Entrepreneurs and their friends and family are the stars of this stage. Often tapping into personal savings, home equity loans or insurance policies to start a business. Beyond utilizing your own personal funds for the startup of your business, friends and family are the most traditional first investors in small businesses during their formation and initial operating stage. Jeff Bazos, Michael Dell and Elon Musk all received loans or investments from their families to start their companies.
If you take funding from friends and family, make sure to outline the terms and intentions of this funding in writing. This will help you manage expectations and maintain your relationships as you move forward.
The following articles provide timely tips on using personal resources to fund your business.
- Asking Friends and Family for Funding (Entrepreneur)
- How to Get Funding From Friends and Family (Entrepreneur)
- Putting Personal Money into a Business in 7 Steps (Fit Small Business)