Learning how to start a business with your spouse happens over time, not overnight. You both may be excited about an idea, however, if you are considering starting a company with your spouse or if you already have a business together make sure you prepare by having the tough conversations and creating a check list of priorities that will help you avoid potential issues.
Most people don’t understand that starting a business with their spouse is the riskiest thing they can do. For example, if you and I put $10,000 into a business and it fails we’re only out $10,000. When a married couple starts a business, they risk 100% of everything. They risk their marriage, their credit rating, 100% of their savings, and their home. Truth be told, couple-run businesses take on the biggest risk. That means planning is different for them.
You must update your plans consistently as the business grows in order to make sure that both the marriage and the business are thriving.
Here are 3 things to make sure you cover:
Have your financial plan in order first: Because the risks are higher for couple entrepreneurs, it will be important to have your financial safeguards in place. Do you have life insurance? Do you have an emergency fund with at least $2000 saved in it? Do you have money saved up in order to start the business? Money issues are still the leading cause of divorce. Having these things in place will help you lower the emotional stress that can happen when finances are too tight for one partner.
Don’t start a business together if both of you are not completely on board with the idea: If one of you hates the type of business you both opened, then you will be unhappy long term, and this is not fun to work in. Don’t start a business just because you know how to do it. Pick something you both may enjoy and embrace the learning curve of that business. Choose your roles and develop together, over time.
Avoid burnout: Some couples attempt to do everything they can by themselves. They want to save a buck and often end up doing the work of four people. This is not healthy and should be avoided when possible. Learn to outsource and delegate as soon as you can. This will help you avoid burnout.
Respecting each other is an important part of having a couple-run business. That means that your spouse isn’t “the free help”. You pay your spouse a salary just like you would like to receive. Too often women end up working for a business for free or for very little. This is a partnership and must be treated just like other partnerships are treated. Both partners reap the rewards of a business with a fair and equal salary.
If your spouse is feeling disrespected, overtime that will jeopardize your marriage. This means speaking kindly to each other and learning to have dignity at work versus power struggle. You will benefit most by acquiring a good coach or therapist from the start. Make sure when there’s down time that you are not talking about what the business needs or wants. Play time is play time.
Starting a business with your spouse can be one of the most rewarding things you ever do. There will be challenges and successes, as well as celebrations and disappointments. In the end, it will bring you closer together if you have created a solid plan and vision.
Vickie Helm is a bestselling author, business and asset strategist, and the CEO of Smart Group Firm. She has improved the success of more than a thousand companies and the lives of thousands of individuals throughout her career. You can learn more about Vickie at https://thesmartlifeclub.com or https://vickiehelm.com.