From Marriage to Business
Guidelines for Starting a Home-based Business with Your Spouse
In fact, to hear some experts tell it, couples who are building a home-based business together need stronger communication skills and conflict resolution skills than most. It is like walking across a bed of red hot coals. It takes a lot of skill and one can get burned.
Techniques to grow a home-based business are the same as larger entrepreneurial businesses. Some similarities are division of duties, clear communication between principals and income expectations along with hard work and a commitment to success.
Division of Small Business Responsibilities
Decide early on who will do what. Even though duties are divided they are not necessarily equal. For instance, when physical labor is involved it is traditional for the husband to be the primary supplier and the wife to provide technical and administrative support. However, reversal of roles, such as kitchen duties, is not unlikely in this day and age. No detail is too small. Decide who will cook dinner and on which night. An understanding of division of duties will allow husband and wife to know exactly what to expect from each other and the business will move along smoothly.
Small Home-based Business Finances
A small home-based business has to follow the same rules for reporting taxes as a large business. This can be tricky if your start up capital is small. Two ways to encourage success and acquire cash is 1) obtain a start-up loan for capital from the bank. 2) Open a separate business checking account. Do not open a DBA (doing business as) account because this type of account is subject to mismanagement by combining use of personal expenses with business. Personal finances should never be mixed with business finances.
Salary Expectations for Small Business Owners
Small business owners need to pay themselves enough salary to meet basic living standards and stick with it. Budget, budget, budget. It is tough in today’s economy but sticking to a budget will pay off in the long run. Do not be tempted to take money from the business every time you want to go to a movie or dinner. Get used to eating at home more often. Soon the business will be running efficiently and the marriage will reap the financial rewards.
Communication between Spouses of Small Businesses
Communication is by far the most important starting point of any partnership. Decisions cannot be made without clear communication. “Communication is a continual balancing act, juggling the conflicting needs of intimacy and independence,” said Deborah Tannen in You Just Don’t Understand (1990).
Who will write the checks? Who will decide where the main office will be? Will it be in the garage, kitchen or spare bedroom? Will you and your spouse share office space? Clear communication between spouses will smooth out the progress of these types of decisions and set a positive work environment in a home-based business.
Overall working at home with a spouse can be rewarding and creative. The overhead is low and tax advantages are good.
