Being an entrepreneur comes with its own set of challenges. Are you embarking on this journey together? The prospect is both thrilling and daunting! Are you taking it internationally? This venture demands a robust grasp of legal intricacies, substantial financial support, and a meticulously crafted business plan where each partner's skills enhance the other's. Additionally, managing the emotional dynamics is crucial: working together as a couple can be a challenge, for better or for worse.
The many challenges of entrepreneur couples
A solid marriage contract and a thoughtful business plan
Like a marriage, starting a business together hinges on a robust project and a shared vision. The first step is to thoroughly explore the motivations behind your venture, the specific nature of the activities and products, and the methods for delivering your services or products. It's essential to craft a business plan just as you would for any enterprise, whether solo or with partners, setting aside any couple-related aspirations that lack a clear definition. The enthusiasm of a shared passion might not suffice to establish a sustainable and profitable business. Many online resources can aid in developing a strong strategy. For example, you could review insights from a Forbes article or seek guidance from business creation support organizations. In France, the France entrepreneur agency and the public service website provide crucial insights to refine your business strategy.
The right distribution of roles
There's also no room for improvisation when it comes to the roles and responsibilities of each entrepreneur! We won't extend the metaphor of poorly distributed household chores and the disaster that can cause. It's indeed important to reflect on the role distribution within the company based on the personal and professional skills of each partner. Otherwise, you risk scattering and inefficiency, as with any business partner. Often, we lack clarity about what our individual strengths are. Becoming aware of them can significantly help create or manage your joint business. The reference test is the CliftonStrengths by Gallup Institute. There's a free online version that enables you to identify your main strengths.
Alternatively, there are plenty of personality or skill tests available online. If you want precise guidance, you can also undergo a skills assessment with a professional, a process certainly useful in any project of personal reflection and professional reorientation, alone or as a couple.
Keeping professional and private life separate
A major pitfall for couples managing a business together is the blurring of family and professional life. Constantly living and working together can lead to repetitive and invasive conversations about the business, its challenges, and its successes. To maintain a separation between professional and private life, set clear rules, such as not discussing work at home. If you work from home and find this challenging, consider utilizing coworking spaces available in most major cities or dedicate a specific room in your home as a workspace. If being in close proximity all day is difficult, try to create distinct workspaces (two desks or two different areas) within your home. The list of challenges continues, especially when working together while living abroad!
What to watch out for with your joint business abroad?
Getting an entrepreneur visa
Addressing visa-related issues is crucial when planning to establish a business abroad. Citizens of the European Union (EU) working in another EU country typically don't need a residence permit, but for countries outside the EU, securing an appropriate visa is essential.
Many countries offer specific visas for entrepreneurs, such as Australia, Estonia, Mauritius, Denmark, Taiwan, and the United Kingdom. It's important to closely examine the conditions required to qualify for these visas. For example, in Canada, your business must receive support from a designated entity like a business incubator and demonstrate innovation along with significant contributions to the local economy, including job creation. There may also be requirements to prove a certain income level, which varies by country.
If your business is smaller or suited to remote operations, consider exploring digital nomad visas, which are typically issued for one to two years and may not align with long-term business goals. The suitability of such visas will depend on the nature of your professional activity and the specific conditions of the target country. Another strategy to facilitate visa acquisition might involve initially being employed by a local company to obtain a residence permit, before launching your own business.
Legal and regulatory aspects not to be overlooked
Navigating the legal and regulatory landscape is crucial for foreign entrepreneurs considering setting up a business in a new country. Each country has its own set of rules that must be meticulously followed. In China, for instance, understanding the detailed procedures and regulations for opening a foreign establishment is essential. It is particularly important that the business's registered activity field accurately reflects its actual operations, as discrepancies can lead to significant legal issues, especially in highly regulated sectors like education. For example, it would be challenging for a foreign couple to open a language school in China due to stringent controls in the education sector.
Additionally, consider other legal aspects such as the required capital investment and the legal status of the company's collaborators under local law. Questions such as whether partners are considered equal in the business and other specific legal nuances must be addressed, often varying depending on the company's structure and the local legislation.
Given the complexity of these issues, consulting with a specialized lawyer is advisable, even in scenarios that might seem less complex than opening a business in a highly regulated environment like China.
The critical issue of finances and taxation
Finances and taxation are pivotal aspects of running a business, especially when the entire household income depends on this single source. It underscores the importance of having a robust business plan and a thorough understanding of all legal facets, including investments and financial liabilities that depend on the company's legal structure.
Typically, you will be liable for taxes in the country where your business operates. However, the matter of tax residency becomes complex when living and conducting business abroad. It's crucial to check if there is a tax treaty between your country of nationality and the country of your business activity. These treaties, often available on the websites of the Ministries of Interior and Taxes, provide guidelines for determining tax residency and preventing double taxation in problematic cases.
Given the intricacies involved, consulting with a tax or financial advisor is advisable for complex situations. Proper preparation and specific knowledge tailored to your target country are essential.
With these in place, embarking on a joint entrepreneurial venture abroad can be one of the most enriching and unifying experiences for entrepreneurial couples.
