How To Invite Your Parents To Invest In Your Company?

< p > Alex Genadinik, 33 years old, got 20 thousand dollars from her mother last year, founded a mobile phone software development company Problemio, Carlo Cisco, 26 years old. Since 2012, he has received 150 thousand dollars of convertible bonds from his relatives since 2012 to expand his discount club in restaurants, tourism and entertainment. Andrew Angus, 34 years old, has borrowed 500 thousand dollars from her mother in the past 5 years, so as to keep pace with the development of Switch Video in his animation company. < /p >
< p > these "internal" a href= "//www.sjfzxm.com/business/" > investment < /a > will be accompanied by certain consequences or even regrets. Cisco said, "this is the most easily borrowed money in my life, but it is also the most important part of my life, because no one wants to disappoint his parents." < /p >
< p > if you are going to ask your parents to give generously to your career in the next holiday reunion, please listen carefully to the suggestions of your predecessors. < /p >
< p > invest your money first. Cisco once worked for Groupon, and later invested all her 40 thousand dollar deposit in the website of FoodFan, the predecessor of Select. The $100 thousand convertible bond that relatives gave him enabled him to establish partnerships with restaurants and set up an early stage of the platform. When he asked for investment from his family, FoodFan already had 8.5 restaurants and more than 50 thousand menus. Cisco said: "we have good brand reputation and massive data when we open our mouth." < /p >
< p > next, to outsource < a href= "//www.sjfzxm.com/business/" > financing < /a >. The third party assessment of outside professional investors allows relatives and friends to accept your request more easily. In 2006, when Angus started his business in Ontario Province, a $250 thousand loan from the Canadian business and economic development center helped convince his mother of Collingwood. His mother mortgaged the property and helped Angus pay off the loan. Her investment was redeemed in 5 years after the agreement was redeemed in the form of convertible bonds, with an annual interest rate of 6%, which is much more than that of commercial loans. < /p >
< p > Cisco also agrees to introduce external investors first. Before looking for his relatives' financing, he had negotiated with some angel investors the amount of investment ranging from 25 thousand to 100 thousand dollars, but the interest was 6% to 10%. He thought the cake was too big to bear. So he borrows money from relatives in the form of convertible bonds, striving for time and space for bargaining and waiting for enterprises to develop to a higher level. Eventually he succeeded in obtaining $150 thousand from outside investors. His family's investments were directly converted into shares of the company. < /p >
< p > sign "a href=" //www.sjfzxm.com/business/ > formal agreement < /a >. Genadinik admitted that he regretted signing the "very, very irregular" loan agreement with his mother last April. There is no provision for repayment time, no interest, no formal contract, and nothing. About half a year later, his mother wanted to get that 20 thousand dollars back. Although Problemio had already started to earn revenue, Genadinik had no cash on hand. Instead of arguing with his mother, he paid off his mother's money by short term small loans plus $15 thousand of the shares, and instead paid a lot of expected interest and costs. From this we can learn to borrow money from relatives and sign formal agreements to clarify the details of loans and repayment. < /p >
< p > borrowing attention < a href= "//www.sjfzxm.com/business/" > scale < /a >. If Switch Video fails, Angus's mother will lose her house, and he will have to find a new place for his mother. Luckily, the company is developing very well. Now its annual revenue has exceeded 2 million US dollars. Its customers include Facebook, IBM, HP, Microsoft and American Express. < /p >
< p > Select founder Cisco warned everyone to borrow money from their parents when they did not exceed their a href= "//www.sjfzxm.com/business/" > failure capacity < /a >. He said: "of course you want to borrow enough money to create a career, but consider that if you fail in business, you may bring great trouble to your family." < /p >
< p > < strong > advantages and disadvantages of family investment < /strong > < /p >
< p > strong > Li: < /strong > high probability of success; investment and interest conditions are more favorable; can get money faster. < /p >
< p > strong > disadvantages: < /strong > parents will meddle in the company; they may be ridiculed by the industry; if they fail, they may feel guilty for life. < /p >