Could you and your other half be ‘couplepreneurs’?
DIVORCE enquiries have shot up over the past year as many marriages have creaked under the strain of long lockdowns and homeworking. But not every relationship has fallen apart. Indeed, some couples have enjoyed their time together so much that they have decided to go into business together.
Dan and Sarah Barfoot opened a martial arts academy in the middle of the Covid-19 pandemic – and insist it has brought them even closer together.
The couple, who have been married for 14 years and have four children, made the brave decision last summer to start Up-Grade Martial Arts in their hometown of
Bexhill, East Sussex. It’s worked a treat. ‘We get to spend more time together and share our business successes,’ says 35 year-old Dan. ‘These triumphs have been unique and were only created because we were together at the time.’
The couple, both black belts in kickboxing, use their gym to help teach educational programmes to children with special needs, such as autism. ‘We’re best friends and both understand our roles in the business, as well as recognise our strengths and weaknesses,’ says Dan. ‘We also get to experience all of the different ways we each deal with adversity.’
Of course, work-life balance can be an issue. It’s why the couple insist on carving out time each evening to relax together – as well as making each other laugh during the working day. ‘You need to remember that you love each other and that the other person always has your best interests at heart,’ adds Dan.
The Barfoots are part of a new breed of ‘couplepreneurs’ who choose to live – and work – alongside their partners. They are among the 1.2million new companies formed over the past 18 months as the UK has adapted to a world governed by coronavirus restrictions. These new businesses include online retailers, couriers, mobile food sellers, plumbers, electricians, cleaners and bookkeepers.
According to the Centre for Entrepreneurs which compiled the data on new companies, a mix of Covid, furlough and lockdown has made people reflect on their priorities – and prompted many to go self-employed.
Matt Smith, the centre’s policy director, says: ‘There have been new opportunities and ideas for people to implement. It’s not surprising that a good number of couples have gone into business together.’
While some have fallen in love with working from home and decided to quit the 9-5 to step out on their own, for others it’s been a necessity. According to the Office for National Statistics, redundancies reached a record high of 370,000 in the three months to October last year – an increase of 217,000 on the previous quarter.
Business consultant Patricia Bacon, who runs a podcast on couplepreneurs called Between The Spreadsheets, says some people have been primarily drawn to self-employment in order to make ends meet. ‘A lot of people have been made redundant and this has led to couples having conversations about what they can do together business-wise,’ she says.
Mike Cherry, chair of the Federation of Small Businesses, believes the benefits of running a firm with your partner include flexibility and being able to share the workload. ‘As well as knowing each other’s strengths and weaknesses, you’ll more than likely be on each other’s wavelength, trust them, and be able to offer unconditional support,’ he says.
However, he suggests that couplepreneurs should have a proper business structure in place, defined roles, and a succession plan should the relationship break down.
‘Going into business is a big commitment and there’s a chance of disagreements that can overshadow your personal relationship,’ he warns.
The potential risks make it essential to get your finances in order, according to Sarah Coles, personal finance analyst at wealth manager Hargreaves Lansdown. ‘We like to think nothing will go wrong, but if you’re tied by marriage and business, it can be twice as difficult to extricate yourself and split your finances if the relationship breaks down,’ she says.
Coles suggests getting legal documents drawn up outlining what will happen to the company if you should split – and keeping your personal and business finances separate. ‘It’s easy to let them bleed into one another, and put the odd expense on your personal credit card, but this can complicate things for tax purposes,’ she says.
Avoiding the temptation to plough in every last penny of your savings is also important – especially if you’re both dependent on the venture to make a living. ‘You need something in place just in case things don’t go to plan,’ adds Coles. ‘Keep an emergency fund equivalent to between three and six months’ worth of essential expenses in an easy access savings fund.’