Getting your startup funded by friends and family can be the easiest and fastest mode of funding. But it may not work if you are targeting wrong people, i.e. not everyone in the family and friends would either be interested or be able to fund your business.
So, it is very important to know whom to ask for funding. Knowing this is important because, this is the only way to get your startup funded by friends and family in less time. To make things working you must do a quick research and approach the targeted people only.
This article will guide you through the details of who in the family and friends circle you should ask for finances and when should you do it.
1- Consider the individuals’ with good financial background, because funding a small business is a high risk investment.
2- The best investor is someone with business mind.
3- Successful entrepreneurs are always interested in investing in new ventures, so look for someone like this in your circles. Even if someone is not your first degree connection, but some of your friend or family member can bridge the connection, consider him.
4- Keep the people with past conflicts out of your list.
5- Avoid people who may create additional issues out of this investment.
6- Target people in closer circles first, i.e. immediate family members and close friends.
Considering the above points will give you a very clear list of potential investors for your startup business. And in case if the above filters leave you with no one in the list, do not forcefully include anyone.