We seem to always hear about success stories, especially where financing is concerned. I especially wonder about taking money from family and friends, a typical way to jumpstart a company. I know it's a sensitive subject, but I'd love to hear about the other side and what to watch out for.
When you take money from family, you have to <i>feircly</i> manage expectations. Your family may not quite grok what "investing in Junior's company" means. The most common mismanaged expectation is that it's a kind of loan and they expect to be paid back in relatively short order.<p>Even with family, put it in writing. And always be willing to sacrifice nearly everything to just "pay it back" if you want to prevent a potential permanent family schism.
No, but I have lended money to friends and in so doing destroyed said friendships. I refuse to lend money to any entity but my own business as a result. Human beings are fundamentally untrustworthy in the absence of explicit contracts, when it involves money.