Russ Cook & Associates, PC
view our Practice areas

What to know before asking parents to invest in a new business

Your parents might be your biggest supporters. They could be the people who stand by you when you make a mistake and help you get back on your feet; they could be the people who encourage you to try new things.

It might make sense, then, to ask your parents for an investment if you want to start a business. However, before you do this, it can be wise to consider a few important tips.

  1. Be professional. Approach talking to your parents about investing as if you were talking to a stranger. Have a business plan in place; know your financial needs and goals; be prepared to discuss when they can expect to get their money back. Formalizing the process and the transaction can make it easier for parents to make informed decisions. It also shows that you are serious about the endeavor.
  2. Understand that "no" is an acceptable answer. As this Associated Press article notes, starting a business is a risk, and not all parents are willing or able to take on that risk.  Keep in mind the fact that they have financial goals and priorities, as well. Remembering this can protect your relationship with your parents, even if they say no.
  3. Don't assume that financial support is the only meaningful type of support. If your parents decline the opportunity to invest, don't assume that they don't support you or your business goals. They may be willing to help in other, non-financial ways, and these can be extremely important as well. For instance, they might take care of your kids when you are working on the business; they might be willing to connect you with legal, financial or other professional resources; they could help you with various business-related tasks.

Taking the time to think about these details can help you manage your expectations and set yourself up for a positive experience.

It is not always easy for children to ask parents for help, nor is it easy for parents to make sacrifices for a child's business venture. Taking the situation seriously, being prepared for a "no" and accepting non-financial forms of support can make it easier to protect your new business and your relationship with your parents.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying About Us

  • “Everyone we came in contact with was wonderful. The staff and Russ treated us like family at all times.”

    - June S.
  • “Being new to the area having moved from out of state, I was searching for an attorney to assist in elder estate planning for my mother. I was referred to Russ Cook & Associates and found the firm as a whole and Russ Cook himself to be very helpful and accommodating to my needs, as well as experienced and very knowledgeable on the matter I was seeking assistance. I would definitely recommend Russ Cook and Associates.”

    - Brad H.
  • “Mr. Cook and his staff were phenomenal to work with on my will. They are extremely professional and friendly and made the process seamless. They go above and beyond!”

    - Amber C.
  • “Russ took the time to answer my questions by email, so that I knew exactly what would take place when I visited his office and his time as well as mine was used efficiently. I appreciated his thoroughness and his professionalism, as well as that of his staff.”

    - JoAnn G.
  • “Overwhelmingly positive experience.”

    - Stephen W.
Email Us For A Response

Schedule An Initial Consultation Today

Contact us today to schedule a consultation by sending us an email or by calling 615-200-9117.
We assist clients throughout the Nashville area.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Brand Contact

5141 Virginia Way
Suite 220
Brentwood, TN 37027

Phone: 615-200-9117
Fax: 615-370-5938
Brentwood Law Office Map

Office Hours:
Monday: 8:00 AM – 4:30 PM
Tuesday: 8:00 AM – 4:30 PM
Wednesday: 8:00 AM – 4:30 PM
Thursday: 8:00 AM – 4:30 PM
Friday: 8:00 AM – 4:30 PM

Summer Hours Office:
8:00 AM - 1:00 PM on Fridays
May 24th Through August 30th

Map Image