Now that we have successfully navigated the shoals of another Valentine’s Day, and have not foundered on the rocks of elevated expectation nor sunk into the whirlpool of lassitude and avoidance, we might want to consider the special relationships that exist between couples who live and work together.

 

A recent article in the Globe and Mail cites the pros and cons of the live/work relationship—and certainly both should be considered when the decision is made to start or purchase a business together.

 

The balance between the advantages of having a life partner who is involved in the day-to-day running of a business (shared concerns, understanding, convenience), with some of the disadvantages that come from life being a 24-hour-a-day business meeting, is something that should be planned for and considered carefully.

 

At the Women’s Enterprise Centre of Manitoba, we recommend that couples develop a partnership agreement in addition to any formal Shareholder’s Agreement required for a corporate structure. It should spell out the roles each person will play and the decision-making authority that is relevant to each role. Don’t assume that all decisions will be made in tandem. Each person has expertise which should be reflected in the agreement. Expectations and deliverables should be cited: for example, the books will be brought up to date at the end of the month; the marketing plan must be complete by March 1; the merchandising must be freshened every week; the bills will be paid as due; the cash flow will be projected for each quarter, etc.

 

Some of the points we made in our August blog, Partnerships, the Good, the Bad and the Ugly are certainly pertinent to live/work partnerships as well. We recognize that this special kind of partnership can be a joy (building an enterprise together) or a terrible hardship (watching your relationship disintegrate as the demands of your business grow). The key is to think ahead, plan for all contingencies and, above all, know when to end the business meeting and just be a loving couple.

Posted by Sandra Altner at 3:34 PM 0 Comments

Tags women entrepreneurs  women-owned businesses  Women’s Enterprise Centre  partnerships  partnership agreement  Shareholder’s Agreement  

Those who have survived bad partnership in business, when asked how they could have avoided the problems that brought their relationships to a crashing end, usually reply that the best solution would have been never to have gotten involved with that person (those people) in the first place.

However, to avoid all business partnerships would result in a huge loss of collaboratively generated power that can act to propel a business from a standstill to a real income-generating initiative. Good partnerships can be a boon, can result in valuable learning, and can provide the synergy whereby the whole is vastly greater than the sum of its parts.

Bad partnerships can leave a wake of destruction far beyond the business detritus after the end has come. Your husband, your best friend, your sister, your mother, your cousin, your college roommate, or book club pal could be a great help to you and to your business. On the other hand, you may ask yourself one day, “What was I thinking?” Please don’t assume that love, friendship, family ties or obligations are sufficient foundation on which to build a business relationship. In fact, it is often those very emotional areas that are the hidden landmines.

At the Women’s Enterprise Centre of Manitoba, we see all manner of partnering experiences along the continuum of great to awful. There are a few questions we suggest our clients ask themselves when considering bringing in a partner, whether at start up or to kick start a company.

Some of the most successful growth businesses have been formed and developed through strategic partnerships. The key here is the ‘strategic’ part. Think, analyze, test, talk it through, think best and worst-case scenarios. Ask the tough questions, and then, if you think the benefits far outweigh the potential traps, and the risk is worth the reward, form a legal partnership that provides for win-win benefits, whatever the outcome.

Posted by Sandra Altner at 11:38 AM 1 Comments

Tags Women’s Enterprise Centre of Manitoba  partnerships  business partnerships  shareholders agreement  partnership agreement