How To Own Multiple Businesses Successfully | Smart Tips

It might be difficult for entrepreneurs to run multiple businesses, but there are methods you can use to manage various businesses and make them all profitable adequately. 

How To Own Multiple Businesses Successfully | Smart Tips

For all of their startups to receive the attention they require, owners of numerous companies must be very organized and use their time correctly. You may manage your workload and use others' knowledge by selecting the appropriate personnel for each of your several businesses. 

People that have many business ideas lead incredibly ordered lives. They are capable of handling significant financial losses and have good time management skills. 

The secret to successfully managing several enterprises is to check your Equifax credit report to keep your business on track. If you have practical human resources, delegation may help you manage the task. Business success and failure are now standard. And unfortunately, many company owners who operate many companies have financial challenges. However, if you adhere to a few straightforward guidelines, you may run your business effectively.

Businesses should be very organized and devote the necessary time and attention to each of their numerous small businesses. Choosing the most significant candidates to lead your firm is crucial since your organization is only as strong as its weakest link. 

It isn't easy to manage multiple businesses since you have to start them and then make sure that everything runs well so that you can benefit from each one. 

Advantages of Owning Multiple Businesses

You may try several different strategies at once when you have numerous enterprises. For instance, you may discuss the best times to promote online sales or the marketing tactics you ought to do. 

Making decisions based on information is crucial when selling goods on platforms like eBay and Strikingly. With this strategy, you'll know which platforms are better suited to managing advertising campaigns and which platforms are better at increasing online sales.

Running multiple businesses will take up little time as long as you have a solid staff and productive individuals. You can rely on your team members to make wise judgments and address any issues that may arise.

As we are all aware, the COVID-19 pandemic has significantly impacted several global businesses, including the job industry. The number of unemployed people has grown, while sales at many active enterprises have decreased. If you own several companies, you may still be quite successful even if one of them fails.

Multiple businesses are not for the faint of heart. It is anticipated that you will have to cope with a lot of tension and issues.

We've developed some tips that have enabled us to succeed in our endeavors.

1. Invest Less Than What You Earn

You probably put all you had into your first business when you launched it. However, you have considerably more to lose than gain when you manage many firms. Being a risk-taker for your business means investing only some of your resources. 

You should refrain from assuming that since one firm is successful, you should splurge on the other. It would help if you had clear limits and a reliable company budget while managing several firms.

You should make more money than you invest, say some of the world's best people in business. To keep company overhead costs down, you must hunt for inexpensive options. For remote work, for instance, you may choose a permanent shift.

After the COVID-19 pandemic, several businesses throughout the world looked towards remote options. You can save overhead expenses by allowing some of your workers' shifts to work from home.

Even if you lose money, there is nothing wrong with investing for the future. Your long-term strategy, however, should always be to generate more income than you consume.

2. Hire Capable Leaders

Hire Capable Leaders

Owning many businesses presents the most significant issue of becoming overwhelmed with the amount of work that has to be done. As you strive to keep up with your business operations, answer questions, and avert difficulties in the future, you can feel your attention is needed everywhere. 

If you've experienced this, it suggests you still need to choose the best leaders for your diverse enterprises. You need a good recruitment strategy if you want your firm to run smoothly. Executive-level leaders are available for hire who can use their skills and zeal to manage your companies.

A skill base of a person with multiple businesses is Neil Patel. He also owns three software firms and a digital marketing business. In his opinion, working on several firms with a strong team can ultimately make you realize that you have nothing to do. 

This isn't because you've outsourced much of your work; instead, you've learned the art of being a successful entrepreneur. 

  • Make sure to seek people with strong personalities who can showcase their expertise and talents when hiring new employees for your business. 
  • While you should always be in contact with them if they want assistance, you should also have faith in them to handle tasks on their own. 
  • It would help if you encouraged your staff to advance their knowledge and abilities. 
  • This entails abandoning operating as a lone entrepreneur and teaming up with one or two capable company partners. 
  • You can lessen the physical, time, and mental obligations you must individually bear by sharing the needs of the second firm with other proprietors.

3. Data Mining For Decision-Making

The most accessible approach to identifying what is working and what isn't is through data. You may use it to determine the clients that want more attention as well as the goods that are selling well and poorly. 

Customer relationship management is crucial if you manage many enterprises. When making company choices, a CRM system may help you keep track of anything from sales leads to customer support concerns and marketing efforts.

4. Make A Schedule And Follow It

Suppose the distance between your two main places of business is 22 miles. You must employ a time-blocking approach to plan your schedule since you must be aware that you must physically spend time at each site. This method must be used before you realize how well it works.

  • Benefits of a Daily Schedule

Maintaining a regular plan helps boost productivity. Take into account the following advantages of a daily planner.

  • Remain on schedule

You may avoid missing phone calls or meetings by setting alerts or noting when essential appointments are approaching your day.

  • Improve your priorities

To correctly manage your time, understand what has to be done first for work or on your own.

  • Remain focused

Procrastination may be avoided, and you can stay on top of your work with the aid of a scheduling tool. Personal calendars may aid in planning and ensure that important tasks are completed.

  • Make time for yourself

It's crucial to keep a balance between work and life. Free time slots are visible when you glance at your schedule. Overcommitting oneself might result in stress and less social contact, so always adopt a holistic approach to planning or put holds in place for downtime so that you can look after your mental health and engage in delightful activities.

5. Track Your Time

Tracking how you spend your time is beneficial and goes hand in hand with scheduling. You can keep track of your time usage with browser extensions and time-monitoring applications. 

Since tracking your time allows you to see how you spend your working day, it is more accurate than scheduling. The information might help determine whether you're spending much more time on one business than another. You may become more effective by using time-tracking data. 

For instance, you could discover that you spend most of your week in meetings. You can reexamine the meetings you attend and see whether you can assign the duty to other staff members to free up some time.

6. Create Separate Businesses

Create Separate Businesses

Legal risk and responsibility might be your two key discussion topics when discussing your business goals, if any of them include retail sales or purchasing equipment. The wisest course of action, whether an LLC or a corporation, is to register each of your enterprises as a different company, according to a blog post posted by Nellie Akalp. Therefore, it would be okay with any other firms if one of your enterprises ran into legal problems.

The main advantage of this strategy is that it isolates the risk to each firm. In order to safeguard each investment, real estate investors typically create an LLC for each property. 

Even while some people who own many firms often form a holding company that buys all of their other businesses, this might present problems. You may need help to refute claims that enterprises have a possible legal or tax problem. Separate entities require less damage control even when there is more paperwork.

7. Don't Do Anything You Don't Want To Do

One of the first steps to reducing the stress of running a business is realizing what you don't want to do or may not be good at. It might be difficult for entrepreneurs to let go of even little tasks like mowing the grass since they are inherently hard workers and do-it-yourselfers. Hire a gardener and a housekeeper. 

If you can focus on strategic planning, you'll find ways to earn more money. You have several options, like trying to handle everything yourself to save money by avoiding hiring a business manager, giving up a portion of your income to live the life you desire, or even using that time to find methods to expand your business.

It might be challenging to let go of money when you barely get by. Only take a job that typically pays at least the hourly rate you are now making or would accept for yourself if you are generating a solid profit and paying yourself a reasonable wage. 

For example, if someone can mow your lawn for $20 per hour while you earn the equivalent of $100 per hour, you shouldn't consider doing it yourself. Increase your earnings by using the energy you save.

8. Prioritize The Company That Can Grow The Fastest

For various reasons, you might be tempted to spend more time on projects still in the planning stages, but doing so might undermine the performance of your other businesses when they are going through crucial development stages. 

Spend the majority of your time expanding your fastest-growing firm if it needs your leadership until you can employ an experienced CEO to manage the day-to-day operations using the framework you established.

It would help if you gave priority to the business that is performing best to ensure you are taking full advantage of all opportunities since you would rather have one wildly successful firm than four average ones. Additionally, if you need urgent money, you can always have your strongest company buy out your project. Another advantage of emphasizing one company at a time comes from Richard Branson, the creator of Virgin Records, Virgin Airlines, and other companies.

You'll find it simpler to apply these talents at the other of your enterprises once you've mastered them. First, Branson told Entrepreneur. The business titan advises, "You may think about adopting a more strategic approach: You might work one firm shortly while keeping the other hidden. Is there one of the two companies that have a better chance of succeeding sooner? Or could you launch the other using the momentum from the first?

8. Learn to Outsource

Learning how to outsource effectively can be a game-changer for entrepreneurs who own multiple businesses. By delegating tasks to skilled professionals, you can focus on core business operations and strategy while maintaining control and ownership over your businesses. Copywriting services are a prime example of a task that can be outsourced to save time and resources. Copywriting is essential to any business, but it can be time-consuming and requires a specific skill set. Outsourcing copywriting to a professional allows you to produce high-quality content for your websites, marketing materials, and social media channels without having to devote valuable time and energy to writing. Other tasks that can be outsourced include bookkeeping, social media management, customer service, and IT support. By outsourcing these tasks, you can improve efficiency, save money, and focus on growing your businesses. 

Bottom Line

It would be best if you acquired the necessary abilities to manage many firms after some time. However, success in one business might inspire you to run multiple businesses because you put the strategies you discovered in your first firm to use in the others. 

Many legal professionals agree that you should incorporate both enterprises as distinct organizations. If one of your businesses has financial trouble, the other company can buy it to reduce losses.

Making sure that your time is spent on what matters and that you spend most of it expanding your enterprises should be your top focus while managing several firms. It's a unique path that might need some thoughtful preparation, even though there is a flourishing community of experts working in different businesses.