Raising Money: Ask Friends And Family First

Ted and Flori Pate, owners of Dig Local in Asheville, discuss asking for money for your small business first from friends and family. You should try to always find funding from people you trust, they reiterate. Your funding and investment partnerships should always be calculated.

I've always heard from
people like Tom Ryan,
you should start at friends and family
when you're raising money,
always try to go with
somebody that you trust.
I would be very cautious
before you get investors
and know what their
intentions are from the get go
and have everything
written out, agreed to,
very simply and in agreement,
whenever you get an investor involved.
just to save your money and
bootstrap as much as you can
before you start chipping
away at that equity
'cause we had a lot of people
that wanted to partner with us
that loved our idea and
saw the value in it.
And there were times
where we were just like,
just let's make them a partner
because they have this
skill that we don't have.
And I feel grateful that
we were more calculated
because we'd been through
the initial hardship
of trying to untangle a partnership.
So I would say if you don't
have to give away that equity,
hold onto it for as long as you can.

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