Although the potential rewards and the risks are substantial in a new business, family members need to be aware of — and agree to — the sacrifices and contributions they will make for the business to be successful. The stress and strain of running a start-up business is only magnified if there is also an unstable or unhappy family life. In the U.S. today, over half of all marriages end in divorce. Studies indicate that this percentage is significantly higher when families are involved with “start-up” businesses. Here are some key points to consider if you want a successful enterprise — and a happy family.

Time away from home: Most start-up businesses require the owner to be on the job for extended periods of time. This does not leave much time for children’s ball games, school plays and day-to-day family life. Unless everyone is committed and willing to adapt to the concept that mommy or daddy is working for the greater good of the family, there can be challenges at home. Before you start your business, be sure to have a family discussion about the impact of the business on family time, and find creative ways for the family to have time together each week.

Financial Impact: The new business owner typically has little or no money to take out of the business for personal expenses. Therefore, provisions need to be made for household expenses ranging from utilities to car payments to health coverage. Decide in the beginning how these expenses will be covered. Will you be able to access savings or investments? Will the spouse need to find work outside the home? Will you, the entrepreneur, need to work a second job during the start-up period? Just like financial projections for your business, personal financial strategies need to be in place to carry the family monetarily until the business can successfully support itself and the owners.

Financial Commitment: Meet with your attorney and/or CPA to make sure you understand the risks and your options to best protect your family. Be aware that spousal support is critical; the spouse may need to guarantee (co-sign) any loans that are needed. Sometimes getting a bank loan to start a business requires pledging the family home as collateral. This can be a scary concept. Hold a family meeting prior to signing any loan forms. Discuss the financial commitment the family will be making and build awareness as to why some purchases — like a new couch or car — may need to be postponed.

The start-up phase of a business is difficult enough when the family is committed — it is next to impossible without it. In fact, it goes beyond commitment — the family’s belief in the enterprise is one of the most critical factors of success. As part of the preparation for opening the business, even before working on the financial projections and business plan, all members of the family need to be informed of the requirements to start and run the business and they need to agree, as a family, that this is what they want to do. Getting the family’s buy in from the start will lead to a more peaceful home life during difficult times and will increase the chances of the business’s success.

(Editor’s Note: Rand Riedrich, M.B.A., Business Advisor at the Kitsap Business Assistance Center (KBAC,) authored this article, and can be reached at 360-307-4220, rriedrich@oc.ctc.edu, for private, no-fee business counseling. For KBAC partnering opportunities, please contact Wendy Miles, Director of Military Education & Training at Olympic College at 360-475-7786.).