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  • What happens if we fail to raise enough money or agree a price with the vendor?
    The funds required to purchase the pub, cover incidental acquisition costs and related professional fees and carry out essential repairs are planned to be raised through a combination of grants, share issues, donations and volunteer labour. If insufficient is raised, then the project will not proceed. Grants may need to be repaid and share issue monies will be returned net of any unavoidable up-front costs not covered by non-refundable grants or donations. The management committee will do everything they can to try to minimise such costs.
  • What if expenditure is higher than envisaged?
    No works to upgrade the property will be commissioned without proper cost projections. Unless there is sufficient in the capital reserves to cover such improvements they will be delayed until funds are generated or cancelled altogether.
  • Is there a risk that the CBS is be unable to appoint and keep a suitable tenant?
    Running a community pub with an affordable rent and with strong community support should be an attractive business proposition and we are confident that a suitable tenant will come forward. ​ The Management Committee will adopt a thorough selection process and if the chosen tenant leaves then, given the favourable business proposition, we are confident of appointing a replacement
  • What will happen if the pub fails to operate at the forecast level of turnover and profitability?
    Community pubs in general would expect a higher level of support than normal tenanted or managed businesses and our forecasts are prudently conservative and based on the experience of other community pubs and expert advice. In particular, our survey evidences a strong untapped demand in the community if the product is tailored to local needs. ​ The Management Committee will regularly review progress with the tenant and a minimum rent term in the tenancy agreement will ensure that a tenant who is not able to grow the turnover will consider surrendering their tenancy so that a new tenant can be recruited. ​ However, if the pub fails to trade profitably, there will not be any interest payments to Members.
  • What will happen if the pub cannot trade profitably on a sustainable basis?
    The planned capital improvements to The Prince’s Motto should enhance the sources of income and “the more than a pub” approach should increase spend per head. The selection of an entrepreneurial tenant that shares the community vision should be able to expand the business beyond the historical norms inherent in the forecast turnovers. ​ The Prince’s Motto will have the support of the Management Committee and the Society Members and other volunteers who will regard the pub as ‘their local’ boosting local involvement. ​ Despite the care that has been taken in constructing the plans expressed in this document and the wide range of advice we have received from the Plunkett Foundation, other community pub groups and the previous tenants, there is an element of risk in any commercial venture. So, there is a theoretical risk that the pub maybe forced to close. In this extreme event, The Prince’s Motto is located in a desirable location and the CBS would be able to sell the property and use the balance of funds to pay back grants and Member’s capital. Any surplus would then be held by the CBS and used solely for the benefit of the community.
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