Becoming an entrepreneur and a parent are two endeavors filled with rewarding experiences. Managing them together will be challenging but not impossible. In this article, we've curated useful tips to help you balance the plethora of responsibilities when having a baby.
Create Realistic Expectations
Managing the needs of your newborn will occupy the most time on any given day. This will involve looking after their eating, bathing, clothing, play, and sleep requirements. Dividing responsibilities with your partner or family will provide small windows during the day to dedicate to the business.
When setting business goals, consider the time you'll be able to dedicate to work. It's best to take things slow for the initial weeks until you create a schedule and learn how to manage your two significant responsibilities. Even if the goals you set are simple and small, achieving them will serve as a morale boost that can be carried into undertaking more important projects in the future.
Complete Business Responsibilities in Advance
Various administrative and legal tasks need to be completed before launching the business. Therefore, in the months leading up to the delivery date, dedicate as much time as you can towards achieving the following formalities:
● Establish your business as a Limited Liability Company (LLC). An LLC protects your assets and personal finances from litigation as the business is recognized as a separate legal entity. In addition, an LLC provides various tax benefits.
● As reported by Finimpact, most states in the United States require a general business license; hence, apply for that at the earliest. Additionally, depending on the industry and the type of business, you'll need specific licenses or permits.
● Apply for an Employer Identification Number (EIN). An EIN is required by businesses that plan to hire staff and can streamline the process of filing taxes.
Additionally, list important projects you want to go live with on launch day, such as social media accounts and a business website. Instead of undertaking these projects yourself, delegate them to freelancers as they're an affordable alternative to hiring full-time employees.
As for creating a system for receiving payments, use invoicing software. The software provides templates that can be customized using your logo and color scheme. Invoices can then be digitally shared with customers, who have the option to pay using their preferred mode of payment. A streamlined payment process will reduce delays and help maintain positive cash flow.
Have a Financial Plan
As reported by The Oakland Express, the yearly cost of childcare is close to $10,000, which is expected to increase in the coming years. Couples can expect to spend 10% of monthly household income on these costs, while for single parents, this figure rises to 35%.
In addition, you'll need to afford business-related costs such as – buying inventory (if applicable), utility bills, software subscriptions, marketing costs, labor, and miscellaneous office expenses.
Managing all these various expenses can understandably become overbearing. The best way to tackle this challenge is to create a budget. Along with expenses, you'll need to include revenue projections at least for the first twelve months. It's recommended to keep the projections modest and include other alternatives such as savings, your parent's income, etc. to balance the costs. While debt is a great tool for businesses, one should proceed with caution as it will increase the strain on your earnings in the present and future.
The one non-negotiable for finances is buying insurance for healthcare and the business. The medical costs of childcare are often covered under the health insurance of parents. Having valid health insurance can help save thousands of dollars a year on medical costs.
Business insurance protects against unforeseen circumstances such as property damage, theft, litigation, workplace injuries, etc. Without insurance, your business may find it difficult to recover from such scenarios.
Sound planning and good time management will help you stay on top of responsibilities and allow you to spend quality moments with your newborn daily.