Millennial Money: Should you invest in a friend’s business?

By KELSEY SHEEHY of NerdWallet

Mixing business and friendship can tank a relationship. So if a classmate, colleague or childhood friend asks you to invest in their business, proceed with caution. Evaluate the request as if it was coming from a stranger. Consider their credentials, in the industry and as a businessperson, and review their business plan with a critical eye. If you opt to invest, set clear terms in writing and set boundaries to avoid blurring the lines between business and personal affairs. Understand that investing in a business is a risky bet and don’t put up any money that you aren’t fully prepared to lose.