The first important step to managing multiple companies is to manage time. Time management is important so that you give the required time to each company. It is not possible to give an equal amount of time to each of them. Allot your time to each company as per your priority. As you venture into a new business, you will have to give more time to it. The initial stages of a new business would have a limited workforce, more administrative work and other elements which require more focus and time. Ensure that you have a to-do list prepared for the next day before you finish your daily work. This list will give you an idea of what activities need more time and attention. Accordingly, you can manage time as per the requirement and thus you can manage multiple companies better.
Not all your businesses would be located in the same location. Make sure that the distance between two companies is something that you can manage. The travel time between two companies should not be time-consuming. Otherwise, you may end up spending most of your time traveling. Although, with the use of the latest technology, you can conduct the work on the go, working while travelling is not ideal. By the time you reach the other company office, you will be exhausted and this may affect your efficiency.
Elon Musk runs Tesla and SpaceX and is also the chairman of SolarCity and co-chairman of OpenAl. He divides his time between Tesla and SpaceX by visiting SpaceX’s LA-based headquarters on Monday and Thursday. Later he heads to Tesla on Tuesday and Wednesday. On Friday, he divides his time for both the companies since Tesla has an office in the same office park as SpaceX.
Hire Talented Workforce
Hiring talented workforce is critical to run multiple companies smoothly. This is because you need to have the right workforces who are able to manage your business in your absence. Assign responsibilities as per the skills of each individual. Authorize them to make routine decisions when you are not around. Moreover, empower your workforce to work as a team. Building team spirit is necessary to propel your business in the right direction. But make sure that you have do not have too many people in your team. As the founder of Amazon, Jeff Bezos says that apply the “two-pizza rule”, which means that the teams should be small enough to feed with only two pizzas. Teamwork also leads to increasing the efficiency and effectiveness of your business operations. As a result, it increases the overall productivity. If you create such a work environment, then you can concentrate your efforts more towards other companies.
When you run multiple companies, it is necessary to have a proper control mechanism. Weekly or monthly reports of each company will give you a fair idea on the functioning of each company. The company reports help you keep a track on if everything within the company is running smoothly. Moreover, these reports act a control mechanism to spot any deviation. The detection of any deviation or error can be rectified at the earliest.
Systemize the Business Operations
The use of systems and sub-systems in business operations brings in a lot of conveniences. When you systemize your business operations, it looks after some tasks which you do repeatedly. It also helps in maintaining standards within each company. Some common systems used by companies include the creation of email template for common inquiries, setting up folder structures, and working through checklists. The use of automated systems reduces the time taken for certain activity or process. As the owner, you are able to concentrate on other important tasks. The routine tasks are taken care by these systems even when you are unable at the office.
The use of systems assists in providing better customer relationship management as well. Due to which there is a regular communication between your customers and clients. Thus, you do not need to keep a constant check on your customers. The automation system will take care of the customer needs and ensure it comes up with a proper solution to their problems. For example, if you are running an e-commerce website, the automated system looks into all the necessary tasks relating to payment systems, and delivery options quickly.
Apart from systemizing your business operations, you can outsource certain business processes. As you venture into new businesses, your company may not have the required resources or capabilities to match the industry standards. Moreover, if you lack skilled labor and the process is costly and time-consuming for you, then it is better to outsource it from an expert who will do the same work at reduced cost and time. Certain activities which you can outsource include bookkeeping and accountancy services, website development, recruitment of employees and many others. When you run multiple companies it is difficult to be an expert in every field. This is when outsourcing fills the gaps.
One of the ways to run multiple companies smoothly is by forming a partnership or collaborating with other business. When you form partnership the workload gets distributed between partners. This provides you with more time and thus enables you to manage other companies. Another reason to form a partnership is because your partners may have good knowledge about the particular industry in which you have set up your new business. This also reduces the amount of time you spend on research and fastens the decision-making process. Choose your partnership that will you long term benefits.
Close Down Unprofitable Business
It is better to close an unprofitable business before the losses eat into your other businesses. Such businesses drain away the company resources and in the process affect the total revenues from all your companies. So do not hang on to a business that is not doing well. Moreover, you would be able to manage and give time for other businesses that are doing well. An inefficient business would only give you more headaches and affect your work quality in other businesses as well. Also, giving enough time for other businesses will help you excel in other businesses. Thus, you would be able to open and run multiple companies in future.
Taking all these points into account will assist you to manage multiple companies and succeed in due course. Make sure that you collect all the required information before starting a new business venture. Conduct a thorough analysis of the business environment. You may take help of some successful Canadian professionals who already manage multiple companies. This will give you a better idea about how you can run your companies smoothly and effectively. If you need more information on how to manage multiple businesses, then get in touch with a resource center in Canada.