Your tourism business offer will operate in the Wine Industry. Some info on the industry:

• Total size of the industry is about $9 billion in Canada.
• Average winery generates about $600,000-$700,000 in revenue annually.

Ownership structure of the new business: Canadian Controlled Private Corporation (CCPC). Your team members are the owner/operators of this business.

The charts on the next page list the start-up costs for a typical winery that produces 5,000 to 15,000 cases annually:

Capital assets

Description	Low range	High range
Land, Plant, & Office	$400,000	$1,200,000
Other Equipment (receiving equipment, cellar equipment, material handling, refrigeration system, fermentation & storage, cooperage [first 3 years], tasting room)	$400,000	$800,000

Pre-opening soft costs (costs incurred prior to any revenue earned)

Description	Low range	High range
Full Time Salaries	$100,000	$300,000
Part Time Salaries	$5,000	$20,000
Pre-opening marketing, website, public relations	$15,000	$25,000
Professional fees (lawyer, accountant, etc.)	$5,000	$10,000
Utilities	$10,000	$15,000
Insurance	$5,000	$15,000
Other (Point of sale technology, other software, etc.)	$5,000	$10,000

Working capital

Description	Low range	High range
Cash reserve	$0	$50,000
Grapes (Inventory)	$85,000	$250,000
Packaging (Inventory)	$125,000	$370,000
Other current assets (supplies, prepaid expenses, tech purchased, etc.)	$5,000	$10,000

Financing Options Available

• Equity Investment (a potential partner wants 49% of business with max investment of $1,500,000, but will take lower % for less investment)
• Short-term loan (up to $250,000 @ 8.25% interest)
• Long-term loan (up to $1,500,000 @ 5.5% interest)

Final Question: Which financing source(s) will go towards which start-up cost categories (capital assets, expenses, current assets) above?