Starting Multiple Businesses

I recently had a conversation with an entrepreneur who is looking to switch business models. He works alone, has been running his business for a couple of years now, and asked me to review his plan for the future. I want to share the advice I gave him because I think it is something that more entrepreneurs should consider.

82 business plans 071515

When I looked over his plan, I realized it was not a single model, but he actually had developed six different business models representing six ideas he wanted to develop. Each of those business models was really a business in itself. The thing about being an entrepreneur is that you cannot run that many businesses by yourself…well, you can, but it will not work out well.

I asked him how he envisions his lifestyle as a result of his plan, whether he was going to create a large company or whether he was going to try to do all the sales, marketing, everything himself. He said the main thing he wants is freedom in his lifestyle. I pointed out to him that freedom does not come from having multiple business models. If you do that, you are going to have to work your ass off and put in 100 hours a week.

It is better to just have one business model, focus on doing it well, and make your business great. There are so many things you can add and cultivate within a single business model to make it better.

Not only that, but with multiple plans, no single model is going to work out great because your time and focus is being spread too thin. That idea was counter-intuitive to him because he felt like he was gaining security from having six business models. However, the “If one doesn’t work, I’ll always have the others” line of thinking is flawed. I am a big believer in not creating a Plan B and putting all of my focus and effort into making Plan A work.

Here is something else that seems counter-intuitive – trust that your idea is not the best idea. You will never have the best idea because you never know what else is possible. It is okay to have a good idea, even if it is not the single best idea ever. If you are going to put all your effort into the good idea, chances are it will be successful. However, if you have a good idea and you are giving one-sixth or one-eighth of your effort because you are trying to do too many things at once or if you are spending too much time trying to come up with the “best” idea, you probably will not be successful.

It is crazy to me when I hear entrepreneurs talk about all these different business models that they want to create. For each business, to sell your product, you’re going to need a Facebook strategy, customer support, a website, Instagram, webinars, marketing, content strategy, all of these things. It is better to just have one business model and focus on doing it well and making your business great. There are so many things you can add and cultivate within a single business model to make it better. Otherwise, here we go again, doubling up on all of the things that go into a business plan.

It takes courage to say, “I’m going to do this one thing and I’m going to give it everything I’ve got…

Adding multiple business models is the dumbest thing in the world, but so many people are doing it. It takes courage to say, “I’m going to do this one thing and I’m going to give it everything I’ve got,” but doing so will give you the opportunity to succeed. When you spread yourself too thin, you run the risk of ruining what may have originally been a good idea while wasting all your time and money in the process.

If you enjoyed this article, please let me know by leaving a comment below or send me a Tweet @EelcoDeBoer. 

Blog Home
  • 15 July 2015
Click Here to Leave a Comment Below 0 comments

Leave a Reply: