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August 24, 2009 at 2:32 pm #965461mike@engagemarketingMember
- Total posts: 300
I’ve got a new project in the works and with most of my planning done i’m left to sort out what way i’m going to obtain finance.
I’m keen to stay away from the world of venture capitalists as I want business to have as little negative impact on my personal life as possible and am reluctant to give over control of a a concept which i believe will prove very successful.
I have opportunities for financial support from family, with the possibility of both the finance, or the collateral provided if i were to take out a business loan with a bank.
I’m aware of the potential for things to go sour and upset my relationships with family, but would love to hear from solo’ers if they have experienced this before and now swear off working with family or encourage it for the obvious benefits as long as you have a sound business concept that is well managed.August 24, 2009 at 10:01 pm #1012101BurgoParticipant
- Total posts: 2,104
For what its worth it is very tempting and also generous of family financing but AVOID AVOID AVOID.
Keep business business and family family that way you will have a long and happy life.August 24, 2009 at 11:24 pm #1012102LeelaCosgroveMember
- Total posts: 634
I’m with Patrick – my journey into this area lasted about 2.5 weeks.
Instead of using family, how you can turn the venture into one that is self-funding?
I meet a lot of people with new ventures who get caught up in looking at how much it’s going to cost and thinking they need to get that money through a traditional route like a bank, a VC or a loan – when really, there’s a million ways in which they could boot-strap and make the whole thing a self-funding enterprise … yes, maybe you won’t be able to get everything going a million miles immediately, but maybe that’s also for the best …August 25, 2009 at 1:49 am #1012103KingMember
::mike@engagemarketing, post: 12633 wrote:I want business to have as little negative impact on my personal life as possible….
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…..I have opportunities for financial support from family, with the possibility of both the finance, or the collateral provided.
I think you have answered your own questionAugust 26, 2009 at 12:26 am #1012104BookkeepiingProMember
- Total posts: 25
I think that the idea is fraught. Money and relationships are like oil and water – they don’t mix. Having said that it completely depends on the business you are talking about and the nature of your family relationship.
But I do think the golden rule is to start micro – be a complete spend thrift – dont commit to any contracts (leases, phones etc – if possible of course) and prove your business at that level.
Chances are that if the concept is viable – it will be self funding as Leela suggests – if not then you have to ask – will more money help.
If you can avoid loans or VC you will be all the better for it.August 26, 2009 at 6:13 am #1012105mike@engagemarketingMember
- Total posts: 300
Thanks for the input. I didn’t think many would view it favorably (only the lucky few that used this method without a hitch!).
In regards to starting micro and self-funding, my new venture is targeting Australia’s biggest enterprises, so this isn’t really suitable, but i agree that it can be a great way of starting a cash-flow positive business early on, with limited risk.
If anyone else has any stories they can share to sway me, please share, but I’m swaying towards keeping family out of it.
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