I’ve seen hundreds and hundreds of privately held, family businesses over the years. Many are jointly and successfully run by a husband and wife team.
A husband/wife management team adds a layer of complexity over and above the normal issues of business management.
The effect of that complexity depends on several factors, that my team and I have noticed.
How well does the couple get along outside of the office? Do they cooperate and collaborate on their home life? Their financial life? Does one of the spouses hide information and make important decisions without the others’ knowledge and consent? If that is the case, it is a red flag not just for the business but also for the marriage. The partner being deceived may put up with it for a while after discovering the situation, but not for the long term. Each spouse needs to treat the other with respect.
How does the couple handle disagreements? What if each partner has a different opinion on some subject? Some disagreements are going to happen. Resolving disagreements in very acrimonious and dramatic ways will be noticed by employees for sure, and maybe vendors and customers too.
Do the spouses have similar goals and values? One spouse may be completely focused on business profitability, whereas the other may have a social/ethical agenda. Each needs to recognize what is motivating the other and accommodate that.
If there are other employees and owners in the business, clear definitions of roles and responsibilities need to be established.
Is the business adequately capitalized and profitable? Remember – there is no outside salary to rely on if both spouses are working in the business full-time.
Can both of the spouses take constructive criticism, delivered in a respectful way, from the other? If egos and narcissism are involved, this may be impossible and improvement in the business could be impossible also. Again, this is a red flag not just for the business but also for the marriage.
Do the spouses have complementary skill sets? For example, if both of the partners are architects and expect to do design, who is going to handle accounting and marketing? Do professional decisions and opinions tend to clash if the skills are the same? It is usually best to split up responsibility for different functions between the two spouses. And to trust the other spouse to do a good job by not interfering too much.
When spouses work together well and harmoniously, the family business experience can be terrific. In fact, it is the bedrock of many privately held businesses today.
