As this wave of entrepreneurship keeps moving and moving, there are different types of startups that are surging.
Either if you are aiming for a startup, or you are a solopreneur, knowing how to manage your finances is key.
When I started this “entrepreneurial process“, so can I say, I actually didn’t feel like an entrepreneur.
I learned how to register myself at the mexican Tax Authority for my business registration, in order to open a second branch of the family furniture business.
Being the second generation of a family business, gives the unfair advantage, I say, of starting a business.
Is it me, just giving less value to being part of a family business?
But the thing is that I feel more an entrepreneur from someone who start a project from scratch.
In the case of family businesses, you might be supported financially by the already established business.
So, how to fund your own business?
Well, if I tell now my different journey now as freelancer, I can say that one has been more of an entrepreneurial path.
Before going to Germany for the second time in 2016, I already new that I had to reach certain amount of money to pay for the student visa and to cover my expenses while living in Germany.
I already had half of the amount in savings, but I still needed to get the rest of the money.
In that time, I was full-time focused on the second branch of the furniture store.
If you know how some family business run, then you might also know that sometimes parents usually don’t give a paycheck to the children that work at the business.
Such a pitty, isn’t? But at least I was paid with food and shelter.
So basically, my store was just focusing on “reinvesting to make your store grow”.
That was what my mother said, but I wanted to go back to Germany.
Since I already knew that financial management was not a strength of my mother, I decided to be aware and take full control of the finances of my own store.
I set aside 5% of the monthly revenue to create a cash back-up, and I was paying always on time to my suppliers.
The business was running smoothly, but I still wanted to go to Germany.
When I finally got accepted to study a master in Heilbronn, I needed money, so I was thinking:
“Fuck it, I am taking my store savings and use it as a deposit for the visa”.
When I told that to my mother, (without the fuck it, of course), she just answered with a “there is your paycheck”.
What I actually started as a simple savings excercise, become like my financial life savior to obtain the german student visa.
Now that years have passed, and after a tough 2020, I had a meeting with my boss in Germany where I asked her if I could do freelancing from Mexico.
What it might be considered as a meeting, it eventually could also be considered as a friends talk, or even as a business pitch, it would depend as how it is seen.
Who would it known that now that I am back in Mexico after 4 years in Germany, my employer would also now be my business partner, if you want it to see it in that way.
And now it feels nearly more to be an entrepreneurial experience, since I didn’t require the support of my family business finances to have this mini-startup and keep developing my marketing services.
From what I have learned now as a freelancer, is that the income that I earn, I do have to reinvest it in sources that could generate more revenue.
After all, learning from our parents lead us to some good practices, but it is the role of the second generation to create their own path and learn how to manage their own finances and business.
Read more on Financial Management for Entrepreneurs.