Asking for money from family and friends is rarely an easy thing to do but often necessary when funding a small business. Never take personal relationships for granted, or expect someone to give or lend you cash. Bankers and investors expect to be asked for money, family and friends do not. It is always a bad idea to catch someone off guard and ask them for anything, especially money.
Make sure the plan includes a clear explanation of business operations and expectations. In addition, you want to formulate a financial prospectus that details exactly how and when the business is going to pay back the investment from the friends and family. Highlight the potential return on the investment.
Have an amount in mind, repayment terms, and any other conditions you feel are needed. You should also think about what is not acceptable, and be prepared to negotiate, or politely decline an offer that does not meet your business goals, or that might sour a personal relationship.