Friends and Family Funding

While venture-backed companies may grab more of the headlines, the fact of the matter is that the vast majority of startups get their funding from family, friends and work colleagues. While a successful venture will most likely make everybody happy, an unsuccessful one can tear relationships apart. But they don't have to.

Clarifying the potential risks and rewards, working out all the details and putting it all in writing can significantly reduce the strains being in business together can put on those relationships.

Business Law Guide Jean Murray has a checklist of things to consider before you go into business with family or friends.

Related on About.com:

• How to Ask Family and Friends for Cash for Your Business
• Borrowing Business Startup Funds From Family/Friends
• Can This Family Business Relationship Be Saved?