Starting a business when you have a young family at home can be a risky business. Babies and children need clothes, food, and a roof over their heads, and it can be hard to imagine how you’ll provide stability in the uncertain economic climate. Nevertheless, if you’re trying to strike that elusive work/life balance, being your own boss comes with many benefits. You have autonomy over your time for a start, you can control your income (to an extent), and you’re able to work from home when you need to.
However, there are legitimate concerns that come with entrepreneurship, including worries about job security and financial stability. Starting a business with a young family at home is entirely possible, but there are things you should consider before taking the leap.
Take Stock of Your Finances
Your personal and professional finances should be kept entirely separate unless you’re investing own savings into your startup. Having said that, your business will be your source of income, so you need to take stock of your financial health. Sit down and work out exactly what kind of shape your family is in. If you can afford to be without your paycheck for a few months, or you know your spouse’s income will cover the family living expenses, then you may be in a position to step out on your own full-time.
Don’t Let Lack of Funding Hold You Back
Not having spare money to put into your startup doesn’t mean you can’t follow your dreams of entrepreneurship – you will just have to be a bit smarter about it. If you have a job, you can start your business while you’re still employed until you’re in a position to go full-time. Lots of businesses start out this way, especially online companies and mobile startups.
Use Business Credit, Not Personal Finances
Whether or not you plan to use credit to finance your business, you will need to build up your business credit profile. Potential partners, lenders, vendors, and competitors can purchase a copy of your business credit profile at any time without your knowledge, so it’s important to have a good record of your credit patterns. It may sound backward, but a non-existent credit profile will increase the chance of you being denied for business credit cards, leases, financing, and even partnerships, so you should establish your profile in case you need credit in the future. For more information about building business credit, visit the North Shore Advisory website.
Be Prepared for Failure
Whatever you do, do not use personal credit or savings intended for college funds or family emergencies for your startup. Your family may need to rely on this money down the line, and you don’t want to pool all your resources into a business that you aren’t even sure will succeed. It’s a well-known fact that 90 percent of new businesses fail, so you need to be prepared for this eventuality – financially, logistically, and emotionally.
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