Thanks to Mr S, I got this amazing place in Lavender! All the fire safety licensing had been approved, and license for a hostel has already gotten! However, after I built my partitions, I will need to get the fire safety officers to come for another approval!
I was losing hope after I almost signed a brothel!
Anyway, I am now hunting for investors which after finding a place, is the next most important issue to make this whole thing work. I talked to Mr G for a short drink and he told me that my initial proposal is not very attractive to investors as according to my computation, the hostel business will make a net profit which is basically kept within the company and not distributed to the shareholders when they are taking the risk. I agreed after thinking about it and decides to change my proposal such that the shareholders get more returns back due to their risk.
In addition, he also told me that when the business picks up in the second and third year, it may be cheaper to borrow from banks than to use the retained earnings as no use diluting the shares of the shareholders and I agree to a certain extent, but need to do more computation before I come out with a decision.
Finally, the hostel business seems like it's heading somewhere and I just hope that I can get investors. I need quite a bit more but meeting a couple of friends this weekend to discuss.
Keeping my fingers crossed!
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