Delays in obtaining licenses and permits. The process to obtain the required federal, state and local permits to operate a brewery is complex and difficult. Although we have no reason to anticipate any problems, unforeseen circumstances could delay permit approval.
Uncertain revenue. Our financial projections may not be accurate and if sales are lower than projections the repayment period could be longer than anticipated.
The Las Vegas economy is highly dependent on tourism. If there is a downturn in the U.S. economy and the number of tourists decreases significantly, the Las Vegas economy could suffer and sales could be lower than anticipated.
Managing growth. We expect our sales to grow significantly for the first few years. If we can not accurately predict and prepare for future growth, this could negatively affect profitability.
Delays in construction. We have already engaged with an architect, general contractor and sub-contractors. We anticipate a 3 month build out time. Any delays in construction could delay our opening date.
Ingredient costs. The cost of brewing beer is very dependent on ingredient costs, especially grain. Increases in ingredient costs due to shortages or weather could affect our profit margins.
Competition. We face competition from breweries that are already established and have far more resources for funding marketing.
Lack of commercial experience. While Jimmy and Clyde have several years experience brewing beer at home and both have won numerous awards for their homebrewed beer, neither has experience in a commercial brewery.
Three tier distribution system. Any beer sold off of our property must go through a distributor. We will be dependent on our distributor for shelf space, taps and resale customer. Picking the wrong distributor could have a negative affect on our sales.
Craft beer market. Craft beer sales have been growing at double digit growth for years. The number of craft breweries is now over 6,000. If the level of growth eventually levels off or declines it could negatively affect our sales.
Future Fundraising. If we re not able to raise adequate capital, we will have to seek additional capital. Because any future debt will be subordinate to any debt through this Wefunder campaign, the future debt could possibly be on less favorable terms.
Alcohol regulations. Because we will manufacture and sell alcohol, we will be subject to extensive regulation by the Federal Tax and Trade Bureau, Nevada Alcoholic Beverage Control, Clark County and the City of Las Vegas. These regulations are strictly enforced. Failure to follow those regulations could have a severe negative impact on our sales and even our ability to remain open.
Part time officers. Pauline Lipp is currently a part time officer, this may result in diminished time being committed to Beer District Brewing and potentially impact company performance.
Small management team Our future success depends on the efforts of key team. The loss of any of our team members may have an adverse effect on us. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.