TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
Custom Search
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map

Columns
History/Opinion


Columns | Go Far With Kovar

Family Loans:
How To Lend With Family

by Taylor Kovar
Hi Taylor - My brother asked if I could loan him money for a food service company he's launching. I trust him and like the concept but get a little nervous about lending money to family. Any advice? - Marjorie

Hi Marjorie - Family or otherwise, anxiety is always the right feeling when asked to lend money. Once you get past those initial nerves, you need to look past the family part and assess the situation logically.

1. What's the business? If you like the concept, this loan request has already passed the first test. The main reason I would advise someone not to loan money to a family member is if they feel guilted into doing so and otherwise wouldn't put capital behind such a venture. If you think your brother understands the industry and knows about all the insurance, inventory, and staffing costs associated with food service, the family connection becomes moot. Do you think this business, as proposed by the business owner and with location in mind, has a chance to do well with the proper funding? If so, don't dismiss the proposal.

2. What's the plan?
One million "good" concepts get pitched at dining room tables every day. The trick is turning a bright idea into a profitable company, and that involves a solid business plan. If you're going to invest in this company, you should request a detailed model for how money will get spent, returned, and reinvested. As a personal investor, you deserve as much say as you want in this company. If it makes sense, you might want to use your money to buy an active role in the operation. Angel investing can make you a lot of money while helping your brother grow the business. However, if you choose to move forward, make sure you get what you want out of this investment.

3. How much are you spending?
Like with any investment, don't spend a penny more than what feels comfortable. Even with a great concept and the smartest brother on the planet, you still face plenty of risks with this kind of venture. You don't want to put so much money on the line that an unforeseen disaster could sink multiple family members. Ignore the amount your brother asked for and think about what you can confidently invest - that's what's most important.

If you have a family member with a billion-dollar idea, you don't want to miss out on it. At the same time, you don't want to lose money on a bad idea just because of a sibling bond. Set aside the relationship and think about investing on your own terms. While you mull it over, your brother might want to have a look at a business funding article we've got up at GoFarWithKovar.com. Best of luck to both of you, Marjorie!


Taylor Kovar October 29, 2019
More "Go Far With Kovar"
Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.

"Go Far With Kovar"

  • Ideas for a Fun, Cost-Effective Halloween 10-23-19
  • How Can I Protect My Family Financially 10-17-19
  • Should I Get a New Credit Card? 10-8-19
  • How Does the Impeachment Inquiry Affect My Investments? 10-3-19
  • Saudi Arabia Attack: Should I Panic? 9-24-19

    more »
  •  

     

     

     

     

     

     

     

     

     

     


    Texas Escapes Online Magazine »   Archive Issues » Home »
    TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
    Texas Counties
    Texas Towns A-Z
    Texas Ghost Towns

    TEXAS REGIONS:
    Central Texas North
    Central Texas South
    Texas Gulf Coast
    Texas Panhandle
    Texas Hill Country
    East Texas
    South Texas
    West Texas

    Courthouses
    Jails
    Churches
    Schoolhouses
    Bridges
    Theaters
    Depots
    Rooms with a Past
    Monuments
    Statues

    Gas Stations
    Post Offices
    Museums
    Water Towers
    Grain Elevators
    Cotton Gins
    Lodges
    Stores
    Banks

    Vintage Photos
    Historic Trees
    Cemeteries
    Old Neon
    Ghost Signs
    Signs
    Murals
    Gargoyles
    Pitted Dates
    Cornerstones
    Then & Now

    Columns: History/Opinion
    Texas History
    Small Town Sagas
    Black History
    WWII
    Texas Centennial
    Ghosts
    People
    Animals
    Food
    Music
    Art

    Books
    Cotton
    Texas Railroads

    Texas Trips
    Texas Drives
    Texas State Parks
    Texas Rivers
    Texas Lakes
    Texas Forts
    Texas Trails
    Texas Maps
    USA
    MEXICO
    HOTELS

    Site Map
    About Us
    Privacy Statement
    Disclaimer
    Contributors
    Staff
    Contact Us

     
    Website Content Copyright Texas Escapes LLC. All Rights Reserved