Is starting a second business really a good idea?
Jan 15, 2021
⌚ 3 min read
Once the entrepreneurial bug bites you, it can really sink its teeth in! You see your business flourishing and taking off and new ideas begin to pop up, leaving you thinking, “Should I start another business?”
While there are certainly major benefits to owning more than one business (diversification!), there are also drawbacks (what is sleep anyway?). You already have the knowledge and systems in place for running one business, starting a second one should be much simpler this time around without the huge learning curve. However, if your second idea bloomed from a hobby you enjoy, remember that monetizing it can suck the joy right out of it.
That said, here are the things to consider when you’re considering launching business #2:
- Are you truly considering turning this hobby into a business because you think it will be successful or does it just seem better because of your current daily stressors? It’s completely normal to peek over to “what could be” and think the grass is greener, but green grass doesn’t just happen, it takes a lot of watering. Translation: success takes patience and perseverance and jumping from one business idea to the next isn’t going to solve your fundamental problems.
- Will your new business idea be complementary to your current one? If a second business would offer more value to your current customers or would help you reach a completely new set of customers, it’s a win! However, make sure that your core offering is not being diluted (aka customers have to choose one or the other).
A great example of a serial entrepreneur with complementary businesses is our very own founder, Nina Mua. Nina took her passion, makeup artistry, and opened an academy where she could teach others the art. Realizing that many potential students were being excluded because of location (not everyone lives in NYC after all!), she launched Online Makeup Academy to offer students worldwide the opportunity to enroll in her courses. Business number three (that’s us - Online Women Biz!) came about when Nina realized that many women, including those graduating from her academies, wanted to start their own businesses but lacked the business knowledge to do so.
- Will turning your hobby into a business take the joy out of it? You might be an amazing baker and all the time you spend pouring yourself into your craft is a source of escapism from the day-to-day grind. So logically, if you were to turn your passion into a business, you would feel like you weren’t even working, right? WRONG. You have to apply a business mindset to your once treasured hobby and the joy you once felt might be lost somewhere underneath all of the spreadsheets and expense reports.
- Can it earn you money? Say you’re squared away with all of the above and are ready to do this thing, but is there a market for it? No matter if it’s your first, second, or tenth business, you have to be meeting a market need.
If your goal is simply to earn more money, investing more in your current business might be the better move.
If you’re growing, expanding, and eager to extend your services, a good next step is to sign up for our Growth course. It will help you overcome the growing pains you’re experiencing, and help you scale your current business or launch a new one.