After finding success in a business venture, it can be tempting for entrepreneurs to start on a second or even a third business. Founding another business can be a great opportunity to leverage current skills and resources to explore a new industry, tackle the pain points of an entirely new target audience and reap financial benefits.
However, previous entrepreneurial experience does not guarantee that a new business venture will succeed. Before taking any concrete steps toward starting something new, it’s best to thoroughly consider what impact a new business will have on current business operations. Below, 17 Forbes Business Council members each share one question entrepreneurs should ask themselves before starting another business.
1. What is driving me?
A good question to ask is why are you being driven to start a new venture. What is your purpose and goal? It’s natural to want to build on success and innovate more but it’s wise to question the core purpose and reason for starting again. As with anything, business is a long game and the purpose must stand the test of time. Having a clear, enduring purpose ensures motivation and resilience through challenges. – John Graham Harper, LumaFlex
2. Am I passionate about this new venture?
Passion is essential, as it fuels motivation and resilience through the inevitable challenges of starting a new business. When you’re truly passionate about what you do, it brings clarity and helps you stay focused even when times get tough. This passion keeps us going and sets a solid foundation by establishing strong core values. Your heart must be in it. – Adam Povlitz, Anago Cleaning Systems
3. Is this about money or legacy?
Determine whether this new venture is about money or building a lasting legacy. If short-term financial gain is the goal, diversifying may make sense. If you aim to leave an enduring mark, going deep on your core business is often better than going broad. Focusing on your true goal lets you build something meaningful that stands the test of time. Pursue new paths strategically, not at the expense of cementing your legacy. – Raghunandan Gurumurthy, Crossover Solutions
4. Will this venture complement my existing business portfolio?
Every new business you start should be connected to your current venture with regard to your skills, knowledge and know-how. You should ask yourself whether this new opportunity complements your existing business portfolio or deviates from your goals. A good strategy can create great synergy and lead to scaling, development and competitive advantages for all your initiatives. – Nikola Minkov, Serpact
5. Does this venture align with my strengths and passions?
Before embarking on another entrepreneurial endeavor, ask if this venture aligns with your core strengths and passions. This question delves beyond the allure of new ventures, guiding entrepreneurs to assess whether their expertise and enthusiasm align with the new opportunity. Staying true to what drives you increases the likelihood of success and fulfillment in your next venture. – Jim Stevenson, Bletchley Group
6. Do I have the capacity to balance my current business and a new one?
Before starting another business, entrepreneurs should ask, “Do I have the capacity—both time and resources—to fully commit to this new venture without compromising my current business?” This question is vital because launching a new venture demands significant dedication. Spreading oneself too thin can dilute efforts and jeopardize the success of both the new business and any existing ones. – Serge Guzenko, WEZOM
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7. What problem am I solving?
“What problem am I solving for my customers?” is a question every entrepreneur should ask before starting a new business. It is very important to identify the pain point that you wish to address. Having a clear understanding of the customer’s problems will help you immensely during product or service development. You can also narrow down your target audience if you have a clear answer. – Sabeer Nelliparamban, Tyler Petroleum Inc / ZilBank
8. Do I understand the problem and my target audience?
Before launching a new business, entrepreneurs need to understand the specific problem they’re addressing and who their target customers are. This clarity helps in creating a compelling value proposition and guides product development, marketing strategies and business planning. Recognizing a genuine market need is crucial for establishing a thriving business. – Oluwabusuyi Fakanlu, COMFORT ARCHITECTURAL FINISHING LIMITED
9. Can I dedicate the necessary time and resources?
One important question entrepreneurs should ask themselves before starting another business is, “Am I able to dedicate enough time and resources to ensure the success of this new venture?” It’s crucial because starting a new business requires a significant amount of time, effort and resources. – Raymond Grand, JRG Funding LLC
10. Can I acquire the necessary resources quickly enough?
It would be wise for entrepreneurs to be self-aware enough to consider and objectively inquire about the speed at which they’d be able to acquire resources to help drive customer acquisition and allow for the delegation of efficient operations. Time is finite, so one’s own mental abilities to encapsulate both solitude and purposeful action can be helpful for making a final decision on whether to pursue another business. – Paul L. Gunn, Jr., KUOG Corporation
11. Who can work with me on this venture?
Entrepreneurs should ask who they can place over this business or collaborate with to ensure its success. You may know someone who has more experience in the industry in which you’re starting your new business venture. If your businesses have synergies, working together will benefit both of you. – Joseph Kimbrough, Apex Real Estate Investments
12. Will my current business be okay if I step away?
When considering another venture, the first question should be whether the current business will continue to succeed and excel if you step away. This is crucial because there are only so many hours in a day, so you don’t want to jeopardize what you’ve already accomplished. – Raquel Gomes, Stafi
13. Can I effectively manage multiple ventures?
“Do I have the resources and bandwidth to effectively manage multiple ventures?” Starting a new business requires significant time, energy and financial resources. Without adequate capacity to manage both ventures, an entrepreneur risks spreading themselves too thin, which can negatively impact the performance and success of all their businesses. – Eran Mizrahi, ingredient brothers
14. Does this align with my values and long-term goals?
Before launching another business, an entrepreneur should ask, “Does this new venture align with my values and long-term goals?” This question ensures that their efforts contribute meaningfully to their overarching vision, maintaining focus and preventing dilution of their brand and resources. Aligning new ventures with core values and goals guarantees sustained passion and strategic growth. – Aleesha Webb, Pioneer Bank
15. Can I sustain multiple ventures?
Before starting another business, entrepreneurs should ask, “Do I have the resources and focus to sustain multiple ventures without compromising the success of my current business?” This question is crucial because spreading resources too thin can jeopardize existing success and dilute efforts. Ensuring strong foundations and adequate resources for each venture maximizes the chances of success. – Trey Ferro, Spot Pet Insurance
16. Can I devote enough attention to a new venture?
Before starting another business, ask “Do I have the bandwidth to give this new venture the attention it needs?” This question ensures entrepreneurs can maintain the quality and focus required for success without overextending themselves. I have had to answer this question several times; sometimes I’ve gotten it right and other times I’ve underestimated the time needed for the new company. – Stephen Sokoler, Journey
17. Should I do this again?
Just thinking about the amount of drive, persistence and resources that entrepreneurs are putting into their ventures, serial entrepreneurs are fascinating. Before starting my second venture, I spent some time deliberating whether I could go through it all again or if I should take a different route. Finding your inner “why” before identifying the customers’ “why” will allow you to build with purpose if building is what motivates you. – Ioana Dragomir, AnaApp
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