Investments

Investments

2 min read

How quickly do you want to have your space up and running?

How many spaces are you hoping to run?

Will your business depend heavily on staff or other high costs such as rent and furnishings?

Would you prefer to hire key staff instead of making them a partner in your company?

Is your perfect property only available to buy, not to lease?


These are just some of the questions that will determine if you need investors or not.

Investments in your company and vision are beneficial as they let you use other people’s money, but that also means you are sharing the income with them – and they want and expect a return on their investment – a big one.

Unless they expressly agree to be a silent partner, they will have an opinion and expect feedback and profits. It’s constant pressure on you during an already stressful moment.

And suppose the business becomes a roaring success. In that case, they may push you to sell the company to a more significant player or even do an IPO (Initial Public Offering), selling your stock to the public.

If you already have established relationships with potential buyers, it can be wise to get investments. This allows you an easier path to setting up a space and filling it with guests much faster than going it alone. And, when you hit a certain threshold, you can sell your business as per any predetermined buyer’s agreement. This gives you that added certainty of a (hopefully) profitable venture and a favorable outcome for all parties.

If you build this as a lifestyle business, don’t bring investors on board. They will inevitably change your business model and vision to suit their own – and you will lose why you ventured down this path in the first place.



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