Starting a business is risky. Starting one with your wife or husband is more than risky. You are gambling your finance, personal happiness, mental health – and the most important relationship of your life i.e. your marriage.
We have seen many spouse-run businesses collapse and many marriages fall apart simply because of conflicts that could have been easily avoided. Since we don’t want you to face the same consequences we have compiled some 6 simple tips that will help you run a profitable business with your spouse without divorcing.
(1)Ensure You Have a Written Agreement
Just because you trust one another does not mean that you can operate blindly and maneuver the treacherous world of business. Keep all business matters formal from the onset.
Use the written agreement as a way to address all of your fears and concerns. Such an agreement should be specific on things like:
- Profit sharing ratio
- Ownership structure
- Responsibilities to be handled by each of you
(2)Have a Dispute Resolution Plan Ready
Dealing with conflicts and disagreements with your spouse in a business environment is tough. And because conflicts will always be there, it is appropriate that you are prepared to handle them professionally without jeopardizing your family relationship.
Make sure you agree on a model for resolving different types of conflicts. Such a model should specify things like:
*How to keep marriage conflicts from interfering with normal business
*How to respond to panic situations in a matter that is respectful to your spouse
…among other things.
We all wish that there are no conflicts in our love lives, but being prepared for the same (especially when you are doing business together) is extremely important.
(3)Keep Work Matters Out Of the Bedroom
No matter how pressurizing or exhilarating the day was, try your best not to drag your business matters into the bedroom. The best way to do this is by creating your schedule in such a way that you have at least 2 free hours in between the time you leave your office and the time you go to bed.
You can use these free hours to square out any anomalies that may have arisen in the course of the day.
*Use this time to do something you both love e.g exercising or taking a cup of coffee as you finalize on all pressing matters of the day.
(4)Have an Emergency Fund on Stand-By
As you might be aware, finance-related conflicts are one of the biggest causes of break-ups and failure in family-run businesses. For this reason, we suggest that you maintain a separate bank account that you can all run to when things get tough.
Don’t be tempted to inject the funds in this account into your business no matter how tempting the deal is.
*You might run into losses and an emergency fund accounts could be the only help you need to run the subtle affairs of your family-life.
(5)Have a Succession Plan
It is always best to be prepared for the future. In that regard, make sure you have a proper succession plan in place. Such a plan should answer important questions such as these:
- Who will inherit the business once you retire and move on?
- What are your family goals for the future?
- How is the transition process going to be handled?
(6)Love Comes First; Business Second
No matter how tough things get and no matter how rough the waters become don’t compromise on your initial love. Don’t focus too much on the money at the expense of the core things that brought you together as a couple.
When your spouse makes a business decision that you don’t understand, don’t assume that it is a move against you. Respect each other. Give each other the benefit of the doubt.
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Final Word;
Working together with your other half can be hard work. But if you set the right ground rules, align your thoughts and respect each other, your partnership could end up be the most powerful the world has ever seen – all the best!
