Free book preview Money-wise solo preneur
This book gives you the essential guide to easy-to-understand tips and strategies for achieving greater financial success.
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
The opinions expressed by the entrepreneur’s contributors are their own.
Surely you’ve ever heard that mixing love and business isn’t a very good option, which is not necessarily the case since the success of a business always depends on how its owners manage it, not their relatives.
The simple fact of starting a business is a great challenge that creates fear. If you want to start with your partner, it can become an even bigger challenge that few dare to try. According to the 2016 annual report of the Global Entrepreneurship Monitor (GEM), around 34% of entrepreneurs are afraid of failure.
To prevent this from happening to you, you need to consider the following tips which will be very helpful when starting a business together with your partner:
1. Define Goals: Before starting your business, it is important that you define the goals that you want to achieve in the short, medium and long term as this will help you have a guide for decision making.
2. Make a budget: It is important that you think about what you will be spending month after month from the start and that you keep your income and expenses updated. To do this, I recommend that you download the Monthly Budget format for free, which will greatly improve your business finances.
3. Determine their roles: Discuss and agree on what roles they will have, what position they will hold, and what specific and general goals they will pursue. This will help them be better organized and avoid conflict.
4. Separate Personal Finances: Once you have determined what functions to perform, everyone needs to be assigned a salary as one of the worst financial mistakes is to take the money that is intended for your personal expenses.
5. Emergency Fund: You need to take into account that all income will depend on a single source of work if they choose to work for the same company. If the company goes out of business, both incomes could be seriously threatened. Because of this, they need to have an emergency cash fund that allows them to cover at least three months of their monthly expenses and that they only use for a real emergency.
Remember, love shouldn’t be a barrier to growing and sustaining a business. Business as a couple can also bring you great benefits that will improve your relationship. The only thing that needs to be maintained is communication and organization.
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