Photo Credit: Phillip Taylor
Hi Julie,
I am a bookkeeper, and have been working at the same workplace for close to a decade. I used to love my job, but lately I have been growing increasingly restless at work – my heart is telling me to start my own business. I know I have a profitable idea, but I’m struggling to find the means to get it off the ground. I’m worried about the financial impact on my family as well the time commitment that running your own business demands. Do you have any advice? – Lisa
Hi Lisa,
First of all – wow! Exciting times ahead in your world! I absolutely understand the challenge that trying to start a profitable business on a shoe string budget represents. The more you think about your idea, the more frustrated you become by your present work-life – you just want it to happen now!
I have three financial tips to help you get your business in motion.
1) Don’t over-commit on a loan.
When you are excited by an idea it can be tempting to get the ball rolling now with a loan. I strongly advise against borrowing any money until you have a rock-solid business plan and launch strategy established that takes into account your best and worst case financial scenarios. This plan will give you an idea of your expected weekly outlay and allow you to examine what you will spend against your income.
Many people borrow money before they are really ready, and plan their expected expenses with rose-coloured glasses. As soon as a slight bump in the road appears (almost inevitable in business!) they find themselves out of pocket and unprepared. If there is any doubt in your mind about your ability to cover loan repayments, you will be better off waiting, saving and planning for an extra 6 months.
Time is money, but sometimes patience pays off.
2) Stay employed in the short term.
There are so many unexpected costs that pop up when you have a family. As you’ve already flagged, financial security is vital at this stage of your life. As much as you want to give it away, hold on to your full time job while you are in the build-up phase.
Yep, it’s a big task trying to juggling work and starting your own business. But the financial security of your family is too important to risk. You will have some late nights and early mornings – but it is better than losing sleep over how you will pay the bills.
3) Bring others on board.
Bringing an investor on board is a great way to fast track the development of your business. It allows you to get started without the pressure of debt repayments looming overhead. An enthusiastic investor may also bring their own ideas and contacts to the table and enhance your business model.
As an alternative to fiscal investment, you may also consider aligning with other businesses. By forming strategic partnerships you will open your business to a greater pool of customers from day one and gain knowledge and advice on what it takes to make it in your field. Sometimes lessons learned from experience are just as valuable as monetary contributions.
When it comes to the time commitment, I’d be lying if I said that juggling a business and family is easy. There is always something else that you could be doing: especially when you are in the start-up phases of your work.
For me, what it comes down to in the end is discipline – setting boundaries and sticking to them. If you have scheduled family time at 6pm, for better or for worse, it’s time to close the laptop and spend the evening with your kids.
Always remember that your family comes first.
Best of luck!
With every good wish,
Julie
