Multiple Business – Investment Guru Mr.Warren Buffett says that “One should never put all eggs in one basket. This is even true in business. You should not depend on the income from one business. Today the world has changed the cycle of business has reduced. The era is gone where you can make the same money from the same business for 20-30 years.
Today with the advancement in technology industries are getting disrupted. The business scenario is getting changed. You can not predict that you will be able to make the same money from a particular business in the long run. That’s why building multiple businesses that act as multiple streams of income for you is becoming a necessity with every passing day.
In this post, I will share steps to build and manage multiple businesses so that you can have multiple streams of income.
The primary rule that you need to follow if you want to build multiple businesses is to focus on one.
What Do I mean by Focus on One?
I see a lot of entrepreneurs who start multiple businesses when their first business is struggling. They are not even able to make enough money to survive or pay themselves from that business.
If you have a struggling business that is unstable and you start another business thinking this is not making money let me start something else.
You are doing a big mistake.
You have to focus on one business, stabilize it and then move to the next one. So the rule is this first build one stabilize one before you start the second one.
If you feel that your first business is not viable then before you start the second one shut the first business because you need to focus on one at a time.
Now if you agree with me and want to build one business stabilize it and move it to the next here are 7 steps that you need to follow to manage that one business and stabilize it before you move to the next.
7 Steps to Build and Manage Multiple Businesses
#1 Build Business Model
The business model is an integration of three different elements. Knowing the right customer – Who has the money and needs? Knowing the right product or services for which people are willing to spend their money and knowing the right price point. So get your business model right.
Your business model should be workable, viable, and practical.
#2 Decide Volume Business or Margin Business
Now it is time to move to the second step. The second step is to decide whether you are going to do volume business or margin business. In the other words fix your vision. Know whether your vision is for the masses or mastery. If you are doing volume that means your product or services for the masses or not where you’re offering a product or service in large volumes. Or another option could be margin or mastery vision where you say you are an expert in that industry. You are building an innovative products or you’re building a premium service and you’re offering an innovative product or a high-value premium service so you need to be clear about the nature of the business that you want to build.
#3 Implement Right Marketing Strategy
The third step to stabilize your business before you start another is your marketing strategy. When it comes to marketing you need to understand what’s the job of marketing. The job of marketing is to grab your prospective customer’s attention establish credibility in their minds
about you and your product or service and create that curiosity for them to inquire about your product or service. Now for this, you need marketing strategies such as word of mouth, content marketing, or education-based marketing. You need to do marketing consistently.
#4 Build Management System
Now you need to put the right management systems in place. In every department, you need a system to track goals you need a system to set goals you need a system to achieve goals. So you need to have the right management system and you need to have the right team to get the work done. Now this is where a lot of business owners make a mistake they do everything by themselves, they don’t have a system they become the system and when you become the system you cannot do everything consistently so build the right team based on the requirements in your business in different departments.
#5 Making Profit Margins
Now it is time to make healthy profit margins. Whether you are masses you may make low profits on each unit but because your volumes are high the collective margins the collective profit is pretty high whether you are mastery where you’re offering a premium product or service because you are marketing it consistently because you’re managing and delivering value to your clients and having strong internal management processes your margins will be high per unit of sale.
So when you reach the fifth step your business is giving you profit. That means you have stabilized this business. The business is working well for you it is giving you returns.
#6 Automate The Process
Now it is time to move to a sixth step which is automating the systems or creating momentum. What is the meaning of momentum? When you do all these five steps consistently you hit the rhythm and achieve a certain level of momentum and once that grows your business becomes popular and known to the market. Now you generate a better track record in the market. You have customers. You have success stories. You have customers who are your patrons who are willing to endorse you and that momentum combined with the first five steps adds more momentum and helps you capture a larger market share in that particular industry.
#7 Move to the Next Business
Now once your six steps are done you can go to the next step which is moving to the next business. This is how you manage your business bring it to stability and start building multiple businesses. When you move to the next business which is step number seven in the next business start from step number one again. Repeat the first six steps for the new business.
That’s how you can build and manage multiple businesses. If you want to know more about this you can reach me at firstname.lastname@example.org.