Borrowing from Family / Friends
No doubt a grueling decision, but because of the many variables involved, let’s have a little fun with this one!
Now may be the time to have a drink or dinner with that rich aunt, uncle, or even cousin. You may also want to visit your grandmother that you haven’t seen in a while, and let her know how well the business is doing (or about the great idea you have for starting your own business). When it comes to asking for cash from a relative, it may be awfully awkward but can also be rather rewarding.
A nice family-favorite restaurant, a home-cooked dinner for grandma, or meeting your financially savvy aunt at her favorite martini bar, drinks are often a good way to start. If you go this route, just keep in mind that many deals related to money and financing have been made between drinks and the meal. A little social lubricant – for you and your potential next investor – gives you some liquid courage and your potential lender just enough of a buzz to offer financial promises or commitments that are hard to back away from once dinner sobers them up. Your grandmother likely has no idea how to run an amortization schedule and probably doesn’t know what APR is, right?! You can be the best grandchild by paying her back 2% over the next 30 years, and that’s a rate no bank can touch!
Ok, so we went a bit silly with that, but seriously, if you happen to have someone in your life willing to invest in your business, be grateful but cautious.
You have options to consider, as well as their advantages and disadvantages, when it comes to paying for the new equipment you have decided to add to your screen printing business. Taking a bit of time to work through each and how they could impact your particular business is an important step in the process that we encourage you to go through.