Small Business Blog

Main

Blood Money

Andrew of Southwest Windpower has written about hair-raising (or perhaps hair-falling-out) cycles of raising capital and repaying debt. This is something I and bluehouse have not yet faced in quite the same way, although we have our own tumultuous relationship to the green. While I conceived of, started, and run my business—and I make all of the daily and strategic decisions—I don’t actually own it myself. A few years ago, my father (who is an extraordinary man) announced his intention to fully fund the entrepreneurial ambitions of my siblings and myself as a way of both bringing our family together and passing his legacy down to future generations. In a series of legal and financial maneuvers, we formed a family trust that in turn funded a holding company that officially owns my business along with several others launched by my brothers and their wives.

I am often asked how lucky I feel to have fallen into such an arrangement as compared to jumping through hoops for institutional funding. The short answer is “very,” although I suspect the question is enough of a gotcha that I don’t like to talk about it much. Yes, I dodged a bullet, but it’s not as if I don’t have to account for every penny that passes through my business. Indeed, I’d almost rather explain to a bank why I need money for new signage rather than have the matter scrutinized around the Thanksgiving dinner table or at my nephew’s birthday party. If a typical business should suddenly take a turn for the worse and fail, a bank can foreclose and be done with it. Humiliating, to be sure, but in my case, should the worst happen, there is no end of the earth to which I can flee from the knowledge that I’ve harmed the livelihood of my entire extended family. My extra motivation to succeed is the thought of those Thanksgivings and birthday parties if I do not.

Still, although it’s very strange for me to be making complex business decisions with the brothers who used to kick the back of my car seat or hold their finger up to my head and play “I’m not touching you,” it’s an oddly satisfying arrangement. Business is risk—daily and often unnerving risk—and there is something both soothing and thrilling about sharing that with the people who have known me since I was born.

And, well, yes, often irritating. But right nonetheless.

TrackBack

TrackBack URL for this entry:
http://bizbox.slate.com/cgi-bin/mt/mt-t.cgi/46

Post a comment

(Comments that include profanity, personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed.)

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

About March 2007

This page contains all entries posted to BizBox Blog on Slate in March 2007. They are listed from oldest to newest.

Many more can be found on the main index page or by looking through the archives.

Powered by Movable Type 3.33
Hosted by LivingDot
401(k) 401(k)s academics Advertising American Express Americas Competitiveness Forum Android Apple athletes Balance Banana Republic Banking Bankruptcy Banks Barack Obama Bear Stearns Ben's Chili Bowl Bill Cosby Bill Gates Biz Box Panel BizBooks BizEquity BJs Branding Brett Favre Business Growth Business Planning Business Week Buzz Capital Carl's Jr. Census China Chrome Clients Cloud Computing cNet Collection Columbia University community banks Competition convertible notes Costs coupons Credit Customer Service Day in the Life Debt Debt Repayment Digg discounting Dodgeball Dun and Bradstreet Dunder-Mifflin Elvis Email Employees Energy costs Entrepreneur.com Entrepreneurship Evan Bayh Facebook Fannie Mae Federal Reserve Financing Firefox Flex-time Flexibility Forbes Fred's Freddie Mac Gap gelato George W. Bush Gizmodo Global Gmail Google Google Analytics Google Sites Government Green Bay Packers Greg Verdino Grom Happy New Year hats Health Care Highland Capital Hiring homestead exemption Housing bill HR iFund Innovation Internet Internet Explorer Introduction iPhone iPod IRS iTunes Ivan Misner Jaiku Jerry Seinfeld Jill Lublin John McCain Johnny Money joseph michelli JotSpot Late Payments Legislation Loan Repayment M&M's M&M's Premium Mamma Mia Management Market Value Marketing Mars Mastercard Meetings Mentoring Mentorship Microsoft Mission Statement Mojave Mojave Experiment Money Mortgage Motivation Mozilla MySpace NASE National Women's Business Administration Networking NFL office OfficeMax Old Navy Olympics open source Organization Packetel Payment Persuasion Planning Podcaster Politics PR Pricing procurement Productivity Raising Capital Rate of Return Real Estate referrals retail retirement retirement plan blog retirement plans retiring Risk ritz carlton Roadmap to 2020 Roth IRA Sales advice Sandy K. Baruah SEAS self-promotion Selling Slate Small Biz Advice Small Business Administration Small Business Legislation solar panels Southwest Staples Start-up Start-ups Structure Success Super Bowl T-Mobile T-MobileDream Tax Reform Taxes TechCrunch Technology TechRepublic The Big Money the economy The Economy TIN Twitter United Parcel Service UPS vacationing venture capital Visa Vista Vista Small Business Assurance Wal-Mart Web 2.0 Windows women entrepreneurs Work/Life Balance Yahoo Zune