How to Manage Multiple Businesses

Focus used to be a key word in the enterprise field in about a decade or two ago. Now the norm is multiple streams of income; even a book with the same title was written by Robert G Allen. Take a look at the great entrepreneurs around us; they all own and manage multiple businesses –Sir Richard Branson with over 400 concerns, Warren Buffet, Aliko Dangote –the richest man in Africa, and you may please include your own additions.

With these multiple businesses, undoubtedly come peculiar challenges –time lapse, management, financial monitoring, reporting, issues with human resources, and stress among others. It is, therefore, in the best interest of that special class of enterprise owners to be guided to be systematic in the way they expend energy, strategy and resources on a day-to-day basis.   
    

Following below are some suggestions by experts on how to lead in a context of two or more businesses:

Focus on just one business initially

It advisable that (if you have not started a second business) you do not start a second enterprise but rather focus on just one until your first business becomes a cash-cow and can run on auto-pilot.

In a recent entrepreneur.com blog, Richard Branson while speaking about panacea to the challenges of building a business empire, advised entrepreneurs to start off with just one business. According to him, going into business can be a daunting and demanding experience, so it’s important not to overload yourself with extra stresses.

“When you launch your first enterprise, you have to learn so much on the job, and so quickly, that concentrating on one project with a clearly defined purpose is almost invariably the best approach,” he submitted.

Create a schedule

It is important that business owners having divisions in their operations should create a formal schedule on how they devote attention to each of the arms. From personal experience of managing four businesses, I would rather this schedule not be daily. But for maximum result, should be from day to day.

In plain words, I am saying do not divide your time between like three or four businesses that would see you alternating roles and entering different modes on a single day. It is a very stressful endeavour doing that. To lighten your load, consider scheduling time for your businesses on a day to day or weekly basis. You will thank yourself later.

 In their write up, The Entrepreneur’s Curse: A Temptation to Manage Multiple Businesses, Multiple business owners and podcast hosts Andrew Youderian and Bill D’Alessandro gave this advice: “If you can emerge yourself in one venture for a full day, week or month at a time, you’ll have better efficiency results than trying to jump back and forth between businesses.”

Compartmentalise

If you must have multiple businesses, then you should help yourself by compartmentalising properly. This simply means that should separate your entities into distinct compartments or sections. Do not be tempted to lump everything together since they all belong to you but make each of your initiatives an independent cash centre.

Smart recruitment

For success in your quest for a business empire, you need to pay special attention to the people you hire. It is certain that you cannot do it alone; you must therefore pay special attention to how you recruit; the quality of hands and the culture of your company’s engagement with them.

Branson, a firm believer in the school of thought that quality people translates to quality result in business, again has a valuable advice on this, “Surround yourself with talented people that support your vision; and at the same time keep your ears and eyes open to their opinions..”

Delegate

Once you have smart people on your pay roll, you need to delegate as much as you can, trust them and make their opinion count. You should also have regular brainstorming sessions with them to generate special ideas for business growth.

Balance

It easy for an entrepreneur juggling multiple businesses to focus all energy and attention on his businesses; this is a trap. Although it is good to drive hard towards business success, but when you drive too hard, fatigue and stress build up. The enterprises are thus negatively affected at the end of the day. Examples include taking wrong decisions, ill health, family issues etc.

To guard against all of these, experts expect entrepreneurs to have a balance. Set limits to work or meetings; create intervals to rest, know when to dig in and when to run. Have enough sleep, indulge in your hobbies and spend time with your family. These seemingly simple steps will increase your productivity by miles.

Pay attention to your accounts

When you have multiple business divisions, there is a tendency for the entrepreneur at the center to be slack in some areas or devote less attention on some businesses. You should not allow yourself that destructive luxury, especially with regards to you business account records.

You must seek means to actively stay on top of the financial situation in all your concerns. If you neglect this fact you may suffer consequences such as embezzlement, missed opportunities and system failure. 

Submission

Count this helicopter view of how to handle multiple concerns as merely a setting out point. Moreover, if you are convinced you are working hard to build your businesses, do not neglect to pay attention to details, even small. Be aware of happenings to avoid unpleasant surprises.


I hope to read your personal insights and experiences as they affect this topic.