What led to Elon Musk’s ascent as one of the most affluent entrepreneurs globally? Instead of embarking on a solitary business venture, he engaged in numerous revolutionary enterprises, encompassing PayPal, SpaceX, and Tesla. A similar trajectory can be observed with Richard Branson, who spearheaded the establishment of over 400 companies, and Oprah, renowned for her creation or acquisition of substantial interests in diverse enterprises such as Weight Watchers, True Food Kitchen, and Oatly.
While certain entrepreneurs find satisfaction in initiating a sole business, expanding it, selling it, and retiring to a life of leisure, others are compelled by a desire to achieve more. This could stem from an aspiration to enact positive global changes, or it might be fueled by an inherent enthusiasm for dynamic involvement and the continuous growth of ventures.
1. Build multiple businesses, one at a time
The concept of initiating numerous enterprises might hold allure for an innovative entrepreneur. Nevertheless, upon confronting reality, business proprietors frequently realize that managing a solitary business presents ample challenges. Fortunately, strategies exist to establish multiple companies while maintaining stability.
Firstly, if the aim is to oversee multiple businesses, the task cannot be undertaken single-handedly; collaboration is imperative.
Secondly, avoid simultaneous commencement of multiple businesses. Instead, initiate one, dedicate focused effort until it achieves profitability, transform it into a self-sustaining entity, and subsequently employ your gains to inaugurate the next venture.
Lastly, seek avenues to align your businesses, fostering synergies to facilitate accelerated and enhanced growth for each individual enterprise.
2. Acquire existing businesses
Warren Buffett amassed his wealth by acquiring businesses, as opposed to initiating them. Could this same approach be effective for you? Keep in mind that the triumph of any acquisition pivots on who (and what) accompanies the business.
The “who” aspect is clear-cut — it pertains to the current workforce of the business. These individuals might harbor affection or antipathy towards the company. Either sentiment isn’t inherently advantageous or detrimental. If they hold a positive view, they might choose to remain, but this could also entail resistance to any alterations, even if they are improvements. Conversely, if they harbor negative sentiments, they might depart, yet they could also offer valuable insights for enhancement.
The “what” factor tends to be more intricate. Acquired businesses may bring forth tax responsibilities, legal complexities, and more. This is why many acquisitions focus not on purchasing the entire enterprise, but rather an asset buyout, where only selected portions of the business are acquired. Irrespective of the approach, it’s crucial to meticulously conduct due diligence to gain a precise understanding of the commitment you are undertaking.
3. Outsource building businesses
Numerous business initiators delegate specific aspects of their enterprises, such as marketing. Yet, consider the prospect of outsourcing the entire business. Milos Safranek, the creator of Automated Wealth Management Holdings, remarks, “In the present day, the process of launching a business has become exceedingly intricate and competitive.” He further adds, “From procuring products to managing logistics and supply chains, the landscape is in a perpetual state of flux. For countless entrepreneurs and investors, the wiser approach often involves complete outsourcing of operations.”
One of the most straightforward business categories to delegate is an ecommerce store due to the extensive potential for automation throughout the process. Business automation serves as the pivotal factor in realizing an entrepreneur’s complete capabilities. It’s the mechanism that generates revenue even during restful hours. Yet, the majority of entrepreneurs remain unaware of the array of available automation systems and tools. This is precisely why, for many, it’s prudent to channel their energies into vision, brand establishment, and marketing, while entrusting all other aspects to outsourcing.
Numerous online articles and self-proclaimed entrepreneurial “experts” across social media platforms often tout methods for swiftly generating multiple streams of income or establishing a “side hustle.” It’s important to recognize that the strategies mentioned earlier do not revolve around quick wealth acquisition or casual side pursuits. These tactics are labor-intensive, necessitating substantial investments of both capital and effort. However, the scale of effort invested corresponds to the potential magnitude of rewards.