How quickly do you want to have your space up and running?
How quickly do you want to have your space up and running? How many spaces are you hoping to run? Will your business be heavily dependent 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 specifically agree to be a silent partner, they are going to have an opinion and expect feedback and profits. It’s constant pressure on you during an already stressful moment.
And if the business becomes a roaring success, they may push you to sell the company to a bigger 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 indeed be smart 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 are building 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 the very reason why you ventured down this path in the first place.