How to Manage Multiple Businesses
Owning multiple businesses can be an exciting venture for entrepreneurs who want to expand their market. But, this venture can also be challenging, especially since 50% of businesses fail in the first five years. So, to keep your businesses afloat and thriving, you’ll need to understand how to manage multiple businesses at once.
In this article, we will give you several tips on how to manage multiple businesses. Additionally, we’ll provide you with the basics of legal business structures to help you better navigate them.
How to Structure Multiple Businesses?
There are three ways you can legally structure your businesses:
- Structure them as LLCs: Limited Liability Corporations, aka LLCs, are private limited companies you can get registered under one owner or multiple partners. This structure offers the least personal risk as owners deal with limited liability.
- Structure them as DBAs: Doing Business As (DBA) is a legal structure involving a single LLC. This LLC has multiple sub-divisions, each being a separate business. The simple structure is preferred by owners who want something hassle-free.
- Create a common Holding Company: In this structure, there is one parent company with legal subdivisions. Each subdivision is an individual company, but the finances of all of them are intertwined. This makes the structure complex and hard to manage.
How to Manage Multiple Businesses?
Here are some tips on how to manage multiple businesses:
- Have a Work Schedule
Working consistently on several businesses at a time is sure to tire you out. Your mind will always be drained to focus on projects that need your full attention. You might also have to sacrifice your free time to catch up on deadlines.
This is why you need a work schedule when running your businesses. Open your calendar and divide your days appropriately for projects, meetings, appointments, etc. This way, you’ll even be able to set aside some personal time for yourself.
- Share the Location
Another method on how to manage multiple businesses is to set them in the same locations. Sharing a common space lets you be completely involved in all ventures. You can switch back and forth between them without wasting time and resources spent on commuting. However, if you can’t have one location, try to keep your businesses as close to one another as possible.
For example, a bookstore owner chooses to open a coffee shop. But instead of opening a separate shop, he can sell coffee within his bookstore. This then encourages customers to spend more time and money in only one establishment.
- Utilise Business Management Tools
Another way you can manage running multiple businesses is by employing business management tools. These tools can help simplify various processes that usually take up alot of time and effort to complete. You can use them to make communication between employees easier, manage cash flow, optimize your workforce, etc.
Google Drive is a common example of a tool used to manage multiple businesses. Small businesses use this software to streamline file sharing and collaboration. It also offers protection against malware, spam, and ransomware.
- Hire the Right People
When learning how to manage multiple businesses at once, remember that you can’t do everything by yourself. So, you should hire a suitable person to handle one business when you’re busy with the other. Make sure to hire experts in that field so they can contribute to your business growth.
For example, if you’re opening an online store, hire someone who can optimize conversion rates. This will influence customers to buy more products/services from your site and increase your business’s revenue.
Conclusion
Even for the best entrepreneurs, managing multiple businesses is not a walk in the park. But you can definitely ease your workload with the proper steps and resources. You can maintain a proper work schedule and share locations between your businesses. Also, make sure to hire more people to help run your business and utilize the right business management tools.