One common method of initial financing for a start-up business is to borrow money from friends and relatives. Would you borrow from your friends and/or family if you were starting a business? Why or why not?
The main reason most start-up businesses today fail is due to the fact that they do not have enough original capital invested into the company. Most people do not have the means to support a new company out of pocket. Due to this reason, I believe it is a bad idea to rely on friends or family members to provide the necessary capital for a start-up company.