If you have a fantastic idea for a startup, you're likely excited to get your exciting new venture off the ground. Of course, that's a lot easier said than done, especially when it comes to funding your ideas.
The answer may be right in front of you! Getting some assistance from your family and friends is one of the most common ways entrepreneurs fund their ventures.
However, asking those close to you for money can feel intimidating or even embarrassing. That's why we've created a helpful guide for acquiring funding involving family and friends.
Yes, Asking Family and Friends For Money is Tough
There's no way around it, asking for some help can be a bit embarrassing. You may worry that they'll trivialize your work or laugh it off as a silly idea.
We understand that asking those closest to you for financial assistance isn't exactly an easy or fun task. But that doesn't mean it isn't worth pursuing.
Don't give up on the idea of asking for help. Otherwise, you're closing yourself off to an entire avenue of funding and could lose out on becoming the next big thing.
It's unfair to ask for financial assistance without giving something in return. That's why it's important that you're prepared to offer something as a token of gratitude.
It may be a financial incentive, like a bit of extra stake in the company. Or it may be a boosted returns rate.
Whatever the case may be, the thought process is simple: there's no such thing as a free lunch. People are less likely to back your idea if there isn't a tangible benefit, and fast.
Asking for funding is a huge step, so it's important that you get everything just right.
First, wait for the right moment. Don't ruin a perfectly good family meal with talk of business. Set aside time later to talk about it and they're more likely to be receptive.
Next, bring visual evidence. Don't just tell them what you want to do, show them. Bring charts and figures that show why investing in your startup is a good idea.
Finally, draw up a contract. The legal requirements for reporting family and friends funding is a bit fuzzy depending on the amount, so check online and make sure you're following the law.
Don't Pressure Them
Above all else, don't put any undue pressure on those you love. Accept no for an answer if they're not interested.
As profitable as your new idea may be, it's not worth losing friends and family over. Remain reasonable and respectful when waiting for an answer.
Secure Funding For Your Idea
Score 3 Angels understands how difficult it is to get your startup off the ground, even with the financial assistance from your family and friends.
That's why we've set out to create a unique platform that connects the makers of tomorrow with potential investors. Apply as an entrepreneur today! It's quick, free, and may just be the smartest decision you'll ever make.