Should I Ask The Family For Investment Money?

Posted by Sian Phillips under Raising Capital
From http://tweakyourbiz.com 4167 days ago
Made Hot by: AmyJordan on June 20, 2013 2:33 am

By Adam Groff

Asking your family for a financial investment for your business is pretty tricky business. Nobody likes asking for money, but if the reasoning behind the monetary request is sound, a small investment from family members could be well worth it.

On the other hand, seeking investments from your next of kin could get you in hot water with loved ones if your business is already fledgling or your business idea isn’t fully imagined.

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Comments

Written by AngelBiz
4165 days ago

Asking friends and family for in investment money is a double-edged sword as you mentioned in the pros and cons in the article.I think there is still value in getting money from them especially in the early stage when not many others are willing to trust you and lend you money.

My advice is to treat this like any other financial transaction and create a legal contract with appropriate terms and conditions even if you are borrowing at zero percent interest. It will help maintain good relationship.

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Written by tcamba
4166 days ago

No, no and never. Personally, I wouldn't try asking anyone from my family some investment money, it would really be awful when things to down the drain with your business. There will be a lot of drama and I don't really like drama.

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Written by BizRock
4167 days ago

Small investment from family members is a very sensitive issue.It should be very carefully consider before deciding to ask for the investment from family.Thanks for this article!

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