Raising Capital from Friends and Family
The main reason friend and family capital is the easiest is because these are people who know you and trust you. It is this trust that is the main reason they are investing, less so because of the business plan. If you are looking outside of this group then it is more about the business plan. However it is still critical to have a contact that you have a connection with. Focus on potential investors with whom you have a relationship of some kind, someone who knows you, someone who at the very least has met with you at least once. Cold calls for capital are almost impossible. People simply don’t invest in companies where they don’t know the principal or have a friend who knows the principal.
For more information on raising capital and handling the other unique challenges of running a small business, visit our site at https://www.riskebiz.com. Register to receive a free copy of our upcoming “Small Business Survival Guide” book and connect with accredited investors to potentially fund your startup.
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