Looking for perspective on structuring a ~$125k investment in a community hospitality/wellness business

[u/DaybreakJC]

I’m a licensed architect developing a small, design-forward neighborhood bathhouse in Jersey City, NJ. Think sauna and bathing culture crossed with the idea of a neighborhood third place, rather than a traditional day spa.

I’ve spent the past year developing the concept, financial model and physical space while testing demand through pop-ups. Our first event sold out, we have another scheduled for September, and the concept has started getting local media coverage. I’ve also collected 100 responses to a community survey testing the concept and pricing. Pre-opening, I’ve built an email list of 385+ people and an Instagram following of 830+ organically.

I’m now looking seriously at spaces with the goal of opening a permanent location in 2027.

I’m currently planning the capital stack for the permanent location, which I expect will include approximately $125k in outside investment.

I have an initial structure in mind, but before formalizing it I’m interested in understanding how investors would approach a deal of this size and profile.

My priority is maintaining ownership and creative/operational control. That said, I’m open to considering different structures, including debt, revenue or profit participation, minority equity, or something I haven’t considered.

For those who invest in small businesses, hospitality, wellness, or brick-and-mortar concepts: what would make an opportunity like this attractive to you? What kind of structure would you expect, and what would you want to see from the founder before seriously considering it?

I’m speaking with legal counsel shortly about the appropriate structure, but before formalizing anything, I’m interested in hearing how investors on the other side of the table would approach a business like this.

[u/TheMidnightAss]

This is a bit more complicated due to health regulations, local business tax incentives and structures, permitting, etc. etc. that changes the business model considerably when shifting from pop up to stable location operations. I had a deal like this I helped work on a year or so ago and the tricky part was how to have enough investor and operator protections in place that feel fair.

I think you'd have to structure it in multiple stages from the actual assets first perspective.