Entrepreneurs enjoy coming up with new small business ideas even more than running the day-to-day business.
Once their business idea takes off and is a successful business, they may start thinking of other great ideas for a second business.
There is no reason why they can’t expand into new territory even while running the first small business as long as they do things right.
Be Realistic About Your Time
You did not suddenly inherit more hours in the day or days in the week just because you decided to start a second small business. You just have to try to fit more items in the same amount of time.
Don’t forget how much time it took to get the first business off the ground, and realize that it will be the same with this second business.
What this means is that you need to delegate some of your current tasks.
If your current small business is running smoothly, you can pass on some of your daily tasks to someone you trust. You will need to spend much of your time working on the new business idea.
Before you begin working on your new project, look at your schedule and see where you can cut back at least 20 hours or more that you can devote to the second business.
Don’t Forget About Your First Business
It can be easy to get so wrapped up in the new venture that you forget about the first business.
Make time on a weekly or daily basis to devote to managing your current business. It may be just reviewing notes from your manager or you may want to check in with staff or call customers.
Decide ahead of time how you will spend this time. It may include checking financials, talking with employees or managers, or contacting customers.
Don’t wait until your company is in trouble to see that you should have been spending more time on it.
Keep the Companies Separate
Just like you need to divide your time between your first and second business, you also need to keep the funds separate and even your employees.
If you do have an employee who will be involved in both companies, make sure you mark how much time is spent on each one.
You never want your first business to take a hit for the second one, especially if it doesn’t become the success that your first business is.
The article, “5 Financial Tips for Starting a Business” advises you to know when to cut your losses on a business by developing a “pull-the-cord strategy.”
This same advice is even more important when it is your second business.
You don’t want to lose both companies because one doesn’t turn out to be the success you were hoping for.
These same tips can be important whether you are starting a second business or taking your current business into a new area and expanding.
You can help your small business grow and you can enjoy the benefits of having two businesses that provide you with a solid return on investment.
About the Author: Joyce Morse is an author who writes on a variety of topics, including finance and running a small business.