Investing in your business as a couple can be one of the most strategic and productive financial decisions you can make. With both partners contributing to the success of their business, it is now even more important that there is a mutual agreement before taking the big leap. Every entrepreneur wants to ensure that their investments bring back returns. Having your partner there to support you all the way makes it even more worth it.
Here are 4 points to keep in mind before you invest.
1. Your individual Obligations
When you are thinking about investing in your business as a couple, it is important to ensure that you consider each other’s individual obligations. This is particularly important for new entrepreneurs who start their business using their own personal savings or monies they would have borrowed from friends and family. What are monthly or weekly obligations? Would you be able to afford to live the way you do, or would you have to forego some things in order to make that investment?
2. Business Financials
It is extremely vital that you review your company’s financial history before investing any money in it. Balance sheets and income statements provide valuable insights into the business—showcase day-to-day operational and administrative costs along with profit margins. The sheet consists of a list of current assets and inventory. You may need to use this information to determine if you will see a return on the monies you invest in or if you should consider holding off for another time…Without knowing the financial state of your business, planning to invest in your business can prove challenging. If you aren’t looking at them closely, you could be taken by surprise.
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3. The State of your Relationship
Making the decision to invest in your business means that you will have a lot to focus on to ensure that your investment provides great returns. That may mean spending a lot of time in your business and spending less time on your relationship. Be sure that you are still making time for each other and yourselves.
Running a business as a couple requires a great deal of faith, both in your own abilities and those of your business partner. Make sure that fundamental trust is there at the beginning so that you make decisions such as investing easy.
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4. Is this what your customers want?
One of the ways of knowing whether to invest in your business or not is by customer feedback. The more customer data you can get, the better. Your customers are the ones telling you when you should add a new service to your business. For example, if you run a restaurant and your customers start inquiring about delivering your food to their homes, then it might be time to consider investing in delivery services.
Your customers are your biggest promoters, and when they love your product, they will tell it to their friends and family members. You can fuel growth by listening to them and improving your services to accommodate the demand.