Can You Own 2 Businesses And Use One To Make Money Off Of The Other
half-dozen Min. Read
Smart Tips for Owning Multiple Businesses and Making Them Profitable
May 19, 2022
Owning multiple businesses tin can pose a challenge for entrepreneurs, but in that location are strategies you tin can utilise to successfully juggle multiple businesses and make them all successful. Owners of multiple startups have to be incredibly organized and manage their fourth dimension wisely, so that all their businesses get the attention they need. Hiring the correct people for all your different companies can help y'all manage the workload and leverage the expertise of others.
These topics offering useful advice on successfully owning multiple businesses:
How to Legally Structure Multiple Businesses
How to Run Multiple Businesses Successfully
How to Legally Structure Multiple Businesses
If you lot're a concern owner starting a second venture, you'll need to make up one's mind on the all-time fashion to legally construction your businesses. Small business owners should choose one of the following approaches to structuring multiple businesses:
1. Create Separate LLCs or Corporations
You tin create separate LLCs or corporations for each of your businesses, because there'due south no limit to how many a person can form. The biggest reward to this approach is that each business won't take to assume the take a chance of the others; they'll all exist legally and financially protected from one another. The biggest disadvantage is that it costs more than coin (in the case of corporations, it can exist a significant cost) and it requires a bang-up deal of time-consuming paperwork to register the businesses separately.
2. Create Multiple DBAs Under One LLC or Corporation
Your next option is to course one corporation or LLC and then fix divide DBAs for each additional business. DBA stands for "Doing Business As" and means each separate company can do business organization under a different proper noun. The advantage of this method is that every concern can accept a separate identity with unique branding, merely you lot tin can salvage money and fourth dimension on paperwork by only registering and paying fees for the one LLC or corporation. The disadvantage of this approach is that the separate businesses aren't protected from one some other, and so a lawsuit brought against i company could affect all your businesses.
3. Create Businesses Under a Holding Visitor
The final choice for legally structuring multiple businesses is to create separate LLCs or corporations for each business organisation and place them all nether a holding company. This is the virtually mutual arroyo amid businesses that are looking to be acquired. This approach tin can be circuitous and expensive. It will also affect your taxes. Information technology's best to consult an accountant or a lawyer before going this road with your multiple businesses, to see if it'south the correct option for you.
How to Run Multiple Businesses Successfully
Entrepreneurs tin run multiple businesses and turn a turn a profit past giving each project the attention information technology needs and looking for means to maximize resources between the different companies. Here are some helpful tips on how to manage more one business:
1. Choose Projects Wisely
Before taking on a new concern, make sure it has the potential to plough a profit and you have the resources to manage information technology. If, in analyzing a potential business idea you discover that it volition take a groovy bargain of fourth dimension and resources to get it off the ground, evaluate whether it'due south worthwhile to undertake the new project at this fourth dimension, or whether your other business concern ventures will suffer likewise much as a upshot.
2. Share a Location
When you take on more than one concern, it's a smart idea to share a location if possible. Sharing a common space allows yous to be involved with both ventures on a daily basis and helps you easily switch back and forth between the two. Information technology will save you lot fourth dimension, since you won't have to constantly commute betwixt two carve up business locations. If information technology isn't possible for your businesses to share a infinite, at least endeavour to keep them as shut to one some other as possible.
3. Schedule Your Days
Organization and time management are key when juggling multiple businesses at in one case. When you add a second business to your work mix, you might find that your free time gets swallowed up by other obligations much more quickly. Scheduling your time in item tin can assist you ensure you ready aside enough time each week to devote to important work projects that deserve your total attending, along with meetings, appointments and personal time. Scheduling can help you carve up your fourth dimension accordingly between your dissimilar businesses.
4. Track Your Time
This goes hand in hand with scheduling, but it'due south helpful to track how you actually spend your fourth dimension. There are time tracking apps and browser extensions you lot can employ to record how you spend your time. Tracking your time is more precise than scheduling because it gives you insight into how you actually spend your piece of work twenty-four hour period. You tin use the data to see whether you're spending considerably more than time on one concern than another. Time-tracking data also helps y'all go more efficient. For example, you might find that you lot're spending a big chunk of the calendar week in meetings. You might be able to reevaluate the meetings you nourish and see if you can delegate the task to other employees, freeing up your fourth dimension.
5. Leverage Your Assets
If it's possible, leverage assets between your separate businesses to salvage time and money. Administrative tasks can often be shared between multiple companies, including purchasing and payroll. Even functions like marketing and sales can sometimes exist spread across multiple businesses, especially if they complement one some other.
6. Create Reports Regularly
It'southward important to understand how your businesses are performing, both on their own and in relation to one some other. Create regular reports, including fiscal statements like your balance sheet, income statement and cash flow argument. Clarify and compare reports to see where you tin can become more efficient. See how each company is performing and, if necessary, allocate more time to a business that requires more support to abound.
vii. Hire the Right People
If you're spreading your time beyond multiple companies, you lot probably can't manage every aspect of your businesses lonely. That'south why it'due south then important to hire the right people to help y'all grow your businesses. Bring on people who meet the following requirements:
- They understand your industry
- They have skills that fill your knowledge gaps
- They're passionate well-nigh your brands and your mission
- They demonstrate a willingness to grow with the visitor
8. Acquire from Past Mistakes
One of the nifty benefits of starting a second business is that you bring valuable wisdom from your before startup experiences. When developing a business program for a new venture, exist certain to analyze the challenges you faced in previous businesses and build into your business program strategies for dealing with those bug.
9. Prioritize Work-Life Balance
For the owners of startup companies -- and especially multiple startups -- the threat of burnout is real. To keep yourself fresh, productive and motivated, it's important to maintain a good work-life balance. Balancing your personal and work fourth dimension will go on you healthier and happier, which is skilful for y'all and good for your businesses.
RELATED Articles
Source: https://www.freshbooks.com/hub/startup/owning-multiple-small-businesses
Posted by: wrighteirchey.blogspot.com
0 Response to "Can You Own 2 Businesses And Use One To Make Money Off Of The Other"
Post a Comment