Couples As Business Partners: Finding Balance at Work and Home

Mar 14

Starting a business with a significant other can be an exciting adventure, particularly if you both share a passion for the same industry or niche. However, it's essential to keep in mind the challenges of turning a dream into a reality and avoid letting it negatively affect your relationship. If you're thinking about starting a business with your significant other, here are some considerations you should keep in mind to help you get started on the right foot.

Maintain Open and Truthful Communication

One of the most critical considerations to ensure business success is having open and honest communication with your partner. You need to have a clear understanding of each other's expectations, work habits, and business goals. Take time to discuss your strengths and weaknesses to select an appropriate business model that works well for both of you.

Choose a Profitable Business Venture

It's essential to choose a business that has the potential to generate a profit. Research your potential market, competition, and customer demographics to select the best business model that suits your needs and budget. Consider choosing an industry or niche that you have expertise and experience in, as this can give you a competitive edge.

Form a Business Structure

You’ll also need to set up your business structure. While you have some options, most entrepreneurs opt for a limited liability company (LLC) because of the pass through taxation and liability protection. If you aren’t sure how to get started, you can start your own LLC in Colorado with Zen business, a formation service with plenty of experience that can make sure you’re in compliance with all regulatory requirements. If you have more experience, you can set it up yourself with the Colorado Secretary of State.

Divide Tasks Equitably

Dividing tasks equitably is essential when starting a business with your significant other. Determine who is responsible for which task to avoid conflicts and misunderstandings. You should choose to complete different tasks according to your strengths and capabilities. This segmentation can create structure and a more efficient process.

Establish a Business Model That Works for Both Partners

Agreeing on a business model is crucial for the success of any partnership. A well-defined business model provides a clear understanding of the company's objectives, target audience, revenue streams, and resources required. Emeritus points out that both partners must collaborate to establish a business model that aligns with their vision, values, and goals.

Legal Agreements for Business Partnerships

Creating legal agreements that outline the terms and conditions of your business partnership is paramount. The goal is to protect your business and personal relationship should hurdles surface along the way. The US Chamber of Commerce notes that it's essential to talk to a business attorney to create an agreement that lays out how you’re going to structure your business. For a list of Denver-based business attorneys, reach out to Montana directly!

Create a Clear Marketing Strategy for Business Growth

A clear marketing strategy is crucial when starting a business with your significant other. Identify your target customers, conduct market analyses, and devise unique selling propositions to ensure long-term success. Determine how you will launch your business, promote it, and engage with your customers to keep them coming back.

Starting a business with your significant other can be very exciting. However, navigating the pitfalls of starting a business can make starting a venture an uphill battle. Communication, planning, and a multi-pronged marketing approach can help you form a solid foundation for success. Keep in mind the above considerations to keep you informed and on track, so you have the best possible chance of achieving your shared goals.

Locate the Ideal Space for Your Business

For many small business owners, it makes sense to launch from a home office. The benefits of a home-based operation can be well worth it in the beginning as the savings on overheard are significant. This can be an efficient way to get your business model thriving and establish your revenue streams.

The flip side of working from your home, particularly for a business operated by a couple, is the inherent challenges in separating your business relationship and personal romantic connection. Realistically, separating the two can be one of the biggest challenges for life partners that choose to go into business together.

When your business begins to gain traction, a natural next step for entrepreneurs is to seek a brick and mortar space whether it’s a storefront or office space. In a scenario involving a couple, this step may be more important than ever as it allows you to create clear boundaries within your natural environment. For many people, a designated work environment that is separate from the marital home is a significant benefit to both the marriage and the business.

How Will You Know When You’re Ready for a Commercial Space?

While the benefits of separating your home and work place may seem apparent, it’s important to do so only when the business is strong enough to support your new space. After all, there’s no benefit in being overextended financially due to additional rent or a commercial mortgage on top of your existing living expenses unless the cashflow is there.

Generally speaking, your business’s rent or mortgage payment should be no more than 25% of your gross monthly revenue. So, if your business brings in about $20,000 on average per month, you could consider a lease or mortgage costing up to $5,000 per month. Ideally, the expenses would be closer to 10% of revenue, but economic changes over the years have caused these numbers to shift.
This high-level percentage rule (or rather, suggestion) is only the tip of the iceberg when it comes to considering taking on your first commercial location. If your business is in a strong position and you are thinking of taking the steps toward a new space, please consider reaching out to Montana to set up a consultation. Together, we’ll review your requirements and discuss the best strategy to move you and your business in the direction of this exciting new goal.

This post was created by Adam Taylor of Taylor and Noel with contributions from Montana Rae of DenverCommercialRealEstate. biz

Montana Rae

Montana Rae is a Colorado-based commercial real estate leasing and sales advisor with Henry Group Real Estate in Denver. She specializes in providing services for retail, healthcare, office, and fitness/wellness business owners. Click here to read her story.