Funding Your Kids Into Their Own Business
We’ve all heard about parents giving their kids a leg up into the ever ballooning property market but there’s a new trend emerging of millennials increasingly turning to their parents for loans to fund their small business.
Business consultant Shannon Daniels said that despite the Federal Government pledging to support innovation, wannabe small business owners without cash reserves or credit ratings were struggling to raise start-up capital.
Shannon told us on the Fiftyup Club show this week that many millennials were choosing to start their own businesses simply because they couldn't find a suitable job.
"Millennials are chasing flexibility at work and would prefer to start a business if they can't find work to suit their lifestyle, in some cases we're talking about loans of $100,000 which is eating into retirement nest eggs and putting parents at big financial risk."
Shannon Daniels four tips for those thinking about starting their own business
1. Mentor: Connect with an independent mentor who is not a family member. They will be encouraging and realistic and help keep you on track of where you want to be.
2. Milestones: Set Goals. Have big goals and small goals that you can meet in short and long timeframes. This creates focus and keeps you accountable.
3. Financials: Understand everything about your financials. Know how much money is coming in and how much is going out. Have financial goals to work towards.
4. Parental Financial Help: Be cautious going down this path as it can put strain on relationships. If you do borrow from parents, ensure they are treated as shareholders and remember you are accountable.
With thanks to the Huffington Post Australia
