Welcome To Startup Students

It’s been a while. Here is why:

• Internship (30 hours per week)
• Brett Adams Design LLC – my company (50 hours last week)
• Two classes
• College football season tickets
• Pro football season tickets
• My ice hockey league
• 192,837,490,823,749 other things

It’s been really tough juggling everything, but I will have you know I’m working on a killer post for late this week. It’ll be so big it might not even be navigable.

Today, however, I’m going to take a few minutes and talk to you about the first branch young entrepreneurs generally shake on the money tree. That is, friends and family along with any other fools willing to get on board. An example of a “fool” would be someone not in tune with the market or industry such as your dentist, mechanic, or mailman.

Don’t get me wrong, these individuals are a great way to go and often times make much more sense than aplying for commercial lending or an SBA guranteed loan. However, obtaining money in this manner often leads to strained relationships and in some cases can rip families apart. Personally, I’d like to avoid that and I’m sure you would too. Below are some tips to consider when approaching these individuals for startup cash:

• Put it in writing. Every last detail about repayment and usage of funds should be included.
• You are running a business, so make it a business loa – not a personal loan.
• Things happen – natural disasters, emergencies, etc. Be sure to add provisions that cover these types of things.
• Have a business plan? Make it required reading for your lenders. If you don’t have a plan then either:
  • Go write one
  • Or B, thouroughly discuss your company’s goals, ambitions, and forecasts.
• Create a continuous dialog and discuss potential problems, fears, and issues that are taking place on both sides of the field.

Again, sorry for not being around. Don’t hold it against me. Remember, just like you I’m a student entrepreneur, with the keyword there being student. Class dismissed.