It is inevitable that at time there will be personals, family or other external demands that will tempt or necessitate us to take money from our start up.
What do we do in these situations, how do we help both our business and our family?
A simple solution is to keep separate records, one set for the business and one for self etc. When this is accomplished it is also important to pay yourself a wage or salary. This wage or salary needs to then cater for all external needs and the business must remain separate and segregated.
Besides just keeping separate records we should also have separate accounts for our business money and the wage we receive.
When family approaches us for money it can be very difficult but we need to exercise the discipline not to dip into our business resources. Its good to share but it is not wise to take funds from a business if it will be detrimental to the long term viability of the business.
We may have the short term good feeling for helping out but end up with the long term consequence of a failed or struggling business. Sometimes it is not always the best thing to share.