Built Not Born Podcast · 1 December 2023
The Pros and Cons of Running More Than One Business
What does it really take to run more than one business at once? Chris and Helen Butler explore shared resources, multiple income streams, divided focus, duplicated admin and the importance of preparation.
Episode guide
About this episode
Running more than one business can create extra resilience, but it can also create extra complexity. In this episode, Chris and Helen Butler reflect on their own experience of operating multiple businesses at the same time and the practical lessons that have come with it.
A major advantage in their experience has been shared resource. Hashtag Name It and Thread A Pixel serve different customers, but both rely on similar embroidery, printing and production processes. That has allowed the businesses to share staff, equipment, premises and technical knowledge, making it easier to move capacity between them when demand changes.
They also discuss the value of having more than one source of revenue. Over the years, the quieter periods in one business have often coincided with busier periods in the other, helping to smooth out some of the peaks and troughs that naturally come with trading. For Chris, relying on a single income stream can feel exposed when markets and customer behaviour change quickly.
The trade-off is focus. Two businesses can pull an owner in different directions, particularly when both are busy, both need investment or an important project in one company is interrupted by an urgent issue in the other. Chris and Helen talk about the importance of deadlines, delegation, time blocking and being able to compartmentalise work so one business does not constantly derail the other.
They also look ahead to growing Kraken's Media, a video production business that is less directly connected to their existing production operation. Although there is still some crossover in premises, customer relationships, branding knowledge and understanding a client's business, the resources are not as interchangeable. That makes preparation and planning even more important.
Another consideration is the hidden administrative load. Where businesses are separate entities, Chris and Helen point to the duplication they experience across accounts, bookkeeping and other financial administration. Those extra responsibilities need to be considered alongside the more visible work of sales, delivery and marketing.
Their overall view is that a second business can work well when there is a clear reason for it and when the owner understands how the two operations will fit together. For someone testing the idea, they suggest considering a complementary service or additional revenue stream first, then building the systems, capacity and contingency plans needed before taking a bigger leap.
Key takeaways
What you'll learn
- Complementary businesses can be easier to run together when they share staff, equipment, premises, knowledge or processes.
- More than one income stream can help smooth out peaks and troughs when different parts of the business are busy at different times.
- Running multiple businesses can split an owner's attention and make deadlines, priorities and resource planning harder to manage.
- Separate business entities can create duplicated back-office work, including accounts, bookkeeping and other administrative responsibilities.
- Delegation, time blocking, contingency planning and clear preparation become more important as the number of moving parts increases.
- A complementary product, service or revenue stream can be a useful stepping stone before committing to a completely separate second business.
Questions from this episode
Frequently asked questions
What are the benefits of running more than one business?
Chris and Helen highlight the potential to create more than one income stream, smooth out peaks and troughs in demand and share resources such as staff, equipment, premises and knowledge when the businesses are complementary.
What makes two businesses easier to run together?
In their experience, similarity helps. When businesses use related processes, skills, equipment or customers, it is easier to share resources and move capacity between them when needed.
What are the main challenges of running multiple businesses?
The biggest challenges discussed are divided focus, competing priorities, managing time and resource across both companies, and the additional administration that comes with operating separate business entities.
Should a business owner add another revenue stream before starting a second company?
Chris and Helen suggest that, where it fits the existing customer and operation, adding a complementary product or service can be a useful way to test the principle of multiple income streams before taking on the complexity of a completely separate business.
How can business owners prepare for running more than one business?
The episode points to preparation, contingency planning, delegation, deadlines and time blocking. Chris and Helen also stress thinking through what happens if both businesses become very busy or very quiet at the same time.