When you’re searching for ways to finance your new business, it makes sense to turn to the people who believe in you most: your loved ones.
In fact, one 2020 survey found that 10% of entrepreneurs have relied on their friends and family to finance their businesses. While that might not sound like a lot, it puts loved ones ahead of other funding options like Small Business Administration loans and lines of credit.
Of course, asking for money can be awkward. You’re not asking a friend to spot you $10 because you left your wallet in the car. You’re asking them to invest in your big idea and support your ambitions, with no guarantee of success or a return.
There’s a right way and a wrong way to handle these types of requests. Here, we’ve created a step-by-step guide to asking your friends and family for help—with as little awkwardness as possible.