Getting somebody else to run new business
Discussion
Morning all,
I currently have plans to launch two new businesses.
Re: business A, I am very familiar with the industry, have some potential investors lined up, and know what does/does not work. I have a strong competitive edge, but the business is complex and will need the vast majority of my attention to get off the ground effectively.
Business B is an idea I have been mulling for a while. I quickly put together a website and went live on the 1st May. Since then, over 300 people have signed up to be notified when the business launches. One problem is - I know virtually nothing about the industry and how it works. I can pick it up quite quickly, but I really want to focus on Business A as that's where I can add most value most quickly.
One thing I've been considering is getting someone experienced in to run Business B, but I'm not sure what the pitfalls might be. It seems like a sensible way to derisk the launch, and I would still be involved in major strategic decisions and be the majority shareholder. To help with context, business B is a recruitment consultancy for a specific type of career switcher.
All and any thoughts welcome.
[i]Am I mad to be thinking about letting someone else run my business basically from day 1?
Is it possible to launch A and B in quick succession without having someone else run B?
If I get somebody to run business B, what slice of the pie should they get?
Or should I just concentrate on one of the opportunities, meaning it gets my fullest attention?[/i]
Thanks!
I currently have plans to launch two new businesses.
Re: business A, I am very familiar with the industry, have some potential investors lined up, and know what does/does not work. I have a strong competitive edge, but the business is complex and will need the vast majority of my attention to get off the ground effectively.
Business B is an idea I have been mulling for a while. I quickly put together a website and went live on the 1st May. Since then, over 300 people have signed up to be notified when the business launches. One problem is - I know virtually nothing about the industry and how it works. I can pick it up quite quickly, but I really want to focus on Business A as that's where I can add most value most quickly.
One thing I've been considering is getting someone experienced in to run Business B, but I'm not sure what the pitfalls might be. It seems like a sensible way to derisk the launch, and I would still be involved in major strategic decisions and be the majority shareholder. To help with context, business B is a recruitment consultancy for a specific type of career switcher.
All and any thoughts welcome.
[i]Am I mad to be thinking about letting someone else run my business basically from day 1?
Is it possible to launch A and B in quick succession without having someone else run B?
If I get somebody to run business B, what slice of the pie should they get?
Or should I just concentrate on one of the opportunities, meaning it gets my fullest attention?[/i]
Thanks!
Launching a business in a market that you know nothing about - proper entrepreneurial! Good man!
All comes down to financial risk and the money that's available.
Hiring a non-shareholding Managing Director is perfectly acceptable but comes with risk that can be mitigated by hiring the right person which will come at a price. The amount of time you need to spend with them is proportional to the money you need to pay them.
I'm not normally inclined to recommend 'giving away' slices of your company but your situation might make such an approach viable. Look for an operation partner rather than employee in the normal sense.
Alternatively, explore what's available on the interim management market. "Kick Starter Management' I believe is the term.
All comes down to financial risk and the money that's available.
Hiring a non-shareholding Managing Director is perfectly acceptable but comes with risk that can be mitigated by hiring the right person which will come at a price. The amount of time you need to spend with them is proportional to the money you need to pay them.
I'm not normally inclined to recommend 'giving away' slices of your company but your situation might make such an approach viable. Look for an operation partner rather than employee in the normal sense.
Alternatively, explore what's available on the interim management market. "Kick Starter Management' I believe is the term.
Hi all - Thanks for the feedback and ideas.
I've had a couple of PMs too - lots of help available on here which is great!
I'm still conflicted - Business A is the "easier" route, but I think B could potentially be a better business. Going to do some small experiments and have some more conversations over the next few weeks.
Any more thoughts welcome!
I've had a couple of PMs too - lots of help available on here which is great!
I'm still conflicted - Business A is the "easier" route, but I think B could potentially be a better business. Going to do some small experiments and have some more conversations over the next few weeks.
Any more thoughts welcome!
Gassing Station | Business | Top of Page | What's New | My Stuff