Starting a Business With Your Spouse

5 things to consider before making your business a family affair :

1. Divide your roles and responsibilities. Even though both of you may possess the skills to do the work and serve your clients, it's important to divvy up your company's roles and responsibilities so that you don't step on each other's toes. In many small businesses, one partner is the "front of the house," handling sales and business development and preparing proposals and job estimates. The other partner acts as the "back of the house," handling the day-to-day operations and taking care of the bookkeeping, payroll and general office duties. While big decisions such as investing money in a new computer system or hiring an employee should be made together, this can be an excellent way to share power and minimize arguments.


2. Develop an effective way of airing differences and resolving disputes. While good communication is essential to any marriage, it's just as important in a business relationship. A couple who can't compromise on minor issues such as what kind of printer to buy is going to have difficulty resolving the many problems that will inevitably crop up as the business grows. One way to clear the air is to hold weekly management meetings-on Monday morning, for example-to review the company's performance during the previous week and to put in place plans for improvement. If disputes erupt during the week, you and your spouse can either address them on the spot or wait until the next weekly meeting. It doesn't matter which approach you choose, as long as you and your spouse agree to it.


3. Put a child-care plan in place. Just because you'll be working from home now doesn't mean that you don't need daycare or babysitting-quite the opposite! If kids are running through your home office demanding attention, you're not going to be able to get much work done. One option is for you and your spouse to switch off child-care responsibilities (every other day or mornings and afternoons) so that the other spouse can focus on the business. Another option is to find a part-time or full-time babysitter or child-care program so you can run your business while taking breaks to read to your children, help them with their homework or take them to the park.


4. Make sure both of you have enough room to work. While some people have no problem working in a noisy office with lots of commotion, others need quiet and privacy in order to concentrate. For example, if you're going to be on the phone pitching clients while your spouse is writing code and troubleshooting clients' networks, you may need two separate rooms to work. While this isn't always possible in a home office with limited space, you can turn one room-say, the dining room-into the "sales and marketing" office while reserving the den or spare bedroom as the "tech room" where your spouse can focus on writing software and documentation.


5. Agree on an exit strategy before you begin. While it's hard to think about the company's future before you've even launched it, it's important to sit down with your spouse and decide where you want the business to go. If you're content with a kitchen-table business that puts food on the table for your family and your husband wants to be the next Bill Gates and dominate every desktop, you're heading for trouble down the road. You could also run into problems if you want to bet the house and the kids' college fund on building the business and your spouse feels uncomfortable taking even the smallest financial risk. While it may not be necessary to have a lawyer draft a formal shareholders' agreement with buyout provisions and the like, it's a good idea for you and your spouse to agree on an annual budget for your business and to make a list of common goals and objectives.

good luck!

~entrepreneur resource