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How To Ask For Money


No More Cubes:

Not all of us are in the garage trying to build the next great software. Some people want to create something more simple and traditional.

Often the media talks about Venture Capital and Angel Investors like that is the only way to get money for your business, but what is often ignored is that the majority of entrepreneurs are self funded, with the aid of family members, friends, and acquaintances.

Here are some tips about how to ask the people you know for money:

1. Decide on a rough amount of money that you would like to raise – say $25,000

2. Provide ranges and options for your friends and family so that they can pick what they are comformtable with – short term loan, higher interest rate; Long term loan, lower interest rate, etc.

3. Brainstorm 5 – 10 people that you know who would be inclined to loan you money and are in a position to invest.

4. Think outside of the box and think about colleagues, old managers, golf team members, and others in your natural network.

5. Ask for referrals, ask your friends and families for contacts, better yet, ask your lawyer, insurance agent and tax advisor, and also network at professional associations to build up your contacts.

For 10 more tips, go here.

Photo by nmy.

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Comments

  • Have you ever looked into microfinancing sites such as Prosper.com, Zopa.com, or Fundable.com. These are P2P lending sites that can allow you to borrow money a decent rates without giving up a part of your company (like you would with a VC/AI).

  • i am appau dominic from ghana and i am realy sure of workiong with your coporation as well from ghana and i am sure that if you are really interest as welkl you are going to write me as well and i am sure that you are going to do that as well thank you and bye

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