There are two types of individuals in business, There’s the business owner, who starts and runs a single business in perpetuity. Then there’s the serial entrepreneur, the individual who gets a rush out of making something out of nothing, building it to an exit, and starting over again.
Theres is a distinct advantage to starting more than one company in your lifetime, here are a few reasons why:
Multiple businesses provide multiple streams of income
Even more than the rush of starting a new business, the rush of generating multiple streams of income is just as great. The average millionare has 7 streams of income, which means he/she is involved in at least 7 other types of businesses. You dont have to start 7 businesses, you can invest in a business and generate passive income from that equity stake.
Multiple businesses allow you to keep your creativity fresh
Serials entrepreneurs get the most thrill out of starting and scaling a new business, but things can get stale once the business is in its “autopilot” phase. Starting another venture helps keep your creativity fresh and your hunger fed.
You waste your experience by not starting another business
Theres always something to be learned in each endeavor, that knowledge also makes you a better entrepreneur, You’re wasting that experience gained by not applying it to fresh ideas.
You can build each new business faster than the previous one
Piggybacking off of the last reason, your experiences make the road to certain milestones shorter because you’ve encountered the pitfalls at various stages and know how to avoid them.
Multiple businesses expands your network (and possibly your net worth)
Each new business brings a new set of individuals that you can add to your personal network. This expanded network is beneficial to future success and future deal flow.
More businesses + More experiences = More influence
Money is great, but influence is just as powerful; having started several business you can use everything you’ve learned, wins and losses, coupled with an extensive network to build a powerful personal brand.
Your personal brand and influence can open doors to more opportunities and deals that will allow you to add to your network and net worth.
You can’t win if you don’t start
In summation, the more you do, the better at it you become. The more businesses you start, the better businessperson you become.