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Millennial Money: Should you invest in a friend’s business? | Home + Life + Health


Roughly 20% of companies shut throughout the first 12 months, based on information from the Bureau of Labor Statistics. And most startups by no means ship a optimistic return.

“Ask yourself if you are OK if you lose all the money you invested in your friend’s startup,” Amanda Sanders, founding father of Authentic CEO, stated by e-mail. Sanders has been on each side of the equation — as an entrepreneur and an investor.

“If the honest answer is yes with no ill will toward your friend, then the relationship is likely to remain solid regardless of the business outcome,” she stated. “If your answer is conditional, then the outcome of the friendship is likely to be conditional on the business investment.”

OFFER SUPPORT, EXPERTISE OVER CASH

Money isn’t the one technique to assist a pal’s enterprise. You can provide time, experience and connections.

Pitch in at pop-ups and occasions. Manage their social media accounts. Hand out flyers to get the phrase out. Be a sounding board for concepts and points.

Or simply present up with takeout on occasion, Sanders stated.

“Having a friend interrupt your endless work schedule and bring in the food, the fun and the Fireball (the third part is optional) is very important for maintaining sanity.”



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