If you’ve got the time and the talent, running multiple businesses can be a smart decision – but it also makes things complicated. How do you go about it successfully? Do you create multiple divisions within one business, or do you build a totally separate company? Today we’re going to delve into the best ways to go about running more than one business and help you figure out which approach is right for you.
When should you create a new division within your existing company?
- If your products have similar uses, it may be better to keep them both under the same umbrella. This way, you can offer your customer a range of options.
- It’s also important to consider marketing. If your new product will appeal to the same customer profile, it’s logical and cost-efficient to market them together.
- If you have a product that is selling well and you think that a new venture would profit from the association, it might be a good idea to use the popular product to draw attention to the new one.
- If creating a whole new company will consume too much of your attention, the old project can easily fall by the wayside. If you’re easily distracted by shiny new things, it might be better to keep all of your eggs in one basket.
When should you split off your new venture and form an entirely new company?
- If the products are significantly different in purpose and customer base, and you have the resources for a second marketing campaign, it may be worth your while to set the new product up as its own distinct company.
- Always keep your ultimate goals in mind. If grouping multiple products under the same umbrella will lead you to veer off course, creating separate companies may be the best approach.
Greg and Justin agree that keeping everything under one umbrella is the best way to go, but that may not be the case for everyone. Here are some questions to ask yourself when deciding which approach to take:
- Are you offering one solution for one problem? Or a range of solutions to that problem?
- Do you have the resources for a separate marketing campaign?
- Will adding a new product to the existing company confuse your marketing message?
- Do you have the time and energy to run multiple businesses and still achieve what you want?
Knowing the answers to these questions takes a lot of self-awareness. If you don’t have the time, energy or resources to dedicate to multiple businesses, it may be necessary to let one of them go. Don’t beat yourself up about it! Take the time to think about which project you care more about, which one will benefit you and your goals the most. It’s okay to drop a project, or simply dial back your commitment to it.
Is there a project you’ve had to drop, and you’ve been beating yourself up over it? You’re not alone. We’ve all been there, and maybe we can help you get rid of that guilt. This week’s challenge is to visit our Facebook group and tell us about a project that you’ve had to leave behind.
Join our closed Facebook group for continuous discussion.
We’d love to get a 5 star rating on iTunes from you. We don’t plan on asking for this in the episodes themselves since most people are doing other things when they’re listening, but we do plan on asking here. We’ll share the ratings and reviews in the episodes as well. Feel free to email us when you leave a review with your business information and we’ll include it in our shoutout.
We are on Twitter – so follow us!
Want to leave a voice recording that we use on the show? Call in to our voicemail box here with your question!