Good Ways To Ask Friends And Family For Money
Money seems to always be in short supply. There never seems to be enough to pay all the bills and there is never enough leftover to invest in new equipment for your new business. There just never seems to be enough to grow into a new market or to expand into a new facility. A shortage of money is one of the top reasons’ businesses grow slow.
There are many ways that a business can get the money it needs in order to function the way it should. The quick and easy way to obtain funding is to ask friends and family for money or to invest in the business. Here are some ways that it will make it easier to ask the big financial question.
Making it Easy to Ask Friends and Family for Money
Family and friends have always been the first choice for people to go to for money when making the choice to start up a new business.
What You Can Do to Ask Friends and Family for Money
- Make sure you have the right strategy picked out before asking for a loan or investment. Family and friends can get nervous when you ask them for money. They will often have the feelings that they will never see their money again, or may even question the validity of why you need the money in the first place. It will be important to have a strategy all mapped out and ready to present to them so they see the need. It will help them feel like their money is being used in an effective manner.
- Know what type of investment you are looking for. If you are looking for people to just loan you money that you will eventually pay back, then approach them seeking a loan. Some business owners do not like the idea of have outstanding loans and will choose to let family and friends simply invest in the company. This can be an attractive way of getting people to share in the company. However, all investors have interest in the company and will want to have a say in how things are done.
- Have a good pitch ready to go geared for quick cash loans. Friends and family members that you are seeking money from will want to know how their money will be used. It is your burden to show them exactly how it will be done. They may want to know when the money is needed, how it will be used, what they will gain from lending or investing money in the company. It is a good idea to have a printed proposal that is simple to read ready for them to look at.
- Keep everything looking professional. There is a tendency to be informal with family and friends. You will want to treat this like a business presentation that you would normally give to a lender or professional investor. It would even be a good idea to have the meeting in the office or in a rented conference room. This will send the message that you are serious about using the money in a professional manner.
- Be clear with all the details when you ask friends and family for money. There will be questions and some of those questions may be filled with expectations. Answer all questions clearly and give hope within the answers. Make sure they understand that updated information will be provided on a regular basis as the business moves along.
Asking for money is never an easy thing to do. You may wish that your business had the c flow to sustain itself and do everything that you want it to do so you don't have to ask friends and family for money.
But the reality is that emergency cash loans are needed as you grow. By following these simple steps you will have a better chance of getting the money you need for your business growth.