Is it time to hire a winery consultant? Here’s what they do.
While the word “consultant” sometimes gets a bad rap, getting an outside perspective for your business is one of the best things you can do as a business owner.
As business owners, we can’t be expected to do it all.
And just like we probably wouldn’t attempt to wire our own lights or install our own sinks, things like sales forecasts, production budgets, and annual financial planning should be left to the experts.
But what exactly does a consultant do? And how can they help?
Let’s dive into the nitty-gritty details of what a winery consultant can do for your business.
What is a winery consultant?
A consultant is an experienced professional with a broad and in-depth knowledge of a particular subject matter who advises clients.
So, there’s no one-size-fits-all when it comes to winery consultants. Some consultants specialize in operations, while others specialize in growth & financial planning.
For the sake of this blog (and our business), we’re going to hone in on financial growth consultants.
Financial planning
Wine consulting services are going to change depending on the company you work with.
At Northwest Wine Accounting, we start out by creating a 3-year financial plan for your business.
A lot goes into this plan: including sales forecasts, production budgets, cash flow plan, and return on investment. We work together to examine historical trends and the current situation, to set goals for change, and then to turn your vision into a detailed plan. This plan is built line-by-line, in numbers and metrics that we can track against every month.
After your winery financial plan is complete, we can continue to work together on a monthly or quarterly basis.
Strategic planning
In terms of looking ahead, wine consultants are there to help you design a business that you will love for the long haul.
After analyzing your existing numbers & business, a winery consultant’s job is to help expand your vision of what your business can be for you into the future.
This can look like strategic planning—defining your vision and the steps to get there. A winery consultant with financial expertise can help you work out the numbers that support your vision, so that you know you will be building on a strong foundation.
Strategic planning typically requires an ongoing relationship and working deliverables, rather than a one-time document that you put in a drawer and forget about.
Technology optimization
A big part of winery consulting services is often getting your tech stack up-to-speed. While this may sound like a mundane piece of the puzzle, we’ve found it’s one of the most important when it comes to wineries.
Wine consultants can help you put modern technology in place to bring your business into the Cloud, and ensure that all of the software “talks” to one another.
Here at Northwest Wine Accounting, we help our clients set up and integrate your general ledger (such as QuickBooks) with your payroll platform, your point-of-sale, your compliance platforms, and your production management software.
With proper systems in place, your winery team will have a good handle on your inventory and your key metrics. You will be able to trust that your systems are reconciled and all contain up-to-date and accurate information.
KPI planning
Key performance indicators (KPIs) are another crucial part of any winery's financial planning and strategic growth. However, many wineries struggle to identify the right KPIs to track and measure their progress.
This is where a winery consultant can be of immense value.
A winery consultant can help you develop a comprehensive KPI plan that aligns with your overall business goals. They will start by understanding your current business operations, financial performance, and market position. Then, they will work with you to identify the KPIs that will best measure your progress towards your strategic objectives.
Some of the most important KPIs for wineries include:
Sales growth per channel: These metrics track your topline and help you know where to put your efforts.
Gross profit margin: This metric tells you how much profit you are making from each bottle of wine you sell.
Inventory turnover: This metric measures how quickly you are selling your inventory and informs your production planning.
Employee productivity: This metric measures the effectiveness of your sales and production teams.
Once you have identified the right KPIs, your winery consultant will help you develop a plan for tracking and measuring them. They will also help you set realistic targets for each KPI and provide you with regular reports on your progress.
Interested in working with a winery consultant?
Here at Northwest Wine Accounting, we help winery owners get their financial house in order. Whether you’re looking for annual financial planning or ongoing strategic growth services, we can help.
Simply head over to our Get in Touch page to get started. Fill out the form and we’ll get back to you as soon as possible. From there, we’ll jump on a quick call to see if it’s a good fit for both parties.
Until next time!
