Establishing new brands and other businesses is an alluring proposition, but it comes with its own set of challenges. The barrier to entry of starting your own business is high, and creating two businesses simultaneously complicates the issue even more. Be aware of the ways small business owners can manage multiple ventures while remaining profitable.
Utilize the Same Space
Often, you can use the same physical space for both of your businesses. You will be able to use the resources and infrastructure already available without having the challenge of leasing a new area and making it a viable work environment. In essence, you save on the cost of space while making more money from your second business.
Know When To Grow
This is not always a long-term solution; eventually, your business will outgrow the confines of one location. Using the same space for two businesses is a great way to get the second off the ground by reducing initial start-up costs, but it can be detrimental once it grows to a certain point.
Deal With the Funding
With a second business, you may be more familiar with how the system works and the reliable ways to attain funding. However, opening a second business can be one of the factors that affect financing. Loan offices may see your second venture as too great of a risk, especially when you have another fledgling business.
Double-Edged Sword
Your first business can either be a boon or an anchor, depending on how successful it is. If you make significant profits from your first company, loan offices will see your second business as a safe investment. Conversely, if your first business is struggling to keep up with costs, that can be a reason you won’t secure another loan for your second business.
Know When and What To Prioritize
One critical way small business owners can manage two ventures is by maintaining the delicate balancing act of administration. Each business will have its own logistical and financial problems, and you need to know what is pressing enough to solve now and what can wait. You need to identify the factors that inhibit business and negatively affect profits. At the same time, you need to keep records of all the small details that, while not critical to facilitating business, can impact productivity.
The Small Details
Getting lost in the minor details of management can kill a start-up business. You need to focus on the big picture and accept that you need to sacrifice smaller problems to solve bigger ones.
Don’t Hesitate To Delegate Responsibilities
Managing two businesses is difficult, and it’s natural to want to manage them yourself. But there will be times when you need to share the responsibility of success and failure. Delegating responsibilities can benefit the business significantly, ensuring everything gets an equal focus and no one person suffers from severe burnout. Establishing multiple ventures is hard, but it’s not something you have to do alone. Recruit trusted and proven individuals to help manage operations.