Most entrepreneurs hope that the launch of their businesses marks the beginning of their journey towards success. Some prefer to own and manage a business by themselves in a sole proprietorship. On the other hand, some prefer to share the responsibility and benefits of running a business with another entrepreneur through a partnership.
Moreover, there are those who decide to be business partners with their significant other. While some are completely against the idea of couples being business partners, there are success stories that show how starting businesses for couples may not be such a bad idea after all. If you are to co-own a business with someone else, why not do it with someone you already know and trust?
In this article, you’ll learn more about the pros and cons of couples as business partners:
1. The Element Of Trust Is Already There
This first advantage applies most especially to couples who have been married for a long time. A good partner for life may also be a good partner for your business. Why? That’s because the element of trust has already been established.
Most business partnerships fail when conflict enters the business relationship. Often, this happens when trust is lost. It’s quite difficult to place your trust in others, especially when money is involved. When you have your spouse or partner as that a business partner, you won’t have to be as fearful.
2. More Revenue For The Family
With a couple as business partners, more of the business’s net profits or dividends directly benefit the family. This is in addition to whether or not the income from the business is considered conjugal property. Since you’re both running the company as a couple, more money comes into your family unit.
This is a great advantage for families with children, as you’ll have a higher likelihood of securing your kids’ future. After all, the couple can generate and save more money.
3. There’s Healthy And Open Communication
Another problem often faced by business partners happen is issues with communication. Sometimes the channels for the exchange of ideas and sentiments between partners are no longer healthy or open. However, when you run a business with your spouse or partner, you know you can talk freely and openly with your business partner. It’ll be easier to foster good discussions on matters pertaining to your business when you don’t consistently have to be on your toes when talking with your partner.
Even if there may be certain business decisions that you both don’t agree on initially, it’ll be easier to find common ground when you’re dealing with your significant other as a business partner.
1. There Might Be Added Strain Or Stress On Your Relationship
No matter how good your relationship as a couple is, there will be days when you’ll go through rough times. However, when you’re in business as a couple, business problems may cause or contribute to the challenges you face in your relationship.
When your business partner is your spouse or significant other, it can be difficult to separate personal issues from work-related matters. Or, you may also bring business problems to your home. This is where it’s very important to set boundaries. For instance, even if your business partner is your spouse or significant other, this doesn’t mean that business discussions and problems should also make it to the dinner table.
2. There’s Limited Outside Perspective
It’s common for couples to be very protective of each other. While this is helpful in strengthening personal relationships, it can be detrimental to your business. It’s hard to have an objective and honest evaluation of how each of you should function and contribute to the business when you’re also in a relationship with each other.
Often, there needs to be a third-party or outside perspective to ensure that evaluations, roles, and even call-outs for mistakes in business are properly done.
Are you now ready to take your relationship to another level by starting a business as a couple? Like any other venture you’ll decide to pursue, there are always advantages and disadvantages that you have to carefully consider. It’s up to you to ensure that the benefits will always outweigh the possible risks. As long as you know you can trust each other and work together as a team, there really is no reason why you shouldn’t consider being co-owners of a business with your spouse or loved one.