The Master Checklist to Review Before You Ever Start Another Business

by

You have one business up and running with some success and are considering starting another business and dividing your focus. Perhaps you do not want to put all your “business eggs” in one basket. What if one business slows down, and the other one picks up, you are protected. As you know the worst number in business is one, one vendor, one client, one affiliate, one bank account…does that mean one business? Not necessarily.

First, what are your reasons for starting another business?

Here is a list of some and let’s consider them carefully:

  1. The first business is not working.
  2. You found a new product in another niche that should bring in more revenue.
  3. You want to diversify into another niche.
  4. You see an opportunity in your current niche and starting a new business (more so a new company) to service this opportunity in that niche.
  5. Your business partner was lame and you started a new company and a new business perhaps in a similar niche to move on.

The first one is fairly obvious as to the concerns, yet, many fall into this trap. The first business (which was really never up and running as a real business) was not working, and the business owner got excited by another, different opportunity (the new shiny object syndrome). The challenge is that the second business and third will not work either because typically there was nothing solid in place on the first one. They half started that business and half started another business, lacking focus, consistency, and frequency… all leading to another failure.

Finding a new product in another niche can work effectively. Most successful entrepreneurs who were successful 5-8 years ago have a totally different main profit center today then what was in their business back then. They had to reinvent themselves and more importantly change with the times and look for new opportunities with the changing times. Those who continue to ride the same horse down the wrong path will just end up with more problems. You have to act and move quickly to be successful in business today. With NCP, our international market is the biggest new profit center that was not even in our business (or very little) 5 years ago. We expect it to grow dramatically over the next 12 months.

Wanting to diversify into another niche can work and can be expensive. Typically those who succeed are the ones who are already succeeding in their current niche.

read more