#239: When You're In It For the Long Haul (Friday, July 29)

This week, I heard that singer Beyonce is suing her dad for allegedly stealing money from her. A couple days later, news broke that Leighton Meester is suing her mom, who is also her former manager, for misuse of funds.

It's easy to judge celebrities who sue their parents, siblings and other family members. However, when you consider that financial woes are one of the top two reasons for divorce (communication's the other), it's not so surprising; a business is just like a marriage.

Some people will say that getting into business with family and or friends isn't wise; and you'll find others who have done it and succeeded. It really is a case-by-case decision, but here are some things to consider if you decide to go that route:

1. Maintaining the relationship should be your first priority. Business should always be the secondary goal.
2. Define your business relationship with a partnership agreement that includes as many scenarios as possible. Note: you will never be able to capture every situation that could occur in a contract, but it's always a good place to start.
3. Have an exit strategy as well as a dispute resolution strategy.
4. Always consult an attorney. There should be one for the partnership, but you should each have your own attorney as well.
5. Keep Tip #1 at the forefront of your mind at all times. Remember that you love and care for the person with whom you are working.

#238: When Life Throws You A Curveball (Friday, July 22)

One of the reasons I suggested making three financial goals is to get in the habit of constantly being in motion and working toward something. It's easy to lose focus and get distracted by life. But what about when you stick to the plan, you see your goals getting closer and then life throws you a curveball? How do you (and should you) rebound and get back on track? The good news is financial setbacks are generally easier to rebound from, especially if you keep these tips in mind:

1. Create an emergency fund and keep it funded; don't dip into it unless all other resources have been exhausted.
2. Think of several hypothetical scenarios that could affect your goal and create back up plans for how you'll address those situations should they arise.
3. Surround yourself with great cheerleaders and like-minded people who want to see you succeed at what you're doing. (Look carefully; it's always easier to find naysayers and folks who are more than willing to say, "I told you so.")
4. And most importantly, remember that the setbacks are a natural part of life and are only temporary. Don't let it dissuade you from continuing to pursue your goal, and certainly don't use it as an excuse for why you can't get back on track.

#237: Life Lessons (Friday, July 15)

There are some life lessons that cost you your life or your quality of life.

Failure to visit the doctor on a regular basis could mean you discover a terminal illness when it's too late, or after you've had to amputate a body part, or lost your sight or some other necessary function. This is a tough lesson to learn the hard way, but it's also a lesson that will inspire those closest to you to be more proactive and do things differently.

There are some life lessons that cost you your time.

Staying at a company for years and being continually overlooked for promotions, and having your potential ignored. This may teach you to be more agressive to get what you want, but if you're also learning while you're being overlooked, you're amassing new knowledge that is transferable and also makes you more marketable.

Or being in a relationship for many years before realizing that you're not compatible, or you want different things from life. This is a valuable life lesson; it's simply preparation for the right person.

And there are some life lessons that cost you money.

For example, starting up your own business. When I started my magazine, it was the realization of a dream. Two years and $40,000 later I had to close it. I've never regretted doing it, and if I had to do it all over again, I would; it was worth every penny. The lesson I learned: I CAN do anything I set my mind to doing. 

Or what about this ad that I've been seeing in the NYC subways, which is part of the NY Consumer Affairs Protect Your Money series. At first glance, I thought "Why would this man pay $6000 to someone to fix his credit? Why wouldn't he just pay that money towards his bills? But losing that money probably taught him the valuable lesson that there are no quick fixes to getting out of debt and also led him to a Financial Empowerment Center where he can develop good LONG-TERM money management skills that he can also pass onto others. 

The bottom line: There's no price that you can put on an experience that will change your outlook on life, or that will make you a better person. If you come out of a situation even a little changed than when you went in, it's worth the cost.

#236: Painful Reality (Friday, July 8)

I recently ran into a small business owner that I used to frequent. She is really creative and has wonderful stuff, but her customer service skills were terrible. It would take her weeks to return emails; you'd run into her at a festival and place an order and never hear from her again; and even though I'd met her a million times and given her numerous referrals, she never remembered my name. Even her marketing emails about sales were in disarray: she'd send the same email twice, or forget to include the location of the sale...

It all got to be too much, so I stopped patronizing her about six years ago. Although the potential business she lost from me wasn't that much (I probably would've spent about $200 more since I had most of her pieces), I imagine the business from referrals may have been a lot more.

When I ran into her, she wanted to know why I, one of her "best customers" had just disappeared. I explained why; she seemed very surprised but acknowledged that her business had been suffering lately and she'd lost a lot of loyal customers. She thanked me and promised to follow up to see how she could repair the damage and get back the customers she'd lost. I still haven't heard from her.

The painful reality is that if she continues down the same path, it'll mean the demise of her business. If you're thinking of starting a business (or if you already own one), its financial success depends on your ability to create and sustain great relationships with your clients.

#235: Like Sand Through the Hourglass (Friday, July 1)

Instead of letting the time slip away, allow the best of your dreams to more fully unfold with each passing moment. -Ralph Marston

We're half way through the year. Twenty-six weeks of possibilities both realized and forgone. Exactly six months ago, we set three financial goals one of which was supposed to have been successfully completed today. How did you fare? Did you accomplish your goal with ease? Did you struggle, but were you ultimately successful? Or did you abandon your goal after a couple weeks?

If you didn't accomplish your goal, what stood in your way? How will you approach it differently for your longer-term goal?