The Complete 7-Step Guide to Starting a Business
- Running multiple businesses at the same time is possible, but it takes a special team and a supportive board of directors.
- Understandably, time management is the most challenging aspect of running multiple businesses.
- To manage your time effectively, consider hiring a personal assistant or, at the very least, hiring great team members and delegating work.
Launching Your Business in 2020? What You Need to Know
Starting and running a business may be extraordinarily difficult. From marketing strategy to financial challenges to time demands, few things about running a business are easy.
For some people, this doesn’t matter. For some, the thrill of launching and successfully running a business beats out all the demands that come with the journey.
Some people are born with the entrepreneurial bug. For these individuals, the joy and grind of beginning and running a business area unit, therefore, motivating they need to try and do it repeatedly.
While some serial entrepreneurs can launch, build and exit the businesses they begin, others need to continue running their initial venture whereas performing on the second (or third, fourth, etc.).
It can certainly be done, but it takes a lot of hard work and dedication to each of your businesses.
We spoke with entrepreneurs who run multiple businesses about their experiences and what other business owners should know about owning multiple small businesses.
Managing your business responsibilities
As you have in all probability learned from your current business expertise, entrepreneurship needs sporting tons of various hats. you wish to be organized and understand your priorities to remain on prime of things – and that is only for one company.
Your biggest priority as a multi-business bourgeois is prioritization itself, said Emily Miethner, chief executive officer and founding father of FindSpark and MGC Social, and owner of 2 cities, New York, food trucks.8 Small Business Ideas for Entrepreneurs
“Knowing a way to effectively split it slowly to make sure each business thrive is certainly a talent,” Miethner aforementioned.
“It’s necessary to own the systems and processes in situ – and, of course, the team – to make sure you’ll scale and handle each.”
“I glide by the philosophy [of getting] the difficult things are has done 1st throughout the day,” aforementioned Sofia Scicolone Ridinger, co-founder of Market America and SHOP.com, and founder of Motives Cosmetics. “Once those are has done, I will then fancy the remainder of the day and be artistic.”
Time management is one of the toughest challenges of running multiple businesses. you wish to see once you may pay time on every business and the way you may delegate completely different business tasks.
It’s nearly not possible to run multiple businesses while not a superb team serving to you manage your responsibilities.
In some cases, it should even facilitate to rent associate degree assistant to assist you to retain track of your completely different responsibilities.
When running multiple businesses, you would like to pay time on necessary work. you do not need to concentrate on juggling your schedule or scrolling through previous emails. try and contour processes and develop some variety of routine to dam out all the extra noise that comes with running completely different businesses. Related: 10 Unique Business Ideas to Inspire You in 2019
Being in the right business location
This means a few things. First, does your physical business location make sense? Second, are you in a good place geographically to recruit and hire top talent? Third, when can you be at the physical business location or office for your businesses?
One of the most obvious challenges of opening a second business is not being able to be in two places at once.
When you’re at one business, you can’t be at a different location, which means you must make sacrifices. If you’re running small e-commerce brands out of one office space, the location concern isn’t as big.
Office location matters as you consider expanding. Growing your business may require more employees and office expansion.
It’s easy to forget about business location, but it’s a critical part of opening a second business. Traffic can even become an unexpected concern depending on where your business is located. Related: What Is The Difference Between A Startup and a Small Business?]
Covering your business basics when opening a second business
This comes with starting any business, but you need to go through the basics of planning out a new business, which can be challenging when you’re already running another operation.
You need to determine a handful of things when opening your second business, and it can be helpful to put these into a written business plan.
- Legal structure – Will your business be a limited liability corporation? Will you opt to form a partnership instead? There are several different business structures in play, and it’s important to determine the best option for your new venture, especially when it comes to reducing liability and keeping your personal assets protected.
- Marketing strategy – How will your new business attract customers? Who are those customers? Will social media marketing play a role in the strategy? Expect to spend significant time figuring out how to market your new product or service.
- Financing – Will you need business loans? Will you enlist the help of investors? Will you create a crowdfunding campaign?
There are other aspects of a business plan that should be considered, like your organizational structure and revenue drivers.
Creating a business plan isn’t just for serial entrepreneurs, though. Even if you’re running just one business, you need to know about your target market, revenue channels, and financing expectations. Related: 10 Unique Business Ideas to Inspire You in 2019
Harmonizing your brands
Whether your businesses are related to each other or in different industries, they have at least one thing in common: you.
Even if the connection is not obvious, consumers and business partners can easily discover that you’re at the helm of each company, so you’ll want to keep your values consistent.
Mathieu Massa, CEO of Mr. cordial reception, World Health Organization owns and operates multiple restaurants and nightlife destinations, aforesaid to form certain that methods in one business don’t conflict with those of the opposite business(es).
“If you are running a business during which your sales speech focuses on protective the atmosphere and, on the opposite hand, you begin a business that will fully the other, you like a shot lose believability,” Massa aforesaid. “Find out what your core values area unit and develop them all told your ventures.”
Serial businessperson Nick Matzorkis, World Health Organization co-founded Union sq. Media, in agreement that your businesses ought to complement each other, particularly in sensible ways in which.
“When I even have multiple businesses, I … mold and manage them in such the way they profit each other in supporting and serving to one another grow,” Matzorkis aforesaid.
“[This may be done] by reducing prices – e.g., sharing common accounting or IT departments, sharing workplace area, or perhaps shaping synchronic corporations to back off of every other’s income by making the most of complementary seasonality trends, for instance.”
Some of the entrepreneurs we spoke to emphasized diversifying their income channels. Running different businesses is a way to bring in money from different sources, but that doesn’t mean your brands need to be complete opposites or work completely separately from one another.
By sharing a workspace or IT staff or working toward similar missions, you may find even better success as a serial entrepreneur. Related: What Is The Difference Between A Startup and a Small Business?]
Finding the right staff
It takes a significant amount of work to run one business, let alone multiple companies. However, it doesn’t have to mean more work for you if you hire the right people to help you out.
“We’ve worked terribly arduous to search out the proper folks that are exceptional leaders, and since of that focus, there’s awe-inspiring activity between our brands,” same Brian Scudamore, founder, and CEO of O2E Brands, the parent company of home service brands Wow one Day Painting, 1-800-GOT-JUNK?, you progress Me and Shack Shine.
“All of our managing administrators work closely along [and] share best practices, wins, and culture tips. Having four businesses crystal rectifier by the proper folks is really heaps easier than simply having one.”
“I am a very hands-on person and like to be a part of all the decision-making for all of my brands, [but I have] the team and support behind me to help me execute my daily tasks,” Ridinger added.
It’s not easy to find great talent, either. Your business needs to develop strong recruiting and hiring practices to find the right fit to join your startup or growing business.
Once you find these talented team members, let them shine. Don’t micromanage. You brought team members on for a reason, so trust them to do their jobs. It’s not a bad thing to delegate.
“One of the biggest challenges for me was letting go of the reins a bit,” said Tom Baber, owner of a Money Mailer and an IHOP location.
“When I first started branching out, I was micromanaging in order to feel in control of every aspect of every business, which is just not possible.
To be able to step away a bit and focus on other aspects, it’s critical that you build a team you trust, which was another challenge.”
Finding the right team takes time, and hiring is one of the most important considerations when running multiple businesses. You need workers you can trust.
“To successfully run multiple businesses in tandem, you need to delegate to competent members of staff and remove yourself from day-to-day processes,” said Adam McIntyre, a graphic designer, and entrepreneur.
“For many startups and early-stage businesses, this can be challenging. Hiring competent staff can be expensive, and likewise, it can be difficult to find staff members with the same drive and ethos as yourself.”
While it’s not easy to hire great employees, it’s far from impossible. You need to perform a detailed search to find the best employees, but using things like employee referrals can help make the process a bit easier. Related: How to Start a Business in a Competitive Industry
Before you’ll be able to have faith in staffing your new venture, your original workers ought to air board along with your call, particularly if it means that they will be operating for each firm, aforementioned Dan Gordon, co-founder and head brewer of Gordon Biersch production Co. and Aurum beverage Co.
“Make certain you’ve got the support of your team once creating the move and have all of the resources you’ll be able to muster that the likelihood of success is nice,” aforementioned Gordon.
Serial entrepreneurs would like sensible team members to succeed, thus it is important to price their input and treat them well.
If you’ve got completely different|completely different} groups at different firms, take time to support and acknowledge team members at each organization often. it is important to recollect that you just are not the sole person attached to the daily grind of bound business activities. Related: How to find the perfect business name
Learning new things
Many of our sources aforementioned that one in all the perks of owning multiple businesses is that the chance to realize new data and views on the way to approach sure business ways.
“The better part of running multiple businesses … is learning totally different ways of promoting, running and building groups, evaluation – everything, really,” Miethner aforementioned.
“There area unit heaps of components from every you’ll be able to experiment with on the others. It creates an excellent perspective. as an example, operating within the food trucks forever jogs my memory, however, the necessary client service and sales area unit, albeit doing each on a food truck is very totally different than what we tend to do through [a skilled service organization like] FindSpark.”
Their area unit even lessons to be learned once you are operating during a similar trade. Gordon noted that, albeit each of his firm’s area unit within the production trade, he featured some production challenges attributable to the scientific fermentation variations between brew and alcohol.
Learning regarding new industries and meeting totally different folks could even awaken concepts regarding future businesses to start out.
Getting your timing right for owning multiple businesses
You may be excited at the prospect of launching your next business, however, you do not need to seize with teeth over you’ll be able to chew.
like any venture, you wish time to devote to the current new startup to form certain it succeeds – that means that your 1st business ought to be self-sufficing enough for you to step faraway from it.
“I set to require on my second venture, Wow one Day Painting, once 1-800-GOT-JUNK? was well established,” aforementioned Scudamore. “1-800-GOT-JUNK? had been designed into a world, $100 million business, we have a tendency to|and that we} had verified systems that we might leverage in our next brands – a centralized center, booking and dispatch software system we’d created in-house, selling systems, and PR power.”
If you are feeling the overwhelming entrepreneurial urge to start out one thing new, a number of our sources suggested merely going for it. as an example, Matzorkis aforementioned he ne’er consciously started to start out a replacement company – he acknowledges and acknowledges concepts and opportunities as they are available to him, and if he has the resources and therefore the passion for it, he moves forward.
“I’ve ne’er started a business just because I saw it as an honest business chance alone,” Matzorkis aforementioned. “For me, any new business should be over simply a sound business model on behalf of me to keep up the main target and drive required to guide it to success.
This personal guideline is of importance to Pine Tree State once selecting to launch and operate multiple corporations at the same time.”
“I do not suppose entrepreneurs anticipate an inexperienced light-weight,” Gordon superimposed. “You get a plan and simply run with it, no matter whether or not it fits into your readiness mode.”Related: Top 10 Business Ideas for College Students]
While Gordon’s purpose is spot on, it is also vital to not produce a second business in hopes of miraculously generating more money flow to use for your 1st business. do not leap into one thing while not some financial statement for achievement.
“Be careful you do not jump too quickly to open a second business,” said Stacy Tuschl, little business growth coach, founding the father of the traffic formula, and host of the traffic podcast.
“First, raise yourself, why does one need to try to do this? If the primary business does not transfer you sufficient financial gain otherwise you are not enjoying it, I might counsel fixing that downside before making another one.
If your 1st business is not a well-oiled machine, it’s time to block and maximize Business No. 1 first. simply bear in mind Rome wasn’t inbuilt on a daily basis, and effort to several businesses early on will hurt your business instead of building your empire.”