Entrepreneurship is often romanticized as a journey of passion and success, but the reality is far more complex. For many entrepreneurs, the path to success is littered with near failures that test not only their business acumen but their resilience as individuals. Few know this better than Graham Sherman, co-founder and owner of Tool Shed Brewing Company. His entrepreneurial journey is a testament to perseverance in the face of overwhelming odds, navigating one crisis after another with his most recent challenge almost costing him everything.
Graham has lived through what many entrepreneurs fear most: discovering your new business is illegal, financial ruin, a hostile takeover attempt, and the brutal realities of running a business during a global pandemic. Yet, through sheer determination; the support of his employees, competitors — yes competitors! — and community; and some legal ingenuity, he emerged from the brink of bankruptcy with his business intact.
Graham’s entrepreneurial journey is not just one of survival, but of resilience. Now, having faced the unthinkable, he shares his experience with others, offering hard-earned lessons on how to keep moving forward even — and especially — when the odds are stacked against you.
The Pandemic: A Business in Crisis
Tool Shed was thriving before the pandemic hit. Then, overnight, everything was shut down, including the bars, pubs, and restaurants that made up 75% of Tool Shed’s revenue. With operating costs still hovering around a quarter of a million dollars a month, the math was brutal: no beer sales, no revenue. To make matters worse, Graham’s bank decided not to renew their business loan, leaving him $400,000 in debt with no financial support. Unable to pay his investors, he was told they would take his business instead.
On his darkest days, this felt like the end of the road for Graham and his brewery. His lawyer said he was done, his bank accounts were seized — he was paying payroll through personal e-transfers, telling staff when they could cash their cheques. But, in retrospect, it marked the beginning of a long fight for survival as he sought creative ways to keep his dream alive.
“My whole life I’ve faced insurmountable tasks and come out the other side,” Graham said. “This is the story of my life — I never know what’s coming next. But I’ll cry into my entrepreneurial pillow at 3am and come up with a new solution.”
Graham secured a new lawyer, one willing to wade into the deep water with him. Through tenacity and sheer willpower, they found an unconventional legal strategy that would help protect Tool Shed from predatory creditors — a move that ultimately saved the company.
A Lesson in Leadership and Loyalty
During this difficult time, one of the most powerful moments for Graham was realizing that he wasn’t in this fight alone. Despite the turmoil, his staff stood by him. When the takeover bid seemed imminent, his entire team united and sat down with the potential new owners, making it clear that if Tool Shed changed hands, they would walk away. This gesture wasn’t just about loyalty; it was a statement about the bond they had built. For Graham, this was like witnessing his own funeral — a raw and powerful moment that underscored the strength of the relationships he had nurtured over the years.
These relationships, coupled with the support of other industry players, became the foundation of his survival strategy. Whether it was a BBQ sponsor covering payroll or fellow brewers offering moral and logistical support, it was clear that Tool Shed’s survival wasn’t just Graham’s fight. It was a collective effort, a powerful example of how collaboration can triumph over competition in tough times.
A New Legal Strategy
In the face of financial ruin, Graham’s legal team discovered an innovative solution — one that most business owners wouldn’t even know exists, Graham said. His lawyer utilized an unconventional approach under the Canadian Corporations Act to protect Tool Shed from being seized. This strategy, called the Stocking Horse Bid, allowed Graham to file a “Notice of Intention to Make a Proposal” under the Insolvency Act in an atypical way. Instead of declaring bankruptcy, he outlined a pathway to buy back his own business.
Graham spent a couple days in court and a nerve-wracking week waiting for the verdict — “I’d either lose everything or win the lottery,” he said. In the end, Tool Shed emerged victorious. Graham is back to doing what he does best — beer and BBQ — and sharing his story to help other entrepreneurs who may find themselves in similar situations. There are innovative ways that the Canadian Corporations Act protect business from predatory behaviour, Graham said.
Of course, Graham is looking to whip up a new beer called “Without Merit” to commemorate the whole experience. Tool Shed’s motto is “hand crafted beer best served with a story” and Graham has a good story to share.
Paying it Forward
Having come out the other side of this legal and financial nightmare, Graham is now committed to giving back. Every month, Tool Shed dedicates one of its brewing tanks to help other small breweries in the industry. Whether it’s brewing a batch of beer for a struggling business or offering logistical support, Graham’s focus has always been on collaboration rather than competitions. His mission is simple: to ensure the craft beer community thrives as a whole.
The Spark That Fuels Resilience
Graham’s entrepreneurial story is a powerful example of perseverance in the face of adversity and how to lean into disruptive thinking to find innovative business solutions.
In his high-energy, high-fun presentations, Graham inspires audiences by sharing the lessons he’s learned from his journey. From surviving a global pandemic to competing in — and winning! — multiple World BBQ Championships, Graham’s entrepreneurial journey is about more than just beer. It’s about the indomitable spirit of someone who refuses to give up, no matter how insurmountable the odds may seem.
For those looking to ignite their own entrepreneurial passion, integrate disruptive thinking into their organization to overcome obstacles and challenge, Graham’s experience serves as both an inspiration and a roadmap.
Contact us to learn more and to book Graham to speak at your next event.
