Entrepreneurs who also happen to be parents are probably some of the most driven people. This is due to their spending time on a business that isn’t typically spent with their family. This can light a certain fire under them. They don’t have the luxury of extra time to mess around with. These individuals know that it’s important to have a business that is efficiently run because their time is precious. To that end, here’s a quick look at some of the things that can make your business run more efficiently so you can still spend time with your family.
Have a Plan and the Necessities
What kind of business will yours be and what do you need for it? Maybe you’ll have a plumbing business and need a sprinter van conversion, or a caterer and need cooking space. Whatever it is, make sure you cover all of it in your business plan. That way, you’ll have all your bases covered before you even get started.
Get Licensed
No matter where your business will be, one of the startup costs you’ll need to plan for is a business license. This is critical, especially when you’ll be required to collect and pay taxes. In fact, some places will even require you to have a business license just to have a stall at a flea market. Check what you need in your area and the length of time it takes to get one.
What Type Will it Be?
When you’re setting up your small business, decide whether it’ll be a sole proprietorship, or whether you will have partners. Either way, you should still set up an LLC. For those who aren’t aware, an LLC is akin to a type of shield between your personal assets and your business. In other words, say someone decides to sue your business. If you have an LLC, they can’t go after your personal assets, just your business ones.
If you’re wondering about taxes and an LLC, you shouldn’t. There aren’t any tax advantages or disadvantages to having an LLC in place. A lot of people might be confused about this, but it’s really quite simple. Having an LLC is a legal issue, not a tax issue. You’ll be taxed in the same way regardless of whether or not you have an LLC.
Paying Yourself and Planning for Taxes
When you’re trying to balance having a family and running a business, and even when you aren’t, it’s critical to remember to pay yourself and to do it properly. When your business is just getting started, it’s usually considered a sole proprietorship and, as such, that means that you won’t have any payroll system through which you’ll be paid. This also means that there won’t be any taxes withheld from your income and you won’t get a W-2 come tax season. At the end of each year, you’ll need to report your net profit from the business right on your personal tax return. Roughly, you should figure on being charged a 20 percent tax on this.
Starting a business is difficult no matter what your family status. It takes time, dedication and countless sleepless nights. When you combine that with the added pressures of raising kids, you have a recipe for stress.
In order to make it work, structuring your time and sticking to a schedule can help tremendously, but leaving yourself open for spontaneous events is good, too. As any parent knows, kids don’t always follow your schedule — just ask any mother of a newborn! Being open to change allows you to roll with the punches and not stress when your schedule isn’t as precise as you’d like.
Another key is tip is to make sure your expectations are reasonable. While your kids might see you as a superhero, you are still human and you need to set realistic goals for yourself, your family and your business.
If you are feeling the strain of starting your own business, have no fear; there are always people out there who’ve been in your shoes and are happy to offer advice and an ear when needed. If you have a plan and a support system in place, you’ll be killing it in no time and ready to help the next parent entrepreneur who comes along.
