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When your spouse is your business partner, it can certainly present pros and cons. You get to work with your best friend, but business problems can bleed into your personal life (and vice versa). Today's contributed post explores this subject and more.
How can spouses go into business together and succeed both in their marriage and business? It’s actually great to have your spouse as a business partner.
You get to spend a lot more time together and combine your knowledge and skills to build a profitable venture. It is like a dream come true but hard to achieve, like all dreams.
In this article, we look at some of the key factors to consider when you involve your romantic partner in a business venture.
You obviously wouldn’t be fighting at home and working closely in your business. It won’t work. You need a well-maintained marriage at home to run a successful joint business with your partner.
Don’t dare to go into business with your spouse if the relationship is on the rocks. If you can’t handle your marriage-related stress, you won’t be able to handle the daily stress of running a business together.
Make sure you have a stable marriage before you drag your spouse into your business. You’ll succeed if both of you have the best interests of the marriage and business at heart.
Working with your spouse is a strength rather than a hindrance because the two of you bring together different skill sets for the success of the business. However, before you merge your skill sets, you first need to identify each person’s strengths and weaknesses and where each of you is best suited to lead.
It is important to clearly define each other’s strengths and weaknesses and how you expect to manage them for the success of your business. If there are roles you believe the both of you can’t handle, look for outside help for more support.
Make sure you share the same vision for the business before you launch your start-up. Your joint venture is doomed to fail if both of you are pulling in different directions.
Talk and agree on long-term goals and the overall big picture of the business. Business experts recommend that you take time to write a comprehensive business plan as well as a life plan to ensure that your personal and professional goals and aspirations are aligned.
Your responsibilities at the workplace may be different but should be shared equally to create a harmonious working relationship. Have the same work ethics.
The business will not get far if one of you is slaving all day handling multiple roles while the other partner is playing a round of afternoon golf. For instance, frustration and loss of motivation will be the first fruits of your joint venture if your wife is working hard while you are taking time off every now and then.
If you need to work successfully with your partner, take time to allocate roles equally. Decide who does what, when, how, and why.
Figure out how you’ll be solving disputes especially in different sections or aspects of the business. Everything boils down to having the same work ethics, commitment, and values as other non-romantically involved business partners.
Asset management is one of the most common deal-killers in family or spouse run businesses. It’s all about who controls the business assets and finances. The best approach is to ensure that none of you has full control of the business finances.
Financial responsibilities and obligations should be equally shared. Make sure you have two-signature business accounts and financial statements that clearly describe your income, expenses, and profits. Everything should be easy for both of you to understand.
Talk and agree on the best financing options available for the business. Are you going to fund it from a joint account or will each party seek for funds individually? Make sure the financing is done as equally as possible. For example, if you should ever need to take a loan to handle an urgent business task, make sure you both agree on the decision.
Just like your marriage, a joint business venture with your spouse will often come across challenging obstacles. There may come a time when you don’t share the same opinions about certain issues but just like your marriage, communication will be essential in overcoming obstacles.
When you respect and appreciate your spouse’s contribution, the business will grow stronger and even strengthen your marriage. Your common business goals and aspirations will bring you closer together. Focus on both short-term and long-term goals for the business to ensure that you share the same vision.
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