It's important to preserve relationships and protect everyone involved when tapping your family tree for funding.
Who better to put money into your brilliant business idea than people who can already vouch for you? Friends and family are an obvious source of funding. And in this era of ebbing small business lending by banks, if you don't have an interested investor, why not turn to mom, pop, and the rest of your clan?
"Trust. That's it. Hands down. Family members especially – they've watched you all your life," says Wayne Rivers, president of the Family Business Institute Inc., a family-business consulting firm based in Raleigh, North Carolina. When traditional funding sources aren't available, especially to young entrepreneurs who lack collateral, family members can bridge the gap.
Entrepreneurial relatives might say, "I started a business when your age: How much do you need?" But if expectations don't align, more than just your business can end up going under. Even a new endeavor that becomes wildly successful can wreak havoc on relationships.
To read the full, original article click on this link: How to Pitch Your Business to Friends and Family
Author: Alyssa Danigelis
