How we started our own micro-brewery business

Many people start their own business because they dream of riches, while others simply want to earn a living from something they truly love. The latter is true of Liverpool-based Grateful Dead fan John Marsden and his wife Julie, who set up The Melwood Beer Company in 2013.

“For many years I’d dreamt of running a microbrewery business with my wife, Julie. I’m passionate about beer, but I don’t like the mass-produced, watery, gassy stuff you get in pubs and supermarkets.

“In March 2013 we opened The Melwood Beer Company. We make high-quality beers that taste great and are totally natural – we don’t use chemicals. To start the business, I used earnings from my work as a self-employed hospital operating theatre technician and Julie worked as an administrator at Alder Hey Children’s Hospital.

“Our premises are special. I’d mentioned to a patient that I was looking to open a microbrewery and she told me about an old dairy near her house” John Marsden

Ideal premises

“Our premises really are special. I’d mentioned to a patient that I was looking to open a microbrewery and she told me about an old dairy near her house, which until recently had been home to one of the North West’s first craft breweries.

“After seeing them, we just had to have them. They were perfect, and in such a beautiful setting near to Knowsley Safari Park – some days you can actually see the rhinos and zebras. Our offer was accepted and as a result we started the business sooner than anticipated. It all happened so quickly.

“We fitted the place out with all the necessary tanks and equipment and worked with a brilliant local welder. We also had to source supplies, create our website and develop our branding, as well as try to win our first customers, but come the end of March our first supply of beer was ready.

“We installed a five-barrel system, which enabled us to produce up to 800 litres per brew, which is 20 casks, each containing 72 pints. We had four fermenters, which gave us the capability to brew up to four times a week [ie 80 casks], providing the demand was there.”

In December 2015, John and Julie moved into The Kennels – a larger building which used to house the estate’s gun dogs. The extra space enabled John and Julie to finally do everything they were planning – with dedicated rooms for bottling, kegging, casking and tasting. In May 2016, they were visited in their new premises by the crew of Food Unwrapped who filmed the brewing of a special beer.

“All our beers are single malt varieties and their names are inspired mostly by bands, singers or songs” John Marsden

Grateful Dead

“Music is my other great passion and I play Hammond organ in a Grateful Dead tribute band. All our beers are single malt varieties and their names are inspired mostly by bands, singers or songs.

“We do an ‘Icons of Rock’ series and our first was Mojo Rising [The Doors/Jim Morrison], then there was Fools Gold [The Stone Roses]. Julie also developed an ale called Knowsley Blonde. A while ago, she made a beer called Father Ted, in honour of her late father. We also produce one called Citradelic, which is very popular.

“Our branding incorporates the famous Grateful Dead lightening bolt skull logo, which was originally created by the band’s soundman Owsley Stanley in the 1960s. Sadly, he died in 2011, but I emailed his family to ask permission to use the logo and they said yes.

“We plan to start selling branded clothing through our website, which will hopefully help to raise our profile. I used our home-based computer to create our website and branding and I produce all of our pump clips, stationery, labels, etc at home. As well as saving money, I enjoy doing it. I get a real buzz from seeing the pump clips in public.

“Brewing beer involves a lot of hard work, but it doesn’t feel like it because I love it so much” John Marsden

Labour of love

“The name of our business is inspired by Liverpool FC’s [former] training complex, which is close to our home. Brewing beer involves a lot of hard work, but it doesn’t feel like it because I love it so much. It’s not like a job. Our beers are very good – the reaction has been brilliant – and with our passion and commitment, I’m confident our business will do well. We’ve sell to wholesalers in Yorkshire and Greater Manchester and our sales in Merseyside continue to grow.

“I don’t know whether the business will make us rich, but I’d be happy if it generated a wage for us both. If it does make us rich, that would be the icing on the cake, but just to be able to walk into a pub and see people enjoying our beer means we’ve already achieved a long-held dream.” 

“Find a way to be special – that way people will buy your products rather than someone else’s” John Marsden

John’s three top tips

• “Base your business on something you love. That way it won’t seem like work and it will drive you on when the going gets tough”

• “Ask for help from other businesses. We’ve had some really useful free advice from other brewers on Merseyside – you really wouldn’t believe how helpful people have been.”

• “You must set yourself apart from your competitors. Find a way to be special – that way people will buy your products rather than someone else’s.”

• This profile appeared originally on the Start Up Donut website. John and Julie went on to open their own successful micropub, The Bard, in Prescot on Merseyside.

Are business plans a total waste of time?

A survey carried out by business software provider Exact suggests that more than a third of the UK’s 4.9m SMEs don’t have a business plan and “they could be missing out on an extra 20% of profit as a result”.

Of the 34% of respondents who didn’t have a business plan, 68% said they didn’t see the need for one, while 23% were “too busy” to prepare one, 8% “didn’t have anyone to help them” and 5% “weren’t comfortable with numbers”.

Should we be surprised by these findings and are business plans as essential as some start-up experts would have you believe?

Some experts would tell you that start-up business plans aren’t worth the paper they’re written on

Waste of time

Some experts believe start-up business plans aren’t worth the paper they’re written on. Author Paul B Brown, wrote a piece for Forbes.com called Why Business Plans Are A Waste Of Time., after he came up with the idea for a new book that sought to offer insight from the original business plans of highly successful US entrepreneurs.

But there was a problem. As Brown explained: “Most of the business plans had nothing to do with what the businesses eventually became. People who said they were going to specialise in developing new computer hardware ended up in software, for example. In a surprisingly high number of cases, what was in the business plan ended up having very little to do with what the company ultimately became.”

After writing about entrepreneurs for more than 30 years, Brown believes that creating a “painfully detailed business plan really doesn’t make much sense. The first time you encounter something you didn’t expect, the plan goes out the window. Things never go exactly the way you anticipate.”

Some of the heroes of today’s would-be entrepreneurs, such as Steve Jobs, Bill Gates and Michael Dell, did not have business plans when they embarked on ventures that changed the world

Business plan myth

A few years ago, (“former banker, small-business investor and veteran entrepreneur”) Kate Lister wrote a piece for Entrepreneur.com called Myth of the Business Plan. She highlighted research from Babson College (“regarded as having one of the top entrepreneurship programs in the country”), which found “no statistical correlation between a startup’s ultimate revenue or net income and the supposedly requisite written business plan”.

The study found that: “”Some of the heroes of today’s would-be entrepreneurs, such as Steve Jobs, Bill Gates and Michael Dell, did not have business plans when they embarked on ventures that changed the world”.

Great business plans may earn you an A in business school, but in real life you only get As for achievement

Lister said she was “all for having a business plan in the verb sense. I’m just not a big believer in the noun form”. She continued: “Writing a formal business plan invites the paralysis of analysis. It distracts the entrepreneur from slaying dragons and thinking big thoughts. And it’s largely a waste of time. The result usually is a long-winded missive that’s out of date almost the moment the ink dries. Great business plans may earn you an A in business school, but in real life you only get As for achievement. So stop dotting your i’s and crossing your t’s and go out there and slay something.”

Success Plan

Andy Fox is the founder of “award-winning independent car service and repair specialist” iAutoUK. He wrote an article for the Huffington Post called “Why You Don’t Need a 40-Page Business Plan to Launch a Successful Company” (sic).

“I’ve never had a business plan,” he admits. “Despite this, in three years my company has reached a turnover of over £1m, with £100,000 annual profits. For your business to thrive you instead need a ‘Success Plan’. This is an evolving strategy consisting of three elements. No 40-page business plan needed. In fact, you can write a Success Plan on one sheet of A4.

Look at companies such as Comet, Blockbusters and Jessops. I’m sure their business plans didn’t include going into administration!

“Firstly, you must understand your market place and how your business is distinct from competitors. Secondly, the Success Plan must have ‘Leader’s Objectives’ and you must communicate them to your staff. The final element is to make sure you make money! You must have a system that provides you with daily earnings information, and which can monitor cash in the bank and in the pipeline.

“Such a Success Plan is a short, relevant, real-world document. I believe a Success Plan is more appropriate than a traditional business plan.” Dryly he adds: “Look at companies such as Comet, Blockbusters and Jessops. I’m sure their business plans didn’t include going into administration! Had they had a Success Plan, perhaps their futures may have been different.”

• This blog was commissioned by Atom Content Marketing and appeared originally on the Start Up Donut website.

Negotiating: 10 ways to get better results

Negotiating isn’t extraordinary, of course. It’s something that most of us do many times each day, whether formally or informally, in our business or personal lives.

Some of us are natural negotiators, while others struggle. However, negotiating isn’t simply a question of enforcing our will to get what we want.

Sometimes you get more than you expected; sometimes you have to settle for less than you wanted

Negotiating involves trying to reach agreement. Sometimes you get more than you expected; sometimes you have to settle for less than you wanted. Negotiating is about finding a solution that’s acceptable to both parties, which is why some negotiations take so long or why they ultimately prove fruitless.

So, what’s the key to getting better results when negotiating?

1 Be well-prepared

Proper preparation is key. You must know what you want from the negotiation, what your alternatives are and what you’ll concede if asked. You also should try to understand what the other party wants, what they’d give up and what their other options are. Ahead of the negotiation, practice answering any questions you’re likely to be asked and make sure you can back up all claims you’ll make, because it could strengthen your negotiating position.

What works in some cases may not work in others, so take time to decide the right approach 

2 Use the right negotiating strategy

Good knowledge of the other party can enable you to know how best to approach the negotiation. Your strategy will be slightly or entirely different for different people and situations. What works in some cases may not work in others, so take time to decide the right approach to take in each instance. 

3 Choose the right time and place

You need somewhere free of interruptions, where both parties can talk openly. Make sure there’s enough time for the negotiation, so that deadline can’t be used against you. Very early on, explain what you hope to achieve, but don’t reveal concessions you’re prepared to make, because these must be negotiated.

4 Believe in yourself

Lack of confidence will undermine you when negotiating. If you’ve prepared well, know what you want and have a sound strategy, you should feel confident. Also make sure that your appearance and body language is right. Be firm but fair when negotiating. Speak clearly and with authority, but remain open to questions and comments.

Don’t issue ultimatums or allow things to get heated. Stay cool and don’t take things too personally

5 Stay calm and keep it friendly

Negotiations should be friendly, with both sides professional, polite and respectful. The tone shouldn’t be adversarial – aim to build bridges not walls. Don’t issue ultimatums or allow things to get heated. Stay cool and don’t take things too personally – even if the other party is rude or overly dominant. Smile and stay focused.

6 Be a good listener

You must carefully consider the other person’s point of view if you’re to reach an agreement. Don’t talk at or over them, instead, seek to create and sustain a good conversation. Also be patient, because negotiating can take time, especially when matters are complex or the stakes are high. During the conversation, if you don’t understand any points, seek clarification.

Don’t allow yourself to be bullied into revealing your bottom line too early on

7 Be prepared for negotiating tactics

Experienced negotiators employ various tactics, especially when buying or selling. Be prepared for someone to play tough, but don’t allow it to affect your confidence or determination. Don’t allow yourself to be bullied into revealing your bottom line too early on. There should be some room to negotiate on the other party’s opening offer.

8 Concede ground when necessary

But ask for something in return. So, if they want a cheaper price, agree only if they buy more from you. If they want more credit, try to ask for a higher price. Where possible, avoid giving concessions unless you get something in return. And never appear desperate, because it can weaken your position severely.

Drive a hard bargain, but remember – the deal must be fair for both parties, if the relationship is to last 

9 Seek concessions when possible

If you feel you’re in strong position and close to agreement, try asking for concessions, but only if they offer real value for your business. If you’re buying, by all means drive a hard bargain, but remember – the deal must be fair for both parties, if the relationship is to last. 

10 Walk away if you can’t agree

No deal really is probably better than a bad deal. If you want to consider an offer, ask for more time. If no agreement looks likely after there has been sufficient time to talk, politely end the negotiations and part on good terms. They might later make more concessions to rekindle your interest. If you can’t come to an agreement that works for your business – explore other available options.

• Blog written by Dead Good Content founder, Mark Williams.