A female reader asks: I finished a course in computer hardware servicing last year. I plan to open my own computer store. The place where it will open was inherited from my father. I share it with my sister. Can you advise me on how to tell her my plan? We are not close (she is in Singapore). What if she disagrees? Should I impose my right to the place? I also have a problem with capital. How can I get capital for my business? I have no income and I am unemployed.
Reply: I would like to congratulate you on planning to become an entrepreneur. I believe you are serious in this, but you underwent training (through your course) in your chosen field.
You did not mention this in your message, and I am sorry I have to be blunt: I assume your father is still alive and that he already gave you his blessing regarding the space for your planned store. If he has done so, then that means he is supporting you to achieve your dream, and he can always discuss matters with your sister. In this case, I do not think your sister can seriously oppose what you intend to do—unless she has her own plans for the space.
If your father has passed away, then things may not be as smooth, especially since you say that you and your sister are not close. You did not say anything about your mother. Parents can often mediate issues among their children, but if she is also no longer around, then you need to discuss this with your sister head-on.
You say that you “share [the place] with your sister.” It is not very clear to me what you mean by that. Your father owned the place before, and I assume that he bequeathed it to you and your sister, which means that both of you now own the place. I hope the inheritance was done legally, as in you and your sister are listed (in writing) as joint owners.
Is the space being utilized right now? For example, is it rented out, with the proceeds going equally to both you and your sister? If so, then you need to convince your sister that your planned use of the space will not impact on current proceeds. This means you need to project future earnings, and perhaps even pay your sister her share of the rent.
If the space is not being used in any way, I do not see why your sister will object to your using it for a legitimate purpose. If your store starts making a profit, then she (as part-owner) will also benefit from it.
I assume that you will not ask her for financial help in opening your store in any way, so she assumes none of the risks—and part of the rewards, if your business succeeds. Whether or not you and your sister share a close relationship, common sense says that she should also give you her blessing in this endeavor.
In case your sister has her own plans for the space, then the two of you need to have a serious talk. List the pros and cons of both your plans, and seek a compromise that both of you can live with. What is important is that each of you feel that you have been treated fairly, so you will not blame each other later on.
Capital
Raising capital to fund a business is not easy, especially since you are unemployed. Many entrepreneurs ask banks or other institutions for loans, in exchange for collateral (for example, assets such as land). If you have enough assets, then you can discuss terms with a reputable bank. But if not, I am not sure if banks will lend to you, particularly if you do not (yet) have a good credit history.
Other people turn to moneylenders for help, but since interest rates may be usurious and lenders unscrupulous, I am wary of this. I certainly cannot advise you to do this.
Instead, ask a friend (a classmate in your computer course, maybe) to start the business with you. Instead of single proprietorship, start a partnership with him or her, sharing the benefits and risks. If not a friend, then you can approach a relative (a cousin, an aunt, or even your sister).
Of course you can go the usual route. Find a job first. Work for someone else, preferably in computer services, for some time, all the while saving up enough capital to finally start your own business. You have to be patient; this will take years. But when the time comes, you will not be saddled with debt, you will have undergone even more training (taking a course may probably not be enough for you to strike out on your own), and you can be your own boss. God bless.
Next Friday: Meet a family whose premier resort has lasted for 25 years.
Queena N. Lee-Chua is on the board of directors of Ateneo de Manila University’s Family Business Development Center. Get her book “Successful Family Businesses” at the University Press (e-mail msanagustin@ateneo.edu.) E-mail the author at blessbook.chua@gmail.com.