57 replies to this topic

[K-9]

Good Luck to you! Sounds wonderful! I know you have winemaking skills/chops. I agree with Hammered! Make a plan and go for/with the passion!

[Brad Neal]

Hi Zac,
I would recommend that you talk with Daniel Pambianchi prior to making your decision. He has a lot to say about moving from home wine making to pro. He is very accessible and open about his experience.

Best of luck, Zac!

[Jack]

Make sure you do a lot of due diligence. The owner is selling for a reason-- likely a financial reason he/she is not divulging. I don't know anything about Canada either (except the national anthem because I'm a hockey fan), but I would also get the last several years' tax filings as well as internal financial records. Also ask to talk to existing staff, existing vendors, and existing customers. Maybe even talk to an accountant or attorney and make sure there are no laws or tax changes that might affect the business in the near future. Ask every question you can think of. Make a list of 100 questions and get answers to them all before buying. Dig deep into questions where you don't get clear-cut answers or the owner keeps telling you he'll get back to you on that, but never does. Also, learn everything about the business you can before buying. Though you obviously have a lot of experience in home winemaking, you are taking a huge leap. Make sure you learn everything you can about doing this on a larger scale before actually trying to do it. For instance as home winemakers, we don't care so much about cost per bottle as it is always as cheap or cheaper than buying wine in a store. However as a commercial wine maker, cost is very important as you have to be able to sell at a high enough margin to make a profit. You are selling to a wholesaler or retailer, which has to turn around and sell at a profit as well.

This sounds like it could be a dream come true. Just do everything possible to make sure it doesn't become a nightmare.

[Andy in SoCal]

How does the present owner market the wine?

From what I've seen down here, the owner of a small winery has to be on the road hand-selling his wines a lot. Often on weekends.

For me, that's not the lifestyle I'm interested in, at least not right now.

Know what you're getting into! But I'm sure whatever decision you make you'll be successful!

Best,

Andy

[Finguy]

Keep in mind the saying a winery owner told me:

"If you want to be a millionaire winemaker, start with several million"

[Calamity Cellars]

Keep in mind the saying a winery owner told me:

"If you want to be a millionaire winemaker, start with several million"

No offense intended towards you Finguy, but that is one of the most overused and tired sayings.

That saying could be applied to nearly every business. To make 80K a year in towing you have to have 350K in tow trucks plus land, employees, lines of credit, interest payments, blah blah blah. Almost all businesses require an initial investment that exceeds the initial revenues. Winemaking is no different.

I think that this saying is overused in the wine industry because it's a great cover story for the large number of winemakers that have made lots of money as well as covering for a pretty cool lifestyle. I think people are jealous of the winemakers lifestyle, I know I am. Not saying they are all rich but there are quite a few that are doing very well for themselves.

We all know that all winemakers do is move heavy sh!t around, clean sh!t, and drink beer.

[DesertDance]

http://www.bluegrous....com/story.html

mostly german varietakls and pinot noir and gris

Here's a little example for ya! Keyways Winery located in Temecula, Wine Country, many years ago, was started by Carl Keyways. The place was a dump, and I used to go there to get a tasting, and their cheese! They had some mighty fine cheese! I kinda quit going there because it's out of the way, and their wine wasn't so great. Then about 4 years ago, I stopped in for cheese. OMG! What happened? The place looked amazing!! Even the restrooms with brass fixtures and granite countertops! Fireplaces, conversation areas to enjoy wine, picnic areas outside, and a bridal/concert area. Wow! Top dollar! And the wine... Wow!! Evidently old Carl sold his place to a woman realtor with a background in wine, and she flipped that place into a very exciting spot! She has added varietals to their wine selection, among those Tempranillo, and she just sent me 2 bottles!! She is good at marketing, I must say!! I joined their club the first day I walked in, and I have not been sorry!

They no longer sell cheese, but the grocery store does.......

I agree that wineries are bought and sold every day, and I would not be one to discourage anyone from purchasing a faster way to their dream. I know you will do a great job, and I am 100% behind your decision!!

Suzi

[grapenuts]

No offense intended towards you Finguy, but that is one of the most overused and tired sayings.

That saying could be applied to nearly every business. To make 80K a year in towing you have to have 350K in tow trucks plus land, employees, lines of credit, interest payments, blah blah blah. Almost all businesses require an initial investment that exceeds the initial revenues. Winemaking is no different.

I think that this saying is overused in the wine industry because it's a great cover story for the large number of winemakers that have made lots of money as well as covering for a pretty cool lifestyle. I think people are jealous of the winemakers lifestyle, I know I am. Not saying they are all rich but there are quite a few that are doing very well for themselves.

We all know that all winemakers do is move heavy sh!t around, clean sh!t, and drink beer.

You have run a business so you are a step a head of many. When I initially started my business in the mid 90's i was surrounded and bombarded by many negative opinions that I did not solicit. To make money you have to invest money and time. More importantly, you have to have a passion for what you do.

They say that half the businesses created every year fail - I do not know if the stat is correct, but I would not be surprised if it was. In my very small world, I have seen many that have started businesses in the pursuit of making money. I love money, but you dont make money because you love it. you make money by doing something that you are passionate about. Once you build that sweat equity, the money starts coming. Making money is not the goal, it is the result of success and simply the manifestation of your passion.

[K-9]

Boy - nicely said - you had your grapenuts today!

[RSG]

Boy - nicely said - you had your grapenuts today!

LOL....too funny and I agree with you about Grapenuts statement.

[bzac]

Hi Zac,
I would recommend that you talk with Daniel Pambianchi prior to making your decision. He has a lot to say about moving from home wine making to pro. He is very accessible and open about his experience.

Best of luck, Zac!

Yeah Daniel's a personal friend, I will bend his ear some more.
Z

[bzac]

Make sure you do a lot of due diligence. The owner is selling for a reason-- likely a financial reason he/she is not divulging. I don't know anything about Canada either (except the national anthem because I'm a hockey fan), but I would also get the last several years' tax filings as well as internal financial records. Also ask to talk to existing staff, existing vendors, and existing customers. Maybe even talk to an accountant or attorney and make sure there are no laws or tax changes that might affect the business in the near future. Ask every question you can think of. Make a list of 100 questions and get answers to them all before buying. Dig deep into questions where you don't get clear-cut answers or the owner keeps telling you he'll get back to you on that, but never does. Also, learn everything about the business you can before buying. Though you obviously have a lot of experience in home winemaking, you are taking a huge leap. Make sure you learn everything you can about doing this on a larger scale before actually trying to do it. For instance as home winemakers, we don't care so much about cost per bottle as it is always as cheap or cheaper than buying wine in a store. However as a commercial wine maker, cost is very important as you have to be able to sell at a high enough margin to make a profit. You are selling to a wholesaler or retailer, which has to turn around and sell at a profit as well.

This sounds like it could be a dream come true. Just do everything possible to make sure it doesn't become a nightmare.

I'm doing my home work, He's retiring , and I've been given a complete file of 5 years financial, the guys german so I even know how much they spent on postage stamps and scotch tape, no exaggeration.

The sales are direct to restaurants, INTERNET or tasting room, they are not distributed by the BCLDB

I spent a year working in a family winery about the same size so have a pretty good idea of the work involved.

Lots of home work ahead but I am going into this with the right amount of romance and pragmatism.

The winery also won't be my sole source of income, and my wife will keep her 6 figure income, so our eggs won't be all in one basket.


Z

[bzac]

http://blog.beliefnet.com/roddreher/2010/06/global-warming-and-the-dim-fate-of-wine.html

the Vancouver island reds are doing better every year , I wonder if this article is on to something?

[redazsun]

Zac,
GO FOR IT!!!!!!!!!!!! Your a smart guy and a darn good wine maker I'm sure you will do just fine.

[bzac]

spent the weekend at the winery , lots of Data to process.

Z