Sometimes the best new business ideas are right under your nose. If you’re like most entrepreneurs, once you’ve got your current business at a comfortable (and profitable) level, you’ll be itching to start something new. If you’ve already added a product or service to your existing business and its popularity has taken off, it may be time to start a spinoff business.
Before you embark on a whole new adventure:
- Consider your current business. Gather the staff of your current business and explain how much you will be absent and not involved with day-to-day operations while you’re starting the new business. Make sure everything is organized and running smoothly and that you have capable people to make decisions.
- Assess your expansion capital. Talk to your accountant to see if you can start a new business without draining all your assets and hurting your current business. What are your chances of obtaining a small business loan for the new venture?
- Don’t keep it a secret. Your best chance for success is to get customers right from the start, which means letting current and loyal customers know about your new business. Get them excited, ask them for their input and suggestions, and encourage them (and your employees) to spread the word about your new business.
- Plan for success. If the new business takes off, you’ll have a nice problem: having to run two successful businesses concurrently. Keep an eye out for promising CEO candidates who can head one of the businesses if need be.
- Get help. Make an appointment with your local SCORE office to run ideas by a SCORE mentor and get marketing advice and counseling on starting your spinoff business.