Growth is the best proof of business expertise and hard work. If you’re thriving in your business career, you tend to not let go of the momentum. You feel like your continuous success needs to be followed up by another one.
This stage gives business owners the drive to expand their playing field. A business expansion also provides the opportunity for entrepreneurs to finance another business. When everything falls into place, you can’t help but plan for your next action. It’s striking while the iron is hot.
Starting a business is a great risk. If yours is at the stage of success and expansion, you may feel doubt about exploring another business. But to reduce your hesitancy, here are some useful tips you can use. These will guide you in preparing another business while you’re managing your existing one.
Ensure stability of your existing business
Expanding your business could mean a lot to you. It’s good to have patrons that support it. But since you just got it bigger, will it last long like how you planned it? In fact, the U.S. Bureau of Labor Statistics cited in a study that 65% of new businesses fail during the first ten years. This can be a scary figure for business owners.
However, this only says that longevity is an important thing when running a business. If you’re a business owner, you should be able to project your trajectory. See if your business can last. These things are essential since they’ll dictate your capability to open another business. Make sure that your existing business can stand or has already stood the test of time.
Save for capital
After maintaining confidence in business stability, you have to spare some of your profit. You’re going to use these savings to fund the new planned business. You can start doing it by setting goals for your existing business and the one on the horizon. Setting growth objectives is one of the ways to manage business growth. You’ll need it to set a direction for your next actions when it comes to managing your businesses.
Once you’re able to determine the amount you need for your new business, start saving for capital. You already know how hard it is to start a business with limited funding. You would want to make sure that you have enough financial support to start your new business venture.
Expect an idle period
There’s always a leeway when it comes to transitions. This is normal. You can’t start something in full-blown mode just because you already have something big existing. Remember that your existing business started in a humble form. You have to somehow follow the pacing every time you start a new one. For example, you’re renting out an apartment. Building a new one can take time.
Getting a competitive jumbo loan to finance your next apartment unit to rent out is also an option. This will keep your business plans going at a slower pace. It’s going to take a little while to get your business to where you want it to be. All you have to do is trust the process and keep the operations moving.
If your new business is already taking off, it’ll be time for you to divide your focus. Shifting your priority between businesses is going to be a task. This could be the right moment for you to hire more people to handle your first business. Only get the most trustworthy employees by doing an extensive background check. When that part is settled, you can start focusing more on your new business venture.
While doing this, don’t forget to check on your first one from time to time. You can perform regular site visits or scheduled inspections. It’s going to be a little hard to maintain multiple businesses at first but you’ll eventually get used to it.
Apply best practices
Do you know what’s the best advice you can apply for your new business? It’s the advice you got when you were still planning for your first one. Your first business venture was a success. You can use your best practices that led to its success and apply them in running your new business. There are no better management methods than the ones you’ve already proven and tested. Might as well use them to make your new business as successful as your first one.
Getting started with your new business may give the same feel as to how you started your existing one. Only this time, you have to acquire new skills that’ll teach you how to manage both. Balance everything out and you’ll surely get another entrepreneurship triumph.