Two co-current businesses

[JiggyJaggy]

Morning all, just wondering if any PH'ers have two co-current businesses running and how they fare in running them effectively at the same time?

Having a discussion in house about the viability of making a success of two businesses which are not interrelated and the effect they may have in terms of effectiveness...

Edited by JiggyJaggy on Thursday 29th March 09:37

[StevieBee]

JiggyJaggy said:

Morning all, just wondering if any PH'ers have two co-current businesses running and how they fare in running them effectively at the same time?

Having a discussion in house about the viability of making a success of two businesses which are not interrelated and the effect they may have in terms of effectiveness...

Up until about two years ago, I had the core business (Company A) and a partnership in another (Company B). Company B was intended as a feeder company for my core business; company A.

I was reliant upon one of the other partners in company B but he proved to be very problematic so I had to spend too much time on B at the expense of A.

Bottom line is that it can be tricky. Much depends on the resource and quality of management you have in each and how much you can rely upon key people as well as how much management either company actually needs. In my case, the nature of both companies dictated the need for very high levels of day to day management. In cases where you have lower levels of managerial inputs, things may be easier.

Whether or not the two companies are connected or interrelated, there is also the issue of split loyalties. It's easy to say you want both to succeed but there will be extended times when one will demand more attention which can directly affect the profitability of each. So, you could end up focusing on one business to boost its profitability while the other suffers and its profitability declines so the benefit cancels itself out.

I've refined my thinking that it is better to focus all energies on doing one thing, brilliantly. But, as I say, it all depends on the resources and types of businesses you're looking at.

[Eric Mc]

In my experience, trying to run and manage two or more businesses (whether they are linked or not) generally turns out detrimental to both businesses - and can even lead to the cessation of one or both as they drag each other down.

Obviously, if your operations are large enough for you to be able to employ a management and accounting team that can run multiple businesses for you, things can be managed quite well. But in most cases I deal with small single owner businesses or businesses with only two partners or directors - and they don't normally have the knowledge or capacity or time to run both businesses effectively.

[JiggyJaggy]

StevieBee said:

JiggyJaggy said:

Morning all, just wondering if any PH'ers have two co-current businesses running and how they fare in running them effectively at the same time?

Having a discussion in house about the viability of making a success of two businesses which are not interrelated and the effect they may have in terms of effectiveness...

Up until about two years ago, I had the core business (Company A) and a partnership in another (Company B). Company B was intended as a feeder company for my core business; company A.

I was reliant upon one of the other partners in company B but he proved to be very problematic so I had to spend too much time on B at the expense of A.

Bottom line is that it can be tricky. Much depends on the resource and quality of management you have in each and how much you can rely upon key people as well as how much management either company actually needs. In my case, the nature of both companies dictated the need for very high levels of day to day management. In cases where you have lower levels of managerial inputs, things may be easier.

Whether or not the two companies are connected or interrelated, there is also the issue of split loyalties. It's easy to say you want both to succeed but there will be extended times when one will demand more attention which can directly affect the profitability of each. So, you could end up focusing on one business to boost its profitability while the other suffers and its profitability declines so the benefit cancels itself out.

I've refined my thinking that it is better to focus all energies on doing one thing, brilliantly. But, as I say, it all depends on the resources and types of businesses you're looking at.

Your last sentence is the key one for me here. Difficult to potentially let go of something you have worked hard on for many years... But I guess the best at what they do are known for doing one thing fantastically.

[DSLiverpool]

I have a hybrid with the main one run by my equal biz partner and my side business run by myself. Apart from 2 sets of costs it works well and were going to add a third that the wife will run in a year or so.

[JiggyJaggy]

Its the time and energy when one business takes up the majority of your time and energy is where juggling seems to become difficult!

[fridaypassion]

I had 3 a year ago!

Core business is just me

Business 2 I'm co director and the other director runs all day to day but I steer the rudder a little bit when asked. This works well which is rare for partnerships.

Business 3 was 50/50 with a chap that didn't have the work ethic. Parted amicably. Useful experience.

Now with 2 businesses doing really well the desire to take over the world is gone and we now just concentrate on maintaining standards in what we have. Have batted off a few offers over the last couple of years which is hard as new ventures are exciting but as my accountant says you must protect the golden goose at all times and don't let things get in the way of that.

[MrSparks]

I had two businesses at one point.

I own Company A, Company B was 50/50 with a friend.

Didn't really work out, he worked full time, I had another company that needs me full time + some, it never got off the ground.

I now have one company only, but I do have two separate brands which sometimes feels like I'm running two companies within one company.

100% agree with others, focus on doing one thing amazingly well and you'll get further.

[JiggyJaggy]

Some decent advice, may look at taking a sabbatical from one in order to focus on the second. Luckily for the me the second business is one whereby I can switch it on and off seasonally.

[Doofus]

I have two online retail businesses (two trading styles, one ltd co) and I work as a Freelance/Parachute Exec. I'm a NED of two companies outside the UK.

None of these roles takes up more than a day or so per week - of my time - on average, so keeping the balls in the air isn't too trying.

Edited by Doofus on Sunday 1st April 12:29