Do’s and don’ts of starting a business with your spouse
How to make your dreams come true and avoid any nightmares.
Thinking about starting a business with your other half? It sounds like a good idea when you’re sitting on the sofa together swapping daydreams, but there’s a lot to consider before you dive in. As if business ventures weren’t already complicated enough, a professional partnership with your lifelong partner adds an extra element of complexity to the equation.
Here are some do’s and don’ts as you embark on this adventure with your spouse.
Do discuss risk tolerance. As both of you will be relying on income from the business, be sure you have the conversation about what type of risk you’re willing to take and consider keeping separate earnings records, employee benefits, and personal after-tax assets. Speak to your wealth manager about what level of risk your financial situation can withstand as well. It might mean one of you keeps a full-time job for a bit while helping the other run the business on the side.
Don’t be afraid to disagree. Challenging each other may actually contribute to business success and continued innovation – as long as you and your partner are good at conflict resolution. The more ideas, the better. From there, work through the options objectively and come to an agreeable resolution. If there are some aspects you don’t agree on, consider a divide-and-conquer approach t0 responsibilities.
Do separate work and home life. It’s exciting as you build an empire and start to experience success, but remember your relationship is more than just the business – so spend time together and avoid talking shop. Maybe it’s a hard stop at 6pm every day so you can switch into home mode. If you run the business from home, it might mean keeping stock or work-related equipment in a specific room.
Don’t forget to give your partner praise. Joint success is what makes the business happen but both parties should feel like they’ve made significant contributions. Celebrate your partner’s wins and cheer them on along the way. It’s easy to forget how important it is to actively support each other when you’re working and living – and everything – together.
Do have individual interests. Just as it’s important to take time away from the business together, it’s equally important to take time away from the business (and your spouse) for yourself. Consider personality differences in this equation, as someone who’s an extrovert might thrive on outings with friends, while an introvert may need alone time with a book.
Don’t do it if you’re not having fun. Sure, you have to make money and support your family. After all, that’s why you’re in business! But you should be having fun while doing it. If the business is putting too much pressure on your relationship and affecting family life, it might not be right for you. Be aware of how it’s going and recalibrate if necessary.
A business venture – with or without your spouse – is an exciting journey. Bringing in a wealth manager to partner with you on making smart financial decisions for you and your family can be helpful. That way you get to do what you love most and embark on your entrepreneurial dreams with less worry.
Next steps
If you’re thinking about embarking on an entrepreneurial venture with your other half:
Talk about how differences in risk tolerance and personality would affect the business plan and operations
Bring a wealth manager into conversations early so they can make financial recommendations that support your goals
Sources: forwardfocusinc.com; forbes.com; cnbc.com
