Invested in a friend’s business a while back. Received ~$2500 last quarter. About the same the quarters before that. Nearly $4k this quarter.
I do nothing. No labor. No consulting. Only put in a few grand a while back.
BUT, don’t invest in most businesses. Usually, especially with friends.
- Relationships matter more than money. At least for me. The probability of doing business with friends going bad is infinitely higher than it going well AND you both enjoying the process.
- Most businesses fail. And if they don’t, most friends hate each other over something along the way. Usually both.
- For the same reasons, unless you’re both experienced, probably don’t ask for money. If you are starting a business and asking inexperienced friends to invest, get ready to disappoint them and create a headache for yourself. If you’re investing in a friend’s business that is an inexperienced entrepreneur, get ready to light that money on fire and “offend” your friend should you ever ask for a reasonable update.
But if the stars align, even a small payout like this, feels great getting free money. Equally great supporting a friend in a small way that helped launch their now profitable business.
