3rd F

The three F’s are Family, Friends and Fools (FFF).

Most entrepreneurs will have asked their friends and family to invest in their business. They will also ask anyone they know who they think has money… from their point of view this is very sensible.

However, friends and family are generally not investing in the proposition but the person and belief that the person is capable of making the business work. They are unlikley to examine the business plan and potential in great detail.

Anyone else who enters the company without doing due diligence is, unkindly, called a fool. Someone who listens to a stranger talk about an amazing proposition and puts their own money into the idea without doing any background work is likely to loose all their money: it’s foolish!