Why I Choose to Run 6 Businesses Instead of One (And How)

TL;DR

Running multiple businesses offers synergy, diversity, and personal growth.

Transcript

• In this video, I'm gonna give you five huge reasons why you should never start just one business. If you're an entrepreneur or at the early stages of starting off your entrepreneurial path, then this video is for you. My name is Matt Diggity. I'm the founder of Diggity Marketing, LeadSpring, Authority Builders, The Search Initiative, The Affiliat... Read More

Key Insights

• Running multiple businesses can create synergy, allowing each business to support and enhance the others through shared resources and knowledge.
• Diversity in business ventures provides stability and protection against risks, as different businesses may thrive under varying market conditions.
• Entrepreneurs can benefit from the ability to sell businesses, providing financial windfalls and freeing up resources for new ventures.
• Personal traits such as a love for variety and a builder mentality can motivate individuals to manage multiple businesses simultaneously.
• Experience from managing one business can streamline the process of starting and growing additional businesses, leveraging existing skills and networks.
• Partnerships are crucial for managing multiple businesses, allowing entrepreneurs to focus on their strengths while partners handle operations.
• Assigning responsibilities rather than tasks can empower employees, fostering ownership and pride in their work, leading to better results.
• Hiring only A-players can significantly enhance the growth and success of a business, ensuring high performance and innovation.

Questions & Answers

Q: What is the main benefit of running multiple businesses?

The main benefit of running multiple businesses is synergy. By having businesses that complement and support each other, entrepreneurs can leverage shared resources, knowledge, and customer bases, leading to increased efficiency and growth across all ventures.

Q: How does diversity in business ventures provide stability?

Diversity in business ventures provides stability by protecting against risks associated with market fluctuations. When one business faces challenges, another may thrive, ensuring a steady income stream. This approach aligns with the common saying that the average millionaire has multiple income streams.

Q: Why is the ability to sell businesses advantageous?

The ability to sell businesses is advantageous because it offers financial windfalls and frees up resources for new projects. Selling a business at a multiple of its annual profit can provide a significant monetary gain, allowing entrepreneurs to reinvest in other ventures or enjoy financial security.

Q: How do personal traits influence the decision to run multiple businesses?

Personal traits such as a love for variety and a builder mentality influence the decision to run multiple businesses. Entrepreneurs who enjoy tackling new challenges and starting ventures from scratch may find satisfaction in managing several businesses, keeping their work dynamic and engaging.

Q: What role do partnerships play in managing multiple businesses?

Partnerships play a crucial role in managing multiple businesses by allowing entrepreneurs to focus on their strengths while partners handle operations. This division of responsibilities ensures that each business receives the attention it needs while leveraging the expertise of each partner.

Q: How can assigning responsibilities improve business outcomes?

Assigning responsibilities rather than tasks can improve business outcomes by empowering employees to take ownership of their work. When employees understand the overall goals and have the autonomy to achieve them, they are more likely to take pride in their work and deliver better results.

Q: Why is hiring A-players important for business success?

Hiring A-players is important for business success because these individuals excel in their roles and drive innovation. A-players bring high performance, creativity, and leadership, which can significantly enhance a business's growth potential and competitive edge.

Q: What advice does Matt Diggity give to new entrepreneurs about starting multiple businesses?

Matt Diggity advises new entrepreneurs to focus on one business initially until it produces sufficient income to support their lifestyle. Once they gain experience and build a network, they can start additional businesses that synergize with the first, ensuring they can manage and grow them effectively.

Summary & Key Takeaways

• Matt Diggity explains the advantages of running multiple businesses, emphasizing synergy, diversity, and the ability to sell. He highlights the importance of partnerships and assigning responsibilities to employees for better results.

• The video discusses how personal traits like a love for variety and a builder mentality can drive entrepreneurs to manage multiple businesses. It also covers the benefits of experience in streamlining the process of starting new ventures.

• Key takeaways include the importance of partnerships, hiring A-players, and setting quantifiable goals for each business. Diggity advises focusing on scalable roles like marketing to apply skills across multiple ventures.