Financial worries plague every business owner at some point, but if you're a parent running a business from home, financial anxiety can become overwhelming. It can also be magnified by the fact that everything takes place under one roof.
The worry of providing for children can make going through a business lull or experiencing financial difficulties very strenuous.
Accepting your needs may differ
Director of The Mumpreneurs Networking Club Sara Guiel says that parent-led businesses may have to work hours around school runs or nap times, or work during the night, and this needs to be considered and incorporated into any business plan.
Developing a network of business friends will provide useful connections and a platform for sharing advice or worries. One of the hardest times in Meg Fenn's business – graphic design company White Ochre Design – was starting out without any support, after moving to the UK.
After being made redundant from her design job in 2003, and while pregnant with her second child, Fenn launched her design business.
"Launching a home-based business was financially daunting. I had always had a salary so always felt financially secure. Not having that guaranteed money coming in every month was a little stressful."
Fenn's first piece of advice for parents experiencing financial stress is to network and meet like-minded business parents.
Stay positive and focused
Staying positive and focusing on your business is an efficient way to cope with financial uncertainty and weather difficult periods.
"I won't let myself get bogged down by financial worries and I definitely have my fair share of them. Staying positive is the best way for me to cope with this. At times it is hard not to be emotive when dealing with clients who do not pay, but I just have to keep telling myself to remain professional. Looking at each problem and saying how can I learn from it, can be a good way of coping with these types of stresses," says Fenn.
During a quiet time
Many businesses experience a lull at some point, but during these quieter periods don't fall into despair or negative thought patterns, instead be proactive.
"If it's quiet, then look at how you can improve your product or customer service. Perhaps spend some time thanking people who have helped or inspired you along the way. Use that quiet time in your business to catch up with family stuff. Don't sit idle waiting for work to come in. Keep up the momentum and use your time wisely. Beef up your social media and marketing strategies or make contact with cold leads or companies you would like to do business with," says Fenn.
Keep your finances organised
It is easy to become entangled in a spiral of anxiety and stress if you are surrounded by chaos. Your workspace, both physically and on paper, needs to be organised and clear.
Guiel says: "Organisation is key. HMRC can offer much advice and has downloadable resources to get a business on the right track. Talk to the bank. They will have a small business adviser who will be able to give you free advice on how to proceed. Allocate time each week to your finances, as knowing exactly what's coming in, going out and what's coming up will allow you to sleep at night."
Set up a buffer
When you first start out, setting up a financial buffer will help you through rocky patches and reduce worry. It is wise, even as an established business, to keep money set aside so if you do go through a quiet period you don't need to panic.
Counsellor and business coach Phil Cox says you need to recognise that cashflow can be lumpy and plan accordingly.
"Your family will probably have shared in the financial austerity that being self-employed can mean, at least initially, so when a big invoice gets paid it can be very tempting to spend, spend, spend on the family. Sure, celebrate your successes but remember that you may need to make that income last you for a couple of months of day-to-day living."
Be realistic and talk to someone
When you are struggling financially it can be challenging to accept that you might need help. Gaining another perspective or simply speaking about your concerns will lessen anxiety.
"If you're going through a difficult time, be realistic. Is this just a glitch or is it saying something about the sustainability of your business model? If you're struggling financially, talk to someone," says Cox. "There's sometimes a lot of shame around financial difficulties, especially if there's a sense that you may be letting your family down.
"The worst thing to do is to bury your head in the sand. The earlier you acknowledge that things are getting difficult, the sooner you can begin to take steps to address the issue," he adds.
Separate business and family life
When you're spending time with your children you don't want to be focused on the business, or worrying about finances. Separating business and family life will help to relieve stress. This can be harder to achieve when you're working from home so set clear divides.
Switch off your devices when you're not working, set up an out-of-office on your email and use different numbers for work and personal life.
Making sure that you're devoting enough time to each aspect of your life is key to achieving balance, says Cox.
"Try to be disciplined about working hours. Set some ground rules with a partner. Some people find that having their work set up in a self-contained area of the house helps them to shut the door on their work, figuratively and literally, at the end of each day."
Read more...
Home business owners: how to balance work with family life
How to create an efficient home office
Tips for running a business when your children are off school
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