When you research the resumes of the Forbes list of “the richest and most successful”, you will notice the similarities such as “Business Magnate, Investor, Author, Television Personality, and Philanthropist.” One would assume that as a billionaire you would have your hands full running your empire. How do they have time for anything else? I have difficulty setting time aside to run to the store for groceries!
So as a new entrepreneur or small business owner which is working 12+ hours a day, 7 days a week, who has the time and money spend on starting a SECOND business?
#10. NEVER DEPEND on a single income;
You will never be truly “free” until you do. The biggest risk to your financial life is being dependent on only one income stream, that requires your active involvement. Have you heard that millionaires have an average 7 income streams? One income source is not much different than getting a W-2 paycheck. It can disappear from one day to the next.
#9. ATM machine; Your business will always require additional cash at some point. With banks not lending money, and Investors wanting to take to much equity. Instead of using predatory lenders, or taking it out of your retirement fund again. With a profitable second business to lean on for a short period of time, might just be a lifesaver to make payroll one week.
#8. Experience and discipline; Many small business owners work “in” their business and not “on” the business. They either feel they can save money by not hiring and putting another person on the payroll. Or worse, their employees can’t do the job as good as them. It limits what you can do to grow your business in the long run. Running two business requires you to set up processes and procedures. Creating a franchise model where it can operate without you. As Grant Cardone would say to 10x your business. You begin to think “what if”?
#7. Feed of each other; If you watch Marcus Lemonis “The Profit” you will notice over time he invests in businesses that are different but can help his existing businesses. One business can help the other with supplies, materials, or services. In turn, making your existing first business much stronger and profitable.
#6. Partners; Having a great partner in business can encourage you, keep you accountable, and challenge your ideas. They can bring expertise, money, and sweat equity into the business. It can be the game changer to get you both to the next level. What happens if it doesn’t work out as planned? What is your plan “B”?
#5. Get outside your comfort zone; One of the biggest challenges in business once you become successful, is meeting new people. You become an island. Therefore you don’t learn new things and will become stagnant in business. Which is the kiss of death. Your friends and family can’t always offer good advice because they simply don’t know what you are going through. Richard Branson explains breaking bread over supper with new people at his island has translated into the best ideas used at Virgin.
#4. Learn from your mistakes; As you grow as an entrepreneur and look back over time you will recognize all the stupid mistakes and ideas you had. Starting from scratch on a second business will allow you to start with a fresh start and build it faster, stronger, and more profitable than before.
#3. Find your passion; Most of the time in small businesses you start a business in the same field you had your last job since you have the experience and expertise. Maybe it is due to financial reasons that you started your existing business. Starting a second business will give you the opportunity to explore what you are really interested in. Something you can really sink your teeth into.
#2.Not a fluke; Some friends and family will say you got lucky. When you start and build a second business that is bigger, better, and worse than the first, you will put all the naysayers in their place.
#1. Do it for yourself; The first business might have given you a nice steady income. The second business can get you to the next level where you are taking care of 3 generations. The opportunity to take care of extended family. Giving huge amounts of time and money to those that are in need more than you. It is your responsibility.
Work smarter. Welcome to the 1% club.