Never Borrow Startup Funds from Friends and Family
No Comments » comment(s)
In the beginning when the idea of some hot new startup idea is fresh in your mind, but may require considerable resources, you’ll be tempted to borrow money from friends and family. You’ll go on about how they’ll be rich and how the idea is sure to succeed because no one has ever done it before, and there are potentially billions of customers.
But it’s a bad idea – a really bad idea. Why? Because you’re mixing the social contract with a financial contract (even if there’s no physical contract involved).