Owning one business is already a physically and mentally taxing endeavor that can overwhelm even the most optimistic entrepreneur; owning multiple businesses is a whole different ball game. That said, owning multiple businesses and managing them profitably is not something unheard of. With the right guidance, you can easily build multiple income streams at one time. Here are four tips for doing just that:
Declare Individual LLCs or Corporations
You can register your businesses separately since there is no limit to how many businesses a single individual can form at any given time. The biggest advantage of this move is that each business doesn’t risk other businesses in your portfolio. They’ll be well insulated and financially protected from each other. That said, it can cost a pretty penny to register multiple businesses individually, especially if they are being registered as corporations. The fees and paperwork involved can add up.
Start Multiple DBAs Under a Single Entity
An alternative to the first option described above is to register one LLC or corporation and create multiple DBAs. DBA is an abbreviation for Doing Business As and allows each business to operate under a different name. The advantage of going this route is that it allows you to establish unique branding for each business. In addition, you also bypass any registration fees and paperwork that you would otherwise face when you register multiple LLCs or corporations.
Choose Projects Strategically
Before adding to your business portfolio, make sure the business idea has the potential to generate profits and that you have the resources for said business to thrive. Figure out if the new project can also be implemented smoothly with your existing portfolio or if it goes against your current business models and values.
Know-How to Split Your Resources
Your most important resource is yourself. Both your time and energy are limited; thus, you need to divide and allocate them between your companies. You’ll need to be hyper-vigilant about organizing your day and being able to switch from one task to the next.
Last but not least, learn how to delegate. The more companies you handle, the more important it will be to delegate tasks to be competent and trustworthy people.