Starting a business after having a baby is something that has become very popular over the last decade or so. So much so that the term “mumpreneur” is now part of the dictionary (though I’m not a fan of the word). Many mothers with young kids find that returning to employment isn’t always practical but starting a business is because it offers far more flexibility. 

If you’re thinking of starting a business as a new mum or a stay at home mum of young kids it’s a great way to work around your family while earning an income. But turning your dream into a successful business takes careful planning and a clear idea of what steps you need to take. From finding your idea to handling the day-to-day, here’s the practical stuff that you should know. Whether you’re just getting started or hoping to grow your business, understanding key money matters (e.g. your merchant processing statement or your taxes) is important for long-term success.

Finding Your Niche

The best businesses often come from something you enjoy doing and are good at so think about all the things you like doing. Is there a hobby that could become a business? Maybe you bake amazing cakes or maybe you’re whiz on social media. Perhaps you are great at hand-making things. It really could be anything so think about what it could be for you while keeping in mind how sellable your skill is too.

Start by brainstorming your strengths, skills, and passions.

• What problems could you solve for people?
• What products or services are you all excited about?
• What does your local community really need?

Don’t be scared to start small. A weekend market stall, an Etsy shop, or a local service can be a great way to test your idea without spending a ton of money upfront. If you enjoy working with your hands, making things like home textiles or handmade jewellery or other personalised accessories can be an affordable way to launch a creative business. The main thing is to find something you genuinely care about, because that passion will keep you going through tough times.

Legal Structures for Your Venture

Once you have your idea, you need to pick a legal structure. This might sound complicated, but it’s really just about how your business will be owned and how your money and debts will be managed. In the UK, for a small business, the most common choices are being a sole trader, a partnership, or a limited company.

• Sole Trader: This is the simplest option. You are the business. All the profits are yours, but you’re also personally responsible for any debts.
• Partnership: If two or more of you are running the business together, you can form a partnership. You’ll share the profits, but you’ll also share responsibility for any debts.
• Limited Company: This creates a separate legal entity. The business’s money is kept separate from your personal money, which offers some protection. It’s a bit more involved to set up and run, but it’s often a good choice as your business grows.

It’s a good idea to look into these different options to see what fits your business best. There are lots of resources out there for choosing a legal structure that can help you understand the pros and cons of each setup.

Managing Your Business Finances

Good money habits are the foundation of any successful business. The very first thing you should do is open a separate bank account just for the business. Mixing business and personal money is a recipe for confusion and can cause big headaches, especially when tax time comes around.

Keep a simple record of all the money coming in and going out. You don’t need fancy software to start; a basic spreadsheet will work just fine. Track every sale and every expense, no matter how small. This will help you see if you’re actually making a profit and where your money is going. Set a budget and try to stick to it. This also includes deciding how and when you will get paid, as this will become your source of income.

Setting Up Payment Systems

To make money, you need a way for customers to pay you. The options you pick will depend on how you sell things. If you have a physical shop or market stall, a simple card reader that connects to your smartphone can be a great starting point. If you’re selling online, you’ll need a payment gateway that works with your website, like Stripe or PayPal.

These services make it easy to accept card payments, but they do come with fees. These are usually a small percentage of each transaction. The costs can seem confusing at first, so it’s smart to learn how to read your merchant services statement properly. Understanding these statements means you’ll know exactly what you’re being charged and can help you find the best value for your growing business.

Balancing Work and Family Life

Running a business with a young family can sometimes blur the lines between your personal and work life. It’s important to set clear boundaries right from the start to protect your relationships and your well-being.

Decide on your work hours and try your best to stick to them. When the workday is done, be present with your family. Try to avoid talking about business at the dinner table or during family outings. This isn’t just for the sake of your family but it’s important that you switch off from work too. Often times it can feel like a juggle especially at the beginning but defining your boundaries will help even if it’s not possible to stick to them strictly.

Starting a business while being a mum is a big step, but with solid planning, hard work and passion, it can become one of the most rewarding things you do while you also get to be there for your kids.