Page 28 - Grapevine JanFeb 2022

In The Winery

ness’s packaging, bottling, and warehousing costs gic initiatives for your winery or wine business.
will also factor into your COGS value. Together, they act as the foundation for creating
and implementing those initiatives, as well as help-
Now that you have a clearer picture of your busi- ing to determine which initiatives are meant for
ness’s COGS, as well as its sales and marketing short-term or long-term business growth.
plan, you can get started on formulating your finan-
cial plan. This will help you summarize your gross
revenue, price support, EBITDA (operating profit),
and net income, as well as craft stronger balance
sheets and cash flow statements to better under-
stand your business’s profitability by its products
sold.

Along with these factors, your financial plan will
also need to include an income statement to show
your business’s operational performance over time,
a breakeven statement to show the volume of rev-
enue from sales to balance the sum of its expenses,
and a product profitability statement to compare Image Credit: Bacchus Consulting Group
your revenues COGS, and gross profit per case to
ultimately determine which products are generat- Step #3: Aggregate Into the Business Plan
ing the most profit for your business.
Still with me here? Great — now that we’ve cov-
Each one of these individual plans is meant to ered each crucial element to your winery’s plan,
help form concise and easily understood strate- the next step is to outline that plan in a way that

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