Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
Most startup companies receive the bulk of their seed capital from friends and family (F&F). The best way to make this type of funding work for you is to put all the risks and opportunities in front of your potential F&F investors and have them help you create a healthy, profitable business. Your friends and family may want to be passive, but if they request to be active, find a way to involve them that is beneficial to all, including the business. When your F&F investors participate actively in your business, consider incorporating the business with them as founding stockholders.
Marilyn Holt, CMC
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.