Here’s my round-up (a couple of days late) of last weeks best stories and articles for Small Business and Beer Business.
I often advise clients on when is the right time to incorporate or form a business (i.e. start acting as a business and not as a person) and why. Thanks to Nina Kaufman (@ninakaufman) for summing this up in this short video. 3 Reasons to Incorporate Your Business http://www.entrepreneur.com/video/224126
In real estate, it’s all about “location, location, location.” In small business, it’s all about “planning, planning, planning.” That means that, at least for a period of time, your personal and business life will revolve around your business plan. Make sure it’s thorough. Why Your Business Plan Is Probably Incomplete http://www.entrepreneur.com/article/224195
Remember, even if you’re small business, it’s not all about you. Your team (internal or external) is what will make the biggest difference to your success. To Be Number One, Get the Right Number Two http://blogs.hbr.org/kanter/2012/08/to-be-number-one-get-the-right.html
More on Leadership: Crisis management is a topic for every small business person. What makes a good manager in a crisis? When Good Management Is a Matter of Life and Death http://blogs.hbr.org/cs/2012/08/the_leadership_mistakes_that_l.html?awid=4678865509342592577-3271
Ok, so that’s what to do. How about what not to do (on a day to day basis)? The Seven Deadly Sins of Management http://blogs.hbr.org/cs/2012/08/the_seven_deadly_sins_of_manag.html
Continuing on the HBR bandwagon (they’ve had a great week!)… I remember a line from a movie “everyone *thinks* they have a sense of humor, even the ones who don’t.” Everyone *thinks* they’re a good boss. Are you? Really? Are You Sure You’re Not a Bad Boss? http://blogs.hbr.org/cs/2012/08/are_you_sure_youre_not_a_bad_b.
Employee of my dreams? I don’t think so. I’d settle for a “good” employee. Maybe even “decent.” There are days when I’m desperate enough to take someone as basic as “breathing.” Here’s some things to look for in your employee search. How to Hire the Right Employees for Your Startup http://www.entrepreneur.com/article/224191
Here’s an interesting article on what may be a direction for the beer industry/business down the road. Focuses on the technology and sensory options for deconstructing and developing a beer. Yeast of Eden: the future of beer http://www.guardian.co.uk/lifeandstyle/wordofmouth/2012/aug/13/yeast-eden-future-of-beer?newsfeed=true
Love that many small farmers and agri-businesspersons are rediscovering the economies that drove our great grandparents. It used to be that brewing beer on the farm was the norm, not the exception. Here’s a great story on it. Maryland farmers try beer production http://www.baltimoresun.com/business/bs-md-ca-farm-brewery-20120813,0,3856297.story
Good LORD! Have you been watching this story unfold? Heineken & Tiger Beer. here: http://www.atimes.com/atimes/Southeast_Asia/NH15Ae01.html and here: http://t.co/bFzVv59j and here: http://t.co/fAHyOCGc
You know that right after they planted it, they had to have made beer from it. Can we brew again with einkorn? Bulgarians cultivating ancient einkorn grain http://goo.gl/GQM0E
I happen to think that there should be more of this sort of cross-pollination between the alcohol industries. Cheers to Anderson Valley! Anderson Valley Brewing Co. forms partnership with Wild Turkey Bourbon http://beerpulse.com/2012/08/anderson-valley-brewing-co-forms-partnership-with-wild-turkey-bourbon/
Here’s an interesting article out of the UK. I don’t know that this is a huge issue in the US right now, but with the rising cost & popularity of craft beer, maybe we should be on the watch for tax dodges like this. Bootleg Beer Hitting Lawful Traders http://goo.gl/wY6y4
Speaking of prices fluctuating (up anyway), here’s a good video and article about how/when beer prices shift. Grin and Beer It: Some Beer Prices Will Increase. http://t.co/KALtGRKN
Love Oskar Blues‘ beer, and I’m thrilled they’re coming to NC. IF you haven’t heard, they’re planning on brewing their Dale’s Pale Ale in NC before the end of the year! I was a project manager in a former life/career. For something of this scale, that’s a really, *really* fast build . Cheers to them! Beer Guy: Oskar Blues plans quick build http://www.citizen-times.com/article/20120816/ASHEVILLESCENE/308160019
Not to be outdone, Sierra Nevada has accelerated their build timeline as well. They’ve moved their “open” date to July 2013 (another *fast* build). Sierra Nevada changes opening date to July 2013 http://www.blueridgenow.com/article/20120814/ARTICLES/120819909?p=1&tc=pg
I’ve never understood where the stigma for Contract Brewing came from. Just because you don’t physically *own* the equipment, it’s not really brewing? Please. I’ve got to give credit to Shaun O’Sullivan at 21st Amendment Brewery (563 2nd Street, “that’s right, cans.”) – I like his re-invention to calling it Partner Brewing. Contract is Not a Dirty Word in Brewing http://www.craftbeer.com/pages/stories/craft-beer-muses/show?title=contract-is-not-a-dirty-word-in-brewing#.UC0wG69w_N8.twitter
I *just* posted on this a few weeks ago. Sounds interesting, I’d like to hear more. Oregon Public House: The First Nonprofit Pub (VIDEO) http://www.huffingtonpost.com/bus-52/oregon-public-house-video_b_1773883.html
Here’s good article on the dangers (no matter which side of the fence you’re on) with market consolidation in the beer industry. One Company Will Soon Control Half of the U.S. Beer Market http://business.time.com/2012/07/03/one-company-will-soon-control-half-of-the-u-s-beer-market/
Speaking of market consolidation… U.S. Department of Justice formally requests more info on A-B InBev/Modelo deal http://beerpulse.com/2012/08/u-s-department-of-justice-formally-requests-more-info-on-a-b-inbevmodelo-deal/
Market impact: How will the weather/crops so far this year effect the beer industry? Here’s the skinny – USDA August 2012 Crop Report: update on barley, hops and apples http://beerpulse.com/2012/08/usda-august-2012-crop-report-update-on-barley-hops-and-apples/
Just for fun
I love Mental Floss (http://www.mentalfloss.com)! Here’s one of their recent goodies: 11 Tips for That Benjamin Harrison Birthday Bash You’re Probably Planning http://www.mentalfloss.com/blogs/archives/138568 (back when being many meant facial hair! Benjamin Harrison – our last bearded president).
- Love on tap: Va celebrating craft beer industry (cbsnews.com)
- Oskar Blues Beer in Alabama (geekalabama.com)
- Brewing Stone Age beer (ancientfoods.wordpress.com)
- Beer Battle Brewing: Heineken’s Bid for Tiger Beer Draws a Thai Rival (dailyfinance.com)
- Brewing up Love: Weddings Tap Craft Beer Craze (abcnews.go.com)
- Yeast of Eden: the future of beer (guardian.co.uk)
- Munich: Three Boozy Beverages Beyond Beer at Munich’s Oktoberfest 2012 (jaunted.com)
Ok, well, it’s that time again… time to recap the week. But, I took an unexpected week off last week so I need to catch up. Here’s the best from the last TWO weeks!
As folks look to form businesses, you have to ask yourself questions about what kind of structure makes sense for your business. I love the title of this article, it’s worth a read (by the way, the answer is “No.”) Will a Corporation or Limited Liability Company Protect You from Yourself? http://www.jdsupra.com/legalnews/will-a-corporation-or-limited-liability-55959/?utm_source=jds&utm_medium=twitter&utm_campaign=bizlaw
We always talk about intellectual property and social media here. It’s a growing area and no one really knows how some things are going to shake out. AND it’s growing faster than things CAN shake out in some cases. Here’s a new one re: copyright. What’s the impact of Pinterest on your copyrights? Let It Slide: Copyright Infringement On Pinterest http://www.jdsupra.com/legalnews/let-it-slide-copyright-infringement-on-04280/?utm_source=jds&utm_medium=twitter&utm_campaign=bizlaw
Crowdfunding is another issue where things are taking off much faster than the legal framework can adapt. Here’s a good article on some points to consider before you jump in. How To Make Sure Your Crowdfunding Dreams Don’t Turn Into An Investor Relations Nightmare http://techcrunch.com/2012/08/05/how-to-make-sure-your-crowdfunding-dreams-dont-turn-into-an-investor-relations-nightmare/
Here’s another Nina Kaufman item. Great little video about Terms & Conditions on your website. Think you only need to worry about that if you sell online? You’re wrong. Tune in. 3 Reasons Why Your Website Should Include Terms and Conditions http://www.entrepreneur.com/video/223931
While we’re touting Nina, here’s another of her videos on an oft-overlooked subject. Who is your partner? Do you know who you’re getting into business with? You better! Sometimes it’s easier to get divorced from a spouse than to disengage from a business partner. How to Know If a Business Partner is Right for You. http://www.entrepreneur.com/video/224127 also, be sure to follow Nina Kaufman at @ninakaufman on twitter.
This article sounds like it’s directed at big business, but the principles apply to every innovator (as a small business owner, that’s you!) and it’s worth a read. The Planning Fallacy and the Innovator’s Dilemma http://blogs.hbr.org/anthony/2012/08/the_planning_fallacy_and_the_i.html?awid=7946997658421232138-3271
In Oklahoma, they’ve formed a brewing cooperative. It’s a different legal structure that has advantages and disadvantages of its own. Looks like it’s working out for them right now. Oklahoma City brewing cooperative aims to grow beer culture. http://newsok.com/oklahoma-city-brewing-cooperative-aims-to-grow-beer-culture/article/3697637#ixzz22glEIQ8g
One of my favorite subjects: North Carolina Beer! Here’s a guide for you out-of-towners. No place like foam: Your guide to cool microbreweries in North Carolina http://www.chicagotribune.com/travel/vs-travel-north-carolina-microbreweries-20120730,0,1960437.story
Still on NC… Boulevard Brewing jumps on the bandwagon with distribution. Many breweries are leap-frogging over other surrounding states to get into the NC market. Boulevard Brewing Company Entering Georgia and North Carolina in 2012 http://www.brewbound.com/news/boulevard-brewing-company-entering-georgia-and-north-carolina-in-2012
More on NC! Oskar Blues to start production in Brevard in December http://www.blueridgenow.com/article/20120805/ARTICLES/120809916
On the other end of the spectrum, how would you like to be labeled with “only” and “first” when it’s something the rest of the country doesn’t see as a big deal? Beer from here: Alabama’s only brewpub opens at Heroes in Weaver http://www.annistonstar.com/view/full_story/19718633/article-Beer-from-here–Alabama%E2%80%99s-f%E2%80%8Airst-brewpub-opens-at-Heroes-in-Weaver?instance=home_lifestyle (by the way, Good for them!)
Here’s a question I come back to again and again: If you’re a brewer/brewery, how do you balance between what you like to brew/drink and what sells the best? Here’s one take from Magic Hat (the article is mostly about Angel City Brewing, but scroll down). Under wing of new owners, Angel City Brewing begins again http://www.latimes.com/entertainment/news/la-et-angel-city-20120803,0,3552857.story
Nice little article out of Columbus OH on how beer gardens are changing the “bar” experience. Even at public venues.Gemütlichkeit! Beer gardens fare well http://www.dispatch.com/content/stories/local/2012/08/05/beer-gardens-fare-well.html
Good discussion of how the Beer Business reflects (or is reflected by?) the global economy. The State Of The Beer Industry Perfectly Reflects The Global Economy http://www.businessinsider.com/beer-a-reflection-of-the-world-economy-2012-7
Unless you’ve been living under a beer-deprived rock for the last few years, you know that collaboration projects are on the rise. They’re a great way to build the beer culture, share ideas, and create new and exciting beers. What makes a good collaboration (on a business/legal level)? Best Practices for Successful Collaboration http://www.jdsupra.com/legalnews/best-practices-for-successful-collaborat-97122/?utm_source=jds&utm_medium=twitter&utm_campaign=bizlaw
This may be the year for mega-deals in the beer business. By August, the total amount changing hands is over $35 billion (that’s with a “B”). In deals, brewers hop to it. http://www.jg.net/article/20120805/BIZ/308059961/1031/BIZ
Despite the consolidation in some markets/segments, in the US, we’ve hit a 125 year high in total number of breweries. Woot! BREWERS ASSOCIATION REPORTS 2012 MID-YEAR GROWTH FOR U.S. CRAFT BREWERS http://www.brewersassociation.org/pages/media/press-releases/show?title=brewers-association-reports-2012-mid-year-growth-for-u-s-craft-brewers
Just for fun
Being a Trekkie (and I still use Trekkie, not the new-fangled “Trekker,” I’m old-school like that), I though this was an interesting infographic. The Science of Star Trek http://cheezburger.com/6493989888 or http://i.imgur.com/PAfaT.jpg
- What will you drink on International Beer Day? (mnn.com)
- SaveOnBrew Helps Small Beer Retailers and Brewers Capitalize on Growing Craft Beer Trend (prweb.com)
- Fears brew that Israel’s bubbling beer culture could be flattened by tax hike (timesofisrael.com)
- ‘Hyper growth’ in Michigan beer industry could exhaust shelf space, says Founders president (mlive.com)
- Wind Down Your Summer with Three August Beer Festivals (jaunted.com)
- Boulevard will start serving up its latest beer this month (bizjournals.com)
- TTB Rejects “Prostator Smoked Doppelbock” Label (lyke2drink.blogspot.com)
- How To Take Your Home Brewing Operation To The Next Level (lifehacker.com.au)
- Canning Factories On Wheels Rev Up The Beer ‘Canvolution’ (wnyc.org)
- Reboot Charlotte: Breweries Tap Into NoDa’s Artistry (foxcharlotte.com)
Ok, so here’s the round up for this past week. I’m going to try and separate by topic area, but there’s a lot to cover, so buckle in!
Beware the Paralyzing “Whac-A-Mole” Trademark Mentality
Trademark: develop a trademark strategy. First, don’t run after a trademark after someone else has started using it. Then don’t fall into the “whack a mole” trap of trying to secure marks after you’ve started using them in… unpredictable ways. http://t.co/710cu3ea
Is your business protected in Bankruptcy?
You May Need a Lawyer for that
Start-up are often (wisely) concerned with saving money up front. When is it a good investment to pay for professional services (like a lawyer). http://t.co/Wz9xwvA4
Capital Gains Tax Opportunity: Permanent?
Be sure to keep up on what’s going on tax wise. Unless you’re not planning on making any money ever. http://t.co/7udiFixq
Social Media Tips for Trademark Protection
Ways you can prevent cybers-quatting and trademark-hijacking. http://t.co/7udiFixq
At Will Employment: Does it Matter?
If you have (or are gonna have) employees, you need to check this out. You’ll need to have an employee handbook or some set of personnel policies, but what should be in them/it? http://t.co/7udiFixq
Contract Brewing Revisited
Contract brewing goes through cycles, but remains an important part of our industry. How do your brewery and Contract (or Partner) Brewing fit together? http://t.co/Yj7Nmkew
So You Want to Open the Next Great Craft Beer Bar?
If you’re looking at opening a bar (or even just your taproom at your brewery), Chris Black of the award-winning Falling Rock Tap House shares his thoughts on what it takes http://t.co/a1vYcyOh
Financial / Progress Report from Boston Beer Co.
Check out how well one of the big micros is doing. http://t.co/bYnPgkms
Global Beer Prices (per pint)
Just saw this today. I don’t know if I’d say it was determinative, but it does give you a good perspective on how beer prices work at the consumer, front-of-the-house, lay-your-money-down level. http://t.co/Eog3Tsx7
Just for fun (Humor/Trivia)
Weird History. Follow them on Twitter for your daily dose of the absurd that seemed TOTALLY spot-on at the time.
- The Difference Between a Trade Name and a Trademark – And Why You Can’t Overlook Either (bizsugar.com)
- Why the hell would you open a brewery? (jslawcenter.wordpress.com)
- Not Too Big, but Too Many? (jslawcenter.wordpress.com)
- Get Ready To Drink Airport-Themed Beer – Anheuser-Busch Just Trademarked A Bunch Of Airport Codes (businessinsider.com)
- To Trademark or Not to Trademark (thefarmchicks.typepad.com)
- Best of… for the week of June 11, 2012 (jslawcenter.wordpress.com)
I thought I’d try something new on the blog this week… I’ve been posting some interesting articles that I’ve found on other blogs, websites, etc. that I think are particularly relevant to small businesses (especially breweries, which are near and dear to my heart). So, today, I thought I’d recap the “best of” for this past week. Let’s get started with…
Mark Sperling blogs about decisions by the NC Business Court
Ok, so this is a little dry for most business owners, but it’s occasionally worth a read or search. NC is one of the few states in the country that has a specialized Business Court specifically to hear business issues and cases, particularly complex ones. This is a great blog to check out from time to time, especially if you’re a business attorney. http://www.ncbusinesslitigationreport.com/
Peer to Peer Business Lending
There’s been a lot of discussion about Crowdfunding lately, here’s an additional twist: Peer2Peer lending. Businesses use other businesses as investment opportunities, cutting out the bank altogether. If you’re thinking about starting a business and need startup money, it’s worth a read. http://under30ceo.com/consider-peertopeer-p2p-lending-business/
Debt v Equity
Another great topic for startup businesses. I advise clients everyday on the difference between debt and equity and what that means to you as a business owner. Read this over before you finalize your business plan. http://venturebeat.com/2012/06/09/debt-vs-equity-which-is-right-for-your-startup/
USPTO Offers IP Awareness Assessment
This is more of a press release than an article, but it’s a great tool for small businesses to make sure they know what their Intellectual Property (IP) issues are. Need copyright? Trademark? What’s a “trade secret,” anyway? The USPTO has some great resources. Check out the press release at
Let’s start there for this installment. I’ll post more next week as things come up that are pertinent to small businesses and the craft beer industry.
Thanks for reading and please, let me know what you think in the comments!
- America Invents Act – Patent Office Funding (tacticalip.com)
- Peer-to-peer lending at encash provides a new way of financing between friends and family (prweb.com)
- USPTO and NIST Unveil New IP Awareness Assessment Tool (ipwatchdog.com)
- Small Business Lending Demand Drives Five Point Capital’s Addition of 13 New … – PR Web (press release) (prweb.com)
- Government to invest in startups through P2P lending platforms (wired.co.uk)
I gave a presentation yesterday to a group of folks looking to start a horticulture, landscaping, or plant nursery business. It was a great impetus to force me to write this post – that I’ve been meaning to write for a while.
So, let’s start with what you need to start and run a successful business in NC
- A lawyer – a lawyer is going to be your best friend in the early stages. A lawyer will help you decide how to organize the business, what you need to do to be compliant, and how to protect yourself from future claims by creditors, potential liability, and other sources of risk. An attorney will also help you with whatever licenses you might need to operate in your state, county, or city (or all three!). Work with a lawyer to develop your overall business structure to protect your investment and yourself from future risks. Also, a good lawyer will work *with* you (not just *for* you), so you can help yourself and save money where possible.
- An accountant or bookkeeper – there is so much going on (especially early in developing your business) that it’s easy to make a mistake, forget something, or make a choice that will impact you later. When it comes to finances and taxes, you need to get an expert to help you understand the consequences of your choices: Do I start as a home based business? Is it cash-only? Can I claim mileage on my car for business? Even if you’re a professional accountant or bookkeeper, it’s probably a good idea to get an independent assessment in the beginning, if nothing else.
- Business Plan – I cannot stress enough how important it is to have a business plan. Whether you’re trying to raise money from investors, trying to get credit, or just knowing what to do next for your own peace of mind, your business plan should be your road map. Your business plan may change over time (because your business may change over time!), but you should make every effort to follow you business plan. There are lots of resources (including the Small Business Administration) for putting together a solid business plan.
- Insurance – you will need insurance (in some form or other). Especially if you have anything to do with dealing with the general public, government contracting, or working with businesses (ok, so, pretty much if you do ANYTHING). Find a reputable insurance agent and let them work with you on what you need – you may not even know what or how much you need until you talk to your attorney or when you’re getting started. Whether you need liability insurance, premises insurance, malpractice insurance, or how much… don’t underestimate how important it is to protect your investment from accidents or potential claims.
- Bank – the same way you need to find a good insurance agent, you also need to develop a relationship with a banker. Not only do you need a bank account, you may need things like merchant services (credit card processing), a lined of credit, a small business loan, or even just someone to call when you can’t figure out why your deposit is showing up in your account. Your banker should work with you to address your financial needs.
- Policies, Procedures, and Systems – it doesn’t *really* matter if you’re using a fancy software system to manage your business or if you’re using good ‘ol paper and pencil. What does matter is that you can do it consistently and efficiently each and every time. You will spend a lot of your time, as a small business owner, on the administrative work that’s needed to keep the business running. Find forms, checklists, or whatever you need to streamline your routine processes and make them consistent. The less mental energy you have to spend on this aspect of the business, the more you can spend on…
- Marketing – you have to go get the business. Most people start a business because the like doing the work. For example, if you’re a woodworker, you start a woodworking business because like woodworking. Here’s the bad news: you better be pretty good at selling woodworking too! As a small business owner a tremendous amount of your time will also be spent in actively searching for new business. You have to fill not only your workday, but tomorrow’s workday too. And the day after that, and the day after that, you get the idea. The more time you can spend here, the more – overall – successful the business can be or can grow to be.
This is really just a “getting started list.” My presentation included another bullet in this list: “about a billion other things.” As you develop your business, it can be overwhelming, complex, frustrating, and a bunch of other adjectives too. There are a lot of moving parts and it’s a stressful time. Get help from experts and remember – you get what you pay for! (beware of the free advice from cousin Earl).
And, when you forget something or make a mistake (and you WILL forget something or make a mistake), it’s OK. Small business is the backbone of the US economy. Millions of people own and run businesses everyday. You’ll get through it, there are people that can help – like lawyers. (sorry one last shameless plug)
This post is getting on the long side, I’ll expand on some of these themes in the coming days. In the meantime, let me know if you think was helpful in the comments and check out our website at www.jslawcenter.com
Next time: Business Structures in NC – what makes sense for you?
- How to Make a Business Plan (answers.com)
- Why it’s smart to buy insurance before you launch your small business (hiscoxusa.com)
- How to Get a Small Business Loan (answers.com)
- Business Planning – Why Bother? (sme-blog.com)
- How to keep your business plan fresh (ismckenzie.com)