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16 Replies Last post: Dec 21, 2007 8:54 PM by Emile Yarder

How do I ask family and friends for money to start my business?

Oct 17, 2007 2:46 PM

Click to view TruthWearLLC's profile Professional TruthWearLLC 13 posts since
Oct 10, 2007
I have a dilemma. I need funding to start my business and I want to ask family and friends for donations but I am the type of guy who hates asking for money. What should I do? How is the best way to ask for money? Thanks for any help...
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Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
1. Re: How do I ask family and friends for money to start my business? Oct 17, 2007 2:54 PM

If you are going to be an entreprenuer you have to loose the 'shame and embarrassement' that naturally comes with asking for money.

Just ask them...all they can do is say No. They cannot kill you, take your birthday away from you, kill your idea (only YOU can do that).

Show them your idea...make them feel like they will be a part of 'something really big and wonderful....' .
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
2. Re: How do I ask family and friends for money to start my business? Oct 17, 2007 3:27 PM

Absolutely . . . what DDiva just wrote!

I have always been fiercely independent. If I COULD do it myself, I WANTED to do it myself. Okay, I'm still that way -- but there was a time when I wouldn't ask anyone for anything, especially money. So please believe me when I say that learning to ask people for help is one of the most important lessons we learn as entrepreneurs.

There was an audio program I listened to about how to "ask intelligently" (probably 25 years ago) that really, really helped me. I wish I could tell you who it was by (Brian Tracy, Denis Waitley, Jim Rohn?). Maybe someone else in the community has heard it and can provide more information, or better yet, suggest a current book/audio that explains the "how to" of asking. For me, that skill was invaluable.

Best wishes!
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
3. Re: How do I ask family and friends for money to start my business? Oct 17, 2007 3:31 PM
in response to: Lighthouse24
For me I found it was a mindset. One day after being called upon in a seminar...I finally realized that I had lost all of my shame....amazing the changes that have happened since.
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
4. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 10:31 AM
Asking family and friends for monet is always hard and tricky.
Have you developed a business plan??
SCORE has a Virtual Learning Center at www.score.org where you find out more.
Once you have a winning business plan, friends and family might want to be come
investors in this new business (with out the word donation)
Good luck, LUCKIEST
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
5. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 11:13 AM
in response to: LUCKIEST
INVESTORS is right!!! Be sure to have contracts and investors docs even for family members and friends. I drove my angel investor nuts with paperwork.
Click to view dazzler's profile Authority dazzler 23 posts since
Oct 17, 2007
6. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 1:11 PM
If at all possible, don't ask family and friends for money. Learning from the past, this was a very rude awakening for me as people I loved and trusted kept telling me "no". It also makes you see everyone as "human" and you only make everyone uncomfortable by putting them on the spot. Unless someone offers it to you as an investor or supporter in what you want to do, I would not ask. Today, I pride myself that I really did not need a penny from anyone. There are ways to get your own credit and means to survive if you have a good credit rating and are a mature, responsible person. If you need money to get going, take a part-time job, sell things on ebay to make money, start your business small and build. Be creative and think out-side the box.
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
7. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 1:53 PM
in response to: dazzler

A portion of the audio program I referred to above explains the importance of understanding WHY people tell you "no" -- and how you might be able get them to "yes." (If someone who loves us and trusts us is saying "no," it might in our best interest to learn why. To "see everyone as human" is usually a good thing -- since everyone is.)

Dazzler, I DO share your pride in being your own person, and I am by nature a DIY kind of guy. Even so, we ask for money from customers, and we give them something of value in return. It's equally noble to ask for money from family or friends, and to give them something of even greater value in return -- unless we don't really believe that we can deliver (i.e., that we may be ripping them off). In that case, you're absolutely right, we should not ask!

Since the posted question was, "How do I ask . . ." TruthWear appears to believe that the value is there, and wants advice on how to best approach those people. If that's not actually the case, however, you provide an excellent "counterpoint" warning, and something others might use as a "litmus test." Thanks for sharing your perspective!
Click to view dazzler's profile Authority dazzler 23 posts since
Oct 17, 2007
8. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 2:09 PM
in response to: Lighthouse24
Hello. Lighthouse24, thank you for bringing to my attention. As I am brand new to the forums, I have to be careful to read carefully what posters are asking. You are correct!

I also have something I like to share with everyone - - -I like to read it often. Hope it helps!

"To be persuasive, we must be believable;
To be believable, we must be credible;
To be credible, we must be truthful."

-Edward R. Murrow

I guess as long as we communicate with truth and passion.....people pick up on that. As we all work on trying to convince people and negotiate - - -hopefully, people will be throwing money and business at us left and right! LOL! :-)
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
9. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 2:51 PM
in response to: dazzler
Thanks for sharing the quote -- and your contributions. ALL experiences with a topic are valid and welcome here -- after all, sometimes we don't know how to phrase the question that we REALLY need answered! Thanks again . . .
Click to view TruthWearLLC's profile Professional TruthWearLLC 13 posts since
Oct 10, 2007
10. Re: How do I ask family and friends for money to start my business? Oct 18, 2007 3:04 PM
in response to: Lighthouse24
Thanks for all your input everyone. It has been very helpful. There is some great advice on here. Thanks again.
Click to view Emile Yarder's profile Mogul Emile Yarder 72 posts since
Dec 14, 2007
11. Re: How do I ask family and friends for money to start my business? Dec 19, 2007 2:37 PM
One thing I did for my brother is to email all people knows him. If you publish your bank account number, for example at the Bank of America, on your stationary. Then you can tell a good freind to write to them.

Give an amount $15 for.eg. He has to say that is a multiple of a capital. They could give $ 15 a week, $ 150 or $ 1500, or $ 15000. A multiple of 15. Or any amount. He has to explain what you call 'Love Money' is. And to propose your family and freinds to be anonymous if they prefer. They can send the multiple of $ 15 by post to stay anonymous or by the bank account.
They can send it with one message; for e.g.. ''To increase your capital; God bless'' He has to say the operation is secret, it must stay secret. Don't use your wife or children or brothers and sisters. A long way from home freind could be better.
If you want I could do that for you! LOL
When he post emails, start to thank every one you know. Say 'I receive love money from God, I don't know who send me money for my business.' A big sum.
It 's what I did for my brother, after years, people stay sending money anonymous by post every day to him. And he doesn't want to leave his flat in the middle of the town. I should do that for me too. John emileyarder1er@yahoo.fr
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
12. Re: How do I ask family and friends for money to start my business? Dec 19, 2007 3:50 PM
in response to: Emile Yarder
Emile, That is a great answer. Do you want my bank account number??
LUCKIEST
Click to view Emile Yarder's profile Mogul Emile Yarder 72 posts since
Dec 14, 2007
13. Re: How do I ask family and friends for money to start my business? Dec 19, 2007 7:18 PM
in response to: LUCKIEST
Thank You Luckiestman, I'll organise a campain for you. I begin to want to see your web site. Is it www.score.org ? john.
Click to view WEBillions's profile Mogul WEBillions 154 posts since
Oct 10, 2007
14. Re: How do I ask family and friends for money to start my business? Dec 21, 2007 4:46 AM
You should show your friends and family that you've put a lot of thought into it (without giving out the details) and that you are very excited about your new future. Those that can will help you. If you can offer them some way to contribute (without giving away control), they might be more excited about it. For example, my mom loves to help my test my social networking site (www.webillions.com). It makes her feel like she is helping her child with her dreams.
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