How To Raise Money From Your Friends

	1. Friends And Money Seeking seed money from friends only works if and only if your friends are cool with never seeing that money again. If they are expecting to be paid back in a certain time or even get a return on their investment then the friendship could be in trouble. Business has no guarantees. I would rather borrow from a bank than friends. Thanks to Lisa Concepcion-Giassa of LCG Communications
	2. Carefully Make sure they can lose it- it will effect your relationship with them. Thanks to Barry Moltz of Shafran Moltz Group
	3. No Room For Friends There is no room for friendship when it comes to raising funds. Treat it EVEN MORE like you would a request from a stranger or a bank. Include a formal contract/agreement, payback terms, timing, contingencies, communication about status, etc. And lastly, do what you MUST to ensure it is complied with - do not tread on the goodwill of friends and expect them to forgive, understand, or overlook your slow payments, short payments or failure to meet the contractual obligations. Thanks to David Zahn of ZAHN Consulting, LLC
	4. Never Ask For Money From Friends If your hare-brained scheme is so wacky that you can't convince an actual investor or bank to supply money, then you are almost certainly going to lose a friend over this. And in case you are very young or naive, true friends are always more important than business. Thanks to Steve Silberberg of Fatpacking
	5. More Than Just A Trust Me Approach It is as important to have a formal business plan for friends and family as it is for outside investors. Show them your idea -- why does it have merit? What is your sales and marketing strategy? What exactly will you use the money toward? Have a written document that your friends can read and understand. If possible, put together a powerpoint/pitchbook where you can walk them through your thinking step-by-step. In short, show them in a clearly understandable way what they are investing in. Thanks to Beverly Flaxington of The Collaborative
	6. Donate Button All Day Go through pay pal and set up a donate button. Add the donate button HTML code into a page on your website. Copy and paste the url for the donate button along with why you are raising money into a message to go out to all of your friends in email and throughout your social networks. The feedback and fundraising will be incredible. Thanks to Derrick Hayes of Motivation To Your Mobile
	7. Make Sure The Rules Are Spelled Out Completely It is always a tricky deal, doing business with friends and relatives, because if the enterprise does not go well, it could disrupt or end the relationship. For that reason, the rules of the agreement must be spelled out completely. Sure, you may be tempted to make oral agreements or just seal it all with a handshake, but that is asking for trouble down the road. You need to write out a contract that delineates everything, so no misunderstandings can arise. Thanks to Mark McLaughlin of MANCOMM
	8. Don't Mix Business & Pleasure I'm not a fan of raising money from friends! Now acquaintances, that's a different story. If you have a business concept that requires investment and you know people who are looking for an investment - go for it! Write your business plan and then communicate why investing with you is wise. Investors will want assurance that you have a plan for paying them back and that you know what you are doing. And, the best investors are those that have money and influence and realize the risk. Thanks to Vicki Donlan of VickiDonlan
	9. It Is Essential For Feel Like THE EXPERT To Raise Money From Friends! Asking for money as entrepreneurs can be a major struggle and very painful, because we don't have lots of personal support, a track record or the confidence that we're really worth the investment. We carry the kind of attention we get in childhood right with us into our adult lives. When we grow up feeling safe, secure, valuable, we have more energy and power to create our authentic lives. We can draw on our inner resources to make major creative contributors to the quality of life on the plane Thanks to Alice A March of The Attention Factor (R)
	10. Only As A Last Resort If you need capital to grow your business- I would exhaust all other sources, before asking friends to invest. Defining expectations- growth projections, return on investment, investor involvement in the company, etc. all need to be completed agreed on prior to accepting money- from any source. Mixing business with friendship is hard- and usually not successful. Consider financial investments from other sources that can help grow (and guide) your business. Thanks to Janet Boulter of Center Consulting Group