How can couple-led businesses become successful partnerships?

Starting a business with your spouse or partner is a unique yet apparently, prevalent life decision. Many couples in India have achieved enviable success in their ventures, with their businesses growing extremely fast.

A business partner is a crucial figure in every entrepreneur’s life. Couples running a business need to balance the tightrope of work and personal life perfectly. At the same time, a couple’s business success depends on much more than work-life balance. Similarly, you cannot underestimate the importance of the spouse in a person’s life.

Entrepreneur couples need to devise a set of smart strategies on how to run a successful business with their spouse. Here’s how.

Your business: Your shared dream
 

A business starts with a unique idea. It could be something both spouses conceptualise together or one person’s brainchild. In either case, both should be on board with the vision. A consensus should arise out of mutual discussion about what the business should be and where they want to take it in the years ahead. Joining your spouse’s business without any conviction in the business or without being excited about the business idea can have unfavourable consequences.

Risk appetite
 

Couples engaged in different professions or businesses have their employment risk diversified. But, by taking up the same business, couples increase their risk exposure. Both of their incomes are linked to the success of one business. Before executing an exciting idea, assess the risk appetite as a family. Should you keep other income sources open? Can the family financially cope with a business failure or slowdown? If both are convinced about the risks involved, it is easier to be mentally prepared to handle them in the long term.

Business plan
 

Simply put, a business plan is a set of goals you want the business to achieve, along with the time frame. With a business plan, you bring in a professional approach to establishing and growing the business. You must constantly monitor the actual progress of the business against the plan, identify the skills required, bring in new talent, and take other measures to keep the business running smoothly. 

Documented venture
 

A business venture between two partners involves clear documentation. Draft a written contract which will specify various aspects related to the establishment and operations of the business. Document aspects that include the capital contributions of the spouses, the profit-sharing ratio, the liabilities borne, duties as business partners, dispute resolution, exit, no-competition agreements, etc. Clarity of business terms can help avoid disputes and confusion later. 

Company structuring
 

Discuss and decide on the nature of the business entity. Many may opt for a sole proprietorship or an unregistered partnership firm at the initial stage. Compliance requirements are more straightforward in such entities, allowing the entrepreneurs to concentrate on establishing the business. They can also establish a registered partnership firm with greater rights and recognition under the Partnership Act. Sometimes, establishing a limited liability partnership or a private limited company may be a requirement for clients and vendors. Understand the different business entities and select one that suits your compliance and business needs.

Establishing a recognised business entity will help get business documents and registrations like GST registration, PAN, or even your IDFC FIRST Bank current account for business transactions. 

Roles and responsibilities
 

You might have to demonstrate or assemble a wide range of skills to run a business. One may be good at business development and marketing, while the other may be better at IT or accounting. Who will be the face of the company, who files taxes, who looks at recruitments, and who runs the show in the background? A smart business couple will list down all the activities of the business and the skills required for the same, then discuss and agree on what each would bring to the table and what other skills need to be hired for.

Relationship management
 

You and your business partner will be involved in the business’s day-to-day operations. You will jointly take decisions that will decide the fate of the company. You cannot bring their personal life into the board room. A personal argument or tiff at home should stay home. Successful entrepreneur couples maintain this subtle alchemy and bring the best out of their personal and entrepreneurial lives. Read about their stories on advising couples, aim for that collaboration in your life and business partnership, and improvise continuously. This strategy is more of a soft skill; seemingly, it is always a work-in-progress.

To sum it up
 

Along with these strategies, set ground rules to make facing different circumstances in business and personal life easier. You can agree to debrief each other regularly about the goings-on of the business – what are the issues the business is facing, how you plan to handle them, what is the work to be done, what was done last week, and so on. 

You should set aside some personal time for yourselves, as all work and no play can make Jack and Jill a dull couple. Then again, when you are both spouses and business partners, you will see each other a lot. Take a break and enjoy some “me time” alone by travelling or pursuing a passion.

Couples running a business together is an interesting challenge and advantage at the same time. Treat it like any other business venture and give it the professional approach that businesses demand. Additionally, nurture the business relationship between the both of you in a way that supplements your personal life and vice versa.

Disclaimer

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