Borrowing from friends or relatives demands more, not less, diligence.
When we borrow from friends or relatives we tend to avoid formal agreements. We tend to assume too much.
If we are successful with the borrowed funds, expectations could become distorted. If the investment of borrowed funds results in failure, bitter misunderstandings could result.
At risk, besides the money, are relationships and they become even more valuable when business plans fail to materialize.
Not only should we enter into thorough formal written agreements but, we should include more details than usual on the provisions and conditions. We should also conduct more frequent and more thorough reports on the progress of the business.
Stories from members will add great value to these maxims
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