How to get funding from family

[Augusta]

One major way you can get funding is always from the family. Infact this should be your sure bet because family like one’s backbone when it comes to executing a lifelong project and starting a business is one of such. So if you need to convince your family to fund

Start with presenting your business

The family will want to see the business you want to engage in and how you want to go about it. So oblige them with the detailed information to create the needed awareness.

Try to reach a milestone

You don’t need to overwhelm them with the plenty money that the business need. You don’t need to ask for what they can’t afford. You can start with splitting the money. Then tell them how much you need to achieve a specific object or milestone. You can get that done before going for the next objective

Show your own investment

Well, you would be a joke if you just want to start a business without even a little input from you. So you need to show them your own financial input to the business you intend to start.

Make efforts and show commitments

Families are often times skeptical to part with their money when one come with the request of business money. It seems people are not even passionate about the business, maybe like a hobby to them. so you would need to convince your family that you are serious with the business with your level of sincerity and commitment

What do you think?

 

[Kingsley]

Starting a new business can be very challenging, you just have to first believe in yourself and believe in what you are doing, then you must have taken a very serious market survey and look out for the prons and cons of the business. You must have looked out for your absolute and comparative advantage of the business. Before trying to present it to any third-party. Now in the case of family member they will sometimes criticize you for your effort but you must prove to them them that you know exactly what you are doing. Then it's most likely they will be glad to suppose you with funding. And all your highlighted point too is a good head start. And very importantly you must not forget the God factor aswel.

 

[Mika]

If you have an huge extended family and if some of the members of your extended family are very rich, you might be lucky enough to get funding from your family members. However, this does not mean you can easily get funded, you still need to convince your family that you have a good idea and you are sincer about this business. You might even have to make your family member your business partner.

 

[btaliat]

Family can be so supportive while one is sourcing for fund for business. But before we can seek help from families, we must make sure that we have had our own personal saving. This will motivate them in helping us and we should make sure that we have convincing projects to show how serious we are

 

[Mellorando]

Most entrepreneurs I know are so passionate about their new idea that they are surprised when family and friends don’t line up to invest in their new venture. Yet they tend to ignore this problem, and move on quickly to professional investors. They don’t realize that most Angel investors and venture capitalists will also decline to be first, if you have no commitment from friends and family.
The reality is that investors, believe that the entrepreneur is more key to business success than the idea. Thus they look for evidence that people who know you well are willing to bet on you, even before your idea has a chance to show traction. Don’t let your lack of acumen with friends and family spiral your startup into the ground waiting for someone to go first.
On the positive side, friends and family probably won’t be as demanding on your financial projections as a professional investor, and they likely will be satisfied with an initial offer of a convertible note (loan with option to convert to equity later), so you don’t have to give away the store before you get started. But they do expect you to take them seriously.

 

[Alexandoy]

In the Chinese tradition putting up a business is part of the responsibility of the family. That means when you plan a start up your parents, siblings and close relatives are there to help you. Even with the lack of capital, friends would approach you to offer help. But that is the Chinese way of doing business. But in our culture it is to each his own concern. When you start up a business don't expect help from the family particularly financial help. You will just be disappointed. As the saying goes, been there, done that so I am speaking through my experience. Maybe in some other culture the family can be a source of assistance for a start up especially for the capital. You are lucky to have a family who is willing to help.

 

[Yusra3]

Getting finance from family and relatives entails being frank and presenting a comprehensive business plan that provides an idea of how you intend to meet the investments requirements, hence increasing your chance of success. Discuss the chance of giving the business, market conditions, financial projections along with money utilization in a detailed manner. Present the IPO investors with the fair acquisition rates, and the shareholding. If the purpose of restructuring is according to the loan phrasing then it would be great to set rigorous repayment terms. Establish a regular line of communication and be clear about what to expect. When you're using family money, raise your expectations for yourself, so that you transmit to your family that you are serious and focused. To avoid any problem that can occur in relationships, you should get into legal agreements to limit your encumbrances.