Don’t be alarmed – we just thought it was a catchy title. Nothing explicit here!
A lot of very successful entrepreneurs have multiple businesses. So today, we’ll look at starting the “other” business!
Benefits of the other business
#1 – Your Compensation
You have one business now. So you can draw one salary. When you have two businesses, you get two salaries!
Your current business pays for your company car. Why not have two businesses so you can have two cars? And two expense accounts. Two planes! You get the idea!
There may be better ways to do this, but that’s beyond the scope of today’s blog.
# 2 — Diversification
Basic financial theory says you should diversify – don’t put all of your eggs in one basket!
If you have one business, you’re completely subject to the ups and downs of that one business. With two businesses, one may pull the other one up during times of adversity and vice versa.
#3 – Your Wealth
Entrepreneurs have most of their wealth tied up in a single asset, but they typically have more wealth than the average homeowner. So owning a business is a great way to build wealth. Why not double the pleasure and own two?
One reason not to do it
Obviously, there are many reasons NOT to do this, but space doesn’t allow a full discussion. Let’s look at one – how to maximize your opportunity while minimizing your complications.
Ask yourself this question – how much can you grow your existing business? If it’s still significant, stick with what you have. Growth consumes money, so keep it in your existing business to maximize that opportunity.
Why take on the complication of the other business if what you have now is satisfying you?
Borrow a page from bigg business – feed what’s growing. It’s evolutionary. But as its growth winds down, get revolutionary – find the other business!
How to know you’re ready
Let’s assume that you’ve taken your business as far as you can. It’s still a good business, but it’s hit a plateau. There are two sides to knowing if it’s time for you to move on:
- Your head – Is your baby ready for you to leave?
- Your heart – Are you ready to leave your baby?
Here’s a great technique to listen to your head and your heart – take an extended vacation!
For you workaholics, this may require baby steps. If you haven’t been on a vacation for awhile, take an extended weekend. Then get away for a week. After that, make it two. Work yourself up to at least a month away.
You’ll find out if you’re emotionally ready to leave. You’ll also learn how your business functions without you. Who calls? Why? What are the problems?
If no one calls, you’re probably ready to go for it. The worst case scenario is that you’ll come back with the knowledge you need to get ready.
|If you’re interested in pursuing a second business, get our FREE special report, Don’t Make These Mistakes When You Start Your Second Business.
You’ll learn important lessons that often trip up second-time entrepreneurs, even those who have succeeded wildly the first time out.
Just e-mail us: firstname.lastname@example.org
Our bigg quote today is by Michael Gerber, the great author and entrepreneurial guru.
“The entrepreneur is our visionary, the creator in each of us. We're born with that quality and it defines our lives as we respond to what we see, hear, feel, and experience. It is developed, nurtured, and given space to flourish or is squelched, thwarted, without air or stimulation, and dies.”
So if you’re getting the itch, it may be time to pursue the “other” business.
Next time, we’ll discuss why women can’t win. Things could get heated on the show! Until then, here’s to your bigg success!