A small business that becomes profitable could make the mistake of starting a second, unrelated business but this can be a serious mistake. By Gary Shotton #000382
By Gary Shotton
Hello, my name is Gary Shotton, and I am here as a part of Inspiring Better Business, IBBalks.com.
Today we are going to talk about a subject that was posed to us in a question in talking to a group in east Africa, this individual had a business, and the business was about transport and they seem to be doing relatively well and they ask could they go ahead and start a second business? would that be wise, and I asked a few more questions and I then answered it this way.
With no it is not my opinion that you should start a second business because I discovered that the transport company had only one motor scooter one motorcycle and it was making a profit. And I said why would not you expand the existing business that you have to the next level rather than starting a second business. you have already done the research you already know the system and you also already know that it is making a profit if you start another business you do not know if that is going to make a profit or not and if you do not have enough reserve to get through and that new business starts to pull upon you and you need money for both businesses. You are going to be in a trouble spot because you are going to have to decide which business to put the money that you have in there and it takes time to grow step by step. So my suggestion was is to stay steady on the single business that you have and grow it to the next level the second motorcycle and it became profitable the third motorcycle and it became profitable the fourth motorcycle and it became profitable and then about maybe buy a truck and it became profitable and grind a second truck and now have warehouses you see down the line of business there’s almost no end there’s no way to reach the end of the opportunity in almost any business you choose, and why would you jump onto a second business when you haven’t even explored you haven’t even more than scratched the surface of the business that you’re in right now. There’s a few people and I’m not one of them per se that is so skilled that they have managers and systems and processes in place so that an owner can own more than one business I will tell you an owner cannot be extremely active in more than one business so that owner would need to have developed the skill sets to manage other people to manage the businesses so that they could start another business there’s very few people in that situation so concentrate on the business you have especially if it’s profitable and make it more profitable and grow step by step so that you’re digging into the depths of what could be done inside that business therefore you’re doing research on the business that you have and you’re learning new things you’re becoming an expert in that business people are coming to you because they know that you know about the one business that you have.
I hope this helps a lot and thank you for being part of Inspire Better Business, IBBTalks. Thank you.
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