Running a new business is one of the most stressful things you’ll ever do and when you are in the early stages, the idea of starting a second company probably seems crazy. But after a while, when the business is established and you have a strong team behind you, things will calm down a little. At this point, you might decide that you have other business ambitions you want to fulfill. Starting a second business can also increase your income and give you some level of protection in the future. If one business fails, you still have another to fall back on. The profits from your first business can also help to get the new one going. However, running two businesses at once is no easy feat and it’s important that you think carefully about whether you are really ready. If you decide that it is the right move, here are some important things you should consider.
Deal With Debt First
Starting a new business always creates debt. Even if your existing business is doing well and you have a lot of money to play with, you will still have to borrow some, in most cases. That’s not a problem if your finances are in good shape but if you already have a lot of debts, adding to the pile is not a good idea. So, look at your current finances and consider some of the signs that your debt is out of control. If you are not in a very stable position, spend some time paying off existing debts before you think about starting a new business.
Consider A Franchise
Starting a business from scratch is a huge amount of work, and it’s difficult to balance your time when you already run another company. Franchises are a great option for second businesses because a lot of the hard work is already done for you. The brand is already established, so the time that you need to put into marketing is greatly reduced. This also means that you will start turning a profit sooner, so it’s easier to manage the financial side of things. There are some great sites like Franchise Direct where you can find all sorts of amazing franchise opportunities. Spend some time looking through and find something that you are passionate about but also that you think there is likely to be demand for in your area. It’s much easier to invest the money and get the ball rolling with a franchise, and if you can hire a good team, you can take a relatively hands-off approach.
This is the most important piece of advice you will get about starting a second business. When you are excited about a new idea, it’s tempting to dive straight into it. But if you bite off more than you can chew, you risk burning through all of your money in the first few months. So, move slowly and consider running the business from home for a while to keep your overheads low. Remember, you still need to keep things ticking over at your existing business, so don’t take on more than you can realistically handle.
Starting a second business is possible, but it’s going to be tough. Keep these things in mind and, most importantly, don’t forget to enjoy the experience.