Money matters play a much larger role between business partners than you may think. How your partner decides to spend, save and invest the company’s money could have a considerable impact on your finances too. So, if you and your partner disagree on money matters or don’t often see eye-to-eye, here’s what you can do to achieve financial compatibility in your relationship.
Most conflicts between business partners arise when there is no communication from either side. For example, if your partner chooses to spend money on office interiors, while you would rather have to spend more on marketing, don’t keep that thought to yourself. Brushing money matters under the carpet can only lead to more problems later.
Instead, set some time aside every week to discuss your business finances together. Be open and transparent about the company’s financial goals, debts, spending habits etc. This will help you acknowledge and recognize any problems, and act on them before they get out of hand.
Your business partner might be spendthrift while you believe in spending smart, or it could be the other way around. Differences like these, especially in money behaviors, make it even more important for you two to create a budget together.
Considering you will want to make some decisions in financial matters as business partners, try to set a framework so that neither of you feels stifled. If you want, you can make a joint budget session for deciding expenses or a separate budget to avail freedom in making financial decisions. This exercise would be your first step towards reaching an agreement.
Respect Each Other’s Opinion
A lot of people confess to feeling hurt and angry when their business partners invest or spend a huge amount of money without consulting them. This disrespect further leads to loss of trust. Consulting your partners, the finances is even more important when spending on their area of expertise.
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Hence, sit down and discuss financial decisions that all of you is planning to make, whether it is investing money or spending it. This way, you will both be aware of where the money is. And if you disagree with your partner’s decision, have a mature conversation about it, but only if it seems like an unreasonable one.
Build A Common Ground
While expressing disagreements is good, it won’t be of any use unless you two are able to reach a common ground. You may think – easier said than done. You are quite right. It is a process and it will take some time before it becomes a habit.
So, start making some compromises. However, ensure that it isn’t just one person compromising all the time.
Every business partner has money issues at some point in their business relationship. So, don’t be shy to ask for advice. You can talk to a mutual friend, family members, colleague or even an expert and ask them to help in resolving any financial issues if it may arise.
This will not only guide you but also motivate you to keep working on improving your money matters and your financial standing as business partners. Ask any financially compatible business partners and they’ll tell you, making a business relationship work requires just that — plenty of work. So, have some patience and find a balance through communication to grow together in a business.