As a franchisee, having some level of involvement from your life partner wouldn’t be odd. This ranges from full-time partnership to a more common situation, where one partner owns and operates the business and the other “helps out” with marketing, bookkeeping or operations.
Deciding on the structure for your business is as important as doing a good job serving your customers.
40% of Canadians are or will be divorced from their life partner
The fact is marriage is tough. It requires work, empathy, investment of time, communication and in some cases, true love (I say that facetiously as it should always include that). I know as I have been married to my wonderful and amazing wife for 34 years now!
Adding a business into the mix when in almost every case it means your partner / family will be involved adds to that complexity. There are six major items to consider when you are interested in opening a business with your life partner.
The family commitment to owning a business
It comes with so many advantages, and I would suggest that it is second to none for a lifestyle. The financial and time freedom that comes with entrepreneurship is something difficult to replicate anywhere else. However the family must be committed to the initial financial crunch, the time commitment required to get the business running and the fact that it is now part of your lifestyle
The partner’s roles and responsibilities
A far more difficult aspect to truly understand is the role of the franchise owners. It must be clear not only to those investing in the business, but to their team members as well. It is a guarantee that the employees in your franchise will go to “the weakest parent” for permission or information on something. This is unhealthy. If one partner is the operating partner and the other is the bookkeeper, the operating partner is the only one to have regular contact and direct the team members.
What the exit plan is
I am a big believer in designing the exit to your business as you prepare to open it (more on this in an upcoming article). Aligning to this plan and what is required is essential for the success of the business and the marriage. Business ownership should be strategic and planned, and the exit is part of that. It should not be a reactionary event to the current situation with the business.
The core values and vision statement
Aligning to this, along with a mission statement and a governance, will help guide the ship and it creates a northern star, a point to which people will work towards. When you are aligned with your core values, everything else becomes easier. Spend the time creating this. Ensure your core values are aligned with your Franchisor’s core values. If you don’t have extensive experience building these, contact a professional who can help you craft and build this part of your business.
How to fund the business
Decide in advance what personal finances are available for funding the business vs what is off-limits. Business requires cash flow and the unexpected can happen. At times you need to float your business or invest additional capital from personal funds. You may consider the line of credit on your house to be open for use only if required whereas you may consider that your retirement funds (RRSP etc) are off-limits. Aligning to that helps you make good decisions, and it reduces friction when you need to make smart decisions.
Family first
Spending time with your family and spending time with just your spouse / partner is extremely important. As an entrepreneur, you never really “work”. You simply have a lifestyle that includes business ownership and sometimes that requires that you are at the shop or store or office and at other times, simply replying to something from your phone at home. This is normal but you must carve out time for date nights, dinners, family travel and sports / cultural events. Your family comes first and while they will all be interested in talking business, that should be part of your existence, not the core part.
Open dialogue, honesty, being focused on communication and trusting one another will really help the two of you and your family navigate this exciting but lesser understood world. The five points above will provide you with a roadmap for how to go about reviewing each important aspect as you venture into the world of becoming a franchisee as a family.
