Is it better to hit up your friends and family before the Holiday gift giving season or afterwards in the New Year? Assuming I have enough cash to wait till after the New Year.
Another factor is that in BC, Canada, investors qualify for a 30% income tax credit (under the Eligible Business Corporation) which is applied to the tax year which ends Dec 31, 2010. Theoretically if I take investment before the New Year, my investors will receive a 30% tax credit. Otherwise, they will have to wait a year+ to see that credit.
I'd have to say go ahead and ask.
If there is a good chance they are going to help you out it is better to ask before the holidays. If you ask after I think there is a good chance they will say that they have already spent their extra cash on buying presents and to come back later.
I would also ask before the Dec 31 deadline as this may be the thing that helps sweeten the deal.
Also, don't be afraid of rejection, because of the end of tax year and also the Christmas season your friends and family may have to say come back later.
If you have a good business plan, I'd suggest the earlier the better. If you ask now there is still some time for them to plan leading up to Christmas.
If you have a plan then you should be asking. If you are not ready then you might not convert someone with just an elevator pitch. So strike when ready trying to estimate the thinking of an investor in the aggregate well rarely apply in the actual.