Business Case

1.0 Introduction / Background

There is currently in Mexico the boom of the crafted beer, people is getting it to the
exploration of new options rather that the currents market from big companies.
Taste, body, appearance, aroma and other terms are staring to be used on beer’s
talks.

2.0 Business Objective

Will many people trying to ingress to the craft beer world it this project
objective to create a plan that will deliver all knowledge required to create a
micro brewing company.

3.0 Current Situation / Opportunity Statement

As mentioned earlier, there is an increment of people trying to make their own

beer and sell it as craft beer; the market is just beginning to see many brands of
homemade beers that are using process totally manual and with no big idea of
what this business is all about. There is where this plan will deliver a solution to
all people that have the will of starting a new business in the craft beer ,
providing the knowledge of cost, equipment requirements, process
requirements, legal requirements, Human Resources needs, Quality Standards,
Risk associated to it, Recipes and successions of steps to start the a micro
brewing company.

4.0 Critical Assumptions and Constraints

This project it is considering that all requirements are met to be successful,

recipes should be followed as stated, equipment should be purchased as listed
and people trained properly.

5.0 Analysis of Options and Recommendations

This project is listing several recipes that can be tried at will or create their own.
It is recommended to have a publicity campaign to know the local market where
micro brewing company is going to be placed.

6.0 Preliminary Project Requirements

Analyze projection on market, if is required more fermenters should be

purchased. It is required to create a publicity campaign.
 7.0 Budget Estimate and Financial Analysis

Start-up Cost
$16,00
Build-out
0
Capital $204,7
Equipment 00
Starting $10,34
Inverntory 0
Brewmaster $21,75
Cert. 0
8.0 Schedule Estimate

This planning and opening of this project is made to be done in 4 months, from
the placement of the equipment and raw material Raw material, Legal and
Government requirements and documentation are not part of the estimation,
even though it could take 3 months.

9.0 Potential Risks

Consider the location with schools or churches are less of 300mts where the
micro brewing is going to be. Brew not followed to recipe so taste batch is
spoiled. Equipment is not complete at arrival. People are not well prepared.
Government and legal documentation is taking more than supposed.

10.0 Exhibits

Discount rate 8%
Year
1 2 3 4 Total
Costs 258,740 10,000 10,000 10,000
Discount factor 0.93 0.86 0.79 0.73
240,6 7,9 7,3
Discounted costs 28 8,600 00 00 264,428

Benefits 175000 175,000 175,000 175,000

Discount factor 0.93 0.86 0.79 0.73
138,2 127,7
Discounted benefits 162750 150,500 50 50 579,250

(77,8 130,3 120,4

Discounted benefits - costs 78) 141,900 50 50 314,822 NPV
(77,8 194,3 314,8
Cumulative benefits - costs 78) 64,022 72 22 629,644

ROI 119%

Payback in Year 2