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Tap Into Your Network for Business Funding

Looking to raise capital for your new business? Start by approaching the people who know you best.

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This story appears in the August 2006 issue of Entrepreneur. Subscribe »

If your face appeared on the 10 o'clock news, how many people would say, "I know that person"? The list is probably longer than you think--and more than you'd imagine could be prospective investors in your business.

Making a List

Your first step in finding investors among people you know is simply to draw up a huge list of names, including your family, friends and beyond. You're in search of people with whom you already have a trusting relationship, or with whom you can establish one.

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