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The Alternative Funding Source for Your Startup

Great! So you’ve decided to branch out on your own and start a business. You’re confident it’s right for you and you’re excited to start being your own boss.

But how do you raise the funds to start?

After tapping into your own funds, if they’re not sufficient, your next port of call may be your nearest and dearest.

How should I approach raising funds?

  • Be clear – while you may be asking family and friends for funds, they will probably expect something back.

Whether it’s a stake in the business or you paying back their loan, most family members and friends will want to know that you’re taking your new business seriously and you intend to make that money back – and make your living at it too.

  • Keep some formality around the funds you raise with friends and family.

When dealing with people you know well, it can be difficult to remember that they are investing in you and your business… It’s not just a normal loan. Your communications and documents that come with those around you investing in you and your business are still important and should not be neglected.

  • Recognise other ways in which your family and friends can be helpful to you.

Those who have invested in your business are investing in you and are more likely to be patient and provide you with advice when you need it later on.

Those around you may be your biggest asset when starting your own entrepreneurial adventure.

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─ April 22, 2016