How to Make Owning Multiple Businesses Successful

As an entrepreneur, owning multiple businesses can be challenging, especially when it comes to managing priorities. (I know, because me and my brother own and operate several). 

However, it can be done successfully by following a few tried and true strategies. Some obvious tips are what you’d imagine them to be, such as: owners of multiple startups must be extremely organized and they must excel at time management.  Failure to put these traits at the top of the list can put your businesses at risk because they won’t get the proper attention that they need. 

Here are some helpful guidance points on how to manage more than one business:

Choose the right projects

Sometimes, and probably most times, choosing quality over quantity wins.  Before taking on new projects, make sure that you can dedicate enough time to them so that they excel.  

The same can be said for taking on a new business.  Make sure you’ve done the research that determines you can in fact turn a profit, but understand that it will take a great deal of time, dedication and resources to get it going.

Hire knowledgeable people

If you’re spreading your time across multiple businesses, chances are you can’t do it all alone.  It is so important to hire knowledgeable people who can manage the day-to-day operations of your company and who not only understand the industry but also possess the skills that fill your knowledge gaps.  Find people who are passionate and who have a clear understanding of the industry.   Most importantly, your team should have a willingness to grow with you.

Leverage your assets

When you own and operate multiple businesses, sometimes, if possible, it can be time saving to leverage assets between each one.  This could entail hiring one human resources department to oversee all companies, or delegate administrative tasks to one or two people, such as payroll and purchasing. Even tasks like marketing and sales can be spread across multiple businesses, especially if they are in the same industry.

Create regular reports

If you own multiple businesses, then you probably already know how important it is to understand how each one is performing.  In order to keep organized and on top of things, I suggest creating regular reports, including financial statements like a cash flow statement. Find out how each business is performing by analyzing and comparing reports.  This will be helpful to see where you can become more efficient. 

Grow from your mistakes

Perhaps one of the best benefits of owning multiple businesses is that you have an upperhand on knowing how startups work.  With each new venture, you bring valuable wisdom from the last. You understand and have overcome the challenges you faced in previous businesses and you’ve overcome your mistakes.  Continue to learn and grow with each new venture, and you’ll come out successfully for doing so. 

At the end of the day, it’s important to carve some time for yourself in order to prevent burnout.  Owning multiple companies can be a 24-hour a day undertaking, so try to balance your personal and work time when you can.  Not only will it keep you healthier and happier, it will reflect on your businesses, too.