Welcome back. It’s Stephen Hunt from Hunt Hospitality. Today we’ll be talking about the second part of your plan. There’s three parts to this. And they’re all very, very important. Firstly, your structure. So you’ve already got the good account and a good lawyer. So they’re going to guide you into which is the best structure. I don’t mean physical structure, I actually mean, the breakup of your business. So it may be a unit trust, it may be a partnership, it may be a proprietary limited. So there’s many, many, many different things that can be. But your accountant and your lawyer will advise you on the best one for you. So it’s really important to get to know this. And your investors will be asking you questions about this, because there’s different components for them to do with tax and different responsibilities that they may have, if they decide to invest in your business.
So the structure is really, really important, it’s really important for you to to get to know it. And also to, don’t be afraid when you’re talking to investors, if you don’t know the answer to a question. Say I’ll get back to you about that. They don’t expect you to know everything, I just need you to be comfortable on most things. Secondly, we have to talk about the risks. So it’s really important to discuss the risks that are associated with your business. So say, for instance, with hospitality, there’s many, many different risks that can occur can be changes to Government legislation, can be tax laws, they can be fires, they can be a whole lot of other things. Now you need to make your investor rest assured that you can mitigate against any risks.
The good thing about when you’re putting all your risks down on paper, and again, you will get guidance from your lawyers and your accountants is when you’re actually labeling it, you can come up with a plan to mitigate against these risks. So it’s actually a bit of forward planning for yourself. So obviously, it’s really important to get it right. But don’t worry about it. There’ll be some things in there that are quite tough and daunting for you to face, but it’s better to face them first than when you’re having your first investor meeting. And finally, the application forms. This is a very exciting part. This is basically where the investor has said yes, and this is for them to fill out their details on the form. So it’s going to have the timeframe for investment, it’s going to have their name, their company details, and your company details or your structure that they’re investing into. So this is really exciting. And most importantly, two things I’ll have is the amount they’re investing and their signature.
So I hope you’ve enjoyed today. Please contact me whenever you would like to have a discussion and I’ll see you next time.