Should I lend my son money for his start-up?

Dear Aunty B,

I am a regular reader and have noted your comments about working with family. My son has approached me for a loan to start his own business.

He is only 23 and not experienced in the ways of business at all. He is in fact, naive, impulsive and never takes no for an answer. I am experienced in business and have actually run my own business for a time, which proved very hard.

My son has a commerce degree and could seek a prestigious career in a firm before setting out on his own which would have the added advantage. I don’t want to loan him the money and would rather he set out on another path. He is pressing me and seems passionate about the idea, which does seem to have legs.

In a quandary,
Norm

Dear Norm,

Gee. The description of your son sounds like every entrepreneur I have ever known, some whom have been successful, some not.

Look Norm, separate the issues. Your son will forge his own path. So let him go. However, lending him money is a different matter. If you don’t want to lend him money, them don’t. But don’t link that to his choice of career. Just tell him you are not in a position to do that. But if he wants to pursue his business, you will assist with advice, support and all the ‘dad love’ he wants.

Be smart,
Aunty B

To read more Aunty B advice, click here.

Email your questions, problems and issues to auntyb@smartcompany.com.au right now!