Following are
the benefits of taking advantage of new business opportunity and
yet stay involved in the existing business
- As the existing
business becomes wildly successful there are many advantages of
staring new business which will be compatible with it.
- The successful business
will already have built up its own brand. It will be helpful to
build a brand of new business as well.
- Advertisement of new business
will be much easier. It will easily attract customers for new
business.
- Getting loan from bank and raising
equity for new
business becomes easy because of success of existing
business.
- Also creditors will
agree to provide more credit facility as existing
business will have already proved its creditworthiness. Getting
vendors becomes easy.
- As it will be
compatible business with the existing one, it’s easy to run new
business and earn
profit
- New source of income will be
generated and it will also help to increase profits of current
business
Here are the
ways to handle multiple businesses at same time
- For starting new
business and yet to stay involved in existing one you need to
consider following factors
- You need to prepare
business plan which
will give clear idea as how business will run.
- Conduct thorough
market research to
understand your target customer.
- Find out NPV of new
business. Capital
budgeting is important to find out NPV and to decide whether
new business will become profitable or not. Perform breakeven
analysis.
- Also calculate the
impact of new business on the profitability of existing
business
- Hiring the right team and delegating work
is important. Also appoint experts to handle certain aspects of
business. Work with management team to help balance the workload of
running multiple businesses
- Keep reports of each
business to monitor results and maintain accountability.
Data analysis in
required.
- You need to manage both
businesses in such a way that they benefit one another and helping
grow each
other. eg Sharing
common accounting or IT department, sharing office same
space etc. This will result in cost saving.