Question

Mr. Tom and his wife has a small distillery with two employees. He currently brews a moonshine which is uncage corn whisky and apple pie liquor which combines his moonshine and apple cider from murphy`s orchard. Investors appreciate a responsible and reasonable plan. In this section describe areas where their management team could improve for raising outside capital.

Answer 1

Some of the areas where the management has to work in order to raise capital are:

• Although the idea is god but a solid 5 year plan is required.
• The employee base has to be increased so as to ensure that investment of money can be capitalized on.
• Extensive competitive analysis and point of difference i.e. what is it that is unique should be explained to the investors.
• The customer base is small as of now and break even in the investment can only be achieved when the sales grow rapidly.
• There should be at least 1 back-up plan to utilize investment.
• Wider range of products is required i.e. scaling up is essential.