Beer School : Bottling Success at the Brooklyn Brewery

**What do you get when you cross a journalist and a banker? A brewery, of course.**"A great city should have great beer. New York finally has, thanks to Brooklyn. Steve Hindy and Tom Potter provided it. Beer School explains how they did it: their mistakes as well as their triumphs. Steve writes with a journalist's skepticism-as though he has forgotten that he is reporting on himself. Tom is even less forgiving-he's a banker, after all. The inside story reads at times like a cautionary tale, but it is an account of a great and welcome achievement." —Michael Jackson, The Beer Hunter(r) "An accessible and insightful case study with terrific insight for aspiring entrepreneurs. And if that's not enough, it is all about beer!" —Professor Murray Low, Executive Director, Lang Center for Entrepreneurship, Columbia Business School "Great lessons on what every first-time entrepreneur will experience. Being down the block from the Brooklyn Brewery, I had firsthand witness to their positive impact on our community. I give Steve and Tom's book an A++!" —Norm Brodsky, Senior Contributing Editor, __Inc.__ magazine "Beer School is a useful and entertaining book. In essence, this is the story of starting a beer business from scratch in New York City. The product is one readers can relate to, and the market is as tough as they get. What a fun challenge! The book can help not only those entrepreneurs who are starting a business but also those trying to grow one once it is established. Steve and Tom write with enthusiasm and insight about building their business. It is clear that they learned a lot along the way. Readers can learn from these lessons too." —Michael Preston, Adjunct Professor, Lang Center for Entrepreneurship, Columbia Business School, and coauthor, __The Road to Success: How to Manage Growth__ "Although we (thankfully!) never had to deal with the Mob, being held up at gunpoint, or having our beer and equipment ripped off, we definitely identified with the challenges faced in those early days of cobbling a brewery together. The revealing story Steve and Tom tell about two partners entering a business out of passion, in an industry they knew little about, being seriously undercapitalized, with an overly naive business plan, and their ultimate success, is an inspiring tale." —Ken Grossman, founder, Sierra Nevada Brewing Co. BEER SCHOOL: Bottling Success At the Brooklyn Brewery 3 Contents 7 Foreword 9 Preface 13 Acknowledgments 17 Chapter 1: Steve Tells How Choosing a Partner Is Like a Second Marriage 19 THE LIFE OF A FOREIGN CORRESPONDENT 20 MY LIFE AS AN ENTREPRENEUR 21 THE ART OF HOMEBREW 22 RETURNING HOME 23 FRIENDS BEFORE PARTNERS 27 FINDING THE HISTORY 29 AN IDEA BECOMES A REALITY 30 LESSON ONE: EVEN A DOG CAN SHAKE HANDS 32 THE ENTREPRENEUR’S LOT 37 Chapter 2: Steve Discusses the Importance of Building a Solid Team 37 IN THE BEGINNING, EVERYONE PITCHES IN 39 LESSON TWO: IS IT A BUSINESS OR A FAMILY BUSINESS? 53 Chapter 3: Tom Talks About Creating the Business Plan: A Money-Raising Tool and More 61 WHAT KIND OF BUSINESS IS THIS PLAN FOR? 62 PROWLING THE CONFERENCE 63 VISITING THE COMPETITION 67 THE GREAT AMERICAN BUSINESS PLAN (CIRCA 1987) 72 PRIMER FOR PLAN WRITERS 76 IS IT TIME TO QUIT YOUR DAY JOB? 78 MONEY: WHERE, HOW, AND HOW MUCH 81 LESSON THREE: THE BUSINESS PLAN WON’T BE GRADED ON A CURVE 85 Chapter 4: Tom Asks, “What’s the True Mission of the Business?” 91 FACING A QUIET CRISIS 93 DISTRIBUTION: GREAT DETOUR OR GREAT OPPORTUNITY? 95 DISTRIBUTING FOR OURSELVES 103 DISTRIBUTING FOR OTHERS: STICKING OUR TOE IN THE WATER 107 1991, THE LONGEST YEAR OF MY LIFE 109 THE DILEMMA OF THE BIG SUPPLIER 116 AMBASSADORS OF BETTER BEER 117 LESSON FOUR: BEING FLEXIBLE IF THE MISSION STATEMENT BECOMES “MISSION IMPOSSIBLE” 118 Chapter 5: Steve Discusses the Keys to Successfully Motivating Employees 127 IT STARTS WITH THE PRODUCT 127 SOME PEOPLE GET IT, AND SOME DON’T 129 ENTERING BEER SCHOOL 135 LESSON FIVE: FEELING GOOD IS NO SUBSTITUTE FOR PRUDENT CONTROLS 140 Chapter 6: Tom Tells the Story of Their Dot-Com Revolution: Fishing for Finance and Failing 147 RAISING MONEY IS A FULL-TIME JOB 148 THERE’S EQUITY, AND THEN THERE’S VENTURE CAPITAL 150 FOUR SOURCES OF FINANCING FOR START-UPS 150 WHEN VENTURE FINANCING IS—OR IS NOT—APPROPRIATE FOR YOU 153 THE BREWERY BUBBLE OF 1995–1996 156 SELLING BROOKLYN BEER BEYOND NEW YORK 159 THE DANGEROUS LURE OF FINANCING 160 ENTER: TOTALBEER.COM! 165 LESSON SIX: CHASING MONEY IS NOT A BUSINESS STRATEGY 169 Chapter 7: Steve Talks about Building a Brewery in Brooklyn 175 LEARNING FROM THE PAST 176 THE DRIVE TO BUILD 177 LESSON SEVEN: SOMETIMES YOU STAND ALONE 183 Chapter 8: Steve Discusses Publicity: The Press Wants You! 193 THE AMERICAN DREAM 193 PEOPLE WANT WHAT THEY KNOW 195 GUERRILLA MARKETING 196 PUBLICITY AND GROWTH 204 A PLACE TO CALL OUR OWN 214 A COMMUNITY-MINDED BUSINESS 220 LESSON EIGHT: A NEWS RELEASE CAN GO A LONG WAY 222 Chapter 9: Steve Reveals How the Revolution Kills Its Leaders First 229 THE PIONEER (WITH THE ARROWS IN HIS BACK) 230 THE ONE-MAN BAND 232 HIGH ANXIETY AND A FORCED LESSON 234 PROMISES, PROMISES 240 SO WHAT DO I DO BESIDES MANAGE? 242 LESSON NINE HIRING AND FIRING 244 Chapter 10: Tom Talks about Cashing Out and Reinventing The Business, Again 249 WE CASH OUT . . . EVENTUALLY 249 TIES THAT BIND: OUR CONTRACT WITH S.K.I. 251 ALCOHOL FRANCHISE LAWS 255 FINDING THE RIGHT BUYER 257 ANTICIPATING THE SALE AND GETTING IN FRONT OF RUMORS 261 FACING REALITY, TOGETHER 264 CLOSING THE DEAL 270 LESSON TEN: ONLY YOU WILL KNOW WHEN IT’S TIME TO SELL 273 Chapter 11: Tom Wants to Know If You Have What It Takes 277 ARE YOU AN ENTREPRENEUR? 277 MISTER INSIDE AND MISTER OUTSIDE 280 HAVE YOU EVER ACHIEVED ANYTHING? 282 HAVE YOU EVER MANAGED ANYONE? 283 ARE YOU DRIVEN BY THE IDEA OR THE EMOTION? 284 DOWN A ROAD LESS TRAVELED 285 IS THIS THE IDEA? IS THIS THE TIME? 288 LESSON ELEVEN: THERE ARE NO ENTRANCE EXAMS FOR ENTREPRENEURS 292 Timeline 297 Index 300

we Faced Many Scary Moments Over The Years, Both Spiritual—staring At The Brink Of Bankruptcy—and Physical—staring Down The Barrel Of A 9mm Pistol. When You Start A Business, It Is Not Only Your Money And Your Investors' Money That Is On The Line, It Is Your Dream, Your Idea, And Sometimes Your Life.

—steve Hindy And Tom Potter

i S This A Book For Beer Aficionados Or Business Enthusiasts? Both, And It's As Refreshing As A Cold Brew. In Beer School, Authors And Entrepreneurs Steve Hindy And Tom Potter Share The Improbable Saga Of Brooklyn Brewery, The Company They Grew From A Home-brew Hobby Into A Multimillion-dollar Business—all In The Most Competitive Beer Market In The United States. If You Have A Thirst For Entrepreneurial Success, Drink Up. If You Are A Business Manager Or Owner And Want Fresh Ideas And Insight, Tap In. You'll Learn Entrepreneurial Basics, Plus Some Things Textbooks Don't Teach You, As You Follow The Company's Successes (and A Few Failures) And Find Out About:

• creating That All-important First Business Plan
• getting Financing And/or Recruiting Investors
• using Guerilla Marketing, Publicity, And Community Involvement To Attract Attention
• keeping Employees Educated And Motivated
• partnering On Events And Networking For Opportunities
• keeping Your Cool When The Mafia Comes Calling
• hiring Virgins—why Veteran Salespeople Can Have Problems In Start-ups
• managing People, Finances, Expectations, And Growth
• surviving A Vociferous Attack In Las Vegas When The Odds Against You Are 8-to-1

from The Beginning, The Odds Were Against Steve And Tom. It's Estimated That Eight Out Of Ten Businesses Fail In Their First Year. Yet These Entrepreneurs Succeeded In A Competitive Arena Dominated By Mega-corporations And Mega-money. The Brew They Began Making In A Brooklyn Brownstone Over Twenty Years Ago Is Now Sold Around The World. Their Story, Recounting The Fears And Obstacles They Faced And The Decisions And Successes They Shared, Will Inspire You. Like Discovering The Perfect Brew Or Starting A Business, Reading This Book Is A Heady Experience. Cheers!

publishers Weekly

this Winning Tale Of The Rise Of The Brooklyn Brewery Follows The Basic Pattern Of Every Entrepreneur's Memoir: A Restless Visionary Sets Out To Accomplish A Dream, Barely Survives A Series Of Setbacks, Emerges Victorious-and Ready To Tell Readers How They Can Do The Same. But This Account Serves Up More Than The Usual Suds And Foam-its Counsel Is Sound And Its Prose Lively, And It Should Appeal To Both Wannabe Industrialists And Beer Drinkers, Not That Those Categories Are Mutually Exclusive. In Fact, The Authors, Foreign Correspondent Hindy And Banker Potter, Decided To Found Their New York Brewery, Now 17 Years In Business And Among The Top 40 In The U.s. In Sales, After Consuming Many Bottles Of Hindy's Homebrew. The Longtime Partners Tell Their Story In Engaging, Candid Voices, Delivering Cautionary Anecdotes, Reflections On Longstanding Disagreements And Lingering Resentments, And Brutally Frank Self-assessments. It Helps The Story Immeasurably That Beer Is A More Colorful Subject Than, Say, Spreadsheet Software, A Fact That Gets The Reader Past The Inevitable Chapter On Financing. Though Hindy And Potter May Not Help The Aspiring Entrepreneur Strike Gold, They Offer A Compelling Model And A Heartening Story. (oct.) Copyright 2005 Reed Business Information.

BEER SCHOOL Beer School Bottling Success at the Brooklyn Brewery What do you get when you cross a journalist and a banker? A brewery, of course. "A great city should have great beer. New York finally has, thanks to Brooklyn. Steve Hindy and Tom Potter provided it. Beer School explains how they did it: their mistakes as well as their triumphs. Steve writes with a journalist's skepticism—as though he has forgotten that he is reporting on himself. Tom is even less forgiving—he's a banker, after all. The inside story reads at times like a cautionary tale, but it is an account of a great and welcome achievement." —Michael Jackson, The Beer Hunter "An accessible and insightful case study with terrific insight for aspiring entrepreneurs. And if that's not enough, it is all about beer!" —Professor Murray Low, Executive Director, Lang Center for Entrepreneurship, Columbia Business School "Great lessons on what every first-time entrepreneur will experience. Being down the block from the Brooklyn Brewery, I had firsthand witness to their positive impact on our community. I give Steve and Tom's book an A++!" —Norm Brodsky, Senior Contributing Editor, Inc. magazine " Beer School is a useful and entertaining book. In essence, this is the story of starting a beer business from scratch in New York City. The product is one readers can relate to, and the market is as tough as they get. What a fun challenge! The book can help not only those entrepreneurs who are starting a business but also those trying to grow one once it is established. Steve and Tom write with enthusiasm and insight about building their business. It is clear that they learned a lot along the way. Readers can learn from these lessons too." —Michael Preston, Adjunct Professor, Lang Center for Entrepreneurship, Columbia Business School, and coauthor, The Road to Success: How to Manage Growth "Although we (thankfully!) never had to deal with the Mob, being held up at gunpoint, or having our beer and equipment ripped off, we definitely identified with the challenges faced in those early days of cobbling a brewery together. The revealing story Steve and Tom tell about two partners entering a business out of passion, in an industry they knew little about, being seriously undercapitalized, with an overly naive business plan, and their ultimate success, is an inspiring tale." —Ken Grossman, founder, Sierra Nevada Brewing Co. Is this a book for beer aficionados or business enthusiasts? Both, and it's as refreshing as a cold brew. In Beer School, authors and entrepreneurs Steve Hindy and Tom Potter share the improbable saga of Brooklyn Brewery, the company they grew from a home-brew hobby into a multimillion-dollar business - all in the most competitive beer market in the United States. If you have a thirst for entrepreneurial success, drink up. If you are a business manager or owner and want fresh ideas and insight, tap in. You'll learn entrepreneurial basics, plus some things textbooks don't teach you, as you follow the company's successes (and a few failures) and find out about: Creating that all-important first business plan, Getting financing and/or recruiting investors, Using guerilla marketing, publicity, and community involvement to attract attention, Keeping employees educated and motivated, Partnering on events and networking for opportunities, Keeping your cool when the Mafia comes calling, Hiring "virgins" - why veteran salespeople can have problems in start-ups, Managing people, finances, expectations, and growth, Surviving a vociferous attack in Las Vegas when the odds against you are 8-to-1.From the beginning, the odds were against Steve and Tom. It's estimated that eight out of ten businesses fail in their first year. Yet these entrepreneurs succeeded in a competitive arena dominated by mega-corporations and mega-money. The brew they began making in a Brooklyn brownstone over twenty years ago is now sold around the world. Their story, recounting the fears and obstacles they faced and the decisions and successes they shared, will inspire you. Like discovering the perfect brew or starting a business, reading this book is a heady experience. Cheers! "In Beer School, authors and entrepreneurs Steve Hindy and Tom Potter share the improbable saga of Brooklyn Brewery, the company they grew from a home-brew hobby into a multimillion-dollar business - all in the most competitive beer market in the United States. If you have a thirst for entrepreneurial success, drink up. If you are a business manager or owner and want fresh ideas and insight, tap in. You'll learn entrepreneurial basics, plus some things textbooks don't teach you, as you follow the company's successes (and a few failures)."--Jacket. My head was thumping and I was drenched in sweat when I was jolted awake on a fresh sunny morning in May 1984 by the blasts of two mortar shells in the parking lot outside my second-floor room at the Alexander Hotel in East Beirut.