Immpreneur – Financing through Friends & Family
The most difficult task for any small start-up business is capital. The first place many entrepreneurs go to for capital are their friends and family. This is the easiest first step many small business owners try, but this first step deserves caution. Here are a few tips to borrowing from friends and family.
– Get the agreement in writing
: Just like you would with any other investor, be sure to write down the loan agreement between you and family. Another important aspect to consider before agreeing to the loan is their involvement with your business. Many people want a say in the operations of a business they have invested in, this is no different with family investors.
– Selling a stake in your business is not unusual
– Angel investors are always a good option if friends/family becomes too difficult or not enough
: Angel investors are wealthy businessmen who fund young start-up businesses. Angel investors often meet in groups to hear entrepreneurs pitch their business ideas. To find a group in your area, asking the local Chamber of Commerce can be a great start, or search to www.finance.com .
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