Yeah, I know. Having just spent all week putting in long hours at my primary business, I couldn’t imagine going out of my way to open a second. But it does make sense for a couple of different reasons.
One is the challenge of doing so, and trying new things. And then there’s the money:
There are times when it makes sense for a small business owner to open multiple companies. Some ventures are inherently difficult to scale up in size. Moving into a related area with a separate business can increase revenue and perhaps stabilize overall cash flow when one company hits a rough patch.
“If you’re running a smaller business, it’s tough to have a one-legged stool,” Gillespie-Brown says. “Having a couple legs gives you diversity, both in customers and in the stages of the business. In a recession, if one business is suffering, the other may be doing well.”
I think the key here is to move into a related field, where there will be enough overlap with your first business that you won’t drive yourself completely crazy and burn out. An interesting article overall, courtesy of CIO Today.




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