Choose Spouse as Business Partner of Choice
Would-be entrepreneurs would prefer to go into business with their spouse rather than another family member, research from insurance firm More Th>n has found.
A survey of 1,200 adults by More Th>n found that 50 per cent would choose to team up with their spouse or partner when starting a new business. This was well ahead of parents, who were seen as a dependable the best business partner option by just 17 per cent, friends (10 per cent) or children (seven per cent).
“Successful business partnerships often rely upon the different skills and personalities that spouses can offer,” said Warwick Business School’s professor of enterprise, and author of the report, Stephen Roper. “In love, opposites attract, and the same is probably true for business partnerships.
“However, with so few people likely to work with their sons, daughters and siblings, one cannot help but wonder what the future holds for the survival of the traditional family business as we know it,” he added.
The National Federation of Enterprise Agencies chief executive, George Derbyshire, said:
“Working with a spouse can bring a number of business benefits, such as trust and shared values.
“It can work very well, and both partners are likely to be highly motivated,” he added. “But it needs to be well thought out in advance, with careful planning over working hours, individual roles and how each person splits their time.”
The Institute of Chartered Accountants England and Wales (ICEAW) head of SME issues, Clive Lewis, agreed that there were advantages, but stressed the importance of working out finances in advance.
“If both parties are introducing capital to the business, then you need to think about reward, such as dividends,” he said. “Remember that roles change as people get older and the business develops, so it’s also important to keep updating things.”