Yesterday, I walked into one of my studios and my manager told me she was working on our August schedule. Great. I sat down expecting to be asked a question about how to do something or to help her out with a problem. Instead, she told me she didn’t need me to work that much in the studio or to teach. I was immediately filled with mixed emotions. I was so happy that she had things under control, but I was also a little sad. My business has taken a lot of my time and energy—ok, almost all of my time and energy since I opened my first location. What am I supposed to do now?
I’ve been asking myself “What’s next?” a lot recently. My business turned 5. I wrote a book and am anxiously awaiting the final steps in the publishing process—so close, about a week left until the book is available for sale! I’ve hired a great manager and now an assistant manager, and will be focusing on training them to run the studios on a day-to-day basis. So, what am I going to do now? How will I occupy all this new-found time?
While I’ll always be involved in my studios to some degree, I’m thinking about starting another business and entering the ranks of serial entrepreneurs. I’m still in the discovery phase and not ready to announce what I’m planning, but when you are your own boss, it’s important to diversify your revenue and protect yourself financially. So, if starting a business is risky, why would owning multiple businesses be better than owning one?
You Won’t Be Starting from Scratch
If you started one business, find a second that complements your existing business, so you won’t be starting from scratch trying to build a brand-new client base—sell to your existing list. My next potential business endeavor is very complementary to my Pure Barre studios. In fact, it’s the same business model of working to get every client on a membership to earn reoccurring, predictable revenue each month. That’s what I know how to do—create a sales process that works to convert first-time clients into members and create an environment that people want to keep coming back to visit day-after-day, week-after-week, and in a lot of cases year-after-year.
My clients will also be very interested in this potential business idea and will most likely want to try it out (just an FYI, it’s not fitness). Starting any business is difficult and challenging, but if you already know who your client is, where they live, where they hang out, and that they already support your existing business, chances are they’ll be interested in checking out your next business, which means you won’t have to build an entirely new client base from scratch.
Diversifying Revenue Protects You Financially
Financial advisors are always telling investors to diversify their holdings, meaning don’t put all your money in one investment, especially don’t put all your investment savings in the company you work for. The same is true for businesses—if you can start one business, get it established and find a trusted manager and rock star team to help you run it, starting another business will help diversify your income like you’ve been advised to diversify your investment portfolio.
There are two ways to diversify one’s income, active and passive. You can actively start another business or get a second job to earn income. Or you can earn income passively, by renting real estate, selling a book, or adding dividend-earning stocks to your portfolio—you’re not actively working towards earning the money, this income is just showing up into your bank account. Earning both active and passive income is a great way to diversify and protect yourself financially, especially if your business is cyclical.
You’ll Never Be Bored
By starting another business, you’ll get to learn new skills, solve new problems, and expand your capabilities as an entrepreneur. With all these new challenges in store, you’ll never be bored and will always be learning. Besides the obvious personal and leadership development, starting another business can also expand your network and possibly lead to other opportunities to serve in your community. All exciting!
I don’t know about you, but the more I have going on, the more I can get accomplished. Since I have a great manager and rock star team to help me run my studios each day, it’s time to start looking at my next opportunity. I mean, when your employees tell you they don’t need you anymore, I guess you have no other choice but to listen! But they’ll always need me to sign their paychecks …
I’ve been reading several of Tony Robbins’ books, so I’ll give you a run-down on them in my post on Thursday. I might even have another update for my own book. Eek!
And on Friday, the start of the Nordstrom Anniversary Sale, I’ll share some of my top picks for Fall boots—because it’s never too early to make your Fall boot purchases.
Until then, stay on your toes!