by Sherry Daniels
Whether you actively work in the business or not, everything that your husband does in the business affects you and your family. If there are money problems in the business, there’ll be money problems at home. Here’s what many small businesses have in common. The husband is a technician (doctor, lawyer, plumber, accountant, lawn care professional etc.) who decided to start his own business. He figures that by owning his own business he will be able to be his own boss and have financial freedom. The wife, either due to a major life activity (birth of a child, unemployment) or a plea for help from her husband, volunteers to help him with the business figuring that working together would give them the benefits of: more time together; flexible scheduling (allow for child rearing); more money, tax advantages etc. …..
While all of the above is possible, the reality is marriage can be stressful enough without adding owning a business together. Setting money and insurance aside, the reality is – not many wives are willing to give up the financial independence, security, and power of having their own paycheck to work with their husbands. There is a chance of having to start all over again if the business or the marriage fails. A well-known statistic is that 1 out of every 2 marriages in the United States, will end in divorce. According to the Virginia Cooperative Extension service, the divorce rate is 5 times higher for owners of failing small businesses.
I, initially, started working with my husband in business so that I would have the flexibility to raise our children, instead of daycare. As one of the fortunate few who could afford to quit my 9-5 job, I too, worried about what would happen if our marriage didn’t work out. In the early years, my ego took a hard blow, as I went from a being a college educated professional making good money to answering the phones in my husband’s business, for little to no pay. However as my mindset changed and my ego was put in check – I started learning about business – and doing more to make sure our business made a profit, and was able to pay me a decent salary.
So with these odds stacked against husband and wife teams, what are some of the factors to consider before taking the leap to work with your husband full-time in business?
CUSTOMER BASE
Does the business have a large number of reliable customers or sufficient income coming in that will give you the confidence to perhaps work part-time or full-time? If not implement strategies to grow your customer base and sales.
PERSONALITY
Are you willing to set aside your own dreams to make his a reality – without resentment? Do you have the personality traits (e.g. self-starter, able to work alone without supervision, flexible) needed? Can you discipline yourself to do the daily business success habits that need to be done, even when you don’t feel like it or even when you had a rough day with the kids? Can you handle the possibility of not getting a regular paycheck? Or having to scale back the lifestyle you’ve grown accustomed to because you used to have another income coming in?
WILLINGNESS TO LEARN
Are you willing to learn the necessary business skills (money, marketing, management) through networking, mentoring, classes, reading, audiotapes, CDs etc. to be successful?
CAN YOU WORK WITH YOUR HUSBAND?
Can you work closely with your husband on a daily basis without strangling him or vice versa (LOL)? Each of you should have clearly defined roles and work zones. I work in the office and my husband goes out to meet clients. He is responsible for the hiring, supervision, and firing of employees, meeting with clients, ordering supplies etc. I am in charge of the 3Ms (money , marketing, and management). What about disagreements? Can you disagree and yet both be kind and respectful – without airing your dirty marital laundry in front of clients and employees?
MONEY
The early start-up years can cause a drain on your finances. How long would you be willing to keep working full-time in the business if it is operating at a loss? If money is tight in your business you may need to hold down your regular job to make end meet or until you build up a cash reserve. If you have a lot of consumer debt (e.g. credit card, car loan) develop a debt snowball plan to pay off your debt. Develop or fine tune your spending plan (budget). Visit www.daveramsey.com or www.crown.org for further information.
BENEFITS
If health insurance benefits are an issue, check with the HR department at your current employer regarding COBRA coverage long before you leave. COBRA is a law that allows persons working for a company with 20 or more employees and who leave the company to choose to still be covered for group health insurance. However premiums are at your expense. And ONLY FOR 18 months after you leave your job. Check out the COBRA website http://www.dol.gov/dol/topic/healthplans/cobra.htm. According to Service Corps of Retired Executives (SCORE) , the following websites may give you additional information regarding health insurance for the self-employed:
www.assuranthealth.com; www.humana.com; www.accuquote.com; www.quickquote.com www.insweb.com; www.quotesmith.com www.insure.com;www.insurance.com
As soon as possible (once you start earning an income working with your husband in business) plan for your own retirement by establishing a Roth-IRA account. The reality is we as women outlive our husbands by an average of 7 years.
MARKETING
As the wife (whose husband owns a business), one of the roles you are most likely to play is the field commander in the back office i.e. the office manager or administrative assistant. As the field commander in the back office, you’re NOT in the business of doing the thing that your business provides. You are in the business of Marketing Your Business. This is how Joe Polish’s of Piranha Marketing explains the difference between selling and marketing. “Selling is what you do face to face to get money exchanged for a product or service.” “Marketing is what you do to get them [clients] there in front of you in the first place.” In addition to any administrative role that you play, your chief role is to find ways to get and keep customers and to get your clients to refer others to you. Regardless of what business you’re in – learn about marketing. I’ve realized that no matter how good we were at installing or repairing sprinklers, how many certifications, or vans and equipment we had, if we didn’t have a lineup of paying customers eager to do business with us on a consistent basis, money would always be an issue. This is true whether you are a dentist, web designer, electrician, or ________ (put your business type here). If marketing is not a skill your husband has the time or inclination to learn – then you learn it. If you can afford it, then hire someone. But learn it anyway. Neither one of you can afford to be ignorant in this area. Slapping an ad in the Yellow pages is not sufficient.
PRAYER
Being self-employed (like marriage) is full of triumphs and tribulations. It is my faith that keeps me and our relationship going yet another day when I’m ready to throw in the towel and say “I quit.” I spend much time in prayer, asking God for wisdom and guidance. My husband and I also make the time to have fun together.
CONCLUSION
Even with all its risks and having to learn totally new skill sets different from what I learned in college – I prefer to work with my husband. Like Jay Abraham says “When you invest energy, time, and money in your business, you are creating not just income but real wealth. Why? Because you can sell your business for anywhere from five to fifteen times earnings, depending on your field. Nothing else can possibly touch that level of return.”
Some couples choose to have separate careers as a hedge against losing it all, if the business fails. For others, working closely together would spell disaster for their marriage. However, if you are considering working full-time with your spouse, it is important to have open communication about your expectations, roles and responsibilities, the effects on your family, money etc. long before you make that decision to join him in business. Use some of the questions in the article to start a dialogue about the business. Go in with a plan and not just wide-eyed optimism and naiveté.
Sherry Daniels manages the 20-year Orlando-based sprinkler system company –Daniel’s Company. She is the author of “Working Moms: How to Quit Your Other Job” available at Amazon.com. It shows women how to make more money working with their husbands in a trade (subcontractor) business.
Call for a free copy of “How to Have Your Sprinklers Repaired Properly at the Lowest Possible Price”. Available free until December 31st. Call or fax your request to the 24 hour recorded message line at 407-429-2266. For questions or comments, Sherry can be reached at: [email protected].
