There is nothing wrong with owning 2 or more businesses. It all just depends on how one handles and balances both.
Having more than one business is usually a common goal for every businessman because it signifies expansion and achievement. It is not unusual as well to own a second company in a different industry because venturing into a new market is deemed as exciting and challenging for business owners.
It will take a lot of extra effort to maintain two or more companies at the same time. There will always be risks present in every move or decision made that involves all the businesses owned.
The successes and failures of one business may significantly affect the growth and expansion of the other. In some ways, business owners should find a way to harmonize both businesses using a cohesive management style despite the two belonging in different industries.
There are indeed several pointers that need to be considered when starting a second business, Listed below are the 5 most significant factors to consider before opening or launching a second business:
1. Proper management and Adjustment
Every business owner should ask themselves if they have the capability to manage both of their businesses with much efficiency.
Adjustment period is very crucial in starting a second business. The time spent by a business owner on one business is now divided compared to when a singular venture was the only main focus.
In many cases, those who try to expand and create new companies unconsciously focus on the newer company, leaving less time and effort on the first company. Instances wherein there is a striking imbalance in terms of focus and attention on each business is something that must be avoided.
It is important to balance one’s time.
Running two businesses will sometimes require moving at a pace slower than usual in order to ensure that the right decisions are made and each venture is operated smoothly. Consider all possible results that could affect both businesses. Take note of the pros and cons of each business. Weigh options and always keep track of short and long-term goals without being biased and negligent.
2. Having a Business Partner
Some may think that having a partner will be helpful in maintaining their business and that it will also help lighten the responsibilities. But having a business partner is not always the best answer. Not all business partners may be the right fit for the company’s objectives. When this happens they tend to add more problems than solutions.
Before choosing a company or entity to team up with, assess their compatibility with the business core objectives and structure by asking the following questions:
- Are they knowledgeable about the nature of the business?
- Do they have the necessary resources and manpower that will be very beneficial for the success of the business?
- Do they have visions and goals that are similar to that of the business’?
- Have they teamed up with other brands and companies before? If so, how successful were these past partnerships?
Another factor to consider is the willingness of business owners to lessen their power or authority over the company. Some people like to be in control of everything in the business because this way, it eliminates disagreements and inconsistencies in decision making.
However, this type of mentality will obviously not work in a partnership. Seeking the approval and opinion of the business partner will now be vital in carrying out crucial turning points and changes involved in operating and maintaining the businesses.
It is likewise necessary to note that business partners need not be the same or universal for all the businesses owned by the entrepreneur. Choosing a business partner will ultimately depend on the kind of management and direction that the company requires.
Working on more than one business requires making necessary adjustments to the business owner’s schedule.
Fixing a balanced schedule does not always mean rendering the same number of hours for each business. Time and effort should be divided according to what each business requires. At the same time, take time to sit back and observe the progress and challenges of each business.
There are instances wherein one business may require a bigger chunk of time to attend to certain pressing circumstances. Such a situation is unavoidable but can be compromised by ensuring that there are trusted staff who can help handle business operations especially during critical periods.
4. Business Plan
Starting a new business will always entail a clear vision for the brand, possessing the right skills, having extensive knowledge of the industry where the business belongs, choosing the best location, allocating the funds for the business and budgeting the money according to the business’ needs, implementing the most effective marketing strategies and hiring the most suitable and experienced workforce.
There should be a clear vision and objective for starting a second business. Take time to build and work on the vision for the upcoming business. Once the vision is finalized and settled, that’s where creating a clear, detailed, and attainable business plan comes next. The business plan must be able to define the industry being planned to venture into and the logical steps on how to execute every step of the plan.
The location of the businesses, along with the marketing plans for each should also be well-thought of. Location can be crucial especially for the business owner because it can affect how the businesses are simultaneously managed. For instance, if the businesses are situated on opposite sides of the city, then navigating back and forth between the two businesses or companies will be quite a hassle.
When launching another business, seek the help of advertising experts and use different outlets such as social media to reach target customers. Proper marketing strategy will be a big help in the success of the new business.
Lastly, expansion also means expanding all of the aspects of the business, including the workforce and the budget. Make sure to review resources particularly. The basic rule before starting a second business is to check whether the existing budget allows the addition of another venture or business.
Remember, opening a new business is no walk in the park. It also entails hiring new staff and supervisors to take care of the fundamental operations for the business. It may take a lot of sacrifices from the business owner to be able to do this.
Among all the things, this is the most important factor needed for a businessman to succeed. Just like in the business that was first opened, business owners have to be equally passionate about the second. Make the business an extension of the business owner’s personality and a reflection of themselves.
Lastly, pick an industry where new ideas and opportunities are overflowing and inspiring. This will help provide stronger motivation and drive to attain bigger successes not just for the new company but for both businesses.
The level of passion that the business owner provides to each of their business will be the backbone of the companies being developed and geared for prosperity.