What you need to know when opening your second venture? A second business requires the same amount of planning and effort that you give your first business. Here are some elements that you should keep in mind when opening a second business.
Diversify or Expand
There are pros and cons to starting a second business in the same industry as you are. Definitely, you have the upper hand because you are more familiar with the operations, the clientele mindset, as well as the regulations. On the other hand, this could simply be an extension of what you currently do. Consider evaluating your current business and see if every facet has been maximized to its full potential.
Venturing into a different industry has its benefits and downsides. On the pros, the hype of starting a totally different business can be fuel and fire you up with amazing ideas and concepts. On the contrary, you would need a lot of research to fully understand how things are done – you will be testing the waters again. Success can be duplicated, but it will take a lot of preparation. You want to ensure that the success of your fist venture is not “beginners’ luck”.
Prepare a solid plan
Nothing beats a well-prepared, well-organized and well-thought out plan. With the skills and experiences garnered from your first venture, preparing a business and marketing plan shouldn’t be a struggle. Start with the location. For logistics, consider your back-and-forth travel distance from one business to another. Also, the location should match your target market. Then, you need to consider the office hours of this new business to ensure that you can devote quality time to each business. Lastly, evaluate your current financial status. Make sure you have enough liquidity to finance the new business. Financing is also a back-up option to re-assess current assets just in case things do not work out as planned.
Build an A-team
It is now time to build that dream team for both your new and current businesses. Realistically, no person can serve two masters at the same time, so it is best that you establish a group of trustworthy people who can act on your behalf and also shares the same vision. These individuals will execute your plan for both businesses. If you have a partner in the business, it is best that you get the partner’s involvement either on the new business, or give the person a bigger range of responsibilities in your current business. Your main goals are to make sure the current business continues to grow while the new one finds ways to flourish.
As Mark Zuckerberg said about taking risks in business,
“The biggest risk is not taking any risk. In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”
So if you feel it in your bones to take that plunge, just do it.
M. Diaz | The Edge Blog