By Jaine Carter, Ph.D.

Forming a business partnership is very much like entering

into a marriage — partnership agreements can translate into vows as you and your

partner promise each other that you will uphold your end of the bargain for

better or for worse, through thick and through thin, until death (of the

business) do you part. So, if you’re going to be married to your business

partner, why not be married to your business partner?

Many husband and wife teams are doing just that and

discovering that going into business together is the best way to embrace the

entrepreneurial spirit that is sweeping the country. They are more than

entrepreneurs, they are co-preneurs.

The husband and wife team of Kathleen Hughes and Larry

Scheetz, co-owners of Accu-Care Nursing Services, Inc., is an excellent

example. A Registered Nurse for 33 years, Kathleen was involved in home-health

care when Larry urged her to go out on her own. “I wanted Kathleen to be free

to deliver services the way she felt they should be provided instead of

constantly feeling frustrated because clients weren’t getting what she felt

they deserved,” said Larry who has more than 36 years of business management

experience.

“I didn’t want to do it alone,” said Kathleen, “so when

Larry finished a project in Charlotte County I felt the timing was right for us

to make the leap together.” The Hughes-Scheetz team worked on developing their

business plan, and designing forms and marketing materials for three months

before they felt they were ready to open the doors to their joint venture. “We

prepared our policy books and completed a licensure survey required by the

State of Florida,” Larry explained. “Then I rented a small office in Naples and

hired four employees.” Today, six years later, Accu-Care Nursing Services has

offices in Naples and Ft. Myers. The company is staffed with 140 employees and

Kathleen is delivering her brand of quality home health services.

Like Kathleen and Larry, Barbara and Bill Williams are also

running a successful husband-and-wife-owned business — Commercial Concrete, a

structural concrete and masonry construction company servicing Southwest

Florida. “I started Commercial Concrete because I thought it would be fun but

it has also been extremely financially successful,” says Bill. However, the

couple points out, their success has not been without effort. “You can never

lose sight of the goal,” says Bill. And Barbara says some of the challenges

come from working with a spouse. “You have to develop patience,” she says. “You

also have to respect each other and support your partner’s actions and

decisions.”

And, if you can do that, the rewards will be great. “You

have the opportunity of experiencing how your spouse handles the business

world,” says Kathleen. “I think each of us has gained a mutual admiration for

the other’s management style.”

The Accu-Care and Commercial Concrete stories are successful

ones, but couples thinking of going into business together should keep in mind

that a dual-purpose partnership is never an easy course. “Marriages get wrecked

without needing any reason,” say Leon Danco, chair of the Center for Family

Business in Cleveland. “And, when you add a business to the equation, it can be

a recipe for disaster. You’re always making compromises in either the marriage

or the business in order to satisfy the other one.”

Michael DeMas, who works with his wife Ginny in what has

evolved into three inter-related businesses servicing Collier and Lee counties,

agrees. “It takes a lot of dedication and hard work,” says the co-owner of

INTERCEPT, Phase V, and Lease Resources. “Sharing the full load of

responsibilities for the companies as well as every personal detail can be a

challenge.”

Michael started INTERCEPT, a call center and provider of

telephone answering services, voice messaging, and inbound telemarketing, when

he found himself unemployed. “I was fired from an executive position (via voice

mail) and vowed never to work for anyone else again,” he says.

When Michael purchased INTERCEPT, Ginny was running her own

equipment-leasing firm, Lease Resources Inc. Wanting to stay close to their

Naples home, the couple moved both businesses to Bonita Springs so they could

better service all of Southwest Florida. Joining forces meant they could share

office space, equipment and support services.

Michael and Ginny are both savvy business professionals,

but, they recognize when one is stronger than the other in a particular area

and take advantage of that. “Ginny is more organized than I am, and pays

attention to detail, so she is our operations wizard,” says Michael.

Once the couple knew they could work together, they started

looking for a complementary business that would tie the other two together.

They found Phase V, specializing in inbound (and some outbound) telemarketing,

data-base marketing, direct mail, and order fulfillment. Lease Resources

provides a proactive perk to customers who have additional equipment needs, as

well as providing additional cash flow when collectibles are tight at the other

two companies.

Tight money is a problem in any business. When married

partners merge their resources into one business, poor cash flow can be

particularly stressful. If the company goes under, they’re both out of a job.

To prevent this disaster, successful co-preneurs must strategically plan for

their start-up needs building in an extra margin for those inevitable lean

years.

Most family businesses are started with the entrepreneur’s

own money or money borrowed from relatives. However, many are also financed

with a Small Business Administration loan. “Phase V was purchased by the SBA,

who now kindly allows us to manage it — as long as the monthly payments are

made on time,” Michael says jokingly.

The Williams financed their start-up from personal savings,

as did the Scheetz-Hughes team who augmented their savings with a bank loan.

“We chose the bank,” says Kathleen, “because the bank personnel believed in us

and our goals.”

Taking the Step from Couple to Partners

More than 77 percent of new startups are no longer in

operation after five years. To help your business avoid that fate, co-preneurs

suggest that couples who are considering creating their own business should ask

themselves why they want to go into business in the first place. If it’s to

have more time, forget it. Research supports that couples who own their own

businesses put in more work hours than they did working for someone else. And,

Michael points out, “It’s difficult to take a vacation together.”

There’s also the compatibility issue. “Couples contemplating

a business partnership should also decide whether they have personalities that

will mesh well in a business relationship,” Kathleen advises. “People who have

terrific personal relationships can’t always transfer these compatibilities to

a business.”

Once you’ve faced facts, Michael suggests, “Potential

partners must determine whether they want to start their business from scratch,

purchase an existing company, or be part of a franchising operation.” The

following guidelines will help you determine if co-preneurship is for you:

1.) Develop a plan. Research your business idea before

taking the plunge. Don’t just decide that you always wanted a dry cleaning

business, for example, and go out and sign a lease. Look around. How many dry

cleaning establishments already exist in your area? How much can a dry cleaning

business expect to net each year? How many hours a day will each of you have to

devote to this business? Will you enjoy being surrounded by steam and dirty

clothes all day?

2.) Start small and slowly build a base and, Kathleen

cautions, “Don’t burn any bridges. That boss you told off because you thought

you would never need him again, could have been one of your biggest clients.”

Besides, if your new business doesn’t work out, you may be looking for a job.

3.) Assemble an advisory board. Every business benefits from

a team of professionals who are willing to guide and direct business financing,

legal structure of the company, personnel issues, marketing and fulfillment.

This team should include an accountant, an attorney, and a business consultant.

Don’t expect these professionals to work for free. They make their living

advising others.

4.) Create boundaries and stay focused. “Separate responsibilities

according to your relative strengths,” said Michael. “Focus on niche marketing,

customer service, and each other.”

With some sound decision-making, a great deal of hard work,

and some extra attention paid to your business partner and your marriage

partner, co-preneurship can give you the best of both worlds. “It’s great

working with someone you can completely trust,” says Michael. “We both know

that we are constantly striving for both of us to succeed. There are no hidden

agendas.”

Jaine Carter, Ph.D. is a business consultant who writes a

national column entitled “HE WORKS SHE WORKS©— Successful Strategies for

Working Couples.”