We have received a couple of queries regarding the intended pledge form as we did amended it slightly following discussions with people after the meeting closed on Thursday.
We have ‘split’ the intended pledge offering to accommodate the two business models we could potentially follow.
BENCOMM model if we choose to set up a Community Benefit Society with the help of the Plunkett Foundation we will effectively be setting up a community business to serve the local community. Plunkett would also provide us with expert advice and support, effectively free of charge and also help with business cases to secure funding etc.
This is potentially good for us as it will open up funding schemes such as grants and lottery funding but will restrict what we can do with any profits generated as these would need to be reinvested back into the community and a smaller return would be available to investors.
We would estimate this would be a longer term investment and would run on a ‘shares for sale’ scheme at £250 per share and one vote per investor
Ltd Company model if we choose to set up a straight forward limited company then we would not qualify for the support from Plunkett and the potentially funding routes via grants etc.
However this would give us more freedom around what we can do with any potential profit and how we release this to the investors.
We would estimate this could be a shorter term investment and would run on a ‘shares for sale’ scheme at £250 per share and one vote per investor.
Obviously both models carry their own pros and cons and following feedback after the meeting on Thursday potential investors would like a choice as whichever model we choose may affect how much money people are willing to invest.
The underlying challenge is we need to raise as much money as possible to provide us with as many options as possible for how we progress the project.
To clarify both models will follow the same route of renting out the running of the pub to a tenant landlord and we will look to purchase the property as a group. The outline plan would be to grow the business back and sell it on as a healthy going concern.
Both models would also have the complete focus of securing a hub for the village in the form of a vibrant, well supported, welcoming village pub!
If you have any further questions or queries please contact us via email firstname.lastname@example.org
KWF Steering Group