Starting a family while building your business? Here's how to plan for the future
Many entrepreneurs joke that their business is their baby. But what happens when a real baby is on the way? Balancing the demands of running a business with the responsibilities of parenthood can be downright overwhelming. Yet, with some careful planning – and perhaps a little less sleep – both your family and business can flourish.
Here are five key strategies to help you navigate this exciting new chapter.
Re-evaluate your business plan
As your family grows, so too will your priorities. It’s important to check your business plan to make sure it still aligns with your personal goals, considering factors such as time commitment, financial stability, and your long-term exit strategy.
Remember, however, that adjusting your business plan doesn't mean losing focus; it simply means reshaping it to fit your new reality. Whether it’s expanding your team, streamlining services, or planning an eventual handover, making these adjustments early on can save yourself a lot of time and stress down the line.
Establish strong financial foundations
Financial planning becomes more complex when you're starting a family, so it’s crucial to keep personal and business finances separate. Develop a financial plan that accounts for family expenses like medical bills and school fees, while ensuring your business has enough liquidity to cover unexpected costs.
If you anticipate periods of reduced involvement in the business, consider securing a business loan or line of credit to help maintain cash flow during those times. It’s also wise to set up separate financial buffers for both personal and business use. By doing so, you’ll safeguard your family’s future while protecting your business from the financial strain of unforeseen circumstances
Build a reliable team
If you’ve been running your business largely on your own or with a small team, now is the time to build a support network that can help manage the day-to-day operations in your absence. Delegation is critical when you’re balancing a growing family and business.
Letting go of responsibilities may feel daunting, especially if you’ve been hands-on from the start. But empowering your team to make decisions will free up your time for strategic thinking, whether that’s growing the business or dedicating more time to your family.
Prioritise your well-being
Entrepreneurs are known for burning the candle at both ends, but when you’re starting a family, you can’t afford to burn out. It’s essential to prioritise your well-being – both physical and mental – so you can be present for your family and your business.
Establish clear boundaries between work and personal time. This requires setting aside specific hours for family commitments and ensuring that your team understands these boundaries. A structured schedule can help you stay focused on one priority at a time, reducing the risk of burnout.
Plan for the unexpected
Just like a growing business, family life can be unpredictable, so you should always have contingency plans for both. For your business, ensure that you have a robust plan in place for times when you may need to step away, whether for personal reasons or due to an emergency. This could involve training a second-in-command, securing key contracts, or creating clear operational guidelines for your team.
On the family side, think about how to safeguard your future. This could include briefing a trusted family member regarding what to do in case of emergencies, setting up life insurance, drafting a will, or ensuring that you have the right policies in place to protect your business and your family’s financial security. These are difficult but necessary conversations to have to ensure that both your family and your business are protected in the long term. By planning for the unexpected, you’ll be better equipped to handle whatever life throws your way.
Ben Bierman is the managing director of Business Partners.
BUSINESS REPORT