“You have to do your due diligence even if you
have known the person your whole life,” Dimitrios
Mano, an entrepreneur, said through email.
Mano co-founded Bloom Express, an online CBD
marketplace, in 2019 with a close college friend
while the two were still in school.
Outside of his co-founder, Mano did not approach
friends or family for a startup business loan. The
duo relied on personal savings and income from
their day jobs.
“I have seen friends ruin 20-plus years of
friendships over irrelevant business arguments
and family members completely cut ties with one
another because of a slight disagreement,” Mano
said. For him, the investment wasn’t worth the
potential personal cost.
COMMUNICATE, BUT SET BOUNDARIES
The lines between business and personal affairs
can quickly blur when you invest in a loved one’s
business. While clear, frequent communication is
essential, it’s important to draw boundaries.
When Mark Aselstine co-founded Uncorked
Ventures, a now-defunct online wine club ,
with his brother-in-law, the duo set strict rules
at the onset.
“We decided at the beginning that we wouldn’t
say anything to each other that we wouldn’t say
to our nieces or nephews,” Aselstine said through
email. The two relegated business talk to morning
meetings, rather than casual outings. “(We) had
a rule to not talk about it at family events (and)
dinners. Having those dividing lines, but open
communication was key.”