Michelle Rodger: Two's company for couples going into business together

Published on Saturday 8 August 2009 14:09

ARE you sleeping with your business partner? It's not a cheeky personal question but one prompted by the fact that the recession is fostering a growing number of couples launching companies together.

Separately, love and business are two of life's greatest challenges, but for the "co-preneurs" who weave the two together, the route from bedroom to boardroom can be rewarding both personally and professionally.

It's that "walk away from civvy street, from the nine-to-five commuting thing," says Stephen Alambritis of the Federation of Small Businesses. With the growing opportunities offered by the internet, he explains, it's feasible to run a start-up from your front room, which may explain why most are now initiated by women aged 35-plus. Typically her partner would join in later, once the duo can afford to risk losing a regular income.

Every relationship is different, but they almost always have complementary skills and share the same entrepreneurial attributes. A husband-and-wife team dedicated to the same goal can be formidable.

Jeweller Eric Smith and his wife Yvonne have lived and worked together for more than 35 years. He believes absolute trust and their complementary skills – Yvonne runs the business while Eric is responsible for the creative side – are the foundation of their success.

"When you work with your partner you don't have to encourage them to go the extra mile because it's what you both want," he says. "The whole motivation of that gives you an extra boost."

But it's clearly not enough to have a shared passion for success. The pressure of running your own business and living together 24/7 means the need for official and often legally binding agreements to keep the relationship on a solid business footing.

There are sound financial reasons for sorting out the processes. Venture capitalists are unlikely to invest in a business unless they are convinced that the personal/professional issues have been addressed. Being clinically professional about what is inherently a personal relationship is key.

According to entrepreneurship expert Dr Susan Bolton, couples should put job descriptions in writing, decide how to share the profits, and agree on salaries and benefits. The University of Plymouth expert says the planning should even cover the worst-case scenario; what happens if the business fails.

Over and above the normal business operations there will be other, domestic issues that will affect a company run by a couple, such as how vacations are handled. Can you both take time off together? Also, who deals with emergency childcare situations and how do you differentiate between work time and home time? And who goes back to work if the business fails? Knowing your strengths and weaknesses from the outset is fundamental to defining both individual and shared responsibilities.

Gillian Ferguson and her husband Angus have worked together since October last year as partners in The Hyndland Cafe in Glasgow. Gillian already runs her own recruitment consultancy and that experience has given her the skills to manage the business side while Angus deals with day-to-day operations. The couple "absolutely respect" each other's skills and they let each other get on with it.

Says Gillian: "It's a critical that each person involved, not only Angus and I but our team, know what role they play in the business."

Having what could be seen as a marriage within a marriage can be fraught if co-preneurs fail to keep a clear line of distinction between their work and home lives. Arguing in either place can make it uncomfortable for the rest of the team. But, says Eric Smith, it's not necessarily a bad thing to argue.

"Working together isn't always harmonious," he admits. "But if we clash passionately, it's for the right reasons: it's to improve a situation and make things better. It can be hard work."

Bringing strops and sulks from the kitchen to the office is not professional. But neither is making business decisions at home in a "cliquey way", says Mary Perkins, founder of Specsavers Opticians.

Perkins founded Specsavers in 1984 with her husband Doug. Their privately owned business now turns over in excess of 1.2 billion and employs 26,000 staff across 1,390 stores. She is on record as saying, "I've known husbands and wives deciding staff issues behind closed doors when they're at home together, which isn't business-like."

To tackle these common mistakes, experts recommend bringing an independent focus to the business, perhaps even asking non-executive directors to sit on the board, people who can help to separate what is important for the business from what is important for the family.

Working with your partner is challenging, says Gillian Ferguson, but it's an amazing experience. "Every couple's motivations will be different, but understanding your goal, clearly defining how you will get there and who is going to support you throughout that time will ease the way."

So if you can get past remembering you've forgotten to do the VAT return at inappropriate moments, work out how to handle your disagreements, and if your passion for the business matches the passion for each other, the opportunities for a successful business and a successful relationship are endless.