Having a small business as your main source of income can often create financial challenges. If you own a seasonal business, for example, you may be trying to generate a year’s income in a short amount of time. If you have a very small target audience or niche market, you may not be able to generate as much revenue as you’d like. Or, your current industry may be facing a temporary downturn.
In situations like these, you may want to start or even take on another business, in order to:
- Increase revenue
- Stabilize overall cash flow
- Attract new and different customers
- Become a stronger competitor
Becoming a multipreneur
As an entrepreneur, you know how to juggle multiple priorities. Because you must deal with many aspects of your own business at once, while also trying to balance your work and your personal life, you might be well suited to becoming a multipreneur.
Taking on more than one business, however, can present a number of challenges:
- Keeping one business going strong while starting and growing a new one
- Dealing with limited resources
- Assuming more responsibility and potentially more risk
It might seem daunting at first, and you might worry that taking on a second business means doubling your workload and responsibilities. However, depending on the business you’re in, you can use what you already know and what you have at your disposal to help. Delegating to those you trust and empowering your employees allows you more time to focus on your new venture.
You might benefit from economies of scale and scope. For example, you could use the same supplier or distributor for both businesses, or use the same production facilities if you manufacture a product. Before making any decisions, take a look at your operations planning in order to maximize the potential of your operations.
Plan for change
As with any big undertaking, it is important to do your research ahead of time, and plan for change, just as you did when you started your first business. If you are well prepared, you will have a better chance at success when you finally take the plunge and become a business owner… for the second time.