After you have put up some of your own money, friends, acquaintances and relatives are probably the source to consider next. About 13 percent of entrepreneurs obtain start-up capital from this source. When you borrow from people you know, everything starts out on a friendly basis. It may be your Aunt Esther, your old buddy Sam from high school or a more casual acquaintance from your club. But be aware that once the loan is made, the friendly atmosphere may dissolve.
Money can do strange things to people.
For example, you may find that Sam keeps calling up every day or so to see how things are going and to pester you with unwanted advice. Working Partner One solution to the money problem is to take on a working partner who makes an investment and shares the running of the company with you. The capital and skills of two people are combined. In an ideal arrangement the partners' qualities complement each other. One formula teams a person having expertise in the type of business with a money person.