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From a sheerly practical business point of view, this is a scam.

If you simply look at the cities where such small businesses already operate, it's plain that if there is already a sufficient customer base for this sort of thing in your community, then it's already being quietly funded by them. And their "needs" are already being privately met by established professionals.

If your business model requires you to seek public funding for startup money for you little, "MADAME LAZOTSKA'S IN 'n OUT SPANKY-WANKY SHOP", it's already doomed to failure.