Owning several businesses

Discussion in 'Growing and Managing a Business' started by Winterybella, Jul 16, 2015.

  1. Winterybella

    Winterybella
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    When does a person own too many businesses? I have a friend who boasts he owns about seven or eight businesses in my country. Not all are doing well, but the ones that do well can easily compensate for those that are struggling. It goes without saying that he works sometimes until the early hours of the morning and is more than happy to work without ever taking a break. In his eyes the great majority of people around him are lazy or lack ambition.

    Perhaps I am in that group with my one retail outlet that I am considering giving up perhaps to focus on two other projects. Are any of you here involved in several businesses? If not, is that your desire?
     
    #1 Winterybella, Jul 16, 2015
    Last edited: Jul 16, 2015
  2. Redd

    Redd
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    I don't think you can own too many businesses. If the business makes enough money and you can hire a good manager then what's to stop you from starting a number of other businesses? It's not like you'll have to work harder.

    You could always hire more people to run the businesses for you as long you keep making more profits. I'd do that any time.
     
    #2 Redd, Jul 16, 2015
    Last edited: Jul 16, 2015
  3. pwarbi

    pwarbi
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    The more businesses you own the less time your going to have to make sure they're all running to your satisfaction so I think there will come a point where you can have too many.

    At the end of the day people usually run a business to make money and to give themselves a better standard of living. If your working 24 hours a day then your not going to have the time to sit back and relax.
     
  4. Onionman

    Onionman
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    It's possibly not about how many businesses he has. It's about how he manages these businesses. If he isn't able to delegate, automate and discard bits of the business then it shouldn't be a surprise if he has some businesses that don't do very well. Maybe he needs to let go a bit of some of what he's doing and apply a bit of focus and prioritizing to what's working well.
     
  5. Corzhens

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    It depends on the person on whether he owns one or multiple businesses. There are those who have a knack for business like it is their second nature. But for ordinary mortals like me, one business is enough so I could give it my focus and full concentration. I have friends who have mroe than one businesses but they mostly handle the operation with the help of their spouse or family. Operating a busines is not that easy if you will consider the stress that comes with it.
     
  6. Winterybella

    Winterybella
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    Most have to conclude he's doing something right even though several of his employees have stolen from him and the like. Others close to me who seem to want to go in the same direction never see the same "success" and a few fail miserably. From where I sit when you take on several businesses and try to run them all you seem to lose a bit of your soul for want of a better word.

    When I am through having a conversation with him sometimes, if I did not know my ability I'd think I am total failure. Were I to run my shop and then take on three or more projects, I would stand a chance at being placed in that 5% of "successful" people in his books.

    At the end of the day I am happy to have one or two successful businesses that allow me to keep my soul and create an environment where employer and employee can thrive. I have no interest in working myself to death.
     
  7. B2025

    B2025
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    I think it's less of a "how many business you own" question and a "how well are you hedged" question. After all, any business can really expand and grow in a ripe environment; but after initial introduction and mass acceptance of product/service, there is typically a leveling (or even decline if it is a new venture and you've exhausted the benefit of early market entrance//substitute products/services arise, competition increases, etc).

    So once you've achieved a certain level of success, the question then becomes how to diversify, both to continuously increase revenues, and to decrease risk. So it's not necessarily the number of businesses, it's the strategy.

    i.e.
    A "perfect hedge" would be a perfect inverse relationship, and 2 businesses would essentially offset all risk.
     
    #7 B2025, Jul 16, 2015
    Last edited: Jul 16, 2015
  8. Danielle Davidson

    Danielle Davidson
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    I mean it seems like he does have a good thing going, but he seems like he is working himself way too hard. I think that when you are starting to suffer that is when you have to many businesses. I mean if you aren't getting enough sleep or eating, then you just have too much on your plate. Then at that point you need to hire someone to help out or something. I think that some people just think that they can handle all this work when they aren't able to.
     

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