Copreneurs have key issues

Women who share a successful business equally with a life partner make up an estimated 10 percent of all family businesses. Entrepreneurial couples who have dual ownership and equal responsibility make up one of the fastest-growing family business subsets.

Though research studies are limited in number, there is enough evidence to put aside the myth that because working with a spouse as a business partner is both an emotional and a financial enterprise, there are too many negative impacts on both the family and the business.

The idea that copreneuring involves insurmountable problems no doubt reflects the thinking of bygone days, not the present-day balancing act that has dual-career couples managing complicated work and family schedules.

Copreneur couples started in different ways. For some, it was a shared business idea. For others, it proved advantageous for the nonowner spouse to become a full partner and have a personal presence in the business rather than act from behind the scene. Some male owners found that bringing their wives in provided business opportunities in securing an added customer base or contracts previously unavailable.

In fact, many of the businesses that appear on paper as woman-owned may be copreneurial companies. In S.C., for example, between 1997 and 2006, the period of government set-asides for women-owned businesses, majority women-owned businesses increased by 57.1 percent (Center for Women's Research Fact Sheet).

In addition to financial in- centives, such as two management salaries, designated pension and insurance benefits, a spouse may enter the business as a partner for other key reasons. Is self-employment sustainable if there is only one family decisionmaker in the business? Shouldn't each of us know how to run things if anything happens to the other, especially if there are children to provide for? Will it be possible to continue the operation and pass it down to the next generation if the primary owner and decisionmaker becomes disabled, has a health problem or becomes mentally impaired? Will our ability to exchange roles be a capital asset to potential investors if the business needs to modernize or expand?

As with any career decision, it is wise to consider some copreneur basics in advance. Each partner must state his/her expectations clearly. Balance won't evolve on its own. Think of it as a prenuptial for the business. At work, be a business professional. Respect goes a long way. Avoid overpowering or taking over when the partner is communicating with clients, customers or vendors. Resolve the key issue of how to keep family and personal life from intruding on the business and business from intruding on the family.

Some questions to consider:

Are we willing to take the risk as well as rewards? Can we put all our nest eggs in one basket? Will we be comfortable without one spouse making an outside salary?

Is one of us a control or power monger? Can we share cre- dits, power, success, failure?

Can we take advantage of each other's strengths? Who is the broad-based thinker? Who likes to handle micro details? Who likes to meet and greet? Who prefers to analyze data? Who is the tactical thinker vs. strategic planner?

What business functions will each handle separately; i.e., who makes the final decisions in this part of the business? What functions will be shared? How will differences of opinion be resolved?

Can I trust my partner in the decisions he makes and vice-versa? If something does not work out, how do we review what happened without second-guessing and move on to a more workable strategy?

There is family and there is work. Where is the boundary between them? What are the divisions of labor at home? What flexible arrangements are available? How do we deal with family emergencies and business emergencies?

The questions give an idea of areas that are important for copreneurs to work out in advance. The choice to be a copreneur is a family and a business decision.

These life partners share a full-time business venture as equals with a dual role of responsibility. The factors that appear to influence success are the personal and behavioral characteristics of each partner, their education and experience, and opportunities in the business environment. Each partner may have much to bring to the table.

Dorothy Perrin Moore, Ph.D., is professor emerita of business and entrepreneurship at The Citadel.

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