($216,120.00) ($152,739.12) $64,842.31 $484,920.92
Pre-Tax(%) -25.71% -29.17% -17.75% 6.38% 39.68%
Tax Provision (25%) $0.00 $0.00 $0.00 $16,210.58 $121,230.23
Net Profit ($162,000.00) ($216,120.00) ($152,739.12) $48,631.73 $363,690.69

Three Year Balance Sheet Projections:
PRO FORMA BALANCE SHEET

2018 2019 2020
Assets
Current Assets
Cash $200,000 $250,000 $275,000
Accounts Receivable $150,000 $200,000 $220,000
Inventory $80,000 $120,000 $140,000
Other Current Assets $20,000 $20,000 $20,000
TOTAL CURRENT ASSETS $450,000 $590,000 $655,000
Long-term Assets
Long-term Assets $360,000 $360,000 $360,000
Accumulated Depreciation $36,000 $72,000 $108,000
TOTAL LONG-TERM ASSETS $324,000 $288,000 $252,000
TOTAL ASSETS $774,000 $878,000 $907,000
2018 2019 2020
Liabilities and Capital
Current Liabilities
Accounts Payable $75,000 $100,000 $125,000
Current Borrowing $0 $0 $0
Other Current Liabilities $20,000 $20,000 $20,000
SUBTOTAL CURRENT LIABILITIES $95,000 $120,000 $145,000
Long-term Liabilities $50,000 $50,000 $50,000
TOTAL LIABILITIES $145,000 $170,000 $195,000
Paid-in Capital $100,000 $100,000 $100,000
Retained Earnings $150,000 $175,000 $200,000
Earnings $379,000 $433,000 $412,000
TOTAL CAPITAL $629,000 $708,000 $712,000
TOTAL LIABILITIES AND CAPITAL $774,000 $878,000 $907,000
Net Worth $629,000 $708,000 $712,000

Financial Ratios:
Financial Ratios
Sales Growth 27.30% 12.50% 15.00%
Percent of Total Assets
Accounts Receivable 33.33% 33.90% 33.59%
Inventory 17.78% 20.34% 21.37%
Other Current Assets 4.44% 3.39% 3.05%
Total Current Assets 58.14% 67.20% 72.22%

Long-term Assets 41.86% 32.80% 27.78%
TOTAL ASSETS 100.00% 100.00% 100.00%
Current Liabilities 65.52% 70.59% 74.36%
Long-term Liabilities 34.48% 29.41% 25.64%
Total Liabilities 18.73% 19.36% 21.50%
NET WORTH 81.27% 80.64% 78.50%
Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 70.00% 70.00% 70.00%
Selling, General & Administrative Expenses 65.60% 60.97% 56.82%
Advertising Expenses 6.74% 7.49% 7.80%
Profit Before Interest and Taxes 6.73% 13.27% 19.15%
Main Ratios
Current 9.41 7.82 9.71
Quick 8.51 7.23 9.13
Total Debt to Total Assets 19.60% 18.49% 14.16%
Pre-tax Return on Net Worth 22.24% 39.62% 46.72%
Pre-tax Return on Assets 17.88% 32.29% 40.10%
Additional Ratios FY 2003 FY 2004 FY 2005
Net Profit Margin 4.41% 9.07% 13.24%
Return on Equity 15.57% 27.73% 32.71%
Activity Ratios
Accounts Receivable Turnover 5.34 5.34 5.34
Collection Days 59 63 63
Inventory Turnover 10.91 12.61 12.61
Accounts Payable Turnover 18.32 12.17 12.17
Payment Days 28 23 27
Total Asset Turnover 2.84 2.49 2.12
Debt Ratios
Debt to Net Worth 0.24 0.23 0.17
Current Liab. to Liab. 0.41 0.6 0.67
Liquidity Ratios
Net Working Capital $214,662 $321,881 $501,943
Interest Coverage 15.84 41.7 81.85
Additional Ratios
Assets to Sales 0.35 0.4 0.47
Current Debt/Total Assets 8% 11% 10%
Acid Test 3.61 4.05 6.01
Sales/Net Worth 3.53 3.06 2.47

Title: Business Plan For The Establishment of A Micro-Brewery (Craft Beer) in Freetown Sierra Leone

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Title: Business Plan For The Establishment of A Micro-Brewery (Craft Beer) in Freetown Sierra Leone

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Company Name:

Director: Kishin Sham Mahtani

Tel: +60-124084655 (Malaysia Number)

+232 78988444 (Sierra Leone Number)

Email Address: kishinmahtani@yahoo.com

Title: Business Plan for the Establishment of a Micro-Brewery (Craft

I agree that reading of this Business Plan is strictly limited to me as authorized by

Business Plan Micro Brewery (Craft Beer) Page 1

Executive Summary ................................................................................................................................ 3

Company Description ............................................................................................................................ 7

Market Analysis ..................................................................................................................................... 9

Economics of the Business .................................................................................................................. 13

Marketing Plan .................................................................................................................................... 19

Design & Development Plan ............................................................................................................... 27

Operation Plan ……………………………………………………………………………………………………………………………30

Management Team & Company Structure…………………………………………………………………………………..32

Business Plan Micro Brewery (Craft Beer) Page 2

Company is a well-established company located in Freetown the capital of Sierra

We are planning to penetrate a lucrative market in a developing nation that is seeing

To prosper there is a need for Company to be flexible and responsive to delight

Business Plan Micro Brewery (Craft Beer) Page 3

Business Plan Micro Brewery (Craft Beer) Page 4

Breweries are categorized into macro-breweries and micro-breweries based on the

Business Plan Micro Brewery (Craft Beer) Page 5

Some Key Points for Craft Beer in Sierra Leone:

• A sector with huge potential! First Mover advantage as currently no

Traditionally the investment to start a new brewery to compete against an

Business Plan Micro Brewery (Craft Beer) Page 6

MISSION STATEMENT: To provide a

Business Plan Micro Brewery (Craft Beer) Page 7

Business Plan Micro Brewery (Craft Beer) Page 8

Having done a thorough and comprehensive research of the market, we have

Aware of the fact that we are going to be operating in a predominantly monopolistic

We intend to implement an aggressive marketing strategy that is well supported by

Business Plan Micro Brewery (Craft Beer) Page 9

Business Plan Micro Brewery (Craft Beer) Page 10

• The introduction of new organizational practices and personnel from the

Business Plan Micro Brewery (Craft Beer) Page 11

As the first microbrewery we have no direct competitor offering our product or

Business Plan Micro Brewery (Craft Beer) Page 12

University/College Students 20% 50,000 60,000 72,000 86,400 103,680

Working Professionals 20% 125,000 150,000 180,000 216,000 259,200

Foreign Tourists/Local Tourists 10% 25,000 30,000 36,000 43,200 51,840

Total 200,000 240,000 288,000 345,600 414,720

Annual Sales Forecast

Business Plan Micro Brewery (Craft Beer) Page 13

• We assume a strong economy, without major recession.

Year Beer Price/Litre

Business Plan Micro Brewery (Craft Beer) Page 14

2018 2019 2020 2021 2022

The Key assumptions in our projections are as follows:

(Intentionally Left Blank – Attached Page will be Year 1 Financials)

Business Plan Micro Brewery (Craft Beer) Page 15

Start Up Capital/Expenses $360,000.00

Total Start up Capital Required $450,000.00

Business Plan Micro Brewery (Craft Beer) Page 17

Start Up Cost Allocations

20% Capital Equipment

Net Profit based on Projections:

Business Plan Micro Brewery (Craft Beer) Page 18

Business Plan Micro Brewery (Craft Beer) Page 19

• Focus on building image and awareness through consistency and the

1. Market the benefits not the product