Your family and friends want to see you succeed
and may even want a stake in your potential
goldmine for themselves. However using family
and friends as a source of raising money can be
problematic. It can create a strain that can ruin
personal relationships. It is also worth
remembering that over 50% of small businesses
fail in their first five years often because of factors
completely outside of the control of the owners.
Make sure that you are not borrowing money that
they can’t afford to lose. Put any lending
agreement in writing with the terms clearly laid out
even if it is a “friendly” loan.
and may even want a stake in your potential
goldmine for themselves. However using family
and friends as a source of raising money can be
problematic. It can create a strain that can ruin
personal relationships. It is also worth
remembering that over 50% of small businesses
fail in their first five years often because of factors
completely outside of the control of the owners.
Make sure that you are not borrowing money that
they can’t afford to lose. Put any lending
agreement in writing with the terms clearly laid out
even if it is a “friendly” loan.