Should you give your spouse or partner an employment contract? Co-founder startups spiked sharply after COVID because circumstances led to many couples going into business together, but, like many business ventures, love and trust aren’t necessarily healthy for the business.
Research shows that not many co-founder relationships survive the pressure. As many as 65 percent of startups fail because of personal tensions, with the consequence that the relationship gets rocky fast.
Ms. Gaelene Adams Love, managing director and business relationship coach at Team Fusion, says couples should treat their business relationship as they would any other professional relationship.
“This means clearly defining roles and responsibilities and setting measurable goals. A common mistake I have seen in both start-up and existing businesses is that the couple takes their personal relationship into the business— that kind of foundation is built on shaky ground.”
She says much of the success of the relationship and the business will rest with the value and culture the co-founders want for the company.
“Many couples face challenges when both partners work in the business, but only one is the director. In such cases, it is crucial to have clear expectations and documented vision and goals. This helps in managing the business effectively and reduces the pressure that can spill over into personal life.
She adds, “Time management is often a significant issue. One partner may still have a day job while the other is fully involved in the business. It is important to be clear about who is responsible for what decisions and to have a mediator if necessary.”
Ms Adams Love provides three actionable steps for couples in business:
- Understand each partner’s role within the business
Specific job descriptions help avoid conflict and ensure that both partners are accountable for their tasks.
- Set Clear Expectations
Document the business’s vision and goals and ensure both partners are on the same page regarding what is expected of them. This includes setting performance indicators and having regular reviews to assess progress.
- Separate Business and Personal Life
Create boundaries between work and home life. “Designate specific areas in the home for business discussions and ensure that personal time is respected. This helps in maintaining a healthy work-life balance and prevents business issues from affecting personal relationships.
“By taking a professional approach, couples can build a strong foundation for their business and ensure that both partners are working towards common goals. This not only helps in achieving business success but also strengthens their personal relationship.”
