HoweEnterprise.com
November 4, 2019
Family Loans: How to lend with family Hey Taylor - My brother asked if I could loan him money for a food service company he’s launching. I trust Taylor him and like the Kovar concept but get a little nervous about lending money to family. Any advice? - Marjorie Hey Marjorie - Family or otherwise, anxiety is always the right feeling when asked to lend money. Once you get past those initial nerves, you need to look past the family part and assess the situation logically. What’s the business? If you like the concept, this loan request has already passed the first test. The main reason I would advise someone not to loan money to a family member is if they feel guilted into doing so and otherwise wouldn’t put capital behind such a venture. If you think your brother understands the industry and knows about all the insurance, inventory, and staffing costs associated with food service, the family connection becomes moot. Do you think this business, as proposed by the business owner and with location in mind, has a chance to do well with the proper funding? If so, don’t dismiss the proposal. What’s the plan? One million “good” concepts get pitched at dining room tables every day. The trick is turning a bright idea into a profitable company, and that involves a solid business plan. If you’re going to invest in this company, you should request a detailed model for how money will get spent, returned, and reinvested. As a personal investor, you deserve as much say as you want in this company. If it makes sense, you might want to use your money to buy an active role in the operation. Angel investing can make you a lot of money while helping your brother grow the
business. However, if you choose to move forward, make sure you get what you want out of this investment. How much are you spending? Like with any investment, don’t spend a penny more than what feels comfortable. Even with a great concept and the smartest brother on the planet, you still face plenty of risks with this kind of venture. You don’t want to put so much money on the line that an unforeseen disaster could sink multiple family members. Ignore the amount your brother asked for and think about what you can confidently invest that’s what’s most important. If you have a family member with a billion-dollar idea, you don’t want to miss out on it. At the same time, you don’t want to lose money on a bad idea just because of a sibling bond. Set aside the relationship and think about investing on your own terms. While you mull it over, your brother might want to have a look at a business funding article we’ve got up at GoFarWithKovar.com. Best of luck to both of you, Marjorie! Taylor Kovar, CEO of Kovar Capital. Read more about Taylor at GoFarWithKovar.com Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
Bulldogs (Continued from page 6)
down. An obvious deterrence to Howe’s comeback attempt. Howe eventually held Van Alstyne to a punt on that series, but Haley was hit as he looked to throw, and a fumble was recovered by the Panthers. Howe forced a turnover-on-downs and then quickly scored on a 43yard bomb from Haley to Harmon. That cut the lead to 4021 with 2:05 remaining in the game. Howe’s Jordan Jones took the ball away from Paul O’Loughlin on the next series which gave Howe another chance to score. From the
Van Alstyne 15 yard line, Haley threw a fade in the endzone for Kolby Windon who made a leaping grab for the score to round out the scoreboard at 4028. Realignment will take place in early 2020 and Howe’s 356 students in high school should be right at the tipping point of whether they will be classified as a large or small 3A school. For the past two years, Howe has been the fifth-smallest school in Texas in 3A-1. With any luck at all, Howe will be able to go back down to 3A-2 for the 2020 and 2021 seasons. (Season stats on page 9).
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Living with children Q: Our 7-yearold son recently stole two small model cars from a playmate while he was at the playmate’s house. ApparentJohn ly, he wanted to Rosemond trade one of his toys for the two cars, but the playmate refused, so he stole them. When we found them, he claimed his friend had given them to him. We absolutely know that’s not true, but it’s been over a week and our son refuses to admit to the theft. He’s changed his story, then changed it back, so we know he’s lying, but still he refuses to budge. Nothing like this has ever happened before and we’re at a loss. We called an acquaintance of ours who’s also a therapist. She said that children who steal are often compensating for some insecurity and that punishing him could make matters worse. We have no idea what insecurity our son is dealing with or what to do about the theft and his lies. A: With all due respect for the therapist you consulted, I know of no research that connects childhood stealing with insecurity. Her suggestion is purely speculative, as are almost all psychological theories of human behavior. It amounts to what I call a “psychological boogeyman” – an unprovable hypothesis that does nothing but cause parents to think their child’s misbehavior is the result of some ongoing parenting sin. The fact is, children are notorious for doing odd, inexplicable things. A random misbehavior is generally the result of a sudden impulse as opposed to some psycho-emotional deficiency. The most brilliantly insightful explanation I’ve ever come up with for these occasional anti-social impulses is “children are impulsive.” Kidding aside, asking a child to explain a lie, theft, or any other sneaky behavior is almost always unproductive. The most likely answer is “I don’t know,” which is usually the truth. This episode is probably nothing more than a “one-off.” The problem is that a drama has now deVan Alstyne Howe
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veloped around the incident. Such dramas increase the possibility that the misbehavior in question will happen again. With that in mind, my first recommendation to you is that you stop talking to your son about this. Stop asking him to explain himself. Stop pressuring him to admit to what you already know is true. Stop holding mini-seminars on interpersonal ethics. Simply tell your son that you know he stole the toys from his friend (at this point, completely ignore any denials) and that until he admits to the theft and apologizes to his friend, he is confined to his room, which you must strip beforehand of any “entertainment value.” He can come out of his room to attend school, church, family meals, do chores, and accompany one or both of you when you leave the home. During his confinement, put him to bed, lights out, immediately after dinner. The purpose is to establish a permanent memory, one that will cause him to think at least twice the next time he wants something that belongs to someone else. If my experience serves me well, he will spill the beans within a week. If he’s more than typically stubborn, it might be two. Regardless, this experience will give him a new appreciation for the property rights of others. (And contrary to what a therapist might tell you, confining a child this age to a nice but boring room will not leave psychological scars. During the time your son is so confined, he will still lead a better life than at least fifty percent of the world’s children.) When he admits and apologizes, put the matter to rest. Let him out of his room, restore it to its former glory, and move on. Family psychologist John Rosemond: johnrosemond.com, parent guru.com. John Rosemond has worked with families, children, and parents since 1971 in the field of family psychology. In 1971, John earned his masters in psychology from Western Illinois University and was elected to the Phi Kappa Phi National Honor Society. 8 7
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Howe Rushing: 149 Passing: 239
Van Alstyne Rushing: 156 Passing: 296
Rushing: Jalen Thornton 15-99, Caiden Harmon 1-14, Brandon Williams 12-38, Austin Haley 6-(-2).
Rushing: Jaden Mahan 8-143-2TD, Jake Carroll 6-6-1TD, Paul O’Loughlin 4-8, Zach Moncier 4-351TD, Tymothe Rosenthal 3-(-32), Roberto Torres 1-(-4).
Passing: Austin Haley 15-21-2-239, 4TD Receiving: Caiden Harmon 3-1112TD, Kolby Windon 2-46-1TD, Jalen Thornton 4-31-1TD, Brandon Williams 2-21, Arturo Lowder 1-12, Steven Waldrip 3-18.
Passing: Tymothe Rosenthal 11-15-1296, 2TD. Receiving: Cam Montgomery 5-114, Drelin Davis 4-130-2TD, Zach Moncier 1-38, Jake Carroll 1-14.
