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As mentioned in one of my earlier posts here, friends and relatives form the first and innermost ring of funding sources. Although they are difficult to convince, there are no formalities involved with them like presentation, etc. Once convinced, they are the constant flow of cash for the agreed sum.
Now the issue faced by the small business owner is about managing relationship with them. Experts assert that the relationship functions on two platforms – personal and professional. While personal relationship had been maintained so far, the new dimension of professional relationship becomes important, and the two should be separated from each other.
Ensure that as a small business owner, you are in constant touch with those who have funded your business at the start up stage. Without them, you would not have been here. Decide frequency like month or fortnight over which you should send a letter to them enlightening them on the development in the business. This gives them sort of assurance that things are in place. Even if business is showing negative signs over a period of time, your communication to them on a regular basis assures them that you are ‘honestly’ working in the business to make it grow.
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