Ever consider running multiple businesses at the same time? If you haven’t started your first business yet, I know that can sound overwhelming! Currently, she is running 5 businesses and wants to share how to run multiple businesses simultaneously.
This could leave you open to being surpassed by a competitor, or stop your businesses from working at the level of operational efficiency that you need them to. Giving a long leash also means not micro-managing your team members or executives. Instead, your role as a CEO should increasingly be to offer support and guidance. Those are strategic value adds that you can provide – without getting into the weeds of the day-to-day. There are pros and cons to each structure, so it’s advisable to consult a lawyer before deciding which legal structure is best for you. If you’ve been bitten by the entrepreneurship bug, you might have your sights set on any number of new business opportunities.
Track your time to hold yourself accountable.
Actually, I was pretty early to doing this – it’s much more of a trend now. I was able to buy companies for great deals and do things that would be much, much harder and more costly today.
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When you’ve got one business, it’s inevitable that you’re going to be deeply personally invested. So if anything ever happens to my businesses today, it just doesn’t seem like a big deal, which means I can get straight to work on figuring out how to fix it. One day in 2019, Google accidentally shut down Mailshake. They literally told us we couldn’t use their API anymore. Turned out to be an error on their part but that was one of roughest 72 hours in my life. It didn’t help that it landed on my wife and I wedding anniversary and I just purchased a 911 GT3RS ($200k race car) the week before.
File All Your DBAs under One LLC
You may choose to delegate, but delegation needs to be done with appropriate leadership. Elon Musk is one of the most famous entrepreneurs and a role model to many. He has founded and is still actively involved in over 5 different successful companies. But if you’re keen, you’ll realize Elon didn’t start all these businesses at once. He started one at a time and then after a couple of years, he starts another. In this post, I will share with you reasons why it’s a dangerous move to start more than one business at the same time.
- Might as well scale operations up, especially when the ratio of expenses to revenue goes down.
- Considering that you’ve already invested to attain a legal form of ownership over the business, spending a bit more on tech tools shouldn’t be a problem.
- I was able to buy companies for great deals and do things that would be much, much harder and more costly today.
- Even if your businesses are separate, they can still build and complement each other.
I also let employees and customers know that my personal time is nonnegotiable. That way, work issues are less likely to creep into my personal hours when I am away from my businesses. For example, I am the sole owner Running Multiple Businesses and operator of my main business, Marshal Group LLC, an automotive exporting company, and I am also a co-owner of a franchised automotive dealership. At the dealership, I own a smaller piece of the pie by choice.
Pros and Cons of Running Multiple Businesses [2022 Update]
Do find your personal interests but align them with real market needs. Don’t be afraid to diversify across industries, markets or sectors. Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly. If so, make the money you can on it now, but be prepared to transition your efforts elsewhere. If you have a team that could develop that future software now, even better. Ideally, you want to be at 30% or above per product once you factor in inventory, storage, shipping, taxes, added-value items, discounts, referral or finder fees, etc. Analyze which business has the potential to be most profitable.
- If your multiple businesses are unrelated — Like in the old days a conglomerate, will dilute the power of what you and your team can achieve.
- Recruit your employees smartly so that you can trust them.
- You might be wanting to launch several ideas, but how do you know if you’re ready?
- When a problem arises in one of your companies, an IT expert from your software company may provide a quick solution.
- Also, improve your time management skills and prioritize what you focus on realizing you can’t do every single thing on your own.
- I learned this from an entrepreneur with 2 businesses while traveling on average 320 days a year.
The very first thing you need to manage multiple businesses is knowledge of each business. If you were running a web designing company and also wanted to act as an Android App developer, but you did not know Android code, you might fail miserably. It is very common to feel overwhelmed when you are managing multiple businesses. Running a single business involves managing manpower, creativity, implementation of ideas, problem resolution, analysis and tapping the complete business potential. CEOs make corporate decisions, serve as the main point of contact, and manage the overall operations and resources of the company. If you’re going to have multiple businesses, you can’t work in all of them like a producer.
Keep reports on each business to gauge results and maintain accountability.
At a minimum, hire a VA to make your dentist appointments. You’ll make more money if you can focus on strategic planning. I’d rather send that work out to the developers and https://wave-accounting.net/ talent I can find using various freelance platforms. While I do hire many others to help both companies keep moving, they are not replacements for my co-founders or myself.
- In addition, they should also think about hiring outside workers or relying on the skills of others.
- You’ll be working with different people across your different businesses.
- Effective business management dictates that you be as wise with the use of your time and resources as possible.
- You can also split up tasks and focus on one end of the business while your partner focuses on the other.
- If you look into these multi-business entrepreneurs’ history books, you’ll see a clear chronological order of which came first and how things evolved from there.
This is applicable to any business, irrespective of online or offline. As Warren Buffett says “Do not test the depth of the water by putting both your feet in it”. When you’re organized, your business also runs a lot smoother. That’s because you have schedules, deadlines, and shared calendars that keep everyone on the same page. It also eliminates distractions, assures projects are completed on time, and sets-up “smooth sailing” plans for the future. When you hire correctly, you can delegate assignments so that you can work on your priorities. You can also rest assured knowing that when you’re not focused on one business — the other is in good hands.