Your friend Manisha is great at cooking and she is a banker by profession and one day she invited you and some other common friends at the dinner where she announced that she want to open a restaurant soon and inviting you all to invest in her first business ever.
Please be careful of the words like ‘first timer’ before accepting her invitation because being a great chef at home could not define success at a food business because of some other important aspects involved like finance management, marketing and customer dealings.
Check her ability and probability of success
Before investing even a single dime in her restaurant business, you should check for the ability and probability of success of that upcoming startup from your friend Manisha.
How to do that?
It’s not an easy task, but you should go and ask your friend frankly that, what about other important aspects of running a food business, she is aware of those elements or she would take the help of any mentor.
She knows that all …
If she knows those aspects too, then no problem starts with a smaller investment and promise to yourself that you would increase the financial flow when results would be public for the first time.
Would take help from an experienced mentor …
If she is going to take help from a mentor, then you should go and inspect a little bit about that mentor and here again start with small and regular investment but not with the bigger investments in a single transaction.
Check the initial progress
You should see that what is the excitement level of your friend towards that business she is announcing and also the fundamental progress report like what would be the venue, staff members and initial investment she proposed from her own savings or by lending loan.